##### 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, 2010
 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
 
 YES o NO þ
 YES o NO þ
 YES
þ NO o.
 YES þ NO 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)
 YES o NO þ
   DOCUMENTS INCORPORATED BY REFERENCE




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##### 



Oritani Financial Corp.
2010 Annual Report on Form 10-K
 Index
 PagePart IItem 1. Business
    
    
    2Item 1A. Risk Factors
    
    
    36Item 1B. Unresolved Staff Comments
    
    
    40Item 2. Properties
    
    
    40Item 3. Legal Proceedings
    
    
    40Item 4. Reserved
    
    
    40Part IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
    
    
    41Item 6. Selected Financial Data
    
    
    43Item 7. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    44Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    60Item 8. Financial Statements and Supplemental Data
    
    
    60Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
    
    
    61Item 9A. Controls and Procedures
    
    
    61Item 9B. Other Information
    
    
    61Part IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    62Item 11. Executive Compensation
    
    
    62Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters
    
    
    62Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    62Item 14. Principal Accountant Fees and Services
    
    
    62Part IVItem 15. Exhibits and Financial Statement Schedules
    
    
    62Signatures
    
    
    108Exhibit 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 Form 8-K,
  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 30,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in thousands)Residential
    
    $
    244,126
    
    
    
    15.9
    %
    
    $
    265,962
    
    
    
    20.4
    %
    
    $
    223,087
    
    
    
    21.8
    
    
    $
    188,941
    
    
    
    24.6
    %
    
    $
    165,070
    
    
    
    25.3
    %Multi-family
    
    
    360,380
    
    
    
    23.5
    
    
    
    277,589
    
    
    
    21.3
    
    
    
    237,490
    
    
    
    23.2
    
    
    
    210,587
    
    
    
    27.4
    
    
    
    205,352
    
    
    
    31.5Commercial real estate
    
    
    760,076
    
    
    
    49.5
    
    
    
    562,138
    
    
    
    43.3
    
    
    
    359,681
    
    
    
    35.2
    
    
    
    240,544
    
    
    
    31.3
    
    
    
    173,856
    
    
    
    26.6Second mortgage and equity loans
    
    
    48,110
    
    
    
    3.1
    
    
    
    54,769
    
    
    
    4.2
    
    
    
    59,886
    
    
    
    5.8
    
    
    
    65,240
    
    
    
    8.5
    
    
    
    66,198
    
    
    
    10.2Construction and land loans
    
    
    102,137
    
    
    
    6.6
    
    
    
    130,831
    
    
    
    10.0
    
    
    
    138,195
    
    
    
    13.5
    
    
    
    62,704
    
    
    
    8.1
    
    
    
    38,722
    
    
    
    5.9Other loans
    
    
    21,753
    
    
    
    1.4
    
    
    
    10,993
    
    
    
    0.8
    
    
    
    4,880
    
    
    
    0.5
    
    
    
    1,140
    
    
    
    0.1
    
    
    
    3,291
    
    
    
    0.5Total loans
    
    
    1,536,582
    
    
    
    100.0
    %
    
    
    1,302,282
    
    
    
    100.1
    %
    
    
    1,023,219
    
    
    
    100.0
    
    
    
    769,156
    
    
    
    100.0
    %
    
    
    652,489
    
    
    
    100.0
    %Other items:Net deferred loan origination fees
    
    
    4,800
    
    
    
    
    
    
    
    2,979
    
    
    
    
    
    
    
    2,610
    
    
    
    
    
    
    
    1,732
    
    
    
    
    
    
    
    2,979Allowance for loan losses
    
    
    25,902
    
    
    
    
    
    
    
    20,680
    
    
    
    
    
    
    
    13,532
    
    
    
    
    
    
    
    8,882
    
    
    
    
    
    
    
    20,680Total loans, net
    
    $
    1,505,880
    
    
    
    
    
    
    $
    1,278,623
    
    
    
    
    
    
    $
    1,007,077
    
    
    
    
    
    
    $
    758,542
    
    
    
    
    
    
    $
    628,830
 Loan Portfolio Maturities and Yields.
 Conventional
    
    
    Multi-family
    
    
    Commercial
    
    
    Second Mortgage
    
    
    Construction and Land
    
    
    Other Loans
    
    
    TotalWeighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    AverageAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(Dollars in thousands)Due
During the Years Ending June 30,2011
    
    
    2,148
    
    
    
    6.48
    
    
    
    911
    
    
    
    6.15
    
    
    
    15,025
    
    
    
    6.18
    
    
    
    76
    
    
    
    5.39
    
    
    
    82,167
    
    
    
    7.18
    
    
    
    8,595
    
    
    
    3.56
    
    
    
    108,922
    
    
    
    6.732012
    
    
    3,494
    
    
    
    5.97
    
    
    
    2,512
    
    
    
    6.33
    
    
    
    33,114
    
    
    
    6.06
    
    
    
    208
    
    
    
    5.82
    
    
    
    12,939
    
    
    
    6.34
    
    
    
    130
    
    
    
    5.57
    
    
    
    52,397
    
    
    
    6.132013 to 2014
    
    
    11,492
    
    
    
    5.04
    
    
    
    5,146
    
    
    
    6.00
    
    
    
    59,922
    
    
    
    6.37
    
    
    
    2,593
    
    
    
    5.42
    
    
    
    1,362
    
    
    
    6.53
    
    
    
    10,996
    
    
    
    6.57
    
    
    
    91,511
    
    
    
    6.182015 to 2019
    
    
    25,156
    
    
    
    5.16
    
    
    
    92,878
    
    
    
    6.16
    
    
    
    352,421
    
    
    
    6.36
    
    
    
    11,709
    
    
    
    5.36
    
    
    
    1,807
    
    
    
    6.35
    
    
    
    68
    
    
    
    7.75
    
    
    
    484,039
    
    
    
    6.242020 to 2024
    
    
    27,362
    
    
    
    5.28
    
    
    
    96,831
    
    
    
    5.91
    
    
    
    144,956
    
    
    
    6.29
    
    
    
    12,947
    
    
    
    5.46
    
    
    
    
    
    
    
    0.00
    
    
    
    
    
    
    
    
    
    
    
    282,096
    
    
    
    6.022025 and beyond
    
    
    174,474
    
    
    
    5.74
    
    
    
    162,102
    
    
    
    6.00
    
    
    
    154,638
    
    
    
    6.54
    
    
    
    20,577
    
    
    
    5.74
    
    
    
    3,862
    
    
    
    6.32
    
    
    
    1,964
    
    
    
    6.39
    
    
    
    517,617
    
    
    
    6.07Total
    
    $
    244,126
    
    
    
    5.61
    %
    
    $
    360,380
    
    
    
    6.02
    %
    
    $
    760,076
    
    
    
    6.37
    %
    
    $
    48,110
    
    
    
    5.55
    %
    
    $
    102,137
    
    
    
    7.02
    %
    
    $
    21,753
    
    
    
    5.36
    %
    
    $
    1,536,582
    
    
    
    6.17
    %
  5




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##### Table of Contents



Due After June 30, 2011Fixed
    
    
    Adjustable
    
    
    Total(In thousands)First mortgage loan balances:Conventional one- to four-family
    
    $
    191,971
    
    
    $
    50,007
    
    
    $
    241,978Multi-family
    
    
    105,895
    
    
    
    253,574
    
    
    
    359,469Commercial estate Loans
    
    
    367,381
    
    
    
    377,671
    
    
    
    745,052Second mortgage and equity loans
    
    
    36,340
    
    
    
    11,694
    
    
    
    48,034Construction and land loans
    
    
    6,326
    
    
    
    13,643
    
    
    
    19,969Other loans
    
    
    2,633
    
    
    
    10,525
    
    
    
    13,158Total loans
    
    $
    710,546
    
    
    $
    717,114
    
    
    $
    1,427,660
 First Mortgage Loans:
 Conventional One- to Four-Family Residential Loans.
    6




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##### Table of Contents



Multi-Family 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 .
 At June 30,2010
    
    
    2009(1)
    
    
    2008(2)
    
    
    2007
    
    
    2006(Dollars in thousands)Non-accrual loans:First mortgage loan balances:Conventional
    
    $
    55
    
    
    $
    98
    
    
    $
    67
    
    
    $
    
    
    
    $
    458Multifamily
    
    
    
    
    
    
    6,291
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    17,835
    
    
    
    25,685
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    62
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    20,173
    
    
    
    20,391
    
    
    
    14,143
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total non-accrual loans
    
    $
    38,125
    
    
    $
    52,465
    
    
    $
    14,210
    
    
    $
    
    
    
    $
    458Loans greater than 90 days delinquent
and still accruing
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Total non-performing loans
    
    $
    38,125
    
    
    $
    52,465
    
    
    $
    14,210
    
    
    $
    
    
    
    $
    458Real estate owned
    
    
    3,031
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total non-performing assets
    
    $
    41,156
    
    
    $
    52,465
    
    
    $
    14,210
    
    
    $
    
    
    
    $
    458Ratios:Non-performing loans to total loans
    
    
    2.48
    %
    
    
    4.03
    %
    
    
    1.39
    %
    
    
    
    %
    
    
    0.07
    %Non-performing assets to total assets
    
    
    1.66
    %
    
    
    2.74
    %
    
    
    0.98
    %
    
    
    
    %
    
    
    0.04
    %
 
 (1)
    
    Two construction loans totaling $4.2 million were less than 60 days delinquent at
June 30, 2009 and were classified as non-accrual.(2)
    
    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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##### Table of Contents



Delinquent Loans
 Loans Delinquent For60-89 Days
    
    
    90 Days and Over
    
    
    TotalNumber
    
    
    Amount
    
    
    Number
    
    
    Amount
    
    
    Number
    
    
    Amount(Dollars in thousands)At June 30, 2010First mortgage loan balances:Conventional
    
    
    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, 2009First mortgage loan balances:Conventional
    
    
    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, 2008First mortgage loan balances:Conventional
    
    
    
    
    
    $
    
    
    
    
    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, 2007First mortgage loan balances:Conventional
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    1
    
    
    
    39
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    39Construction and land loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    1
    
    
    $
    39
    
    
    
    
    
    
    $
    
    
    
    
    1
    
    
    $
    39At June 30, 2006First mortgage loan balances:Conventional
    
    
    5
    
    
    $
    180
    
    
    
    2
    
    
    $
    348
    
    
    
    7
    
    
    $
    528Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    5
    
    
    $
    180
    
    
    
    2
    
    
    $
    348
    
    
    
    7
    
    
    $
    528
   11




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##### Table of Contents



Real Estate Owned
 Classified Assets.
   Classified Assets AtJune 30, 2010
    
    
    June 30, 2009
    
    
    June 30, 2008Number
    
    
    Amount
    
    
    Number
    
    
    Amount
    
    
    Number
    
    
    AmountSubstandard assets:First mortgage loan balances:Conventional
    
    
    1
    
    
    $
    55
    
    
    
    2
    
    
    $
    109
    
    
    
    3
    
    
    $
    85Multi-family loans
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    7,602
    
    
    
    
    
    
    
    Commercial real estate loans
    
    
    9
    
    
    
    25,219
    
    
    
    9
    
    
    
    28,827
    
    
    
    4
    
    
    
    14,375Construction and land loans
    
    
    11
    
    
    
    31,424
    
    
    
    4
    
    
    
    19,273
    
    
    
    
    
    
    
    Other loans
    
    
    2
    
    
    
    699
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    23
    
    
    $
    57,397
    
    
    
    20
    
    
    $
    55,811
    
    
    
    7
    
    
    $
    14,460
   12




---



##### Table of Contents



Impaired Loans
 Allowance for Loan Losses
    13




---



##### Table of Contents



Allowance for Loan Losses .
 At or For the Years Ended June 30,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(Dollars in thousands)Balance at beginning of period
    
    $
    20,680
    
    
    $
    13,532
    
    
    $
    8,882
    
    
    $
    7,672
    
    
    $
    6,172Charge-offs:First mortgage loan balances:Conventional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Multifamily
    
    
    16
    
    
    
    260
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    1,196
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    3,526
    
    
    
    2,250
    
    
    
    
    
    
    
    
    
    
    
    Other loans
    
    
    43
    
    
    
    222
    
    
    
    
    
    
    
    
    
    
    
    Total charge-offs
    
    
    4,781
    
    
    
    2,732
    
    
    
    
    
    
    
    
    
    
    
    Recoveries:First mortgage loan balances:Conventional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total recoveries
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net (charge-offs)
    
    
    (4,778
    )
    
    
    (2,732
    )
    
    
    
    
    
    
    
    
    
    
    Provision for loan losses
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650
    
    
    
    1,210
    
    
    
    1,500Balance at end of year
    
    $
    25,902
    
    
    $
    20,680
    
    
    $
    13,532
    
    
    $
    8,882
    
    
    $
    7,672Ratios:Net charge-offs to average loans
outstanding (annualized)
    
    
    0.35
    %
    
    
    0.23
    %
    
    
    
    %
    
    
    
    %
    
    
    
