Oritani Financial Corp declares dividend
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.