Attached files
| file | filename |
|---|---|
| EX-32 - EXHIBIT 32 - Oritani Financial Corp | exhibit32.htm |
| EX-31.2 - EXHIBIT 31.2 - Oritani Financial Corp | exhibit31_2.htm |
| EX-31.1 - EXHIBIT31.1 - Oritani Financial Corp | exhibit31_1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
FORM 10-Q
______________________________
| |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended March 31, 2017
OR
| |
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 incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
370 Pascack Road, Township of Washington, New Jersey 07676
(Address of Principal Executive Offices) (Zip Code)
(201) 664-5400
(Registrant's telephone number, including area code)
N/A
(Former name, former address, and former fiscal year, if changed since last report)
|
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days.
YES NO
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
YES NO
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.
|
Large accelerated filer
|
|
|
|
Accelerated filer
|
|
|
|
Non-accelerated filer
|
|
(Do not check if a smaller reporting company)
|
|
Smaller Reporting company
|
|
|
|
|
|
Emerging growth company
|
|
☐
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES NO
As of May 10, 2017, there were 56,245,065 shares of the Registrant's common stock, par value $0.01 per share, issued and 45,878,266 shares outstanding.
Oritani Financial Corp.
FORM 10-Q
|
|
|
|
|
|
Part I. Financial Information
|
Page
|
|
|
|
|
|
Item 1.
|
Financial Statements
|
3
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
Item 2.
|
36
|
|
|
|
|
|
|
Item 3.
|
50
|
|
|
|
|
|
|
Item 4.
|
52
|
|
|
|
|
|
|
|
Part II. Other Information
|
|
|
|
||
|
52
|
||
|
|
|
|
|
Item 1A.
|
52
|
|
|
|
|
|
|
Item 2.
|
52
|
|
|
|
|
|
|
Item 3.
|
52
|
|
|
|
|
|
|
Item 4.
|
52
|
|
|
|
|
|
|
Item 5.
|
52
|
|
|
|
|
|
|
Item 6.
|
53
|
|
|
|
|
|
|
|
54
|
Part I. Financial Information
Item 1. Financial Statements
Oritani Financial Corp. and Subsidiaries
(In thousands, except share data)
|
|
March 31, 2017
|
June 30, 2016
|
||||||
|
|
(unaudited)
|
(audited)
|
||||||
|
Assets
|
||||||||
|
Cash on hand and in banks
|
$
|
29,849
|
$
|
16,243
|
||||
|
Federal funds sold and short term investments
|
1,219
|
328
|
||||||
|
Cash and cash equivalents
|
31,068
|
16,571
|
||||||
|
Loans, net
|
3,531,199
|
3,131,957
|
||||||
|
Securities available for sale, at fair value
|
166,894
|
141,850
|
||||||
|
Securities held to maturity, fair value of $188,079 and $170,706, respectively
|
190,569
|
168,107
|
||||||
|
Bank Owned Life Insurance (at cash surrender value)
|
95,306
|
93,327
|
||||||
|
Federal Home Loan Bank of New York ("FHLB") stock , at cost
|
38,464
|
38,003
|
||||||
|
Accrued interest receivable
|
10,849
|
9,943
|
||||||
|
Investments in real estate joint ventures, net
|
—
|
4,307
|
||||||
|
Real estate owned
|
140
|
487
|
||||||
|
Office properties and equipment, net
|
14,027
|
14,338
|
||||||
|
Deferred tax assets, net
|
40,250
|
47,360
|
||||||
|
Other assets
|
7,416
|
3,088
|
||||||
|
Total Assets
|
$
|
4,126,182
|
$
|
3,669,338
|
||||
|
Liabilities
|
||||||||
|
Deposits
|
$
|
2,680,196
|
$
|
2,260,003
|
||||
|
Borrowings
|
791,157
|
781,623
|
||||||
|
Advance payments by borrowers for taxes and insurance
|
25,356
|
21,415
|
||||||
|
Other liabilities
|
72,806
|
71,097
|
||||||
|
Total Liabilities
|
3,569,515
|
3,134,138
|
||||||
|
Stockholders' Equity
|
||||||||
|
Common stock, $0.01 par value; 150,000,000 shares authorized; 56,245,065 shares issued;
45,876,066 shares outstanding at March 31, 2017 and 45,247,420 shares outstanding at June 30, 2016.
|
562
|
562
|
||||||
|
Additional paid-in capital
|
511,935
|
513,177
|
||||||
|
Non-vested restricted stock awards
|
(483
|
)
|
(4,242
|
)
|
||||
|
Treasury stock, at cost; 10,368,999 shares at March 31, 2017 and 10,997,645 shares at June 30, 2016.
|
(138,067
|
)
|
(146,173
|
)
|
||||
|
Unallocated common stock held by the employee stock ownership plan
|
(18,753
|
)
|
(20,481
|
)
|
||||
|
Retained earnings
|
203,091
|
202,429
|
||||||
|
Accumulated other comprehensive loss, net of tax
|
(1,618
|
)
|
(10,072
|
)
|
||||
|
Total Stockholders' Equity
|
556,667
|
535,200
|
||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
4,126,182
|
$
|
3,669,338
|
||||
See accompanying notes to unaudited consolidated financial statements.
