TOWNSHIP OF WASHINGTON, N.J., April 28, 2009 (GLOBE NEWSWIRE) -- Oritani Financial Corp. (the "Company" or "OFC") (Nasdaq:ORIT), the holding company for Oritani Bank (the "Bank") reported net income of $1.5 million, or $0.04 per share, for the three months ended March 31, 2009, and $4.0 million, or $0.11 per share, for the nine months ended March 31, 2009. This compares to net income of $2.4 million ($0.06 per share) and $7.5 million ($0.19 per share) for the corresponding 2008 periods, respectively.
Kevin J. Lynch, the Company's Chairman, President and CEO, commented on developments over the quarter, "Our delinquent loan totals appear to be stabilizing. All of our problem loans are progressing, at various speeds, toward resolution. We continued to increase our loan reserve position over the quarter to reflect the risks of doing business in today's economy." Mr. Lynch continued, "Our core business is realizing notable successes. Deposit growth, a management focus, has exceeded expectations. Our deposit totals have grown over 40% since the beginning of our fiscal year and I am proud to announce that we recently topped $1.0 billion in total deposits. We continue to exhibit strong growth in loans despite stringent underwriting. Our net interest income before provision for loan losses, also continues to grow. The total for the March quarter was nearly $11 million, a 23.8% increase over the corresponding 2008 period."
Comparison of Operating Results for the Periods Ended March 31, 2009 and 2008
Net Income. Net income decreased $862,000 to $1.5 million for the quarter ended March 31, 2009, from $2.4 million for the corresponding 2008 quarter. The most prominent difference between the two periods is in the provision for loan losses. Provision for loan losses increased $1.7 million over the periods. In addition, operating expenses increased $1.9 million over periods. These items were partially offset by a $2.1 million increase in net interest income before provision for loan losses. These changes are discussed in greater detail below. Our annualized return on average assets was 0.35% for the quarter ended March 31, 2009 and 0.71% for the corresponding 2008 quarter. Our annualized return on average equity was 2.47% for the quarter ended March 31, 2009 and 3.36% for the corresponding 2008 quarter.
Net income decreased $3.5 million to $4.0 million for the nine months ended March 31, 2009, from net income of $7.5 million for the corresponding 2008 period. Our annualized return on average assets was 0.33% and our annualized return on average equity was 2.11% for the nine month period ended March 31, 2009, versus 0.79% and 3.62% for the nine month period ended March 31, 2008, respectively.
Total Interest Income. Total interest income increased by $4.3 million, or 23.4%, to $22.6 million for the three months ended March 31, 2009, from $18.3 million for the three months ended March 31, 2008. The largest increase occurred in interest on loans, which increased $4.4 million, or 30.9%, to $18.6 million for the three months ended March 31, 2009, from $14.2 million for the three months ended March 31, 2008. Over that same period, the average balance of loans increased by $335.2 million while the yield on the portfolio decreased 32 basis points.
Total interest income increased by $12.0 million, or 22.7%, to $65.1 million for the nine months ended March 31, 2009, from $53.1 million for the nine months ended March 31, 2008. The largest increase occurred in interest on loans, which increased $12.8 million, or 31.6%, to $53.2 million for the nine months ended March 31, 2009, from $40.4 million for the nine months ended March 31, 2008. Over that same period, the average balance of loans increased by $325.8 million and the yield on the portfolio decreased 36 basis points.
Total Interest Expense. Total interest expense increased by $2.2 million, or 23.0%, to $11.8 million for the three months ended March 31, 2009, from $9.6 million for the three months ended March 31, 2008. Interest expense on deposits increased by $737,000, or 12.4%, to $6.7 million for the three months ended March 31, 2009, from $5.9 million for the three months ended March 31, 2008. The average balance of interest bearing deposits increased by $254.7 million and the average cost of these funds decreased 62 basis points over this period. Interest expense on borrowings increased by $1.5 million to $5.1 million for the three months ended March 31, 2009, from $3.7 million for the three months ended March 31, 2008. The average balance of borrowings increased $168.2 million and the cost decreased 27 basis points over these periods.
