Ori­tani Fi­nan­cial Corp de­clares div­i­dend

The Pak Banker - - Front Page -


Ori­tani Fi­nan­cial Corp, the hold­ing com­pany for Ori­tani Bank re­ported net in­come of $9.2 mil­lion, or $0.22 per ba­sic and fully di­luted share, for the three months ended Septem­ber 30, 2012, as com­pared to net in­come of $7.3 mil­lion, or $0.15 per ba­sic and fully di­luted share, for the cor­re­spond­ing 2011 pe­riod.

The Com­pany also re­ported that its Board of Di­rec­tors has de­clared a $0.15 quar­terly cash div­i­dend on the Com­pany's com­mon stock.

The record date for the div­i­dend will be Novem­ber 5, 2012 and the pay­ment date will be Novem­ber 16, 2012. Based on the re­cent trad­ing range of the Com­pany's com­mon stock, the div­i­dend yield is about 4.0%.

"I am ex­tremely pleased to an­nounce record quar­terly earn­ings," said Kevin J. Lynch, the Com­pany's Chair­man, Pres­i­dent and CEO.

"Our EPS growth has been steady and sub­stan­tial, and our in­come for the quar­ter ex­ceeded our pre­vi­ous quar­terly high by over 9%."

The Com­pany's prior record for quar­terly earn­ings was $8.4 mil­lion for the quar­ter ended March 31, 2012. Mr. Lynch con­tin­ued, "How­ever, I am keenly aware that the re­sults for the quar­ter were aided by pre­pay­ment in­come, and the pre­pay­ment in­come usu­ally means the loss of a qual­ity as­set.

We have de­liv­ered tremen­dous loan growth and are poised to continue to do so, how­ever, the cur­rent rate en­vi­ron­ment in­creases the dif­fi­culty of achiev­ing this goal." Mr. Lynch also ad­dressed a spe­cific area of op­er­a­tions: "The in­creased nonac­crual loan level is a con­cern that has my ut­most at­ten­tion.

The in­crease is par­tially at­trib­ut­able to Ori­tani's proac- tive ap­proach to­ward delin­quent bor­row­ers. This process has served us well in the past, and I be­lieve it will again prove to be the pru­dent long term strat­egy."

Net in­come in­creased $1.9 mil­lion to $9.2 mil­lion for the quar­ter ended Septem­ber 30, 2012, from $7.3 mil­lion for the cor­re­spond­ing 2011 quar­ter. The pri­mary cause of the in­creased in­come was in­creased net in­ter­est in­come and a lower pro­vi­sion for loan losses.

Two of the Com­pany's pre­vi­ously dis­cussed strate­gic busi­ness de­ci­sions are ev­i­dent in the changes in av­er­age bal­ance in the above sched­ule. The Com­pany's pri­mary fo­cus is or­ganic growth of mul­ti­fam­ily and com­mer­cial real es­tate loans. This strat­egy has been suc­cess­ful as the av­er­age bal­ance of loans grew $309.4m for the quar­ter ended Septem­ber 30, 2012 ver­sus com­pa­ra­ble 2011 pe­riod.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.