Oritani Financial Corp. and Subsidiaries
(In thousands, except per share data)
|
|
Three months ended March 31,
|
Nine months ended March 31,
|
||||||||||||||
|
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
|
|
(unaudited)
|
|||||||||||||||
|
Interest income:
|
||||||||||||||||
|
Interest on loans
|
$
|
34,407
|
$
|
31,061
|
$
|
99,515
|
$
|
92,998
|
||||||||
|
Interest on securities available for sale
|
799
|
1,146
|
2,451
|
3,503
|
||||||||||||
|
Interest on securities held to maturity
|
909
|
738
|
2,583
|
1,972
|
||||||||||||
|
Dividends on FHLB stock
|
469
|
401
|
1,343
|
1,193
|
||||||||||||
|
Interest on federal funds sold and short term investments
|
2
|
2
|
5
|
4
|
||||||||||||
|
Total interest income
|
36,586
|
33,348
|
105,897
|
99,670
|
||||||||||||
|
Interest expense:
|
||||||||||||||||
|
Deposits
|
6,244
|
4,628
|
17,947
|
12,746
|
||||||||||||
|
Borrowings
|
3,547
|
3,569
|
9,626
|
12,330
|
||||||||||||
|
Total interest expense
|
9,791
|
8,197
|
27,573
|
25,076
|
||||||||||||
|
Net interest income before provision for loan losses
|
26,795
|
25,151
|
78,324
|
74,594
|
||||||||||||
|
Provision for loan losses
|
—
|
—
|
—
|
—
|
||||||||||||
|
Net interest income after provision for loan losses
|
26,795
|
25,151
|
78,324
|
74,594
|
||||||||||||
|
Other income:
|
||||||||||||||||
|
Service charges
|
206
|
151
|
564
|
617
|
||||||||||||
|
Real estate operations, net
|
—
|
23
|
—
|
294
|
||||||||||||
|
Income from investments in real estate joint ventures
|
193
|
267
|
769
|
985
|
||||||||||||
|
Bank-owned life insurance
|
634
|
670
|
1,979
|
2,044
|
||||||||||||
|
Net gain on sale of assets
|
20,621
|
2,009
|
20,621
|
31,875
|
||||||||||||
|
Net gain on sale of securities
|
—
|
—
|
—
|
604
|
||||||||||||
|
Other income
|
87
|
70
|
249
|
238
|
||||||||||||
|
Total other income
|
21,741
|
3,190
|
24,182
|
36,657
|
||||||||||||
|
Other expenses:
|
||||||||||||||||
|
Compensation, payroll taxes and fringe benefits
|
6,801
|
7,573
|
22,366
|
25,332
|
||||||||||||
|
Advertising
|
143
|
91
|
358
|
271
|
||||||||||||
|
Office occupancy and equipment expense
|
834
|
817
|
2,415
|
2,224
|
||||||||||||
|
Data processing service fees
|
538
|
506
|
1,641
|
1,520
|
||||||||||||
|
Federal insurance premiums
|
300
|
402
|
1,050
|
1,200
|
||||||||||||
|
Net expense from real estate operations
|
181
|
15
|
305
|
356
|
||||||||||||
|
FHLBNY prepayment fees
|
—
|
—
|
—
|
13,873
|
||||||||||||
|
Other expenses
|
1,096
|
948
|
3,084
|
3,242
|
||||||||||||
|
Total operating expenses
|
9,893
|
10,352
|
31,219
|
48,018
|
||||||||||||
|
Income before income tax expense
|
38,643
|
17,989
|
71,287
|
63,233
|
||||||||||||
|
Income tax expense
|
14,377
|
5,749
|
25,034
|
22,001
|
||||||||||||
|
Net income
|
$
|
24,266
|
$
|
12,240
|
$
|
46,253
|
$
|
41,232
|
||||||||
|
Earnings per basic common share
|
$
|
0.56
|
$
|
0.29
|
$
|
1.07
|
$
|
0.99
|
||||||||
|
Earnings per diluted common share
|
$
|
0.54
|
$
|
0.28
|
$
|
1.04
|
$
|
0.96
|
||||||||
See accompanying notes to unaudited consolidated financial statements.
Oritani Financial Corp. and Subsidiaries
(In thousands)
|
|
Three months ended March 31,
|
Nine months ended March 31,
|
||||||||||||||
|
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
|
|
(unaudited)
|
|||||||||||||||
|
Net of tax:
|
||||||||||||||||
|
Net income
|
$
|
24,266
|
$
|
12,240
|
$
|
46,253
|
$
|
41,232
|
||||||||
|
Other comprehensive income (loss):
|
||||||||||||||||
|
Change in unrealized holding (loss) gain on securities available for sale
|
(3
|
)
|
1,721
|
(1,457
|
)
|
517
|
||||||||||
|
Reclassification adjustment for security gains included in net income
|
—
|
—
|
—
|
(343
|
)
|
|||||||||||
|
Amortization related to post-retirement obligations
|
57
|
31
|
188
|
96
|
||||||||||||
|
Net change in unrealized gain (loss) on interest rate swaps
|
536
|
(4,858
|
)
|
9,723
|
(5,755
|
)
|
||||||||||
|
Total other comprehensive income (loss)
|
590
|
(3,106
|
)
|
8,454
|
(5,485
|
)
|
||||||||||
|
Total comprehensive income
|
$
|
24,856
|
$
|
9,134
|
$
|
54,707
|
$
|
35,747
|
||||||||
See accompanying notes to unaudited consolidated financial statements.