    %Allowance for loan losses to total
loans at end of period
    
    
    1.69
    %
    
    
    1.59
    %
    
    
    1.32
    %
    
    
    1.15
    %
    
    
    1.18
    %
 Allocation of Allowance for Loan Losses.
 At June 30,2010
    
    
    2009
    
    
    2008Percent of
    
    
    
    
    
    
    Percent of
    
    
    
    
    
    
    Percent ofAllowance
    
    
    Loans 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)First mortgage loan balances:Conventional
    
    $
    1,390
    
    
    
    15.9
    %
    
    $
    1,012
    
    
    
    20.4
    %
    
    $
    845
    
    
    
    21.8
    %Multifamily
    
    
    2,175
    
    
    
    23.5
    
    
    
    2,912
    
    
    
    21.3
    
    
    
    2,535
    
    
    
    23.2Commercial real estate
    
    
    15,295
    
    
    
    49.5
    
    
    
    9,683
    
    
    
    43.3
    
    
    
    5,560
    
    
    
    35.2Second mortgage and equity loans
    
    
    421
    
    
    
    3.1
    
    
    
    274
    
    
    
    4.2
    
    
    
    299
    
    
    
    5.8Construction and land loans
    
    
    4,595
    
    
    
    6.6
    
    
    
    5,791
    
    
    
    10.0
    
    
    
    3,883
    
    
    
    13.5Other loans
    
    
    482
    
    
    
    1.4
    
    
    
    268
    
    
    
    0.8
    
    
    
    92
    
    
    
    0.5Unallocated
    
    
    1,544
    
    
    
    
    
    
    
    740
    
    
    
    
    
    
    
    318
    
    
    
    Total
    
    $
    25,902
    
    
    
    100.0
    %
    
    $
    20,680
    
    
    
    100.0
    %
    
    $
    13,532
    
    
    
    100.0
    %
  14




---



##### Table of Contents



At June 30,2007
    
    
    2006Allowance
    
    
    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)First mortgage loan balances:Conventional
    
    $
    709
    
    
    
    24.6
    %
    
    $
    749
    
    
    
    25.3
    %Multifamily
    
    
    2,254
    
    
    
    27.4
    
    
    
    2,243
    
    
    
    31.5Commercial real estate
    
    
    3,889
    
    
    
    31.3
    
    
    
    2,591
    
    
    
    26.6Second mortgage and equity
loans
    
    
    326
    
    
    
    8.5
    
    
    
    312
    
    
    
    10.2Construction and land loans
    
    
    979
    
    
    
    8.1
    
    
    
    758
    
    
    
    5.9Other loans
    
    
    15
    
    
    
    0.1
    
    
    
    57
    
    
    
    0.5Unallocated
    
    
    710
    
    
    
    
    
    
    
    962
    
    
    
    Total
    
    $
    8,882
    
    
    
    100.0
    %
    
    $
    7,672
    
    
    
    100.0
    %
  Investments
     15




---



##### Table of Contents



U.S. Government and Federal Agency Obligations.
 Corporate Bonds
 Mutual Funds.
 Equity Securities.
 Mortgage-Backed Securities.
   16




---



##### Table of Contents



Securities Portfolios.
 Securities and Mortgage-Backed Securities Held to Maturity
 At June 30,2010
    
    
    2009
    
    
    2008Amortized
    
    
    
    
    
    
    Amortized
    
    
    
    
    
    
    AmortizedCost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value(In thousands)Mortgage-backed securities:Freddie Mac
    
    
    11,449
    
    
    
    12,015
    
    
    
    18,783
    
    
    
    19,063
    
    
    
    25,082
    
    
    
    24,902Ginnie Mae
    
    
    2,282
    
    
    
    2,316
    
    
    
    5,161
    
    
    
    5,157
    
    
    
    6,055
    
    
    
    6,040Fannie Mae
    
    
    21,593
    
    
    
    22,348
    
    
    
    31,329
    
    
    
    31,943
    
    
    
    42,066
    
    
    
    42,094Collateralized mortgage
obligations
    
    
    31,144
    
    
    
    31,943
    
    
    
    63,544
    
    
    
    64,218
    
    
    
    90,747
    
    
    
    89,636Total securities held to maturity
    
    $
    66,468
    
    
    $
    68,622
    
    
    $
    118,817
    
    
    $
    120,381
    
    
    $
    163,950
    
    
    $
    162,672
 Securities and Mortgage-Backed Securities Available for Sale
 At June 30,2010
    
    
    2009
    
    
    2008Amortized
    
    
    
    
    
    
    Amortized
    
    
    
    
    
    
    AmortizedCost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value(In thousands)United States Government and
federal agency obligations
    
    $
    347,470
    
    
    $
    349,959
    
    
    $
    134,754
    
    
    $
    134,837
    
    
    $
    10,000
    
    
    $
    9,865Corporate bonds
    
    
    2,000
    
    
    
    2,072
    
    
    
    2,000
    
    
    
    2,156
    
    
    
    2,000
    
    
    
    2,184Mutual funds
    
    
    4,671
    
    
    
    4,937
    
    
    
    5,636
    
    
    
    5,676
    
    
    
    7,782
    
    
    
    7,782Equity securities
    
    
    1,763
    
    
    
    1,755
    
    
    
    1,965
    
    
    
    1,750
    
    
    
    2,364
    
    
    
    2,454Mortgage-backed securities:Freddie Mac
    
    
    17,988
    
    
    
    19,061
    
    
    
    26,979
    
    
    
    27,875
    
    
    
    28,672
    
    
    
    28,837Fannie Mae
    
    
    22,869
    
    
    
    24,020
    
    
    
    27,023
    
    
    
    27,911
    
    
    
    31,084
    
    
    
    30,895Ginnie Mae
    
    
    
    
    
    
    
    
    
    
    2,537
    
    
    
    2,557
    
    
    
    3,134
    
    
    
    3,143Collateralized mortgage
obligations
    
    
    34,399
    
    
    
    35,396
    
    
    
    68,571
    
    
    
    70,260
    
    
    
    85,351
    
    
    
    86,334Total securities available for sale
    
    $
    431,160
    
    
    $
    437,200
    
    
    $
    269,465
    
    
    $
    273,022
    
    
    $
    170,387
    
    
    $
    171,494
  17




---



##### Table of Contents



Portfolio Maturities and Yields.
 More than One Year
    
    
    More than Five YearsOne Year or Less
    
    
    through Five Years
    
    
    through Ten Years
    
    
    More than Ten Years
    
    
    Total SecuritiesWeighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    
    
    
    
    WeightedAmortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    
    
    
    
    AverageCost
    
    
    Yield
    
    
    Cost
    
    
    Yield
    
    
    Cost
    
    
    Yield
    
    
    Cost
    
    
    Yield
    
    
    Cost
    
    
    Fair Value
    
    
    Yield(Dollars in thousands)Mortgage-backed securities:Freddie Mac
    
    $
    
    
    
    
    
    
    
    $
    2,706
    
    
    
    4.12
    %
    
    $
    73
    
    
    
    4.50
    %
    
    $
    8,670
    
    
    
    3.54
    %
    
    $
    11,449
    
    
    $
    12,015
    
    
    
    3.69
    %Ginnie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,282
    
    
    
    2.36
    
    
    
    2,282
    
    
    
    2,316
    
    
    
    2.36Fannie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21,593
    
    
    
    3.15
    
    
    
    21,593
    
    
    
    22,348
    
    
    
    3.15Collateralized mortgage obligations
    
    
    
    
    
    
    
    
    
    
    801
    
    
    
    4.00
    
    
    
    22,403
    
    
    
    3.85
    
    
    
    7,940
    
    
    
    4.29
    
    
    
    31,144
    
    
    
    31,943
    
    
    
    3.97Total securities held to maturity
    
    $
    
    
    
    
    
    
    
    $
    3,507
    
    
    
    4.09
    %
    
    $
    22,476
    
    
    
    3.85
    %
    
    $
    40,485
    
    
    
    3.41
    %
    
    $
    66,468
    
    
    $
    68,622
    
    
    
    3.60United States Government and federal
agency obligations
    
    $
    10,000
    
    
    
    3.32
    %
    
    $
    325,970
    
    
    
    2.61
    %
    
    $
    11,500
    
    
    
    3.00
    %
    
    $
    
    
    
    
    
    %
    
    $
    347,470
    
    
    $
    349,959
    
    
    
    2.65
    %Corporate bonds
    
    
    
    
    
    
    
    
    
    
    2,000
    
    
    
    8.09
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,000
    
    
    
    2,072
    
    
    
    8.09Mutual funds
    
    
    4,671
    
    
    
    3.54
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,671
    
    
    
    4,937
    
    
    
    3.54Equity securities
    
    
    1,763
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,763
    
    
    
    1,755
    
    
    
    Mortgage-backed securities:Freddie Mac
    
    
    3,811
    
    
    
    3.78
    
    
    
    2,075
    
    
    
    5.00
    
    
    
    5,761
    
    
    
    4.76
    
    
    
    6,341
    
    
    
    4.65
    
    
    
    17,988
    
    
    
    19,061
    
    
    
    4.54Fannie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,005
    
    
    
    4.60
    
    
    
    8,864
    
    
    
    4.89
    
    
    
    22,869
    
    
    
    24,020
    
    
    
    4.71Collateralized mortgage obligations
    
    
    
    
    
    
    
    
    
    
    5,288
    
    
    
    4.88
    
    
    
    19,018
    
    
    
    4.49
    
    
    
    10,093
    
    
    
    5.39
    
    
    
    34,399
    
    
    
    35,396
    
    
    
    4.81Total securities available for sale
    
    $
    20,245
    
    
    
    3.17
    %
    
    $
    335,333
    
    
    
    2.69
    %
    
    $
    50,284
    
    
    
    4.21
    %
    
    $
    25,298
    
    
    
    5.03
    %
    
    $
    431,160
    
    
    $
    437,200
    
    
    
    3.04
    %
  18




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##### Table of Contents



Sources of Funds
 General.
 Deposits.
    At June 30,2010
    
    
    2009Weighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    
    
    
    
    AverageBalance
    
    
    Percent
    
    
    Rate
    
    
    Balance
    
    
    Percent
    
    
    Rate(Dollars in thousands)Deposit type:Checking accounts
    
    $
    131,029
    
    
    
    10.16
    %
    
    
    0.71
    %
    
    $
    88,759
    
    
    
    7.87
    %
    
    
    0.90
    %Money market accounts
    
    
    297,540
    
    
    
    23.07
    
    
    
    1.07
    
    
    
    199,965
    
    
    
    17.73
    
    
    
    2.07Savings accounts
    
    
    146,675
    
    
    
    11.37
    
    
    
    0.68
    
    
    
    147,669
    
    
    
    13.10
    
    
    
    1.04Time deposits
    
    
    714,502
    
    
    
    55.40
    
    
    
    1.76
    
    
    
    691,237
    
    
    
    61.30
    
    
    
    2.84Total deposits
    
    $
    1,289,746
    
    
    
    100.00
    %
    
    
    1.37
    %
    
    $
    1,127,630
    
    
    
    100.00
    %
    
    
    2.32
    %
 At June 30,2008
    
    
    2007Weighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    
    
    
    
    AverageBalance
    
    
    Percent
    
    
    Rate
    
    
    Balance
    
    
    Percent
    
    
    Rate(Dollars in thousands)
    
    
    (Dollars in thousands)Deposit type:Checking accounts
    
    $
    73,949
    
    
    
    10.58
    %
    
    
    0.89
    %
    
    $
    75,510
    
    
    
    10.85
    %
    
    
    1.12
    %Money market accounts
    
    
    57,117
    
    
    
    8.17
    
    
    
    2.92
    
    
    
    41,029
    
    
    
    5.90
    
    
    
    4.00Savings accounts
    
    
    149,062
    
    
    
    21.33
    
    
    
    1.35
    
    
    
    156,670
    
    
    
    22.52
    
    
    
    1.56Time deposits
    
    
    418,804
    
    
    
    59.92
    
    
    
    3.84
    
    
    
    422,548
    
    
    
    60.73
    
    
    
    4.75Total deposits
    
    $
    698,932
    
    
    
    100.00
    %
    
    
    2.92
    %
    
    $
    695,757
    
    
    
    100.00
    %
    
    
    3.59
    %
  19




---



##### Table of Contents



AtJune 30, 2010(In thousands)Three months or less
    
    $
    83,635Over three months through six months
    
    
    67,953Over six months through one year
    
    
    41,966Over one year to three years
    
    
    75,973Over three years
    
    
    1,946Total
    
    $
    271,473
 Borrowings.
  At or For the Years Ended June 30,2010
    
    
    2009
    
    
    2008(Dollars in thousands)Balance at end of period
    
    $
    495,552
    
    
    $
    508,991
    
    
    $
    433,672Average balance during period
    
    $
    506,592
    
    
    $
    505,599
    
    
    $
    310,231Maximum outstanding at any month end
    
    $
    529,004
    
    
    $
    544,238
    
    
    $
    433,672Weighted average interest rate at end of period
    
    
    4.00
    %
    
    
    3.96
    %
    
    
    4.00
    %Average interest rate during period
    
    
    4.10
    %
    
    
    4.00
    %
    
    
    4.30
    %
 Subsidiary Activities and Joint Venture Information
      20




---



##### Table of Contents



Ormon LLC
  Investments in Real Estate
 Park Lane Associates
 Park View Apartments
 Winstead Village
 Parkway East
 Marine View Apartments
    21




