falsedesktopORIT2019-09-30000148319519000020{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller Reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "\tPart I. Financial Information\tPage\nItem 1.\tFinancial Statements\t3\n\tConsolidated Balance Sheets as of September 30 2019 (unaudited) and June 30 2019\t3\n\tConsolidated Statements of Income for the Three Months Ended September 30 2019 and 2018 (unaudited)\t4\n\tConsolidated Statements of Comprehensive Income for the Three Months Ended September 30 2019 and 2018 (unaudited)\t5\n\tConsolidated Statements of Stockholders' Equity for the Three Months Ended September 30 2019 and 2018 (unaudited)\t6\n\tConsolidated Statements of Cash Flows for the Three Months Ended September 30 2019 and 2018 (unaudited)\t7\n\tNotes to Unaudited Consolidated Financial Statements\t8\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t38\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t40\nItem 4.\tControls and Procedures\t52\n\tPart II. Other Information\t\nItem 1.\tLegal Proceedings\t52\nItem 1A.\tRisk Factors\t52\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t52\nItem 3.\tDefaults Upon Senior Securities\t52\nItem 4.\tMine Safety Disclosures\t52\nItem 5.\tOther Information\t52\nItem 6.\tExhibits\t53\n\tSignature Page\t54\n", "q10k_tbl_2": "\tSeptember 30 2019\tJune 30 2019\t\n\t(unaudited)\t(audited)\t\nAssets\t\t\t\nCash on hand and in banks\t20312\t19145\t\t\nFederal funds sold and short term investments\t6831\t\t7366\t\nCash and cash equivalents\t27143\t\t26511\t\nLoans net\t3421268\t\t3491322\t\nEquity securities\t1344\t\t1358\t\nDebt securities available for sale at market value\t30578\t\t32752\t\nDebt securities held to maturity fair value of $325054 and $334179 respectively\t321871\t\t332215\t\nBank Owned Life Insurance (at cash surrender value)\t101490\t\t100872\t\nFederal Home Loan Bank of New York (\"FHLB\") stock at cost\t23007\t\t25925\t\nAccrued interest receivable\t11979\t\t11935\t\nReal estate owned\t0\t\t557\t\nOffice properties and equipment net\t14796\t\t12904\t\nDeferred tax assets net\t32231\t\t31045\t\nOther assets\t3951\t\t3120\t\nTotal Assets\t3989658\t4070516\t\t\nLiabilities\t\t\t\t\nDeposits\t2936546\t2923244\t\t\nBorrowings\t426563\t\t521555\t\nAdvance payments by borrowers for taxes and insurance\t23952\t\t24607\t\nOther liabilities\t73297\t\t71963\t\nTotal Liabilities\t3460358\t\t3541369\t\nStockholders' Equity\t\t\t\t\nCommon stock $0.01 par value; 150000000 shares authorized; 56245065 shares issued; 45100052 shares outstanding at September 30 2019 and 45097052 shares outstanding at June 30 2019.\t562\t\t562\t\nAdditional paid-in capital\t515868\t\t515491\t\nNon-vested restricted stock awards\t(190)\t\t(216)\t\nTreasury stock at cost; 11145013 shares at September 30 2019 and 11148013 shares at June 30 2019.\t(153050)\t\t(153091)\t\nUnallocated common stock held by the employee stock ownership plan\t(14733)\t\t(15085)\t\nRetained earnings\t183533\t\t182032\t\nAccumulated other comprehensive income net of tax\t(2690)\t\t(546)\t\nTotal Stockholders' Equity\t529300\t\t529147\t\nTotal Liabilities and Stockholders' Equity\t3989658\t4070516\t\t\n", "q10k_tbl_3": "\tThree Months ended September 30\n\t2019\t\t2018\t\t\n\t(unaudited)\nInterest income:\t\t\t\t\t\nInterest on loans\t37257\t\t\t35952\t\t\nDividends on FHLB stock\t405\t\t\t\t448\t\nEquity securities\t11\t\t\t\t10\t\nInterest on debt securities available for sale\t184\t\t\t\t240\t\nInterest on debt securities held to maturity\t1986\t\t\t\t1929\t\nInterest on federal funds sold and short term investments\t54\t\t\t\t22\t\nTotal interest income\t39897\t\t\t\t38601\t\nInterest expense:\t\t\t\t\t\t\nDeposits\t12289\t\t\t\t9037\t\nBorrowings\t3145\t\t\t\t3269\t\nTotal interest expense\t15434\t\t\t\t12306\t\nNet interest income before provision for loan losses\t24463\t\t\t\t26295\t\nReversal of provision for loan losses\t0\t\t\t\t(2000)\t\nNet interest income after provision for loan losses\t24463\t\t\t\t28295\t\nNon-interest income:\t\t\t\t\t\t\nFees and service charges\t367\t\t\t\t312\t\nBank-owned life insurance\t618\t\t\t\t624\t\nGains on sale of OREO\t29\t\t\t\t0\t\nChange in fair value of equity securities\t(14)\t\t\t\t(119)\t\nOther