Oritani Financial Corp. and Subsidiaries
Nine months ended March 31, 2017 and 2016 (unaudited)
(In thousands, except share data)
|
|
Shares Outstanding
|
Common stock
|
Additional paid-in capital
|
Non-vested restricted stock awards
|
Treasury stock
|
Unallocated common stock held by ESOP
|
Retained earnings
|
Accumulated other comprehensive income (loss), net of tax
|
Total stockholders' equity
|
|||||||||||||||||||||||||||
|
Balance at June 30, 2015
|
44,012,239
|
$
|
562
|
$
|
508,999
|
$
|
(8,088
|
)
|
$
|
(162,344
|
)
|
$
|
(22,803
|
)
|
$
|
203,192
|
$
|
(1,848
|
)
|
$
|
517,670
|
|||||||||||||||
|
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
41,232
|
—
|
41,232
|
|||||||||||||||||||||||||||
|
Other comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(5,485
|
)
|
(5,485
|
)
|
|||||||||||||||||||||||||
|
Cash dividends declared
|
—
|
—
|
—
|
—
|
—
|
—
|
(42,556
|
)
|
—
|
(42,556
|
)
|
|||||||||||||||||||||||||
|
Purchase of treasury stock
|
(100,978
|
)
|
—
|
—
|
—
|
(1,593
|
)
|
—
|
—
|
—
|
(1,593
|
)
|
||||||||||||||||||||||||
|
Issuance of restricted stock awards
|
10,000
|
—
|
—
|
(133
|
)
|
133
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
|
Compensation cost for stock options and restricted stock
|
—
|
—
|
4,483
|
—
|
—
|
—
|
—
|
—
|
4,483
|
|||||||||||||||||||||||||||
|
ESOP shares allocated or committed to be released
|
—
|
—
|
1,756
|
—
|
—
|
1,984
|
—
|
—
|
3,740
|
|||||||||||||||||||||||||||
|
Exercise of stock options
|
1,151,466
|
—
|
—
|
—
|
15,303
|
—
|
(2,689
|
)
|
—
|
12,614
|
||||||||||||||||||||||||||
|
Vesting of restricted stock awards
|
—
|
—
|
(3,887
|
)
|
3,906
|
—
|
—
|
(19
|
)
|
—
|
—
|
|||||||||||||||||||||||||
|
Forfeiture of restricted stock awards
|
(6,000
|
)
|
—
|
—
|
73
|
(73
|
)
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||
|
Cumulative effect of change in accounting principle-adoption of ASU 2016-09
|
—
|
—
|
—
|
—
|
—
|
—
|
(33
|
)
|
—
|
(33
|
)
|
|||||||||||||||||||||||||
|
Balance at March 31, 2016
|
45,066,727
|
$
|
562
|
$
|
511,351
|
$
|
(4,242
|
)
|
$
|
(148,574
|
)
|
$
|
(20,819
|
)
|
$
|
199,127
|
$
|
(7,333
|
)
|
$
|
530,072
|
|||||||||||||||
Continued on next page
Oritani Financial Corp. and Subsidiaries
Consolidated Statements of Stockholders' Equity
Nine months ended March 31, 2017 and 2016 (unaudited)
(In thousands, except share data)
|
|
Shares Outstanding
|
Common stock
|
Additional paid-in capital
|
Non-vested restricted stock awards
|
Treasury stock
|
Unallocated common stock held by ESOP
|
Retained earnings
|
Accumulated other comprehensive income (loss), net of tax
|
Total stockholders' equity
|
|||||||||||||||||||||||||||
|
Balance at June 30, 2016
|
45,247,420
|
$
|
562
|
$
|
513,177
|
$
|
(4,242
|
)
|
$
|
(146,173
|
)
|
$
|
(20,481
|
)
|
$
|
202,429
|
$
|
(10,072
|
)
|
$
|
535,200
|
|||||||||||||||
|
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
46,253
|
—
|
46,253
|
|||||||||||||||||||||||||||
|
Other comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
8,454
|
8,454
|
|||||||||||||||||||||||||||
|
Cash dividends declared
|
—
|
—
|
—
|
—
|
—
|
—
|
(44,223
|
)
|
—
|
(44,223
|
)
|
|||||||||||||||||||||||||
|
Purchase of treasury stock
|
(98,655
|
)
|
—
|
—
|
—
|
(1,574
|
)
|
—
|
—
|
—
|
(1,574
|
)
|
||||||||||||||||||||||||
|
Issuance of restricted stock awards
|
10,000
|
—
|
—
|
(133
|
)
|
133
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
|
Compensation cost for stock options and restricted stock
|
—
|
—
|
927
|
—
|
—
|
—
|
—
|
—
|
927
|
|||||||||||||||||||||||||||
|
ESOP shares allocated or committed to be released
|
—
|
—
|
1,710
|
—
|
—
|
1,728
|
—
|
—
|
3,438
|
|||||||||||||||||||||||||||
|
Exercise of stock options
|
717,301
|
—
|
—
|
—
|
9,547
|
—
|
(1,355
|
)
|
—
|
8,192
|
||||||||||||||||||||||||||
|
Vesting of restricted stock awards
|
—
|
—
|
(3,879
|
)
|
3,892
|
—
|
—
|
(13
|
)
|
—
|
—
|
|||||||||||||||||||||||||
|
Balance at March 31, 2017
|
45,876,066
|
$
|
562
|
$
|
511,935
|
$
|
(483
|
)
|
$
|
(138,067
|
)
|
$
|
(18,753
|
)
|
$
|
203,091
|
$
|
(1,618
|
)
|
$
|
556,667
|
|||||||||||||||
See accompanying notes to unaudited consolidated financial statements.
Oritani Financial Corp. and Subsidiaries
(In thousands)
|
|
Nine months ended March 31,
|
|||||||
|
|
2017
|
2016
|
||||||
|
|
(unaudited)
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income
|
$
|
46,253
|
$
|
41,232
|
||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
ESOP and stock-based compensation expense
|
4,365
|
8,223
|
||||||
|
Tax benefit from stock-based compensation
|
1,289
|
1,886
|
||||||
|
Depreciation of premises and equipment
|
664
|
673
|
||||||
|
Net amortization and accretion of premiums and discounts on securities
|
995
|
879
|
||||||
|
Amortization and accretion of deferred loan fees, net
|
(1,757
|
)
|
(2,659
|
)
|
||||
|
(Increase) decrease in deferred taxes
|
(509
|
)
|
1,051
|
|||||
|
Gain on sale of investment securities
|
—
|
(604
|
)
|
|||||
|
Gain on sale of real estate joint ventures and real estate investments
|
(20,621
|
)
|
(31,547
|
)
|
||||
|
Gain on sale of real estate owned
|
—
|
(328
|
)
|
|||||
|
Writedown of real estate owned
|
215
|
250
|
||||||
|
Increase in cash surrender value of bank owned life insurance
|
(1,979
|
)
|
(2,044
|
)
|
||||
|
Increase in accrued interest receivable
|
(906
|
)
|
(640
|
)
|
||||
|
Decrease (increase) in other assets
|
14,290
|
(5,298
|
)
|
|||||
|
Increase in other liabilities
|
1,994
|
8,611
|
||||||
|
Net cash provided by operating activities
|
44,293
|
19,685
|
||||||
|
Cash flows from investing activities:
|
||||||||
|
Net increase in loans receivable
|
(331,560
|
)
|
(196,162
|
)
|
||||
|
Purchase of loans
|
(65,925
|
)
|
(63,020
|
)
|
||||
|
Purchase of securities available for sale
|
(66,222
|
)
|
(42,213
|
)
|
||||
|
Purchase of securities held to maturity
|
(51,150
|
)
|
(60,102
|
)
|
||||
|
Proceeds from payments, calls and maturities of securities available for sale
|
38,114
|
46,662
|
||||||
|
Proceeds from payments, calls and maturities of securities held to maturity
|
28,196
|
15,727
|
||||||
|
Proceeds from sales of securities available for sale