---



##### Table of Contents



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
 10 Landing Lane
 FAO Hasbrouck Heights
  22




---



##### Table of Contents



FAO Terrace Associates
 FAO Gardens Associates
 River Villas Mews, LLC
   Hampshire Realty
  Book
    
    
    Year Ended June 30, 2010
    
    
    BookValue at
    
    
    Profit /
    
    
    Distributions
    
    
    Additional
    
    
    Value atProperty Name
    
    June 30, 2009
    
    
    (Loss)
    
    
    Received
    
    
    Investment
    
    
    June 30, 2010Real Estate Held For InvestmentOrmon, LLC  Undivided Interests in
Real EstatePark Lane
    
    $
    (428
    )
    
    $
    287
    
    
    $
    (345
    )
    
    $
    
    
    
    $
    (486
    )Park View
    
    
    (439
    )
    
    
    82
    
    
    
    (26
    )
    
    
    
    
    
    
    (383
    )Winstead Village
    
    
    (228
    )
    
    
    71
    
    
    
    (50
    )
    
    
    
    
    
    
    (207
    )Parkway East
    
    
    (334
    )
    
    
    77
    
    
    
    (85
    )
    
    
    
    
    
    
    (342
    )Marine View
    
    
    870
    
    
    
    267
    
    
    
    (247
    )
    
    
    
    
    
    
    890Ormon, LLC  Wholly Owned PropertiesPalisades Park(1)
    
    
    328
    
    
    
    480
    
    
    
    
    
    
    
    
    
    
    
    331Hillsdale(2)
    
    
    140
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    Real Estate Held For Investment SummaryAssets(1)
    
    $
    1,338
    
    
    $
    750
    
    
    $
    (247
    )
    
    $
    
    
    
    $
    1,221Liabilities
    
    $
    (1,429
    )
    
    $
    517
    
    
    $
    (506
    )
    
    $
    
    
    
    $
    (1,418
    )Investments in Joint VenturesOrmon, LLCOaklyn Associates
    
    $
    (203
    )
    
    $
    54
    
    
    $
    (50
    )
    
    $
    
    
    
    $
    (199
    )Madison Associates
    
    
    (23
    )
    
    
    56
    
    
    
    (80
    )
    
    
    
    
    
    
    (47
    )Brighton Court Associates
    
    
    142
    
    
    
    (20
    )
    
    
    (14
    )
    
    
    
    
    
    
    108Plaza 23 Associates
    
    
    3,326
    
    
    
    613
    
    
    
    (939
    )
    
    
    
    
    
    
    3,000Oritani, LLCRidge Manor Associates
    
    
    554
    
    
    
    5
    
    
    
    (54
    )
    
    
    
    
    
    
    505Van Buren Apartments
    
    
    167
    
    
    
    42
    
    
    
    (71
    )
    
    
    
    
    
    
    13810 Landing Lane
    
    
    18
    
    
    
    (127
    )
    
    
    (200
    )
    
    
    
    
    
    
    (309
    )FAO Hasbrouck Heights
    
    
    437
    
    
    
    (82
    )
    
    
    (33
    )
    
    
    
    
    
    
    322FAO Terrace Associates
    
    
    579
    
    
    
    12
    
    
    
    (22
    )
    
    
    
    
    
    
    569FAO Gardens
    
    
    443
    
    
    
    (8
    )
    
    
    (8
    )
    
    
    
    
    
    
    427River Villas Mews, LLC
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    388
    
    
    
    394Hampshire FinancialHampshire Realty
    
    
    119
    
    
    
    (13
    )
    
    
    (7
    )
    
    
    
    
    
    
    99Investments in Joint Ventures SummaryAssets
    
    $
    5,767
    
    
    $
    555
    
    
    $
    (1,148
    )
    
    $
    388
    
    
    $
    5,562Liabilities
    
    $
    (208
    )
    
    $
    (17
    )
    
    $
    (330
    )
    
    $
    
    
    
    $
    (555
    )
 
 (1)
    
    The book values for wholly owned properties represent the costs of the fixed
assets associated with the property, less accumulated depreciation.(2)
    
    Sold during fiscal year 2010.  23




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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.
  24




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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.
  25




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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, 2010Percent ofCapital
    
    
    Assets(1)(Dollars in thousands)Core capital
    
    
    387,439
    
    
    
    18.32
    %Tier 1 risk-based capital
    
    
    387,439
    
    
    
    23.53
    %Total risk-based capital
    
    
    408,206
    
    
    
    24.79
    %
 
 (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.   26




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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.
  27




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Activity Restrictions on State-Chartered Banks.
   Insurance of Deposit Accounts.
     28




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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.
  29




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Prohibitions Against Tying Arrangements.
 Privacy Standards.
   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.
    30




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##### Table of Contents



Loans to a Banks Insiders
 Federal Regulation.
   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.
  31




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##### Table of Contents




    
    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 OTS 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.
 The Dodd-Frank Act
    32




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##### Table of Contents



Holding Company Regulation
 General
 Permitted Activities
 (i)
    
    investing in the stock of a savings bank;
 (ii)
    
    acquiring a mutual association through the merger of such
association into a savings bank subsidiary of such holding company or an
interim savings bank subsidiary of such holding company;
  33




---



##### Table of Contents



(iii)
    
    merging with or acquiring another holding company, one of
whose subsidiaries is a savings bank;
 (iv)
    
    investing in a corporation, the capital stock of which is
available for purchase by a savings bank under federal law or under the law of
any state where the subsidiary savings bank or associations share their home
offices;
 (v)
    
    furnishing or performing management services for a savings bank
subsidiary of such company;
 (vi)
    
    holding, managing or liquidating assets owned or acquired from
a savings subsidiary of such company;
 (vii)
    
    holding or managing properties used or occupied by a savings
bank subsidiary of such company;
 (viii)
    
    acting as trustee under deeds of trust;
 (ix)
    
    any other activity:
   (x)
    
    any activity permissible for financial holding companies under
Section 4(k) of the Bank Holding Company Act, including securities and
insurance underwriting; and
 (xi)
    
    purchasing, holding, or disposing of stock acquired in
connection with a qualified stock issuance if the purchase of such stock by
such savings and loan holding company is approved by the Director.
   (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.
   34




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##### Table of Contents



Qualified Thrift Lender Test.
 Federal Securities Laws
   Sarbanes-Oxley Act of 2002
  FEDERAL AND STATE TAXATION
 Federal Taxation
 General .
 Method of Accounting .
 Bad Debt Reserves .
  35




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##### Table of Contents



Taxable Distributions and Recapture .
  Alternative Minimum Tax .
 Net Operating Loss Carryforwards .
 State Taxation
 New Jersey State 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.
  36




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##### Table of Contents



Our Continued Emphasis On Multi-Family, and Commercial Real Estate Lending Could Expose Us To
Increased Lending Risks.
    37




---



##### 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.
 th
  38




---



##### Table of Contents



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.
   Our Inability to Achieve Profitability on New Branches May Negatively Affect Our Earnings.
   39




---



##### 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
  
 ITEM 4.
    
    RESERVED
  40




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##### Table of Contents



PART II
 
 ITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
  For the Years Ended June 30,2010
    
    
    2009High
    
    
    Low
    
    
    Dividends
    
    
    High
    
    
    Low
    
    
    DividendsFirst Quarter
    
    $
    9.74
    
    
    $
    8.50
    
    
    
    0.03
    
    
    $
    13.41
    
    
    $
    10.33
    
    
    $
    Second Quarter
    
    
    9.67
    
    
    
    8.31
    
    
    
    0.05
    
    
    
    11.55
    
    
    
    8.83
    
    
    
    Third Quarter
    
    
    10.93
    
    
    
    8.40
    
    
    
    0.05
    
    
    
    11.36
    
    
    
    6.37
    
    
    
    Fourth Quarter
    
    
    11.43
    
    
    
    9.06
    
    
    
    0.05
    
    
    
    10.07
    
    
    
    8.49
    
    
    
    0.03
   Stock Performance Graph
   41




---



##### Table of Contents



Oritani Financial Corp.
 Total Return Performance
 
 Period EndingIndex
    
    01/24/07
    
    
    06/30/07
    
    
    12/31/07
    
    
    06/30/08
    
    
    12/31/08
    
    
    06/30/09
    
    
    12/31/09
    
    
    06/30/10Oritani Financial Corp.
    
    
    100.00
    
    
    
    89.48
    
    
    
    77.02
    
    
    
    100.19
    
    
    
    105.51
    
    
    
    85.85
    
    
    
    87.11
    
    
    
    96.13SNL Thrift MHC Index
    
    
    100.00
    
    
    
    94.43
    
    
    
    88.17
    
    
    
    88.10
    
    
    
    92.50
    
    
    
    80.08
    
    
    
    83.28
    
    
    
    87.37S&P 500 Index
    
    
    100.00
    
    
    
    105.25
    
    
    
    103.81
    
    
    
    91.44
    
    
    
    65.40
    
    
    
    67.47
    
    
    
    82.71
    
    
    
    77.21NASDAQ Bank
    
    
    100.00
    
    
    
    94.23
    
    
    
    79.65
    
    
    
    61.34
    
    
    
    60.59
    
    
    
    46.22
    
    
    
    49.38
    
    
    
    50.28NASDAQ Composite
    
    
    100.00
    
    
    
    105.55
    
    
    
    107.54
    
    
    
    92.97
    
    
    
    63.94
    
    
    
    74.41
    
    
    
    92.01
    
    
    
    85.52
 *
    
    Source: SNL Financial LC, Charlottesville, VA    42




---



##### Table of Contents



ITEM 6.
    
    SELECTED FINANCIAL DATA
  At June 30,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(In thousands)Selected Financial Condition Data:Total assets
    
    $
    2,477,420
    
    
    $
    1,913,521
    
    
    $
    1,443,294
    
    
    $
    1,194,443
    
    
    $
    1,031,421Loans, net
    
    
    1,505,880
    
    
    
    1,278,623
    
    
    
    758,542
    
    
    
    758,542
    
    
    
    643,064Securities available for sale, at market value
    
    
    358,723
    
    
    
    144,419
    
    
    
    35,443
    
    
    
    35,443
    
    
    
    10,499Securities held to maturity
    
    
    
    
    
    
    
    
    
    
    5,415
    
    
    
    5,415
    
    
    
    13,415Mortgage-backed securities held to maturity
    
    
    66,468
    
    
    
    118,817
    
    
    
    217,406
    
    
    
    217,406
    
    
    
    274,695Mortgage-backed securities available for sale, at
market value
    
    
    78,477
    
    
    
    128,603
    
    
    
    38,793
    
    
    
    38,793
    
    
    
    17,426Bank owned life insurance
    
    
    30,529
    
    
    
    29,385
    
    
    
    25,365
    
    
    
    25,365
    
    
    
    24,381Federal Home Loan Bank of New York stock, at cost
    
    
    25,081
    
    
    
    25,549
    
    
    
    10,619
    
    
    
    10,619
    
    
    
    9,367Accrued interest receivable
    
    
    9,425
    
    
    
    7,967
    
    
    
    4,973
    
    
    
    4,973
    
    
    
    3,910Investments in real estate joint ventures, net
    
    
    5,562
    
    
    
    5,767
    
    
    
    6,200
    
    
    
    6,200
    
    
    
    6,233Real estate held for investment
    
    
    1,221
    
    
    
    1,338
    
    
    
    2,492
    
    
    
    2,492
    
    
    
    2,223Deposits
    
    
    1,289,746
    
    
    
    1,127,630
    
    
    
    695,757
    
    
    
    695,757
    
    
    
    688,646Borrowings
    
    
    495,552
    
    
    
    508,991
    
    
    
    196,661
    
    
    
    196,661
    
    
    
    169,780Stockholders equity
    
    
    643,393
    
    
    
    240,098
    
    
    
    272,570
    
    
    
    272,570
    
    
    
    150,135Selected Operating Data:Interest income
    
    $
    105,339
    
    
    $
    88,429
    
    
    $
    71,591
    
    
    $
    63,349
    
    
    $
    51,276Interest expense
    
    
    42,386
    
    
    
    44,500
    
    
    
    37,208
    
    
    
    32,829
    
    
    
    23,522Net interest income
    
    
    62,953
    
    
    
    43,929
    
    
    
    34,383
    
    
    
    30,520
    
    
    
    27,754Provision for loan losses
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650
    
    
    
    1,210
    
    
    
    1,500Net interest income after provision for loan losses
    
    
    52,953
    
    
    
    34,049
    
    
    
    29,733
    
    
    
    29,310
    
    
    
    26,254Other income
    
    
    5,486
    
    
    
    2,780
    
    
    
    4,936
    
    
    
    5,309
    
    
    
    4,560Other expense
    
    
    42,779
    
    
    
    27,257
    
    
    
    19,491
    
    
    
    25,249
    
    
    
    17,524Income before income tax expense
    
    
    15,660
    
    
    
    9,572
    
    
    
    15,178
    
    
    