Total interest expense increased by $5.2 million, or 18.7%, to $32.9 million for the nine months ended March 31, 2009, from $27.7 million for the nine months ended March 31, 2008. Interest expense on deposits decreased by $668,000, or 3.6%, to $17.8 million for the nine months ended March 31, 2009, from $18.5 million for the nine months ended March 31, 2008. The average balance of interest bearing deposits increased by $132.9 million and the average cost of these funds decreased 69 basis points over this period. Interest expense on borrowings increased by $5.8 million, or 63.4%, to $15.1 million for the nine months ended March 31, 2009, from $9.2 million for the nine months ended March 31, 2008. The average balance of borrowings increased $224.2 million and the cost decreased 40 basis points over this period.
Net Interest Income Before Provision for Loan Losses. Net interest income increased by $2.1 million, or 23.8%, to $10.8 million for the three months ended March 31, 2009, from $8.7 million for the three months ended March 31, 2008. The Company's net interest rate spread increased to 2.37% for the three months ended March 31, 2009, from 2.06% for the three months ended March 31, 2008. However, the Company's net interest margin decreased to 2.68% for the three months ended March 31, 2009, from 2.75% for the three months ended March 31, 2008. The Company's net interest rate spread and net interest margin were hindered in the 2009 period due to nonaccrual loans. The Company's net interest income was reduced by $1.2 million for the three months ended March 31, 2009 due to the impact of nonaccrual loans.
Net interest income increased by $6.9 million, or 27.0%, to $32.3 million for the nine months ended March 31, 2009, from $25.4 million for the nine months ended March 31, 2008. The Company's net interest rate spread increased to 2.40% for the nine months ended March 31, 2009, from 2.06% for the nine months ended March 31, 2008. The Company's net interest margin increased to 2.82% for the nine months ended March 31, 2009, from 2.81% for the nine months ended March 31, 2008. The Company's net interest rate spread and net interest margin were hindered in the 2009 period due to nonaccrual loans. The Company's net interest income was reduced by $2.5 million for the nine months ended March 31, 2009 due to the impact of nonaccrual loans.
Provision for Loan Losses. The Company recorded provisions for loan losses of $2.4 million for the three months ended March 31, 2009 as compared to $750,000 for the three months ended March 31, 2008. The Company also recorded provisions for loan losses of $7.8 million for the nine months ended March 31, 2009 as compared to $2.1 million for the nine months ended March 31, 2008. There were no recoveries or charge-offs in any of the periods.
The Company's allowance for loan losses is analyzed quarterly and many factors are considered, including comparison to peer reserve levels. As in previous quarters, loan growth was a component of the provision for loan losses in the 2009 periods. The delinquency and nonaccrual totals, however, were the primary contributors to the increased level of provision for loan losses.
Delinquency information is provided below:
Delinquency Totals
3/31/09 12/31/08 9/30/08 6/30/08 3/31/08
-------- -------- -------- -------- --------
30 - 59 days (in thousands)
past due $ 4,897 $ 4,979 $ 16,624 $ 25,367 $ 23,531
60 - 89 days
past due 2,130 5,942 1,381 18 14,034
nonaccrual 52,260 44,067 25,337 14,211 384
-------- -------- -------- -------- --------
Total $ 59,287 $ 54,988 $ 43,342 $ 39,596 $ 37,949
======== ======== ======== ======== ========
The level and magnitude of the delinquent loan total has increased since last quarter. The Company has continued its aggressive posture toward delinquent borrowers. The Company has commenced legal action against virtually all borrowers who are more than 45 days delinquent. The Company has refused to extend the maturity date of any construction loan, even if the interest payments are current, unless the borrower agrees to reduce the Company's exposure and agrees to an additional fee if the loan is not paid in full on or before the new maturity date.