|
—
|
38,985
|
||||||
|
Net (increase) decrease in Federal Home Loan Bank of New York stock
|
(461
|
)
|
3,186
|
|||||
|
Proceeds from sales of real estate joint ventures and real estate investments
|
25,083
|
32,590
|
||||||
|
Net increase in real estate held for investment
|
—
|
(21
|
)
|
|||||
|
Net (increase) decrease in real estate joint ventures
|
(155
|
)
|
337
|
|||||
|
Proceeds from sale of real estate owned
|
132
|
3,967
|
||||||
|
Purchase of fixed assets
|
(337
|
)
|
(747
|
)
|
||||
|
Net cash used in investing activities
|
(424,285
|
)
|
(220,811
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Net increase in deposits
|
420,193
|
261,906
|
||||||
|
Purchase of treasury stock
|
(1,574
|
)
|
(1,593
|
)
|
||||
|
Dividends paid to shareholders
|
(44,223
|
)
|
(42,556
|
)
|
||||
|
Exercise of stock options
|
8,192
|
12,614
|
||||||
|
Increase in advance payments by borrowers for taxes and insurance
|
3,941
|
2,167
|
||||||
|
Proceeds from borrowed funds
|
119,130
|
161,143
|
||||||
|
Repayment of borrowed funds
|
(109,596
|
)
|
(195,000
|
)
|
||||
|
Payment of employee taxes withheld from shared-based awards
|
(1,574
|
)
|
(1,593
|
)
|
||||
|
Net cash provided by financing activities
|
394,489
|
197,088
|
||||||
|
Net increase (decrease) in cash and cash equivalents
|
14,497
|
(4,038
|
)
|
|||||
|
Cash and cash equivalents at beginning of period
|
16,571
|
15,129
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
31,068
|
$
|
11,091
|
||||
|
Supplemental cash flow information:
|
||||||||
|
Cash paid during the period for:
|
||||||||
|
Interest
|
$
|
27,180
|
$
|
25,480
|
||||
|
Income taxes
|
$
|
16,712
|
$
|
21,554
|
||||
|
Noncash transfer
|
||||||||
|
Loans receivable transferred to real estate owned
|
$
|
—
|
$
|
317
|
||||
See accompanying notes to unaudited consolidated financial statements.
8
Oritani Financial Corp. and subsidiaries
1. Basis of Presentation
The consolidated financial statements are composed of the accounts of Oritani Financial Corp., its wholly owned subsidiary, Oritani Bank (the "Bank") and the wholly owned subsidiaries of Oritani Bank; Oritani Finance Company, Ormon LLC ("Ormon"), and Oritani Investment Corp., as well as its wholly owned subsidiary, Oritani Asset Corporation (a real estate investment trust), (collectively, the "Company"). Intercompany balances and transactions have been eliminated in consolidation.
In the opinion of management, all of the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three and nine month periods ended March 31, 2017 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending June 30, 2017.
Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for the preparation of the Form 10-Q. The consolidated financial statements presented should be read in conjunction with the Company's audited consolidated financial statements and notes to consolidated financial statements included in the Company's June 30, 2016 Annual Report on Form 10-K, filed with the SEC on September 13, 2016.
The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities presented in the Consolidated Balance Sheets at March 31, 2017 and June 30, 2016 and in the Consolidated Statements of Income for the three and nine months ended March 31, 2017 and 2016. Actual results could differ significantly from those estimates.
A material estimate that is particularly susceptible to significant changes relates to the determination of the allowance for loan losses. The allowance for loan losses represents management's best estimate of losses known and inherent in the portfolio that are both probable and reasonable to estimate. While management uses the most current information available to estimate losses on loans, actual losses are dependent on future events and, as such, increases in the allowance for loan losses may be necessary.
In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank's allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.
9
2. Earnings Per Share ("EPS")
Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. The weighted average common shares outstanding includes the average number of shares of common stock outstanding and allocated or committed to be released Employee Stock Ownership Plan shares.
Diluted earnings per share is computed using the same method as basic earnings per share, but reflects the potential dilution that could occur if stock options were exercised and converted into common stock. These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. When applying the treasury stock method, we add the assumed proceeds from option exercises and the average unamortized compensation costs related to stock options. We then divide this sum by our average stock price to calculate shares assumed to be repurchased. The excess of the number of shares issuable over the number of shares assumed to be repurchased is added to basic weighted average common shares to calculate diluted EPS.
The following is a summary of the Company's earnings per share calculations and reconciliation of basic to diluted earnings per share.
|
|
Three months ended March 31,
|
Nine months ended March 31,
|
||||||||||||||
|
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
|
|
(In thousands, except per share data)
|
|||||||||||||||
|
Net income
|
$
|
24,266
|
$
|
12,240
|
$
|
46,253
|
$
|
41,232
|
||||||||
|
Weighted average common shares outstanding—basic
|
43,585
|
42,030
|
43,125
|
41,595
|
||||||||||||
|
Effect of dilutive stock options outstanding
|
1,234
|
1,409
|
1,255
|
1,385
|
||||||||||||
|
Weighted average common shares outstanding—diluted
|
44,819
|
43,439
|
44,380
|
42,980
|
||||||||||||
|
Earnings per share-basic
|
$
|
0.56
|
$
|
0.29
|
$
|
1.07
|
$
|
0.99
|
||||||||
|
Earnings per share-diluted
|
$
|
0.54
|
$
|
0.28
|
$
|
1.04
|
$
|
0.96
|
||||||||
For the three months ended March 31, 2016 there were 4,007 option shares, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for those periods. There were no anti-dilutive shares for the three months ended March 31, 2017. Anti-dilutive shares for the nine months ended March 31, 2017 and 2016 were 1,405 and 5,250, respectively.