    9,370
    
    
    
    13,290Income tax expense (benefit)
    
    
    7,296
    
    
    
    4,020
    
    
    
    6,218
    
    
    
    (1,664
    )
    
    
    4,827Net income
    
    $
    8,364
    
    
    $
    5,552
    
    
    $
    8,960
    
    
    $
    11,034
    
    
    $
    8,463
  43




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##### Table of Contents



At or For the Years Ended June 30,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Selected Financial Ratios and Other Data:Performance Ratios:Return on assets (ratio of net income to average total
assets)
    
    
    0.41
    %
    
    
    0.33
    %
    
    
    0.68
    %
    
    
    0.94
    %
    
    
    0.81
    %Return on equity (ratio of net income to average equity)
    
    
    3.26
    %
    
    
    2.20
    %
    
    
    3.21
    %
    
    
    5.48
    %
    
    
    5.77
    %Average interest rate spread (1)
    
    
    2.99
    %
    
    
    2.36
    %
    
    
    2.06
    %
    
    
    2.23
    %
    
    
    2.42
    %Net interest margin (2)
    
    
    3.25
    %
    
    
    2.77
    %
    
    
    2.77
    %
    
    
    2.73
    %
    
    
    2.77
    %Efficiency ratio (3)
    
    
    48.22
    %
    
    
    58.35
    %
    
    
    49.59
    %
    
    
    70.47
    %
    
    
    54.23
    %Non-interest expense to average total assets
    
    
    2.11
    %
    
    
    1.63
    %
    
    
    1.49
    %
    
    
    2.14
    %
    
    
    1.68
    %Average interest-earning assets to average
interest-bearing liabilities
    
    
    111.83
    %
    
    
    114.47
    %
    
    
    123.59
    %
    
    
    117.00
    %
    
    
    115.05
    %Asset Quality Ratios:Non-performing assets to total assets
    
    
    1.66
    %
    
    
    2.74
    %
    
    
    0.98
    %
    
    
    
    %
    
    
    0.04
    %Non-performing loans to total loans
    
    
    2.48
    %
    
    
    4.03
    %
    
    
    1.39
    %
    
    
    
    %
    
    
    0.07
    %Allowance for loan losses to total loans
    
    
    1.69
    %
    
    
    1.59
    %
    
    
    1.32
    %
    
    
    1.15
    %
    
    
    1.18
    %Capital Ratios:Total capital (to risk-weighted assets)
    
    
    39.66
    %
    
    
    19.15
    %
    
    
    27.78
    %
    
    
    34.87
    %
    
    
    26.98
    %Tier I capital (to risk-weighted assets)
    
    
    38.40
    %
    
    
    17.90
    %
    
    
    26.53
    %
    
    
    33.77
    %
    
    
    25.73
    %Tier I capital (to average assets)
    
    
    31.58
    %
    
    
    14.31
    %
    
    
    19.71
    %
    
    
    23.10
    %
    
    
    14.39
    %Other Data:Number of full service offices
    
    
    22
    
    
    
    21
    
    
    
    19
    
    
    
    19
    
    
    
    19Full time equivalent employees
    
    
    179
    
    
    
    174
    
    
    
    155
    
    
    
    144
    
    
    
    143
 
 (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 disposition. 
 ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Business Strategy
   Continuing to focus on multi-family, and commercial real estate lending
   44




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Reduce Problem Assets and aggressively remedy delinquent loans
 Maintain and increase core deposits
 Expand our market share within our primary market area
  45




---



##### Table of Contents



Continue to emphasize operating efficiencies and cost control
 Critical Accounting Policies
  Allowance for Loan Losses
     46




---



##### Table of Contents



Deferred Income Taxes
 Asset Impairment Judgments
  47




---



##### Table of Contents



Stock-Based Compensation
   Compensation: Stock Compensation
  48




---



##### Table of Contents



Comparison of Financial Condition at June 30, 2010 and June 30, 2009
 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
 Deposits
 Borrowings
 Stockholders equity
  49




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##### Table of Contents



Comparison of Operating Results for the Years Ended June 30, 2010 and June 30, 2009
 Net Income
 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.  50




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Total interest income
 Interest Expense.
 Net interest income.
  Provision for Loan Losses.
  51




---



##### Table of Contents



Delinquency Totals
 06/30/10
    
    
    06/30/09
    
    
    06/30/08
    
    
    06/30/0730  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
   
 
 
 
  52




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##### Table of Contents




 Other Income .
 Operating Expenses.
 Income Taxes.
 Comparison of Operating Results for the Years Ended June 30, 2009 and June 30, 2008
 Net Income
 Total interest income
  53




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##### Table of Contents



Interest Expense.
 Net interest income.
 Provision for Loan Losses.
  Delinquency Totals
 06/30/09
    
    
    06/30/08
    
    
    06/30/0730  59 days past due
    
    $
    6,727
    
    
    $
    27,985
    
    
    $
    55560  89 days past due
    
    
    17,825
    
    
    
    18
    
    
    
    39Non-accrual
    
    
    52,465
    
    
    
    14,210
    
    
    
    Total
    
    $
    77,017
    
    
    $
    42,213
    
    
    $
    594
 Other Income .
  54




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##### Table of Contents



Operating Expenses.
 Income Taxes.
  55




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##### Table of Contents



Average Balances and Yields.
 For the Years Ended June 30,2010
    
    
    2009
    
    
    2008Average
    
    
    
    
    
    
    
    
    
    
    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)
    
    $
    1,380,040
    
    
    $
    87,373
    
    
    
    6.33
    %
    
    $
    1,181,385
    
    
    $
    72,158
    
    
    
    6.11
    %
    
    $
    858,223
    
    
    $
    55,053
    
    
    
    6.41
    %Securities available for sale at market value
    
    
    291,225
    
    
    
    8,360
    
    
    
    2.87
    
    
    
    67,479
    
    
    
    2,468
    
    
    
    3.66
    
    
    
    34,464
    
    
    
    1,716
    
    
    
    4.98Securities held to maturity
    
    
    25,506
    
    
    
    1,343
    
    
    
    5.27
    
    
    
    24,937
    
    
    
    1,069
    
    
    
    4.29
    
    
    
    19,192
    
    
    
    999
    
    
    
    5.21Mortgage-backed securities available for
sale at market value
    
    
    104,882
    
    
    
    4,840
    
    
    
    4.61
    
    
    
    145,713
    
    
    
    7,046
    
    
    
    4.84
    
    
    
    91,060
    
    
    
    4,710
    
    
    
    5.17Mortgage-backed securities held to maturity
    
    
    89,360
    
    
    
    3,252
    
    
    
    3.64
    
    
    
    142,484
    
    
    
    5,615
    
    
    
    3.94
    
    
    
    192,007
    
    
    
    7,409
    
    
    
    3.86Federal Funds sold and short term investments
    
    
    47,931
    
    
    
    171
    
    
    
    0.36
    
    
    
    25,021
    
    
    
    73
    
    
    
    0.29
    
    
    
    45,292
    
    
    
    1,704
    
    
    
    3.76Total interest-earning assets
    
    
    1,938,974
    
    
    
    105,339
    
    
    
    5.43
    
    
    
    1,587,019
    
    
    
    88,429
    
    
    
    5.57
    
    
    
    1,240,238
    
    
    
    71,591
    
    
    
    5.77Non-interest-earning assets
    
    
    92,118
    
    
    
    
    
    
    
    
    
    
    
    84,535
    
    
    
    
    
    
    
    
    
    
    
    69,806Total assets
    
    $
    2,031,092
    
    
    
    
    
    
    
    
    
    
    $
    1,671,554
    
    
    
    
    
    
    
    
    
    
    $
    1,310,044Interest-bearing liabilities:Savings accounts
    
    $
    156,444
    
    
    
    1,279
    
    
    
    0.82
    %
    
    $
    144,810
    
    
    
    1,979
    
    
    
    1.37
    %
    
    $
    151,068
    
    
    
    2,427
    
    
    
    1.61
    %Money market deposit accounts
    
    
    263,675
    
    
    
    3,784
    
    
    
    1.44
    
    
    
    103,932
    
    
    
    2,626
    
    
    
    2.53
    
    
    
    50,263
    
    
    
    1,730
    
    
    
    3.44Checking accounts
    
    
    110,393
    
    
    
    825
    
    
    
    0.75
    
    
    
    75,324
    
    
    
    628
    
    
    
    0.83
    
    
    
    71,176
    
    
    
    812
    
    
    
    1.14Time deposits
    
    
    696,732
    
    
    
    15,735
    
    
    
    2.26
    
    
    
    556,730
    
    
    
    19,029
    
    
    
    3.42
    
    
    
    420,787
    
    
    
    18,896
    
    
    
    4.49Total deposits
    
    
    1,227,244
    
    
    
    21,623
    
    
    
    1.76
    
    
    
    880,796
    
    
    
    24,262
    
    
    
    2.75
    
    
    
    693,294
    
    
    
    23,865
    
    
    
    3.44Borrowings
    
    
    506,592
    
    
    
    20,763
    
    
    
    4.10
    
    
    
    505,599
    
    
    
    20,238
    
    
    
    4.00
    
    
    
    310,231
    
    
    
    13,343
    
    
    
    4.30Total interest-bearing liabilities
    
    
    1,733,836
    
    
    
    42,386
    
    
    
    2.44
    %
    
    
    1,386,395
    
    
    
    44,500
    
    
    
    3.21
    %
    
    
    1,003,525
    
    
    
    37,208
    
    
    
    3.71
    %Non-interest-bearing liabilities
    
    
    41,032
    
    
    
    
    
    
    
    
    
    
    
    33,071
    
    
    
    
    
    
    
    
    
    
    
    27,438Total liabilities
    
    
    1,774,868
    
    
    
    
    
    
    
    
    
    
    
    1,419,466
    
    
    
    
    
    
    
    
    
    
    
    1,030,963Stockholders Equity
    
    
    256,224
    
    
    
    
    
    
    
    
    
    
    
    252,088
    
    
    
    
    
    
    
    
    
    
    
    279,081Total liabilities and Stockholders Equity
    
    $
    2,031,092
    
    
    
    
    
    
    
    
    
    
    $
    1,671,554
    
    
    
    
    
    
    
    
    
    
    $
    1,310,044Net interest income
    
    
    
    
    
    $
    62,953
    
    
    
    
    
    
    
    
    
    
    $
    43,929
    
    
    
    
    
    
    
    
    
    
    $
    34,383Net interest rate spread (2)
    
    
    
    
    
    
    
    
    
    
    2.99
    %
    
    
    
    
    
    
    
    
    
    
    2.36
    %
    
    
    
    
    
    
    
    
    
    
    2.06
    %Net interest-earning assets(3)
    
    $
    205,138
    
    
    
    
    
    
    
    
    
    
    $
    200,624
    
    
    
    
    
    
    
    
    
    
    $
    236,713Net interest margin (4)
    
    
    
    
    
    
    
    
    
    
    3.25
    %
    
    
    
    
    
    
    
    
    
    
    2.77
    %
    
    
    
    
    
    
    
    
    
    
    2.77
    %Ratio of interest-earning assets to
interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    111.83
    %
    
    
    
    
    
    
    
    
    
    
    114.47
    %
    
    
    
    
    
    
    
    
    
    
    123.59
    %
 
 (1)
    
    Includes nonaccrual loans.(2)
    
    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.(3)
    
    Net interest-earning assets represents total interest-earning assets less interest-bearing
liabilities.(4)
    
    Net interest margin represents net interest income as a percent of average interest-earning
assets for the period.  56




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##### Table of Contents



Rate/Volume Analysis
  Years Ended June 30,
    
    
    Years Ended June 30,2010 vs. 2009
    
    
    2009 vs. 2008Increase (Decrease)
    
    
    Total
    
    
    Increase (Decrease)
    
    
    TotalDue to
    
    
    Increase
    
    
    Due to
    
    
    IncreaseVolume
    
    
    Rate
    
    
    (Decrease)
    
    
    Volume
    
    
    Rate
    
    
    (Decrease)(In thousands)Interest-earning assets:Loans, net
    
    $
    12,134
    
    
    $
    3.081
    
    
    $
    15,215
    
    
    $
    20,730
    
    
    $
    (3,625
    )
    
    $
    17,105Securities available for sale
    
    
    8,184
    
    
    
    (2,292
    )
    
    
    5,892
    
    
    
    1,644
    
    
    
    (892
    )
    
    
    752Securities held to maturity
    
    
    24
    
    
    
    250
    
    
    
    274
    
    
    
    299
    
    
    
    (229
    )
    
    
    70Mortgage-backed securities available
for sale
    
    
    (1,974
    )
    
    
    (232
    )
    
    
    (2,206
    )
    
    
    2,827
    
    
    
    (491
    )
    
    
    2,336Mortgage-backed securities held to
maturity
    
    
    (2,094
    )
    
    
    (269
    )
    
    
    (2.363
    )
    
    
    (1,911
    )
    
    
    117
    
    
    
    (1,794
    )Federal Funds sold and short term
investments
    
    
    67
    
    
    
    31
    
    
    
    98
    
    
    
    (763
    )
    
    
    (868
    )
    