The nonaccrual total of $52.3 million at March 31, 2009 includes all of the loans ($44.1 million) that were classified as nonaccrual at December 31, 2008. These loans have been discussed in prior public releases. Two of these loans are to one borrower and totaled $18.3 million at December 31, 2008. The loans are secured by a condominium construction project and raw land with all building approvals, both of which are in Northern New Jersey. Oritani has been working with the borrower. The construction of the condominium project is virtually complete and the individual unit sales process has commenced. Several units are currently under contract with closings expected to begin in late May. As of March 31, 2009, the total outstanding on these loans was $19.4 million. These two loans were considered impaired as of March 31, 2009. In accordance with the results of the Company's Statement of Financial Accounting Standards #114 ("FAS 114") impairment analyses, specific reserves totaling $4.8 million have been recorded against these loans. Another significant component of nonaccrual loans at March 31, 2009 were three loans to another borrower. One of these loans is a $7.9 million loan secured by a retail mall in Northern New Jersey. The other two loans total $10.2 million and are secured by a golf course in Bergen County, New Jersey. All three of these loans are classified as nonaccrual and impaired as of March 31, 2009. Oritani is in litigation with this borrower, foreclosure proceedings have commenced and a rent receiver has been placed in control of the operations of these properties. Net cash generated from the operation of these properties is being forwarded from the rent receiver to Oritani. In accordance with the results of the impairment analyses, no reserve was required for these loans as they were considered to be well collateralized. Another significant portion of the nonaccrual total at March 31, 2009 were three loans to one borrower that totaled $6.6 million. These loans were secured by various warehouse properties in Rockland, Nassau and Westchester counties, New York. All three of these loans were classified as nonaccrual and impaired at March 31, 2009. Oritani is in litigation with this borrower, foreclosure proceedings have commenced and we are attempting to have a rent receiver appointed by the court. In accordance with the results of the impairment analyses, a specific reserve of $40,000 has been recorded against one of these loans. No reserve was required for the other loans as they were considered to be well collateralized. The largest addition to the nonaccrual total at March 31, 2009 was a $5.9 million multifamily loan located in Bergen County, New Jersey. This loan was included in the 60-89 days past due total at December 31, 2008. The borrower on this loan has declared bankruptcy, a rent receiver is in place, net cash flows from the operation of the property are being forwarded to Oritani, and the bankruptcy trustee is actively marketing the property for sale. In accordance with the results of the impairment analysis for this loan, no reserve was required as the loan is considered to be well collateralized. The nonaccrual total at March 31, 2009 includes two loans that required an impairment reserve as of March 31, 2009. One of these loans is a $1.1 million condominium construction loan located in Morris County, New Jersey. This loan was not delinquent at December 31, 2008. The other loan is a $609,000 multifamily loan located in Middlesex County, New Jersey. This loan was included in the 60-89 days past due total at December 31, 2008. In accordance with the impairment analyses performed for these two loans, specific reserves of $315,000 and $300,000, respectively, have been recorded against these two loans.
Below is a rollforward of the allowance for loan losses for the fiscal year to date (dollars in thousands):
Quarter Ended
3/31/09 12/31/08 9/30/08
-------- -------- --------
Balance at the beginning of
the period $18,907 $15,407 $13,532
Provision for loan losses 2,400 3,500 1,875
Chargeoffs -- -- --
Recoveries -- -- --
-------- -------- --------
Balance at the end of the period $21,307 $18,907 $15,407
======== ======== ========
Allowance as a % of total loans 1.69% 1.54% 1.34%
======== ======== ========
Other Income. Other income increased by $31,000 to $822,000 for the three months ended March 31, 2009, from $791,000 for the three months ended March 31, 2008. Results for the quarter ended March 31, 2009 were reduced due to a $225,000 impairment charge and a $12,000 loss on partial sale of a mutual fund holding in the Company's AFS portfolio. Results for the quarter ended March 31, 2008, were reduced due to the recognition of a $352,000 impairment charge taken regarding three equity securities in the Company's securities AFS portfolio.