3. Stock Repurchase Program
On March 4, 2015, the Board of Directors of the Company authorized a fourth stock repurchase plan pursuant to which the Company is authorized to repurchase up to 5% of the outstanding shares, or 2,205,451 shares. At March 31, 2017, there are 1,888,851 shares yet to be purchased under the current plan. At March 31, 2017, a total of 13,277,681 shares had been acquired under repurchase programs at a weighted average cost of $13.30 per share. The timing of the repurchases depend on certain factors, including but not limited to, market conditions and prices, the Company's liquidity and capital requirements, and alternative uses of capital. Repurchased shares will be held as treasury stock and will be available for general corporate purposes. The Company may conduct repurchases in accordance with a Rule 10b5-1 trading plan.
10
4. Equity Incentive Plans
The 2007 Equity Incentive Plan ("the 2007 Equity Plan") was approved by the Company's stockholders on April 22, 2008, which authorized the issuance of up to 4,172,817 shares of Company common stock pursuant to grants of incentive and non-statutory stock options, stock appreciation rights, and restricted stock awards. The 2011 Equity Incentive Plan ("2011 Equity Plan") was approved by the Company's stockholders on July 26, 2011. The 2011 Equity Plan authorized the issuance of up to 5,790,849 shares of the Company's common stock pursuant to grants of stock options, restricted stock awards and restricted stock units, with no more than 1,654,528 of the shares issued as restricted stock awards or restricted stock units. Employees and outside directors of the Company or Oritani Bank are eligible to receive awards under the Equity Plans.
Stock options are granted at an exercise price equal to the market price of our common stock on the grant date, based on quoted market prices. Stock options generally vest over a five-year service period and expire ten years from issuance. The vesting of the options accelerate upon death or disability, retirement or a change in control and expire 90 days after termination of service, excluding disability or retirement. The Company recognizes compensation expense for all option grants over the awards' respective requisite service periods. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method. The Treasury yield in effect at the time of the grant provides the risk-free rate for periods within the contractual life of the option. The Company classified share-based compensation for employees and outside directors within "compensation, payroll taxes and fringe benefits" in the consolidated statements of income to correspond with the same line item as the cash compensation paid.
The fair value of options issued during the nine months ended March 31, 2017 and 2016 was estimated using the Black-Scholes options-pricing model with the assumptions in the following table.
|
Nine months ended March 31,
|
|||||
|
|
2017
|
2016
|
|||
|
Option shares granted
|
20,000
|
20,000
|
|||
|
Expected dividend yield
|
5.35%
|
6.75%
|
|||
|
Expected volatility
|
20.81%
|
26.10%
|
|||
|
Risk-free interest rate
|
1.39%
|
2.03%
|
|||
|
Expected option life
|
6.5
|
|
6.5
|
||
The following is a summary of the Company's stock option activity and related information as of March 31, 2017 and changes therein during the nine months then ended:
|
|
Number of Stock Options
|
Weighted Average Grant Date Fair Value
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life (years)
|
||||||||||||
|
Outstanding at June 30, 2016
|
4,568,005
|
$
|
2.59
|
$
|
11.65
|
5.3
|
||||||||||
|
Granted
|
20,000
|
1.34
|
15.65
|
10.0
|
||||||||||||
|
Exercised
|
(717,301
|
)
|
2.57
|
11.42
|
3.6
|
|||||||||||
|
Expired
|
(15,371
|
)
|
2.37
|
10.73
|
2.0
|
|||||||||||
|
Outstanding at March 31, 2017
|
3,855,333
|
$
|
2.59
|
$
|
11.71
|
3.7
|
||||||||||
|
Exercisable at March 31, 2017
|
3,777,460
|
$
|
2.61
|
$
|
11.63
|
3.6
|
||||||||||
The Company recorded $17,000 and $522,000 of share based compensation expense related to options for the three months ended March 31, 2017 and 2016, respectively. The Company recorded $301,000 and $1.6 million of share based compensation expense related to options for the nine months ended March 31, 2017 and 2016, respectively. Expected future expense related to the non-vested options outstanding at March 31, 2017 is $115,000 over a weighted average period of 2.6 years. Upon exercise of vested options, management expects to draw on treasury stock as the source of the shares.
11
Restricted stock shares vest over a five-year service period on the anniversary date of the grant. Vesting of the restricted stock shares accelerate upon death or disability, retirement or a change in control. The product of the number of shares granted and the grant date market price of the Company's common stock determines the fair value of restricted shares under the Company's restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period.
The following is a summary of the status of the Company's restricted stock shares as of March 31, 2017 and changes therein during the nine months then ended:
|
|
Number of Shares Awarded
|
Weighted Average Grant Date Fair Value
|
||||||
|
Non-vested at June 30, 2016
|
347,487
|
$
|
12.37
|
|||||
|
Granted
|
10,000
|
15.65
|
||||||
|
Vested
|
(318,553
|
)
|
12.08
|
|||||
|
Forfeited
|
—
|
—
|
||||||
|
Non-vested at March 31, 2017
|
38,934
|
$
|
15.46
|
|||||
The Company recorded $60,000 and $966,000 of share based compensation expense related to the restricted stock shares for the three months ended March 31, 2017 and 2016, respectively. The Company recorded $629,000 and $2.9 million of share based compensation expense related to the restricted stock shares for the nine months ended March 31, 2017 and 2016, respectively. Expected future expense related to the non-vested restricted shares at March 31, 2017 is $464,000 over a weighted average period of 2.2 years.
5. Post-retirement Benefits
The Company provides several post-retirement benefit plans to directors and to certain active and retired employees. The Company has a nonqualified Directors' Retirement Plan ("Retirement Plan"), a nonqualified Benefit Equalization Plan ("BEP Plan"), which provides benefits to employees who are disallowed certain benefits under the Company's qualified benefit plans, and a Post Retirement Medical Plan ("Medical Plan") for directors and certain eligible employees.