    
    (1,631
    )Total interest-earning assets
    
    
    16,341
    
    
    
    569
    
    
    
    16,910
    
    
    
    22,826
    
    
    
    (5,988
    )
    
    
    16,838Interest-bearing liabilities:Savings accounts
    
    
    159
    
    
    
    (859
    )
    
    
    (700
    )
    
    
    (101
    )
    
    
    (347
    )
    
    
    (448
    )Money market
    
    
    4,036
    
    
    
    (2,878
    )
    
    
    1,158
    
    
    
    1,847
    
    
    
    (951
    )
    
    
    896Checking accounts
    
    
    292
    
    
    
    (95
    )
    
    
    197
    
    
    
    47
    
    
    
    (231
    )
    
    
    (184
    )Time deposits
    
    
    4,785
    
    
    
    (8,079
    )
    
    
    (3,294
    )
    
    
    6,105
    
    
    
    (5,972
    )
    
    
    133Total deposits
    
    
    9,272
    
    
    
    (11,911
    )
    
    
    (2,639
    )
    
    
    7,898
    
    
    
    (7,501
    )
    
    
    397Borrowings
    
    
    40
    
    
    
    485
    
    
    
    525
    
    
    
    8,403
    
    
    
    (1,508
    )
    
    
    6,895Total interest-bearing liabilities
    
    
    9,312
    
    
    
    (11,426
    )
    
    
    (2,114
    )
    
    
    16,301
    
    
    
    (9,009
    )
    
    
    7,292Change in net interest income
    
    $
    7,029
    
    
    $
    11,995
    
    
    $
    19,024
    
    
    $
    6,525
    
    
    $
    3,021
    
    
    $
    9,546
 Management of Market Risk
 General
  (i)
    
    originating multi-family 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; and
 (iii)
    
    obtaining general financing through FHLB advances with either a fixed long
term or with call options that are considered unlikely.
  57




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Net Portfolio Value .
  NPV as a Percentage ofPresent Value of Assets (3)Change in Interest
    
    
    
    
    
    Estimated Increase
    
    
    
    
    
    
    IncreaseRates (basis
    
    Estimated
    
    
    (Decrease) in NPV
    
    
    
    
    
    
    (Decrease)points) (1)
    
    NPV (2)
    
    
    Amount
    
    
    Percent
    
    
    NPV Ratio (4)
    
    
    (basis points)(Dollars in thousands)+200
    
    
    622,045
    
    
    
    (61,956
    )
    
    
    (9.1
    )%
    
    
    25.6
    %
    
    
    (91
    )0
    
    
    684,001
    
    
    
    
    
    
    
    
    
    
    
    26.5
    
    
    
    -100
    
    
    719,241
    
    
    
    35,240
    
    
    
    5.2
    
    
    
    27.1
    
    
    
    59
 
 (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.   Liquidity and Capital Resources
   58




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##### Table of Contents



(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
         59




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##### Table of Contents



Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
 Commitments.
 Contractual Obligations.
  Payments Due by PeriodLess than
    
    
    One to Three
    
    
    Three to Five
    
    
    More thanContractual Obligations
    
    One Year
    
    
    Years
    
    
    Years
    
    
    Five Years
    
    
    Total(In thousands)Federal Home Loan Bank advances
    
    $
    2,367
    
    
    $
    92,500
    
    
    $
    145,685
    
    
    $
    255,000
    
    
    $
    495,552Operating leases
    
    
    417
    
    
    
    598
    
    
    
    345
    
    
    
    293
    
    
    
    1,653Total
    
    $
    2,784
    
    
    $
    93,098
    
    
    $
    146,030
    
    
    $
    255,293
    
    
    $
    497,116Commitments to extend credit
    
    $
    77,000
    
    
    $
    1,700
    
    
    $
    
    
    
    $
    
    
    
    $
    78,700Unadvanced construction loans
    
    $
    28,506
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    28,506Unused lines of credit
    
    $
    39,308
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    39,308Commitments to purchase securities
    
    $
    10,000
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    10,000
 Impact of Inflation and Changing Prices
  
 ITEM 7A.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
  
 ITEM 8.
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
   60




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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
            
 ITEM 9B.
    
    OTHER INFORMATION
   61




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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, 2010 and 2009
 (C)
    
    Consolidated Statements of Income  Years ended June 30, 2010,
2009 and 2008
 (D)
    
    Consolidated Statements of Stockholders Equity  Years ended
June 30, 2010, 2009 and 2008
 (E)
    
    Consolidated Statements of Cash Flows  Years ended June 30,
2010, 2009 and 2008(F)
    
    Notes to Consolidated Financial Statements.
  62




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
     
  63




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
 Internal Control 
Integrated Framework
    Internal Control  Integrated Framework
  
  64




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 2010
    
    
    2009(Dollars in thousands)AssetsCash on hand and in banks
    
    $
    6,511
    
    
    $
    7,729Federal funds sold and short term investments
    
    
    339,828
    
    
    
    127,640Cash and cash equivalents (note 3)
    
    
    346,339
    
    
    
    135,369Loans, net (notes 4 and 5)
    
    
    1,505,880
    
    
    
    1,278,623Securities available for sale, at fair value (notes 7 and 12)
    
    
    358,723
    
    
    
    144,419Mortgage-backed securities held to maturity,
fair value of $68,622 and $120,381 (notes 6 and 12)
    
    
    66,468
    
    
    
    118,817Mortgage-backed securities available for sale,
at fair value (notes 7 and 12)
    
    
    78,477
    
    
    
    128,603Bank Owned Life Insurance (at cash surrender value)
    
    
    30,529
    
    
    
    29,385Federal Home Loan Bank of New York stock, at cost
    
    
    25,081
    
    
    
    25,549Accrued interest receivable (note 8)
    
    
    9,425
    
    
    
    7,967Investments in real estate joint ventures, net
    
    
    5,562
    
    
    
    5,767Real estate held for investment
    
    
    1,221
    
    
    
    1,338Real estate owned
    
    
    3,031
    
    
    
    Office properties and equipment, net (note 9)
    
    
    14,832
    
    
    
    13,777Deferred tax assets, net (note 11)
    
    
    23,154
    
    
    
    20,690Other assets
    
    
    8,698
    
    
    
    3,217Total assets
    
    $
    2,477,420
    
    
    $
    1,913,521Liabilities and Stockholders EquityLiabilities:Deposits (note 10)
    
    $
    1,289,746
    
    
    $
    1,127,630Borrowings (note 12)
    
    
    495,552
    
    
    
    508,991Advance payments by borrowers for taxes and insurance
    
    
    11,060
    
    
    
    8,301Official checks outstanding
    
    
    4,742
    
    
    
    2,699Other liabilities (note 13)
    
    
    32,927
    
    
    
    25,802Total liabilities
    
    
    1,834,027
    
    
    
    1,673,423Stockholders Equity (notes 2 and 16):Preferred stock, $0.01 par value; 25,000,000 shares
authorized-none issued or outstanding
    
    
    
    
    
    
    Common stock, $0.01 par value; 150,000,000 shares authorized;
56,202,485 shares issued and outstanding at June 30, 2010.
80,000,000 shares authorized; 40,552,162 shares issued
and 37,133,684 shares outstanding at June 30,2009
    
    
    562
    
    
    
    130Additional paid-in capital
    
    
    488,684
    
    
    
    130,375Unallocated common stock held by the employee stock
ownership plan
    
    
    (30,033
    )
    
    
    (13,909
    )Treasury stock, at cost; 3,418,478 shares at June 30, 2009
    
    
    
    
    
    
    (53,418
    )Retained income (note 11)
    
    
    182,172
    
    
    
    176,199Accumulated other comprehensive income, net of tax
    
    
    2,008
    
    
    
    721Total stockholders equity
    
    
    643,393
    
    
    
    240,098Commitments and contingencies (notes 4 and 15)Total liabilities and stockholders equity
    
    $
    2,477,420
    
    
    $
    1,913,521
   65




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 2010
    
    
    2009
    
    
    2008(Dollars in thousands)Interest income:Interest on mortgage loans
    
    $
    87,373
    
    
    $
    72,158
    
    
    $
    55,053Interest on securities held to maturity and dividends on FHLB stock
    
    
    1,343
    
    
    
    1,069
    
    
    
    999Interest on securities available for sale
    
    
    8,360
    
    
    
    2,468
    
    
    
    1,716Interest on mortgage-backed securities held to maturity
    
    
    3,252
    
    
    
    5,615
    
    
    
    7,409Interest on mortgage-backed securities available for sale
    
    
    4,840
    
    
    
    7,046
    
    
    
    4,710Interest on federal funds sold and short term investments
    
    
    171
    
    
    
    73
    
    
    
    1,704Total interest income
    
    
    105,339
    
    
    
    88,429
    
    
    
    71,591Interest expense:Deposits (note 10)
    
    
    21,623
    
    
    
    24,262
    
    
    
    23,865Borrowings (note 12)
    
    
    20,763
    
    
    
    20,238
    
    
    
    13,343Total interest expense
    
    
    42,386
    
    
    
    44,500
    
    
    
    37,208Net interest
income before provision for losses on loans
    
    
    62,953
    
    
    
    43,929
    
    
    
    34,383Provision for loan losses (note 5)
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650Net interest income
    
    
    52,953
    
    
    
    34,049
    
    
    
    29,733Other income:Service charges
    
    
    1,477
    
    
    
    1,122
    
    
    
    1,126Real estate operations, net
    
    
    1,267
    
    
    
    1,294
    
    
    
    1,314Income from investments in real estate joint ventures
    
    
    538
    
    
    
    1,124
    
    
    
    1,192BOLI income
    
    
    1,144
    
    
    
    1,127
    
    
    
    1,060Net loss on sale and write down of securities
    
    
    (167
    )
    
    
    (2,045
    )
    
    
    (998
    )Gain on sale of real estate held for investment
    
    
    1,043
    
    
    
    
    
    
    
    1,096Other income
    
    
    184
    
    
    
    158
    
    
    
    146Total other income
    
    
    5,486
    
    
    
    2,780
    
    
    
    4,936Operating expenses:Compensation, payroll taxes and fringe benefits (notes 13 and 14)
    
    
    32,871
    
    
    
    18,670
    
    
    
    13,923Advertising
    
    
    665
    
    
    
    635
    
    
    
    470Office occupancy and equipment expense (notes 9 and 15)
    
    
    2,290
    
    
    
    2,088
    
    
    
    1,595Data processing service fees
    
    
    1,131
    
    
    
    1,069
    
    
    
    1,058Federal insurance premiums
    
    
    2,248
    
    
    
    1,774
    
    
    
    92Other expenses
    
    
    3,574
    
    
    
    3,021
    
    
    
    2,353Total operating expenses
    
    
    42,779
    
    
    
    27,257
    
    
    
    19,491Income before income tax expense
    
    
    15,660
    
    
    
    9,572
    
    
    
    15,178Income tax expense (note 11)
    
    
    7,296
    
    
    
    4,020
    
    
    
    6,218Net income
    
    $
    8,364
    
    
    $
    5,552
    
    
    $
    8,960Net income available to common stockholders
    
    $
    8,174
    
    
    $
    5,459
    
    
    $
    8,790Basic and fully diluted income per common share
    
    $
    0.15
    
    
    $
    0.10
    
    
    $
    0.15
   66




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##### Table of Contents



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, 2007
    
    $
    130
    
    
    $
    127,710
    
    
    $
    
    
    
    $
    (15,499
    )
    
    $
    161,300
    
    
    $
    (1,071
    )
    
    $
    272,570Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,960
    
    
    
    
    
    
    
    8,960Unrealized holding gain on securities available
for sale arising during year, net of tax $177
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    256
    
    
    
    256Reclassification adjustment for losses included in
net income, net of tax of $264
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    382
    
    
    
    382Change in funded status of retirement
obligations, net of tax of $61
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    92
    
    
    
    92Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,690Cumulative effect adjustment upon
adoption of FIN 48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    900
    
    
    
    
    
    
    
    900Purchase of treasury stock (547,650 shares)
    
    
    
    
    
    
    
    
    
    
    (5,926
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,926
    )Compensation cost for stock options
and restricted stock
    
    
    
    
    
    
    610
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    610ESOP shares allocated or committed
to be released
    
    
    
    
    
    
    336
    
    
    
    
    
    
    
    795
    
    
    
    
    
    
    
    
    
    
    
    1,131Balance 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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,651Cash 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
common 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
    
    
    $
    643,393
   67




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 2010
    
    
    2009
    
    
    2008(Dollars in thousands)Cash flows from operating activities:Net income
    
    $
    8,364
    
    
    $
    5,552
    
    
    $
    8,960Adjustments to reconcile net income to net cash provided by operating activities:ESOP and stock-based compensation expense
    
    
    12,392
    
    
    
    5,011
    
    
    
    1,741Depreciation of premises and equipment
    
    
    815
    
    
    
    701
    
    
    
    540(Accretion) amortization of premiums and discounts, net
    
    
    (155
    )
    
    
    62
    
    
    
    237Provision for losses on loans
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650Writedown of real estate owned
    
    
    437
    
    
    
    
    
    
    