Other income decreased by $1.8 million to $1.5 million for the nine months ended March 31, 2009, from $3.3 million for the nine months ended March 31, 2008. The primary cause of the decrease was a $1.8 million impairment charge taken regarding equity securities in the Company's AFS portfolio as of December 31, 2008
Operating Expenses. Operating expenses increased by $1.9 million to $6.7 million for the three months ended March 31, 2009, from $4.8 million for the three months ended March 31, 2008. The Company's efficiency ratio (total operating expenses divided by the sum of net interest income before provision for loan losses plus total other income) for the 2009 quarter was 57.2%. Compensation, payroll taxes and fringe benefits increased $1.3 million over the period. The primary factor in this increase was $896,000 of expense in the 2009 quarter associated with the amortization of the Company's stock benefit plans. There was also an increase of $282,000 directly pertaining to compensation, due to additional staff and merit increases. Office occupancy and equipment expense increased $208,000 to $643,000 for the three months ended March 31, 2009, from $435,000 for the corresponding 2008 period. The increase was primarily comprised of increases in maintenance expense, depreciation and real estate taxes, particularly for the two new branches that the Company opened in October, 2008. Other expense increased $178,000 to $333,000 for the three months ended March 31, 2009, from $155,000 for the corresponding 2008 period. The increase was primarily due to expenses associated with problem loans.
Operating expenses increased by $5.2 million to $19.1 million for the nine months ended March 31, 2009, from $13.9 million for the nine months ended March 31, 2008. The increase was again primarily due to compensation, payroll taxes and fringe benefits, which increased $3.8 million over the period. This increase was primarily comprised of $2.7 million in costs associated with the Company's stock benefit plans, a $763,000 increase in compensation, and $252,000 of expenses associated with retirement benefits. Insurance, legal, audit and accounting expenses increased $500,000 primarily due to increased costs associated with our audit and exams, SOX and compliance during the 2009 period. The Company's efficiency ratio for the nine months ended March 31, 2009 was 56.5%.
Income Tax Expense. Income tax expense for the three months ended March 31, 2009 was $1.1 million, due to pre-tax income of $2.6 million, resulting in an effective tax rate of 41.5%. Income tax expense for the three months ended March 31, 2008 was $1.6 million, due to pre-tax income of $4.0 million, resulting in an effective tax rate of 41.1%. Income tax expense for the nine months ended March 31, 2009, was $2.9 million, due to pre-tax income of $6.9 million, resulting in an effective tax rate of 41.4%. For the nine months ended March 31, 2008, income tax expense was $5.2 million, due to pre-tax income of $12.8 million, resulting in an effective tax rate of 41.0%.
Comparison of Financial Condition at March 31, 2009 and June 30, 2008
Total Assets. Total assets increased $346.9 million, or 24.0%, to $1.79 billion at March 31, 2009, from $1.44 billion at June 30, 2008. The increases were primarily in the captions of loans and securities available for sale ("AFS"), and were primarily funded through increased deposits and borrowings.
Net Loans. Loans, net increased $227.0 million, or 22.5%, to $1.23 billion at March 31, 2009, from $1.01 billion at June 30, 2008. The Company continued its emphasis on loan originations, particularly multifamily and commercial real estate loans. Loan originations and purchases totaled $356.5 million for the nine months ended March 31, 2009.
Deposits. Deposits increased $303.1 million, or 43.4%, to $1.00 billion at March 31, 2009, from $698.9 million at June 30, 2008. Deposits increased $122.1 million during the quarter ended March 31, 2009. The Bank has implemented several initiatives designed to achieve deposit growth. Two new branch locations have recently been opened. Strong deposit growth remains a strategic objective of the Company.
Borrowings. Borrowings increased $76.1 million, or 17.5%, to $509.7 million at March 31, 2009, from $433.7 million at June 30, 2008. The Company committed to various long term advances from the FHLB-NY over the period.