Net periodic benefit costs for the three and nine months ended March 31, 2017 and 2016 are presented in the following tables.
|
|
Retirement Plan
|
BEP Plan
|
Medical Plan
|
|||||||||||||||||||||
|
|
Three months ended March 31,
|
|||||||||||||||||||||||
|
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
||||||||||||||||||
|
|
(In thousands)
|
|||||||||||||||||||||||
|
Service cost
|
$
|
38
|
$
|
44
|
$
|
—
|
$
|
—
|
$
|
14
|
$
|
19
|
||||||||||||
|
Interest cost
|
45
|
57
|
10
|
12
|
59
|
59
|
||||||||||||||||||
|
Amortization of unrecognized:
|
||||||||||||||||||||||||
|
Net loss
|
—
|
7
|
13
|
10
|
87
|
39
|
||||||||||||||||||
|
Total
|
$
|
83
|
$
|
108
|
$
|
23
|
$
|
22
|
$
|
160
|
$
|
117
|
||||||||||||
|
|
Nine months ended March 31,
|
|||||||||||||||||||||||
|
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
||||||||||||||||||
|
|
(In thousands)
|
|||||||||||||||||||||||
|
Service cost
|
$
|
113
|
$
|
131
|
$
|
—
|
$
|
—
|
$
|
43
|
$
|
58
|
||||||||||||
|
Interest cost
|
136
|
170
|
30
|
36
|
176
|
176
|
||||||||||||||||||
|
Amortization of unrecognized:
|
||||||||||||||||||||||||
|
Net loss
|
—
|
22
|
39
|
30
|
262
|
116
|
||||||||||||||||||
|
Total
|
$
|
249
|
$
|
323
|
$
|
69
|
$
|
66
|
$
|
481
|
$
|
350
|
||||||||||||
12
6. Loans, net
Loans, net are summarized as follows:
|
|
March 31, 2017
|
June 30, 2016
|
||||||
|
|
(In thousands)
|
|||||||
|
Residential
|
$
|
249,581
|
$
|
223,701
|
||||
|
Residential commercial real estate
|
1,932,366
|
1,596,876
|
||||||
|
Grocery/credit retail commercial real estate
|
516,123
|
457,058
|
||||||
|
Other commercial real estate
|
868,537
|
887,443
|
||||||
|
Construction and land loans
|
2,904
|
4,810
|
||||||
|
Total loans
|
3,569,511
|
3,169,888
|
||||||
|
Less:
|
||||||||
|
Deferred loan fees, net
|
8,435
|
7,980
|
||||||
|
Allowance for loan losses
|
29,877
|
29,951
|
||||||
|
Loans, net
|
$
|
3,531,199
|
$
|
3,131,957
|
||||
The Company's allowance for loan losses is analyzed quarterly and many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other environmental factors. There have been no material changes to the allowance for loan loss methodology as disclosed in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 13, 2016.
The activity in the allowance for loan losses for the three and nine months ended March 31, 2017 and 2016 is summarized as follows:
|
|
Three months ended March 31,
|
Nine months ended March 31,
|
||||||||||||||
|
|
(In thousands)
|
|||||||||||||||
|
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
|
Balance at beginning of period
|
$
|
29,877
|
$
|
30,635
|
$
|
29,951
|
$
|
30,889
|
||||||||
|
Provisions for loan losses
|
—
|
—
|
—
|
—
|
||||||||||||
|
Recoveries of loans previously charged off
|
—
|
5
|
2
|
6
|
||||||||||||
|
Loans charged off
|
—
|
(692
|
)
|
(76
|
)
|
(947
|
)
|
|||||||||
|
Balance at end of period
|
$
|
29,877
|
$
|
29,948
|
$
|
29,877
|
$
|
29,948
|
||||||||
13
The following table provides the three and nine month activity in the allowance for loan losses allocated by loan category at March 31, 2017 and 2016. The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.
|
|
Three months ended March 31, 2017
|
|||||||||||||||||||||||
|
|
Residential
|
Residential commercial real estate
|
Grocery/credit retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||
|
Beginning balance
|
$
|
1,626
|
$
|
14,424
|
$
|
3,327
|
$
|
10,366
|
$
|
134
|
$
|
29,877
|
||||||||||||
|
Charge-offs
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
|
Recoveries
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
|
Provisions
|
(503
|
)
|
940
|
(551
|
)
|
88
|
26
|
—
|
||||||||||||||||
|
Ending balance
|
$
|
1,123
|
$
|
15,364
|
$
|
2,776
|
$
|
10,454
|
$
|
160
|
$
|
29,877
|
||||||||||||
|
|
Nine months ended March 31, 2017
|
|||||||||||||||||||||||
|
|
Residential
|
Residential commercial real estate
|
Grocery/credit retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||
|
Beginning balance
|
$
|
1,300
|
$
|
12,837
|
$
|
3,646
|
$
|
11,850
|
$
|
318
|
$
|
29,951
|
||||||||||||
|
Charge-offs
|
(75
|
)
|
—
|
—
|
(1
|
)
|
—
|
(76
|
)
|
|||||||||||||||
|
Recoveries
|
—
|
—
|
—
|
2
|
—
|
2
|
||||||||||||||||||
|
Provisions
|
(102
|
)
|
2,527
|
(870
|
)
|
(1,397
|
)
|
(158
|
)
|
—
|
||||||||||||||
|
Ending balance
|
$
|
1,123
|
$
|
15,364
|
$
|
2,776
|
$
|
10,454
|
$
|
160
|
$
|
29,877
|
||||||||||||
|
|
Three months ended March 31, 2016
|
|||||||||||||||||||||||
|
|
Residential
|
Residential commercial real estate
|
Grocery/credit retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||
|
Beginning balance
|
$
|
1,518
|
$
|
10,893
|
$
|
3,654
|
$
|
13,858
|
$
|
712
|
$
|
30,635
|
||||||||||||
|
Charge-offs
|
—
|
—
|
—
|
(692
|
)
|
—
|
(692
|
)
|
||||||||||||||||
|
Recoveries
|
—
|
—
|
—
|
5
|
—
|
5
|
||||||||||||||||||
|
Provisions
|
(143
|
)
|
962
|
14
|
(431
|
)
|
(402
|
)
|
—
|
|||||||||||||||
|
Ending balance
|
$
|
1,375
|
$
|
11,855
|
$
|
3,668
|
$
|
12,740
|
$
|
310
|
$
|
29,948
|
||||||||||||
|
|
Nine months ended March 31, 2016
|
|||||||||||||||||||||||
|
|
Residential
|
Residential commercial real estate
|
Grocery/credit retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||
|
Beginning balance
|
$
|
1,521
|
$
|
10,814
|
$
|
4,042
|
$
|
13,943
|
$
|
569
|
$
|
30,889
|
||||||||||||
|
Charge-offs
|
(98
|
)
|
—
|
—
|
(849
|
)
|
—
|
(947
|
)
|
|||||||||||||||
|
Recoveries
|
—
|
—
|
—
|
6
|
—
|
6
|
||||||||||||||||||
|
Provisions
|
(48
|
)
|
1,041
|
(374
|
)
|
(360
|
)
|
(259
|
)
|
—
|
||||||||||||||
|
Ending balance
|
$
|
1,375
|
$
|
11,855
|
$
|
3,668
|
$
|
12,740
|
$
|
310
|
$
|
29,948
|
||||||||||||
14
The following table details the amount of loans receivables that are evaluated individually, and collectively, for impairment, and the related portion of allowance for loan loss that is allocated to each loan portfolio segment at March 31, 2017 and June 30, 2016.