    Amortization and accretion (deferred loan fees), net
    
    
    (913
    )
    
    
    (797
    )
    
    
    (779
    )Increase in deferred taxes
    
    
    (3,337
    )
    
    
    (4,438
    )
    
    
    (1,482
    )Impairment charge on securities
    
    
    202
    
    
    
    1,984
    
    
    
    998(Gain) loss on sale of securities
    
    
    (35
    )
    
    
    61
    
    
    
    Gain on sale of real estate held for investment
    
    
    (1,043
    )
    
    
    
    
    
    
    (1,096
    )Increase in cash surrender value of bank owned life insurance
    
    
    (1,144
    )
    
    
    (1,127
    )
    
    
    (1,060
    )Increase in accrued interest receivable
    
    
    (1,458
    )
    
    
    (2,321
    )
    
    
    (673
    )Increase in other assets
    
    
    (6,250
    )
    
    
    (1,125
    )
    
    
    (1,292
    )Increase in other liabilities
    
    
    9,923
    
    
    
    3,557
    
    
    
    2,041Net cash provided by operating activities
    
    
    27,798
    
    
    
    17,000
    
    
    
    12,785Cash flows from investing activities:Net increase in loans receivable
    
    
    (209,367
    )
    
    
    (243,561
    )
    
    
    (241,106
    )Purchase of mortgage loans
    
    
    (34,445
    )
    
    
    (37,068
    )
    
    
    (11,300
    )Proceeeds from sales of mortgage loans
    
    
    4,000
    
    
    
    
    
    
    
    Purchase of securities available for sale
    
    
    (443,246
    )
    
    
    (163,679
    )
    
    
    (17,718
    )Purchase of mortgage-backed securities available for sale
    
    
    (5,106
    )
    
    
    (11,257
    )
    
    
    (124,033
    )Redemption (purchase) of Federal Home Loan Bank of New York stock
    
    
    468
    
    
    
    (4,002
    )
    
    
    (10,928
    )Principal payments on mortgage-backed securities held to maturity
    
    
    42,737
    
    
    
    44,928
    
    
    
    53,083Principal payments on mortgage-backed securities available for sale
    
    
    49,170
    
    
    
    34,562
    
    
    
    14,710Proceeds from calls and maturities of securities held to maturity
    
    
    
    
    
    
    
    
    
    
    5,415Proceeds from calls and maturities of securities available for sale
    
    
    230,640
    
    
    
    38,895
    
    
    
    30,000Proceeds from sales of mortgage-backed securities held to maturity
    
    
    9,361
    
    
    
    
    
    
    
    Proceeds from sales of mortgage-backed securities available for sale
    
    
    6,087
    
    
    
    
    
    
    
    Proceeds from sales of securities available for sale
    
    
    1,000
    
    
    
    500
    
    
    
    Purchase of Bank Owned Life Insurance
    
    
    
    
    
    
    (1,833
    )
    
    
    Net increase in real estate held for investment
    
    
    (33
    )
    
    
    (1,445
    )
    
    
    (1,486
    )Proceeds from sale of real estate held for investment
    
    
    1,182
    
    
    
    
    
    
    
    1,159Net decrease (increase) in real estate joint ventures
    
    
    552
    
    
    
    (366
    )
    
    
    649Purchase of fixed assets
    
    
    (1,870
    )
    
    
    (1,500
    )
    
    
    (1,466
    )Net cash used by investing activities
    
    
    (348,870
    )
    
    
    (345,826
    )
    
    
    (303,021
    )Cash flows from financing activities:Net increase in deposits
    
    
    162,116
    
    
    
    428,698
    
    
    
    3,175Net proceeds from sale of common stock
    
    
    401,752
    
    
    
    
    
    
    
    Purchase of common stock for ESOP
    
    
    (17,134
    )
    
    
    
    
    
    
    Dividends paid to shareholders
    
    
    (2,830
    )
    
    
    
    
    
    
    Increase in advance payments by borrowers for taxes and insurance
    
    
    2,759
    
    
    
    1,277
    
    
    
    1,340Proceeds from borrowed funds
    
    
    43,475
    
    
    
    341,225
    
    
    
    244,885Repayment of borrowed funds
    
    
    (56,914
    )
    
    
    (265,906
    )
    
    
    (7,874
    )Purchase of treasury stock
    
    
    (1,231
    )
    
    
    (49,989
    )
    
    
    (5,926
    )Tax benefit from stock-based compensation
    
    
    49
    
    
    
    
    
    
    
    Net cash provided by (used in) financing
activities
    
    
    532,042
    
    
    
    455,305
    
    
    
    235,600Net (decrease) increase in cash and cash equivalents
    
    
    210,970
    
    
    
    126,479
    
    
    
    (54,636
    )Cash and cash equivalents at beginning of year
    
    
    135,369
    
    
    
    8,890
    
    
    
    63,526Cash and cash equivalents at end of year
    
    $
    346,339
    
    
    $
    135,369
    
    
    $
    8,890Supplemental cash flow information:Cash paid during the year for:Interest
    
    $
    42,633
    
    
    $
    44,262
    
    
    $
    36,296Income taxes
    
    
    12,685
    
    
    
    9,812
    
    
    
    9,583Noncash transfersLoans receivable transferred to real estate owned
    
    
    3,468
    
    
    
    
    
    
    
    RE Held for Investment transferred to Office, Property and Equipment
    
    
    
    
    
    
    3,690
    
    
    
    
   68




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (1)
    
    Summary of Significant Accounting Policies
 Principles of Consolidation
  Business
   Basis of Financial Statement Presentation
     69




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Securities
  Loans
     70




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Allowance for Loan Losses
   Troubled-Debt Restructuring
  Real Estate Owned
  Bank Owned Life Insurance
   71




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Federal Home Loan Bank of New York Stock
  Investments in Real Estate Joint Ventures, Net
  Real Estate Held for Investment
  Office Properties and Equipment
  Employee Benefit Plans
    72




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Employers Accounting for Employee Stock Ownership Plans
  Compensation-Retirement Benefits
 Compensation-Stock Compensation
 Income Taxes
 Income Taxes
 Comprehensive Income
   73




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Earnings Per Share
 Earnings Per Share
  Reclassifications
  (2)
    
    Stock Transactions
  (3)
    
    Cash and Cash Equivalents
   74




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (4)
    
    Loans
  2010
    
    
    2009(In thousands)First mortgage loans:Conventional one to four family
    
    
    244,126
    
    
    
    265,962Multifamily and commercial real estate
    
    
    1,120,456
    
    
    
    839,727Total first mortgage loans
    
    
    1,364,582
    
    
    
    1,105,689Second mortgage and equity loans
    
    
    48,110
    
    
    
    54,769Construction and land loans
    
    
    102,137
    
    
    
    130,831Other loans
    
    
    21,753
    
    
    
    10,9931,536,582
    
    
    
    1,302,282Less:Deferred fees, net
    
    
    4,800
    
    
    
    2,979Allowance for loan losses
    
    
    25,902
    
    
    
    20,680$
    1,505,880
    
    
    
    1,278,623
     75




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (5)
    
    Allowance for Loan Losses
  2010
    
    
    2009
    
    
    2008(In thousands)Balance at beginning of year
    
    $
    20,680
    
    
    
    13,532
    
    
    
    8,882Provisions charged to operations
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650Recoveries
    
    
    3
    
    
    
    
    
    
    
    Loans charged off
    
    
    4,781
    
    
    
    2,732
    
    
    
    Balance at end of year
    
    $
    25,902
    
    
    
    20,680
    
    
    
    13,532
    76




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (6)
    
    Securities and Mortgage-backed Securities Held to Maturity
  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
 Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)2009:Mortgage-backed securities:FHLMC
    
    $
    18,783
    
    
    
    287
    
    
    
    7
    
    
    
    19,063FNMA
    
    
    31,329
    
    
    
    616
    
    
    
    2
    
    
    
    31,943GNMA
    
    
    5,161
    
    
    
    16
    
    
    
    20
    
    
    
    5,157CMO
    
    
    63,544
    
    
    
    913
    
    
    
    239
    
    
    
    64,218$
    118,817
    
    
    
    1,832
    
    
    
    268
    
    
    
    120,381
    77




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   2009Less 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:FHLMC
    
    $
    805
    
    
    
    2
    
    
    
    1,012
    
    
    
    5
    
    
    
    1,817
    
    
    
    7FNMA
    
    
    845
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    845
    
    
    
    2GNMA
    
    
    
    
    
    
    
    
    
    
    2,009
    
    
    
    20
    
    
    
    2,009
    
    
    
    20CMO
    
    
    8,214
    
    
    
    43
    
    
    
    2,284
    
    
    
    196
    
    
    
    10,498
    
    
    
    239$
    9,864
    
    
    
    47
    
    
    
    5,305
    
    
    
    221
    
    
    
    15,169
    
    
    
    268
   78




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (7)
    
    Securities and Mortgage-Backed Securities Available for Sale
  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
 June 30, 2009Gross
    
    
    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
    
    $
    109,754
    
    
    
    525
    
    
    
    205
    
    
    
    110,074Due in five to ten years
    
    
    25,000
    
    
    
    7
    
    
    
    244
    
    
    
    24,763Corporate bondsDue in one year to five years
    
    
    2,000
    
    
    
    156
    
    
    
    
    
    
    
    2,156Mutual funds
    
    
    5,636
    
    
    
    40
    
    
    
    
    
    
    
    5,676Equity securities
    
    
    1,965
    
    
    
    15
    
    
    
    230
    
    
    
    1,750$
    144,355
    
    
    
    743
    
    
    
    679
    
    
    
    144,419Mortgage-backed securities:FHLMC
    
    $
    26,979
    
    
    
    945
    
    
    
    49
    
    
    
    27,875FNMA
    
    
    27,023
    
    
    
    889
    
    
    
    1
    
    
    
    27,911GNMA
    
    
    2,537
    
    
    
    21
    
    
    
    1
    
    
    
    2,557CMO
    
    
    68,571
    
    
    
    1,689
    
    
    
    
    
    
    
    70,260$
    125,110
    
    
    
    3,544
    
    
    
    51
    
    
    
    128,603
  79




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
      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
    
    $
    998
    
    
    
    82
    
    
    
    
    
    
    
    
    
    
    
    998
    
    
    
    82$
    998
    
    
    
    82
    
    
    
    
    
    
    
    
    
    
    
    998
    
    
    
    82Mortgage-backed
securities:FHLMC
    
    $
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    FNMA
    
    
    24,020
    
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    24,020
    
    
    
    41GNMA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    CMO
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    24,020
    
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    24,020
    
    
    
    41
  80




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  2009Less 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
    
    $
    79,202
    
    
    
    449
    
    
    
    
    
    
    
    
    
    
    
    79,202
    
    
    
    449Equity securities
    
    
    654
    
    
    
    230
    
    
    
    
    
    
    
    
    
    
    
    654
    
    
    
    230$
    79,856
    
    
    
    679
    
    
    
    
    
    
    
    
    
    
    
    79,856
    
    
    
    679Mortgage-backed
securities:FHLMC
    
    $
    4,501
    
    
    
    49
    
    
    
    
    
    
    
    
    
    
    
    4,501
    
    
    
    49FNMA
    
    
    1,801
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1,801
    
    
    
    1GNMA
    
    
    501
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    501
    
    
    
    1CMO
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    6,803
    
    
    
    51
    
    
    
    
    
    
    
    
    
    
    
    6,803
    
    
    
    51
   (8)
    
    Accrued Interest Receivable
  2010
    
    
    2009(In thousands)Mortgage loans
    
    $
    6,834
    
    
    $
    5,796Mortgage-backed securities
    
    
    515
    
    
    
    934Securities
    
    
    2,076
    
    
    
    1,237$
    9,425
    
    
    $
    7,967
  81




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (9)
    
    Office Properties and Equipment
  2010
    
    
    2009(In thousands)Cost:Land
    
    $
    4,171
    
    
    
    4,171Buildings
    
    
    10,074
    
    
    
    8,708Land and building improvements
    
    
    3,510
    
    
    
    3,147Leasehold improvements
    
    
    959
    
    
    
    718Furniture and equipment
    
    
    5,632
    
    
    
    5,222Construction in progress
    
    
    68
    
    
    
    61224,414
    
    
    
    22,578Less accumulated depreciation and amortization
    
    
    9,582
    
    
    
    8,801$
    14,832
    
    
    
    13,777
 ,
  (10)
    
    Deposits
  2010
    
    
    2009Weighted
    
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    
    averageAmount
    
    
    cost
    
    
    Amount
    
    
    cost(Dollars in thousands)Checking accounts
    
    $
    131,029
    
    
    
    0.71
    %
    
    $
    88,759
    
    
    
    0.90
    %Money market deposit accounts
    
    
    297,540
    
    
    
    1.07
    
    
    
    199,965
    
    
    
    2.07Savings accounts
    
    
    146,675
    
    
    
    0.68
    
    
    
    147,669
    
    
    
    1.04Time deposits
    
    
    714,502
    
    
    
    1.76
    
    
    
    691,237
    
    
    
    2.84$
    1,289,746
    
    
    
    1.37
    %
    
    $
    1,127,630
    
    
    