Stockholders' Equity. Stockholders' equity decreased $36.8 million, or 13.2%, to $242.2 million at March 31, 2009, from $279.0 million at June 30, 2008. On March 18, 2009, the Company announced the completion of its third 10% repurchase program as well as the commencement of a fourth (967,828 shares) 10% repurchase program. As of March 31, 2009, the Company had repurchased a total of 3,319,500 shares at a total cost of $52.3 million and an average cost of $15.76 per share. Through April 21, 2009, the Company had repurchased a total of 3,376,600 shares at a total cost of $53.1 million and an average cost of $15.73 per share.
About the Company
Oritani Financial Corp. is the holding company for Oritani Bank, a savings bank offering a full range of retail and commercial loan and deposit products. Oritani Bank is dedicated to providing exceptional personal service to their individual and business customers. The Bank currently operates its main office and 20 full service branches in the New Jersey Counties of Bergen, Hudson and Passaic. For additional information about Oritani Bank, please visit www.oritani.com.
Forward Looking Statements
Certain statements contained herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company and the Bank operate, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Oritani Financial Corp. and Subsidiaries
Township of Washington, New Jersey
Consolidated Balance Sheets
March 31, 2009 and June 30, 2008
(in thousands, except share data)
March 31, June 30,
2009 2008
----------- -----------
Assets (unaudited)
Cash on hand and in banks $ 32,525 $ 7,332
Federal funds sold and short
term investments 25,068 1,558
----------- -----------
Cash and cash equivalents 57,593 8,890
Loans, net 1,234,097 1,007,077
Securities available for sale,
at market value 119,193 22,285
Mortgage-backed securities held to
maturity, estimated market value of
$134,846 and $162,671 at March 31, 2009
and June 30, 2008, respectively 133,584 163,950
Mortgage-backed securities available for
sale, at market value 142,442 149,209
Bank Owned Life Insurance (at cash
surrender value) 29,095 26,425
Federal Home Loan Bank of New York stock,
at cost 24,971 21,547
Accrued interest receivable 7,030 5,646
Investments in real estate joint ventures,
net 5,917 5,564
Real estate held for investment 1,337 3,681
Office properties and equipment, net 13,760 9,287
Other assets 21,214 19,733
----------- -----------
Total Assets $1,790,233 $1,443,294
=========== ===========
Liabilities
Deposits $1,002,040 $ 698,932
Borrowings 509,743 433,672
Advance payments by borrowers for taxes
and insurance 7,911 7,024
Accrued taxes payable 1,737 --
Official checks outstanding 4,475 4,143
Other liabilities 22,154 20,548
----------- -----------
Total liabilities 1,548,060 1,164,319
----------- -----------
Stockholders' Equity
Common stock, $0.01 par value;
80,000,000 shares authorized;
40,552,162 issued at December 31, 2008
and June 30, 2008; 37,232,662 outstanding
at December 31, 2008; and 40,187,062
outstanding at June 30, 2008 130 130
Additional paid-in capital 131,640 128,656
Unallocated common stock held by the
employee stock ownership plan (14,108) (14,704)
Treasury stock, at cost; 3,319,500 shares
at March 31, 2009 and 365,100 shares
at June 30, 2008 (52,312) (5,926)
Retained income 175,129 171,160
Accumulated other comprehensive loss,
net of tax 1,694 (341)
----------- -----------
Total stockholders' equity 242,173 278,975
----------- -----------
Total Liabilities and Stockholders' Equity $1,790,233 $1,443,294
=========== ===========
Oritani Financial Corp. and Subsidiaries
Township of Washington, New Jersey
Consolidated Statements of Income
Three and Nine Months Ended March 31, 2009 and 2007
Three months ended Nine months ended
March 31, March 31,
2009 2008 2009 2008
-------- -------- -------- --------
unaudited unaudited
(in thousands, except per share data)
Interest income:
Interest on mortgage loans $ 18,553 $ 14,173 $ 53,198 $ 40,417
Interest on securities held
to maturity 190 349 725 934
Interest on securities
available for sale 713 373 1,346 1,418
Interest on mortgage-backed
securities held to maturity 1,373 1,787 4,405 5,766
Interest on mortgage-backed
securities available
for sale 1,763 1,285 5,436 3,147