|
At March 31, 2017
|
||||||||||||||||||||||||
|
|
Residential
|
Residential commercial real estate
|
Grocery/credit retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$
|
20
|
$
|
—
|
$
|
—
|
$
|
68
|
$
|
20
|
$
|
108
|
||||||||||||
|
Collectively evaluated for impairment
|
1,103
|
15,364
|
2,776
|
10,386
|
140
|
29,769
|
||||||||||||||||||
|
Total
|
$
|
1,123
|
$
|
15,364
|
$
|
2,776
|
$
|
10,454
|
$
|
160
|
$
|
29,877
|
||||||||||||
|
Loans receivable:
|
||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$
|
3,685
|
$
|
—
|
$
|
—
|
$
|
10,302
|
$
|
20
|
$
|
14,007
|
||||||||||||
|
Collectively evaluated for impairment
|
245,896
|
1,932,366
|
516,123
|
858,235
|
2,884
|
3,555,504
|
||||||||||||||||||
|
Total
|
$
|
249,581
|
$
|
1,932,366
|
$
|
516,123
|
$
|
868,537
|
$
|
2,904
|
$
|
3,569,511
|
||||||||||||
|
|
||||||||||||||||||||||||
|
At June 30, 2016
|
||||||||||||||||||||||||
|
|
Residential
|
Residential commercial real estate
|
Grocery/credit retail commercial real estate
|
Other commercial real estate
|
Construction
and land loans
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$
|
20
|
$
|
—
|
$
|
—
|
$
|
51
|
$
|
47
|
$
|
118
|
||||||||||||
|
Collectively evaluated for impairment
|
1,280
|
12,837
|
3,646
|
11,799
|
271
|
29,833
|
||||||||||||||||||
|
Total
|
$
|
1,300
|
$
|
12,837
|
$
|
3,646
|
$
|
11,850
|
$
|
318
|
$
|
29,951
|
||||||||||||
|
Loans receivable:
|
||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$
|
3,631
|
$
|
310
|
$
|
—
|
$
|
9,154
|
$
|
56
|
$
|
13,151
|
||||||||||||
|
Collectively evaluated for impairment
|
220,070
|
1,596,566
|
457,058
|
878,289
|
4,754
|
3,156,737
|
||||||||||||||||||
|
Total
|
$
|
223,701
|
$
|
1,596,876
|
$
|
457,058
|
$
|
887,443
|
$
|
4,810
|
$
|
3,169,888
|
||||||||||||
15
The Company continuously monitors the credit quality of its loan portfolio. In addition to internal staff, the Company utilizes the services of a third party loan review firm to evaluate the credit quality ratings of its loan receivables. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified as "Satisfactory" are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as "Pass/Watch" have generally acceptable asset quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such characteristics may include strained liquidity, slow pay, stale financial statements or other circumstances requiring greater attention from bank staff. We classify an asset as "Special Mention" if the asset has a potential weakness that warrants management's close attention. Such weaknesses, if left uncorrected, may result in the deterioration of the repayment prospects of the asset. An asset is considered "Substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as "Doubtful" have all of the weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Included in the Substandard caption are all loans that were past due 90 days (or more) and all impaired loans.