    2.32
    %
  82




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   2010
    
    
    2009
    
    
    2008(In thousands)Checking accounts
    
    $
    825
    
    
    
    628
    
    
    
    812Money market deposit accounts
    
    
    3,784
    
    
    
    2,626
    
    
    
    1,730Savings accounts
    
    
    1,279
    
    
    
    1,979
    
    
    
    2,427Time deposits
    
    
    15,735
    
    
    
    19,029
    
    
    
    18,896$
    21,623
    
    
    
    24,262
    
    
    
    23,865
  Year ending June 30:2011
    
    
    529,3722012
    
    
    152,0342013
    
    
    27,3562014
    
    
    2,9972015
    
    
    2,743$
    714,502
  (11)
    
    Income Taxes
  2010
    
    
    2009
    
    
    2008(In thousands)Current:Federal
    
    $
    8,976
    
    
    
    7,749
    
    
    
    7,210State
    
    
    1,657
    
    
    
    758
    
    
    
    490Total current
    
    
    10,633
    
    
    
    8,507
    
    
    
    7,700Deferred:Federal
    
    
    (2,876
    )
    
    
    (4,749
    )
    
    
    (2,724
    )State
    
    
    (461
    )
    
    
    262
    
    
    
    1,242Total deferred
    
    
    (3,337
    )
    
    
    (4,487
    )
    
    
    (1,482
    )Total income tax expense
    
    $
    7,296
    
    
    
    4,020
    
    
    
    6,218
  83




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   2010
    
    
    2009
    
    
    2008(In thousands)Income before provision for income taxes
    
    $
    15,660
    
    
    
    9,572
    
    
    
    15,178Applicable statutory federal income tax rate
    
    
    35
    %
    
    
    35
    %
    
    
    35
    %Computed expected federal income tax expense
    
    
    5,481
    
    
    
    3,350
    
    
    
    5,312Increase in federal income tax expense resulting from:State income taxes, net of federal benefit
    
    
    777
    
    
    
    663
    
    
    
    1,128Bank owned life insurance
    
    
    (400
    )
    
    
    (395
    )
    
    
    (371
    )ESOP fair market value adjustment
    
    
    93
    
    
    
    144
    
    
    
    118Non-deductible compensation
    
    
    1,225
    
    
    
    209
    
    
    
    26Other items, net
    
    
    120
    
    
    
    49
    
    
    
    5Total income tax expense
    
    $
    7,296
    
    
    
    4,020
    
    
    
    6,218
   84




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   2010
    
    
    2009(In thousands)Deferred tax assets:Allowance for loan and real estate owned losses
    
    $
    10,281
    
    
    
    8,448Reserve for uncollected interest
    
    
    367
    
    
    
    1,456Premises and equipment  differences in depreciation
    
    
    242
    
    
    
    265Pension
    
    
    6,348
    
    
    
    4,754Accrued/deferred compensation
    
    
    2,714
    
    
    
    2,088ESOP shares allocated or committed to be released
    
    
    1,190
    
    
    
    812Stock compensation
    
    
    2,128
    
    
    
    601Other than temporary loss on securities
    
    
    1,196
    
    
    
    1,317Charitable contribution carry forward
    
    
    2,287
    
    
    
    3,286Other
    
    
    361
    
    
    
    396Total gross deferred tax assets
    
    
    27,114
    
    
    
    23,423Less valuation reserve
    
    
    672
    
    
    
    655Total deferred tax asset
    
    
    26,442
    
    
    
    22,768Deferred tax liabilities:Unrealized gain on securities available for sale
    
    
    2,468
    
    
    
    1,465Deferred loan fees
    
    
    225
    
    
    
    280Other
    
    
    595
    
    
    
    333Total deferred tax liabilities
    
    
    3,288
    
    
    
    2,078Net deferred tax asset
    
    $
    23,154
    
    
    
    20,690
      85




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Income Taxes,
  (12)
    
    Borrowings
  June 30,2010
    
    
    2009Weighted
    
    
    
    
    
    
    WeightedAmount
    
    
    Average Rate
    
    
    Amount
    
    
    Average Rate(Dollars in thousands)FHLB of NY
    
    $
    495,552
    
    
    
    4.00
    %
    
    $
    508,619
    
    
    
    3.96
    %Other
    
    
    
    
    
    
    
    %
    
    
    372
    
    
    
    0.25
    %$
    495,552
    
    
    
    4.00
    %
    
    $
    508,991
    
    
    
    3.96
    %
  Year ending June 30:2011
    
    
    2,3672012
    
    
    52,5002013
    
    
    40,0002014
    
    
    70,6852015
    
    
    75,0002016
    
    
    30,0002017
    
    
    70,0002018
    
    
    120,0002019
    
    
    35,000$
    495,552
  86




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
    (13)
    
    Employee Benefit Plans
       87




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
       88




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   BEP Plan and Retirement Plan
    
    
    Medical Plan2010
    
    
    2009
    
    
    2010
    
    
    2009Change in benefit obligation:Projected benefit obligation at
beginning of the year
    
    $
    4,769
    
    
    $
    3,748
    
    
    $
    3,432
    
    
    $
    2,600Service cost
    
    
    208
    
    
    
    231
    
    
    
    73
    
    
    
    64Interest cost
    
    
    296
    
    
    
    284
    
    
    
    191
    
    
    
    199Actuarial (gain) loss
    
    
    4
    
    
    
    850
    
    
    
    (351
    )
    
    
    371Curtailment  BEP plan
    
    
    
    
    
    
    (454
    )
    
    
    
    
    
    
    Benefits paid
    
    
    (52
    )
    
    
    (52
    )
    
    
    (55
    )
    
    
    (58
    )Discount rate change
    
    
    436
    
    
    
    162
    
    
    
    418
    
    
    
    256Projected benefit obligation
at end of the year
    
    $
    5,661
    
    
    $
    4,769
    
    
    $
    3,708
    
    
    $
    3,432Reconciliation of plan assetsFair value of plan assets at
beginning of the year
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Actual return on plan assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employer contributions
    
    
    52
    
    
    
    52
    
    
    
    55
    
    
    
    58Benefits paid
    
    
    (52
    )
    
    
    (52
    )
    
    
    (55
    )
    
    
    (58
    )Fair value of plan assets
at end of the year
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Funded status at end of year
    
    $
    (5,661
    )
    
    $
    (4,769
    )
    
    $
    (3,708
    )
    
    $
    (3,432
    )
  BEP Plan and Retirement Plan
    
    
    Medical Plan2010
    
    
    2009
    
    
    2010
    
    
    2009Prior service cost
    
    $
    298
    
    
    
    358
    
    
    $
    
    
    
    
    Net actuarial loss
    
    
    1,283
    
    
    
    916
    
    
    
    1,026
    
    
    
    1,008Total amounts recognized in accumulated
other comprehensive loss
    
    $
    1,581
    
    
    $
    1,274
    
    
    $
    1,026
    
    
    $
    1,008
  89




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   BEP Plan and Retirement Plan
    
    
    Medical Plan2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Service cost
    
    $
    208
    
    
    $
    231
    
    
    $
    256
    
    
    $
    73
    
    
    $
    64
    
    
    $
    58Interest cost
    
    
    296
    
    
    
    284
    
    
    
    221
    
    
    
    191
    
    
    
    199
    
    
    
    163Amortization of unrecognized:Prior service cost
    
    
    60
    
    
    
    60
    
    
    
    60
    
    
    
    
    
    
    
    
    
    
    
    4Net loss
    
    
    73
    
    
    
    70
    
    
    
    44
    
    
    
    49
    
    
    
    67
    
    
    
    51Total
    
    $
    637
    
    
    $
    645
    
    
    $
    581
    
    
    $
    313
    
    
    $
    330
    
    
    $
    276Amounts expected to be
amortized into net periodic
benefit costin fiscal 2011:Prior service cost
    
    $
    60
    
    
    
    
    
    
    
    
    
    
    $
    Net loss
    
    
    133
    
    
    
    
    
    
    
    
    
    
    
    108$
    193
    
    
    
    
    
    
    
    
    
    
    $
    108
  BEP Plan
    
    
    Retirement Plan
    
    
    Medical Plan2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Discount Rate
    
    
    5.00
    %
    
    
    6.25
    %
    
    
    6.75
    %
    
    
    5.25
    %
    
    
    6.25
    %
    
    
    6.75
    %
    
    
    5.50
    %
    
    
    6.25
    %
    
    
    6.75
    %Rate of compensation
increase
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    
    
    
    
    
    
    
    
    Medical benefits cost
rate of increase
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.00
    %
    
    
    9.00
    %
    
    
    7.00
    %
  BEP Plan and
    
    
    MedicalRetirement Plan
    
    
    Plan2011
    
    $
    69
    
    
    $
    782012
    
    
    182
    
    
    
    1042013
    
    
    182
    
    
    
    1342014
    
    
    222
    
    
    
    1412015
    
    
    222
    
    
    
    1522016-2025
    
    
    1,609
    
    
    
    1,047
  1% increase
    
    
    1% decreaseEffect on total service cost and interest cost
    
    $
    54
    
    
    $
    (42
    )Effect on post retirement benefits obligation
    
    $
    721
    
    
    $
    (563
    )
  90




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   Compensation: Defined Benefit Plans-Other Postretirement
 (14)
    
    Stock Based Compensation
 Employee Stock Ownership Plan
    91




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Equity Incentive Plan
 Compensation: Stock Compensation
    2010
    
    
    2008Expected dividend yield
    
    
    3.93
    %
    
    
    3.55
    %Expected volatility
    
    
    37.79
    %
    
    
    28.22
    %Risk-free interest rate
    
    
    2.53
    %
    
    
    3.37
    %Expected option life
    
    
    6.5
    
    
    
    6.5
   92




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   WeightedWeighted
    
    
    Weighted
    
    
    AverageNumber of
    
    
    Average
    
    
    Average
    
    
    RemainingStock
    
    
    Grant Date
    
    
    Exercise
    
    
    ContractualOptions
    
    
    Fair Value
    
    
    Price
    
    
    LifeOutstanding at June 30,
2009
    
    
    2,772,524
    
    
    $
    2.29
    
    
    $
    10.43
    
    
    
    9.0Granted
    
    
    30,000
    
    
    
    2.56
    
    
    
    9.67
    
    
    
    10.0Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    9,936
    
    
    
    2.29
    
    
    
    10.43
    
    
    
    9.0Outstanding at June 30,
2010
    
    
    2,792,588
    
    
    $
    2.30
    
    
    $
    10.43
    
    
    
    7.9Exercisable at June 30,
2010
    
    
    2,762,588
    WeightedNumber of
    
    
    Average
    
    
    WeightedShares
    
    
    Grant Date
    
    
    AverageAwarded
    
    
    Fair Value
    
    
    VestingNon-vested at June 30,
2009
    
    
    953,789
    
    
    $
    10.43
    
    
    
    3.9Granted
    
    
    
    
    
    
    Vested
    
    
    953,789
    
    
    
    10.43
    
    
    
    3.9Forfeited
    
    
    
    
    
    
    Non-vested at June 30,
2010
    
    
    
    
    
    $
    
    
    
    
    
  93




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (15)
    
    Commitments and Contingencies
 ,
 Year ending June 30:2011
    
    $
    4172012
    
    
    3202013
    
    
    2782014
    
    
    1902015
    
    
    155Thereafter
    
    
    293$
    1,653
    94




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (16)
    
    Regulatory Capital Requirements
       95




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   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, 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
    
    
    
    5.00As of June 30, 2009:Total capital (to risk-weighted
assets)
    
    $
    255,997
    
    
    
    19.15
    %
    
    $
    106,945
    
    
    
    8.00
    %
    
    $
    133,681
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted
assets)
    
    
    239,238
    
    
    
    17.90
    
    
    
    53,472
    
    
    
    4.00
    
    
    
    80,208
    
    
    
    6.00Tier 1 capital (to average assets)
    
    
    239,238
    
    
    
    14.31
    
    
    
    66,862
    
    
    
    4.00
    
    
    
    83,578
    
    
    
    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, 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
    
    
    
    5.00As of June 30, 2009:Total capital (to risk-weighted
assets)
    
    $
    209,882
    
    
    
    15.83
    %
    
    $
    106,101
    
    
    
    8.00
    %
    
    
    132,626
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted
assets)
    
    
    193,248
    
    
    
    14.57
    
    
    
    53,050
    
    
    
    4.00
    
    
    
    79,575
    
    
    
    6.00Tier 1 capital (to average assets)
    
    
    193,248
    
    
    
    10.59
    
    
    
    72,963
    
    
    
    4.00
    
    
    
    91,204
    
    
    
    5.00
  96




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (17)
    
    Fair Value Measurements
 Fair Value Measurements and Disclosures
         Impaired Loans:
 Real Estate Owned:
  97




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   Fair Value Measurements at Reporting Date using:Quoted Prices inActive Marketsfor Identical
    
    
    Significant Other
    
    
    UnobservableFair Value as of
    
    
    Assets
    
    
    Observable 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
    
    $
    437,200
    
    
    
    73,742
    
    
    
    363,458
    
    
    