Interest on federal funds
sold and short
term investments 6 351 7 1,401
-------- -------- -------- --------
Total interest income 22,598 18,318 65,117 53,083
-------- -------- -------- --------
Interest expense:
Deposits 6,680 5,943 17,796 18,464
Borrowings 5,118 3,651 15,058 9,213
-------- -------- -------- --------
Total interest expense 11,798 9,594 32,854 27,677
-------- -------- -------- --------
Net interest income
before provision for
loan losses 10,800 8,724 32,263 25,406
Provision for loan losses 2,400 750 7,775 2,050
-------- -------- -------- --------
Net interest income 8,400 7,974 24,488 23,356
-------- -------- -------- --------
Other income:
Service charges 255 292 863 836
Real estate operations, net 280 272 982 1,036
Income from investments in
real estate joint ventures 196 281 739 879
Bank-owned life insurance 294 264 837 787
Net loss on sales and write
down of securities (237) (352) (2,037) (352)
Other income 34 34 106 108
-------- -------- -------- --------
Total other income 822 791 1,490 3,294
-------- -------- -------- --------
Operating expenses:
Compensation, payroll taxes
and fringe benefits 4,569 3,231 13,598 9,815
Advertising 150 128 414 376
Office occupancy and
equipment expense 643 435 1,566 1,223
Data processing service fees 270 268 799 792
Federal insurance premiums 46 25 106 72
Telephone, Stationary,
Postage and Supplies 214 114 475 313
Insurance, Legal, Audit and
Accounting 427 395 1,305 805
Other expenses 333 155 805 495
-------- -------- -------- --------
Total operating expenses 6,652 4,751 19,068 13,891
-------- -------- -------- --------
Income before income
tax expense 2,570 4,014 6,910 12,759
Income tax expense 1,067 1,649 2,862 5,226
-------- -------- -------- --------
Net income $ 1,503 $ 2,365 $ 4,048 $ 7,533
======== ======== ======== ========
Basic and fully diluted income
per common share $ 0.04 $ 0.06 $ 0.11 $ 0.19
======== ======== ======== ========
Average Balance Sheet and Yield/Rate Information
For the Three Months Ended (unaudited)
---------------------------------------------------------
March 31, 2009 March 31, 2008
---------------------------- ----------------------------
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
Balance Paid Rate Balance Paid Rate
----------- -------- ------- ----------- -------- -------
(Dollars in thousands)
Interest-
earning
assets:
Loans $1,220,390 $18,553 6.08% $ 885,223 $14,173 6.40%
Securities
held to
maturity 24,909 190 3.05% 20,075 349 6.95%
Securities
available
for sale 73,025 713 3.91% 31,419 373 4.75%
Mortgage
backed
securi-
ties
held to
maturity 138,493 1,373 3.97% 185,414 1,787 3.86%
Mortgage
backed
securi-
ties
available
for sale 147,157 1,763 4.79% 99,854 1,285 5.15%
Federal
funds
sold and
short
term in-
vestments 5,107 6 0.47% 44,737 351 3.14%
---------- ------- ---------- -------
Total
inte-
rest-
earning
assets 1,609,081 22,598 5.62% 1,266,722 18,318 5.78%
------- -------
Non-inte-
rest-
earning
assets 120,435 73,147
---------- ----------
Total
assets $1,729,516 $1,339,869
========== ==========
Interest-
bearing
liabil-
ities:
Savings
deposits 143,321 469 1.31% 149,229 587 1.57%
Money
market 108,444 659 2.43% 48,793 439 3.60%
NOW
accounts 73,047 161 0.88% 73,862 203 1.10%
Time
deposits 620,470 5,391 3.48% 418,681 4,714 4.50%
---------- ------- ---------- -------
Total
depo-
sits 945,282 6,680 2.83% 690,565 5,943 3.44%
Borrowings 508,368 5,118 4.03% 340,138 3,651 4.29%
---------- ------- ---------- -------
Total
inte-
rest-
bearing
liabil-
ities 1,453,650 11,798 3.25% 1,030,703 9,594 3.72%
------- -------
Non-inte-
rest-
bearing
liabili-
ties 32,709 27,751
---------- ----------
Total
liabil-
ities 1,486,359 1,058,454
Stock-
holders'
equity 243,157 281,415
---------- ----------
Total
liabili-
ties and
stock-
holders'
equity $1,729,516 $1,339,869
========== ==========
Net inte-
rest income $10,800 $ 8,724
======= =======
Net interest
rate spread
(1) 2.37% 2.06%
===== =====
Net inte-
rest-
earning
assets (2) $ 155,431 $ 236,019
========== ==========
Net inte-
rest
margin (3) 2.68% 2.75%
===== =====
Average
of in-
terest-
earning
assets
to in-
terest-
bearing
liabili-
ties 1.11X 1.23X
===== =====
(1) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of
average interest-bearing liabilities.