The following table provides information about the loan credit quality at March 31, 2017 and June 30, 2016:
|
|
At March 31, 2017
|
|||||||||||||||||||||||
|
|
Satisfactory
|
Pass/Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||
|
|
(In thousands)
|
|||||||||||||||||||||||
|
Residential
|
$
|
227,358
|
$
|
17,213
|
$
|
159
|
$
|
4,851
|
$
|
—
|
$
|
249,581
|
||||||||||||
|
Residential commercial real estate
|
1,902,398
|
27,962
|
2,006
|
—
|
—
|
1,932,366
|
||||||||||||||||||
|
Grocery/credit retail commercial real estate
|
502,710
|
13,413
|
—
|
—
|
—
|
516,123
|
||||||||||||||||||
|
Other commercial real estate
|
733,960
|
96,635
|
19,100
|
18,842
|
—
|
868,537
|
||||||||||||||||||
|
Construction and land loans
|
2,884
|
—
|
—
|
20
|
—
|
2,904
|
||||||||||||||||||
|
Total
|
$
|
3,369,310
|
$
|
155,223
|
$
|
21,265
|
$
|
23,713
|
$
|
—
|
$
|
3,569,511
|
||||||||||||
|
|
At June 30, 2016
|
|||||||||||||||||||||||
|
|
Satisfactory
|
Pass/Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||
|
|
(In thousands)
|
|||||||||||||||||||||||
|
Residential
|
$
|
199,911
|
$
|
18,882
|
$
|
531
|
$
|
4,377
|
$
|
—
|
$
|
223,701
|
||||||||||||
|
Residential commercial real estate
|
1,583,686
|
9,563
|
3,317
|
310
|
—
|
1,596,876
|
||||||||||||||||||
|
Grocery/credit retail commercial real estate
|
438,562
|
15,523
|
2,973
|
—
|
—
|
457,058
|
||||||||||||||||||
|
Other commercial real estate
|
798,457
|
51,567
|
17,553
|
19,866
|
—
|
887,443
|
||||||||||||||||||
|
Construction and land loans
|
4,754
|
—
|
—
|
56
|
—
|
4,810
|
||||||||||||||||||
|
Total
|
$
|
3,025,370
|
$
|
95,535
|
$
|
24,374
|
$
|
24,609
|
$
|
—
|
$
|
3,169,888
|
||||||||||||
16
The following table provides information about loans past due at March 31, 2017 and June 30, 2016:
|
|
At March 31, 2017
|
|||||||||||||||||||||||||||
|
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 days or More Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Nonaccrual (1)
|
|||||||||||||||||||||
|
|
(In thousands)
|
|||||||||||||||||||||||||||
|
Residential
|
$
|
331
|
$
|
718
|
$
|
811
|
$
|
1,860
|
$
|
247,721
|
$
|
249,581
|
$
|
1,193
|
||||||||||||||
|
Residential commercial real estate
|
243
|
—
|
—
|
243
|
1,932,123
|
1,932,366
|
—
|
|||||||||||||||||||||
|
Grocery/credit retail commercial real estate
|
—
|
—
|
—
|
—
|
516,123
|
516,123
|
—
|
|||||||||||||||||||||
|
Other commercial real estate
|
1,869
|
205
|
2,406
|
4,480
|
864,057
|
868,537
|
9,097
|
|||||||||||||||||||||
|
Construction and land loans
|
—
|
—
|
20
|
20
|
2,884
|
2,904
|
20
|
|||||||||||||||||||||
|
Total
|
$
|
2,443
|
$
|
923
|
$
|
3,237
|
$
|
6,603
|
$
|
3,562,908
|
$
|
3,569,511
|
$
|
10,310
|
||||||||||||||
|
|
At June 30, 2016
|
|||||||||||||||||||||||||||
|
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 days or More Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Nonaccrual (2)
|
|||||||||||||||||||||
|
|
(In thousands)
|
|||||||||||||||||||||||||||
|
Residential
|
$
|
1,745
|
$
|
531
|
$
|
684
|
$
|
2,960
|
$
|
220,741
|
$
|
223,701
|
$
|
931
|
||||||||||||||
|
Residential commercial real estate
|
3,601
|
1,166
|
—
|
4,767
|
1,592,109
|
1,596,876
|
310
|
|||||||||||||||||||||
|
Grocery/credit retail commercial real estate
|
—
|
—
|
—
|
—
|
457,058
|
457,058
|
—
|
|||||||||||||||||||||
|
Other commercial real estate
|
3,746
|
—
|
1,641
|
5,387
|
882,056
|
887,443
|
8,671
|
|||||||||||||||||||||
|
Construction and land loans
|
—
|
—
|
56
|
56
|
4,754
|
4,810
|
56
|
|||||||||||||||||||||
|
Total
|
$
|
9,092
|
$
|
1,697
|
$
|
2,381
|
$
|
13,170
|
$
|
3,156,718
|
$
|
3,169,888
|
$
|
9,968
|
||||||||||||||
|
(1)
|
Included in nonaccrual loans at March 31, 2017 are residential loans totaling $347,000 and other commercial real estate loans totaling $205,000 that were 60-89 days past due, residential loans totaling $14,000 and other commercial real estate loans totaling $1.2 million that were 30-59 days past due, residential loans totaling $21,000 and other commercial real estate loans totaling $5.3 million that were current.
|
|
(2)
|
Included in nonaccrual loans at June 30, 2016 are residential loans totaling $180,000 that were 30-59 days past due; residential loans totaling $66,000, residential commercial real estate loans totaling $310,000 and other commercial real estate loans totaling $7.0 million that were current.
|
17
The Company defines an impaired loan as a loan for which it is probable, based on current information, that the Company will not collect all amounts due under the contractual terms of the loan agreement. Loans we individually classify as impaired include multifamily, commercial mortgage and construction loans with balances of $1.0 million or more, unless a condition exists for loans less than $1.0 million that would increase the Bank's potential loss exposure. At March 31, 2017 impaired loans were primarily collateral-dependent and totaled $14.0 million, of which $752,000 had a related allowance for credit losses of $108,000 and $13.3 million of impaired loans had no related allowance for credit losses. At June 30, 2016 impaired loans were primarily collateral-dependent and totaled $13.2 million, of which $487,000 had a related allowance for credit losses of $118,000 and $12.7 million of impaired loans had no related allowance for credit losses.
The following table provides information about the Company's impaired loans at March 31, 2017 and June 30, 2016:
|
At March 31, 2017
|
At June 30, 2016
|
|||||||||||||||||||||||
|
Recorded Investment
|
Unpaid Principal Balance
|
Allowance
|
Recorded Investment
|
Unpaid Principal Balance
|
Allowance
|
|||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
With no related allowance recorded:
|
||||||||||||||||||||||||
|
Residential
|
$
|
3,505
|
$
|
3,505
|
$
|
—
|
$
|
3,447
|
$
|
3,447
|
$
|
—
|
||||||||||||
|
Residential commercial real estate
|
—
|
—
|
—
|
310
|
310
|
—
|
||||||||||||||||||
|
Other commercial real estate
|
9,750
|
9,750
|
—
|
8,907
|
8,907
|
—
|
||||||||||||||||||
|
Construction and land loans
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
|
|
13,255
|
13,255
|
—
|
12,664
|
12,664
|
—
|
||||||||||||||||||
|
With an allowance recorded:
|
||||||||||||||||||||||||
|
Residential
|
$
|
160
|
$
|
180
|
$
|
20
|
$
|
164
|
$
|
184
|
$
|
20
|
||||||||||||
|
Residential commercial real estate
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
|
Other commercial real estate
|
484
|
552
|
68
|
196
|
247
|
51
|
||||||||||||||||||
|
Construction and land loans
|
—
|
20
|
20
|
9
|
56
|
47
|
||||||||||||||||||
|
|
644
|
752
|
108
|
369
|
487
|
118
|
||||||||||||||||||
|
Total:
|
||||||||||||||||||||||||