    Measured on a non-recurring basis:Assets:Impaired loans:Commercial real estate
    
    $
    5,454
    
    
    
    
    
    
    
    
    
    
    
    5,454Construction and land loans
    
    
    14,973
    
    
    
    
    
    
    
    
    
    
    
    14,973Total impaired loans
    
    
    20,427
    
    
    
    
    
    
    
    
    
    
    
    20,427Real estate owned
    
    
    3,031
    
    
    
    
    
    
    
    
    
    
    
    3,031Total
    
    $
    23,458
    
    
    
    
    
    
    
    
    
    
    
    23,458
  98




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Fair Value Measurements at Reporting Date using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableFair Value as of
    
    
    Identical Assets
    
    
    Observable Inputs
    
    
    InputsJune 30, 2009
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)(In thousands)Measured on a recurring basis:Assets:Securities available for saleU.S. Government and federal agency obligations
    
    $
    134,837
    
    
    
    19,676
    
    
    
    115,161
    
    
    
    Corporate bonds
    
    
    2,156
    
    
    
    
    
    
    
    2,156
    
    
    
    Mutual Funds
    
    
    5,676
    
    
    
    5,676
    
    
    
    
    
    
    
    Equity Securities
    
    
    1,750
    
    
    
    1,750
    
    
    
    
    
    
    
    Total securities available for sale
    
    
    144,419
    
    
    
    27,102
    
    
    
    117,317
    
    
    
    Mortgage-backed securities available for saleFHLMC
    
    
    27,875
    
    
    
    
    
    
    
    27,875
    
    
    
    FNMA
    
    
    27,911
    
    
    
    1,141
    
    
    
    26,770
    
    
    
    GNMA
    
    
    2,557
    
    
    
    
    
    
    
    2,557
    
    
    
    CMO
    
    
    70,260
    
    
    
    
    
    
    
    70,260
    
    
    
    Total mortgage-backed securities available for
sale
    
    
    128,603
    
    
    
    1,141
    
    
    
    127,462
    
    
    
    Total
    
    $
    273,022
    
    
    
    28,243
    
    
    
    244,779
    
    
    
    Measured on a non-recurring basis:Assets:Impaired loans:Multifamily
    
    $
    6,234
    
    
    
    
    
    
    
    
    
    
    
    6,234Commercial real estate
    
    
    24,174
    
    
    
    
    
    
    
    
    
    
    
    24,174Construction and land loans
    
    
    16,425
    
    
    
    
    
    
    
    
    
    
    
    16,425Total impaired loans
    
    $
    46,833
    
    
    
    
    
    
    
    
    
    
    
    46,833
 (18)
    
    Fair Value of Financial Instruments
 Financial Instruments
 Cash and Cash Equivalents
  Securities
  FHLB of New York Stock
   99




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Loans
  Fair Value Measurements and Disclosures.
  Deposit Liabilities
  Borrowings
  Commitments to Extend Credit and to Purchase or Sell Securities
   100




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   2010
    
    
    2009Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fairvalue
    
    
    value
    
    
    value
    
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    346,339
    
    
    
    346,339
    
    
    
    135,369
    
    
    
    135,369Securities available for sale
    
    
    358,723
    
    
    
    358,723
    
    
    
    144,419
    
    
    
    144,419Mortgage-backed securities
held to maturity
    
    
    66,468
    
    
    
    68,622
    
    
    
    118,817
    
    
    
    120,381Mortgage-backed securities
available for sale
    
    
    78,477
    
    
    
    78,477
    
    
    
    128,603
    
    
    
    128,603Federal Home Loan Bank of
New York stock
    
    
    25,081
    
    
    
    25,081
    
    
    
    25,549
    
    
    
    25,549Loans
    
    
    1,505,880
    
    
    
    1,604,852
    
    
    
    1,278,623
    
    
    
    1,292,394Financial liabilities  deposits
    
    
    1,289,746
    
    
    
    1,293,912
    
    
    
    1,127,630
    
    
    
    1,130,285Financial liabilities  borrowings
    
    
    495,552
    
    
    
    549,967
    
    
    
    508,991
    
    
    
    547,202
 Limitations
   (19)
    
    Parent Company Only Financial Statements
   101




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Balance Sheets
 June 30,2010
    
    
    2009(In thousands)Assets:Cash in Bank
    
    $
    186,253
    
    
    
    2,442Mortgage Loans, net
    
    
    31,609
    
    
    
    24,298ESOP loan
    
    
    31,810
    
    
    
    15,082Securities available for sale, at market value
    
    
    1,755
    
    
    
    1,750Accrued Interest Receivable
    
    
    188
    
    
    
    361Investment in Subsidiaries
    
    
    391,597
    
    
    
    196,427Due from Oritani Financial Corp., MHC
    
    
    
    
    
    
    100Other assets
    
    
    260
    
    
    
    132Total Assets
    
    $
    643,471
    
    
    
    240,592Liabilities and EquityTotal Liabilities
    
    $
    78
    
    
    
    494Total Equity
    
    
    643,393
    
    
    
    240,098Total Liabilities and Equity
    
    $
    643,471
    
    
    
    240,592
 Statements of Income
 Year Ended June 30,2010
    
    
    2009
    
    
    2008(In thousands)Interest on mortgage loans
    
    $
    1,634
    
    
    
    1,372
    
    
    
    1,160Interest on ESOP loan
    
    
    244
    
    
    
    809
    
    
    
    1,138Interest income on fed funds
    
    
    39
    
    
    
    256
    
    
    
    2,012Net loss on write down of securities
    
    
    (202
    )
    
    
    (398
    )
    
    
    (352
    )Other income
    
    
    65
    
    
    
    81
    
    
    
    101Equity in undistributed earnings of subsidiary
    
    
    7,502
    
    
    
    4,758
    
    
    
    6,953Total income
    
    
    9,282
    
    
    
    6,878
    
    
    
    11,012Other expenses
    
    
    429
    
    
    
    466
    
    
    
    391Income before income tax expense
    
    
    8,853
    
    
    
    6,412
    
    
    
    10,621Income tax expense
    
    
    489
    
    
    
    860
    
    
    
    1,661Net income
    
    $
    8,364
    
    
    
    5,552
    
    
    
    8,960
  102




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Statements of Cash Flows
 Year Ended June 30,2010
    
    
    2009
    
    
    2008(In thousands)Cash flows from operating activities:Net income
    
    $
    8,364
    
    
    
    5,552
    
    
    
    8,960Adjustments to reconcile net income to net cash
provided by operating activities:Impairment charge on securities
    
    
    202
    
    
    
    398
    
    
    
    352Dividends/distributions from subsidiaries
    
    
    9,995
    
    
    
    10,241
    
    
    
    372Equity in undistributed earnings of subsidiary
    
    
    (7,502
    )
    
    
    (4,758
    )
    
    
    (6,953
    )(Increase) decrease in accrued interest
receivable
    
    
    (50
    )
    
    
    262
    
    
    
    152Increase in other assets
    
    
    (101
    )
    
    
    (113
    )
    
    
    (19
    )Increase in other liabilities
    
    
    22
    
    
    
    436
    
    
    
    16Net cash provided by operating activities
    
    
    10,930
    
    
    
    12,018
    
    
    
    2,880Cash flows from investing activitiesAdditional investments in subsidiaries
    
    
    (201,204
    )
    
    
    (4,759
    )
    
    
    (1,410
    )Purchase of securities available for sale
    
    
    
    
    
    
    
    
    
    
    (2,715
    )Loan to ESOP
    
    
    (17,134
    )
    
    
    
    
    
    
    Principal collected on ESOP loan
    
    
    630
    
    
    
    401
    
    
    
    413(Increase) decrease in mortgage loans, net
    
    
    (7,311
    )
    
    
    (5,639
    )
    
    
    320Net cash used in provided by investing activities
    
    
    (225,019
    )
    
    
    (9,997
    )
    
    
    (3,392
    )Cash flows from financing activitiesDividends paid to shareholders
    
    
    (2,830
    )
    
    
    
    
    
    
    Purchase of treasury stock
    
    
    (1,231
    )
    
    
    (49,989
    )
    
    
    (5,926
    )Treasury stock issued
    
    
    
    
    
    
    2,497
    
    
    
    Capital contribution
    
    
    209
    
    
    
    
    
    
    
    Proceeds from stock offering, net
    
    
    401,752
    
    
    
    
    
    
    
    Cash provided by financing activities
    
    
    397,900
    
    
    
    (47,492
    )
    
    
    (5,926
    )Net change in cash in bank
    
    
    183,811
    
    
    
    (45,471
    )
    
    
    (6,438
    )Cash in bank at beginning of period
    
    
    2,442
    
    
    
    47,913
    
    
    
    54,351Cash in bank at end of period
    
    $
    186,253
    
    
    
    2,442
    
    
    
    47,913
  103




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (20)
    
    Selected Quarterly Financial Data (Unaudited)
  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
    )Earnings per common share-basic and diluted, pre-conversion
    
    $
    0.12
    
    
    $
    0.08
    
    
    $
    0.14
    
    
    $
    (0.11
    )
 Fiscal 2009 Quarter EndedSeptember 30
    
    
    December 31
    
    
    March 31
    
    
    June 30(Dollars in thousands)Selected Operating Data:Interest income
    
    $
    20,657
    
    
    
    21,862
    
    
    
    22,598
    
    
    
    23,302Interest expense
    
    
    9,887
    
    
    
    11,169
    
    
    
    11,798
    
    
    
    11,646Net interest income
    
    
    10,770
    
    
    
    10,693
    
    
    
    10,800
    
    
    
    11,656Provision for loan losses
    
    
    1,875
    
    
    
    3,500
    
    
    
    2,400
    
    
    
    2,105Net interest income after
provision for loan losses
    
    
    8,895
    
    
    
    7,193
    
    
    
    8,400
    
    
    
    9,551Other income
    
    
    1,233
    
    
    
    (565
    )
    
    
    822
    
    
    
    1,290Other expense
    
    
    5,874
    
    
    
    6,542
    
    
    
    6,652
    
    
    
    8,179Income before income tax expense
    
    
    4,254
    
    
    
    86
    
    
    
    2,570
    
    
    
    2,662Income tax expense
    
    
    1,748
    
    
    
    47
    
    
    
    1,067
    
    
    
    1,158Net income
    
    $
    2,506
    
    
    
    39
    
    
    
    1,503
    
    
    
    1,504Earnings per common share-basic and diluted
    
    $
    0.04
    
    
    $
    
    
    
    $
    0.03
    
    
    $
    0.03Earnings per common share-basic and diluted, pre-conversion
    
    $
    0.07
    
    
    $
    
    
    
    $
    0.04
    
    
    $
    0.04
  104




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (21)
    
    Earnings Per Share
  For the Years Ended June 30,2010
    
    
    2009
    
    
    2008(in thousands, except earnings per share data)Net income
    
    $
    8,364
    
    
    $
    5,552
    
    
    $
    8,960Undistributed earnings allocated to unvested restricted awards
    
    
    (190
    )
    
    
    (93
    )
    
    
    (170
    )Net income available to common shareholders
    
    $
    8,174
    
    
    $
    5,459
    
    
    $
    8,790Weighted average common shares outstanding  basic
    
    
    36,046
    
    
    
    36,738
    
    
    
    39,028Effect of dilutive non-vested shares and stock options
outstanding
    
    
    
    
    
    
    
    
    
    
    Effect of 1.50-for-one stock split in connection with the second step conversion (note 2)
    
    
    17,513
    
    
    
    18,369
    
    
    
    19,514Weighted average common shares outstanding  diluted
    
    
    53,559
    
    
    
    55,107
    
    
    
    58,542Earnings per share-basic and diluted
    
    $
    0.15
    
    
    $
    0.10
    
    
    $
    0.15
 (22)
    
    Recent Accounting Pronouncements
    105




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
     23)
    
    Subsequent Events 
   106




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##### Table of Contents



Financial Statement Schedules
   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*, ****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.***
    
    Available on our website
www.oritani.com****
    
    Management contract, compensatory plan or arrangement.  107




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##### Table of Contents



SIGNATURES
  ORITANI FINANCIAL CORP.Date: September 13, 2010
    By:
    /s/ Kevin J. LynchKevin 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 13, 2010/s/ John M. Fields, Jr.

John M. Fields, Jr.
    
    Executive Vice President
and 
Chief Financial
Officer(Principal Financial Officer)
    
    September 13, 2010/s/ Michael A. DeBernardi

Michael A. DeBernardi
    
    Director, Executive Vice
President and 
Chief
Operating Officer
    
    September 13, 2010/s/ Ann Marie Jetton

Ann Marie Jetton
    
    Vice President and 
Principal Accounting
Officer
    
    September 13, 2010/s/ Nicholas Antonaccio

Nicholas Antonaccio
    
    Director
    
    September 13, 2010/s/ James J. Doyle, Jr.

James J. Doyle, Jr.
    
    Director
    
    September 13, 2010/s/ Robert S. Hekemian, Jr.

Robert S. Hekemian, Jr.
    
    Director
    
    September 13, 2010/s/ John J. Skelly, Jr.

John J. Skelly, Jr.
    
    Director
    
    September 13, 2010
  108