(2) Net interest-earning assets represents total interest-earning
assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by
average total interest-earning assets.
Average Balance Sheet and Yield/Rate Information
For the Nine months Ended (unaudited)
---------------------------------------------------------
March 31, 2009 March 31, 2008
---------------------------- ----------------------------
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
Balance Paid Rate Balance Paid Rate
----------- -------- ------- ----------- -------- -------
(Dollars in thousands)
Interest-
earning
assets:
Loans $ 1,155,755 $ 53,198 6.14% $ 829,967 $ 40,417 6.49%
Securities
held to
maturity 24,733 725 3.91% 18,753 934 6.64%
Securities
available
for sale 43,699 1,346 4.11% 36,641 1,418 5.16%
Mortgage
backed
securities
held to
maturity 148,556 4,405 3.95% 199,225 5,766 3.86%
Mortgage
backed
securities
available
for sale 148,429 5,436 4.88% 79,163 3,147 5.30%
Federal
funds sold
and short
term
investments 1,875 7 0.50% 41,622 1,401 4.49%
----------- -------- ----------- --------
Total
interest-
earning
assets 1,523,047 65,117 5.70% 1,205,371 53,083 5.87%
-------- --------
Non-
interest-
earning
assets 91,501 69,018
----------- -----------
Total
assets $ 1,614,548 $ 1,274,389
=========== ===========
Interest-
bearing
liabili-
ties:
Savings
deposits 144,247 1,536 1.42% 152,576 1,885 1.65%
Money market 83,402 1,735 2.77% 44,128 1,317 3.98%
NOW accounts 74,405 486 0.87% 73,662 640 1.16%
Time
deposits 520,303 14,039 3.60% 419,109 14,622 4.65%
----------- -------- ----------- --------
Total
deposits 822,357 17,796 2.89% 689,475 18,464 3.57%
Borrowings 504,384 15,058 3.98% 280,181 9,213 4.38%
----------- -------- ----------- --------
Total
interest-
bearing
liabili-
ties 1,326,741 32,854 3.30% 969,656 27,677 3.81%
-------- --------
Non-
interest-
bearing
liabili-
ties 32,271 27,025
----------- -----------
Total
liabili-
ties 1,359,012 996,681
Stock-
holders'
equity 255,536 277,708
----------- -----------
Total
liabili-
ties and
stock-
holder's
equity $ 1,614,548 $ 1,274,389
=========== ===========
Net
interest
income $ 32,263 $ 25,406
======== ========
Net
interest
rate
spread (1) 2.40% 2.06%
======= =======
Net
interest-
earning
assets (2) $ 196,306 $ 235,715
=========== ===========
Net
interest
margin (3) 2.82% 2.81%
======= =======
Average of
interest-
earning
assets to
interest-
bearing
liabili-
ties 1.15X 1.24X
======= =======
(1) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of average
interest-bearing liabilities.
(2) Net interest-earning assets represents total interest-earning
assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by
average total interest-earning assets.