income\t2\t\t\t\t4\t\nTotal non-interest income\t1002\t\t\t\t821\t\nNon-interest expense:\t\t\t\t\t\t\nCompensation payroll taxes and fringe benefits\t6233\t\t\t\t6331\t\nAdvertising\t142\t\t\t\t143\t\nOffice occupancy and equipment expense\t723\t\t\t\t760\t\nData processing service fees\t540\t\t\t\t499\t\nFederal insurance premiums\t0\t\t\t\t300\t\nOther expenses\t1209\t\t\t\t2594\t\nTotal non-interest expense\t8847\t\t\t\t10627\t\nIncome before income tax expense\t16618\t\t\t\t18489\t\nIncome tax expense\t4318\t\t\t\t5092\t\nNet income\t12300\t\t\t13397\t\t\nEarnings per basic common share\t0.28\t\t\t0.30\t\t\nEarnings per diluted common share\t0.28\t\t\t0.30\t\t\n", "q10k_tbl_4": "\tThree months ended September 30\n\t2019\t\t2018\t\t\n\t(unaudited)\nNet of tax:\t\t\t\t\t\nNet income\t12300\t\t\t13397\t\t\nOther comprehensive income\t\t\t\t\t\t\nChange in unrealized holding gain (loss) on debt securities available for sale\t56\t\t\t\t(119)\t\nAmortization related to post-retirement obligations\t9\t\t\t\t8\t\nChange in funded status of retirement obligations\t(384)\t\t\t\t0\t\nNet change in unrealized (loss) gain on interest rate swaps\t(1825)\t\t\t\t874\t\nTotal other comprehensive (loss) income\t(2144)\t\t\t\t763\t\nTotal comprehensive income\t10156\t\t\t14160\t\t\n", "q10k_tbl_5": "\tShares Outstanding\tCommon stock\t\tAdditional paid-in capital\t\tNon-vested restricted stock awards\t\tTreasury stock\t\tUnallocated common stock held by ESOP\t\tRetained earnings\t\tAccumulated other comprehensive income (loss) net of tax\t\tTotal stockholders' equity\t\nBalance at June 30 2018\t46616646\t562\t\t514002\t\t(176)\t\t(129433)\t\t(16631)\t\t179799\t\t11223\t\t559346\t\t\nNet income\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t13397\t\t0\t\t13397\t\nOther comprehensive income net of tax\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t763\t\t763\t\nCash dividends declared (0.25 per share)\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t(11134)\t\t0\t\t(11134)\t\nPurchase of treasury stock\t(18788)\t\t0\t\t0\t\t0\t\t(292)\t\t0\t\t0\t\t0\t\t(292)\t\nIssuance of restricted stock awards\t10000\t\t0\t\t0\t\t(135)\t\t135\t\t0\t\t0\t\t0\t\t0\t\nCompensation cost for stock options and restricted stock\t0\t\t0\t\t43\t\t0\t\t0\t\t0\t\t0\t\t0\t\t43\t\nESOP shares allocated or committed to be released\t0\t\t0\t\t328\t\t0\t\t0\t\t350\t\t0\t\t0\t\t678\t\nExercise of stock options\t12000\t\t0\t\t0\t\t0\t\t161\t\t0\t\t(18)\t\t0\t\t143\t\nReclassification due to the adoption of ASU No. 2016-01\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t658\t\t(658)\t\t0\t\nBalance at September 30 2018\t46619858\t562\t\t514373\t\t(311)\t\t(129429)\t\t(16281)\t\t182702\t\t11328\t\t562944\t\t\nBalance at June 30 2019\t45097052\t562\t\t515491\t\t(216)\t\t(153091)\t\t(15085)\t\t182032\t\t(546)\t\t529147\t\t\nNet income\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t12300\t\t0\t\t12300\t\nOther comprehensive loss net of tax\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t(2144)\t\t(2144)\t\nCash dividends declared (0.25 per share)\t0\t\t0\t\t0\t\t0\t\t0\t\t0\t\t(10800)\t\t0\t\t(10800)\t\nCompensation cost for stock options and restricted stock\t0\t\t0\t\t24\t\t0\t\t0\t\t0\t\t0\t\t0\t\t24\t\nESOP shares allocated or committed to be released\t0\t\t0\t\t385\t\t0\t\t0\t\t352\t\t0\t\t0\t\t737\t\nExercise of stock options\t3000\t\t0\t\t0\t\t0\t\t41\t\t0\t\t(5)\t\t0\t\t36\t\nVesting of restricted stock awards\t0\t\t0\t\t(32)\t\t26\t\t0\t\t0\t\t6\t\t0\t\t0\t\nBalance at September 30 2019\t45100052\t562\t\t515868\t\t(190)\t\t(153050)\t\t(14733)\t\t183533\t\t(2690)\t\t529300\t\t\n", "q10k_tbl_6": "\tThree months ended September 30\n\t2019\t\t2018\t\t\n\t(unaudited)\nCash flows from operating activities:\t\nNet income\t12300\t\t\t13397\t\t\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\t\t\t\t\nESOP and stock-based compensation expense\t761\t\t\t\t721\t\nTax benefit from stock-based compensation\t1\t\t\t\t1\t\nDepreciation of premises and equipment\t174\t\t\t\t196\t\nNet amortization and accretion of premiums and discounts on securities\t301\t\t\t\t324\t\nReversal of provision for loan losses\t0\t\t\t\t(2000)\t\nAmortization and accretion of deferred loan fees net\t(636)\t\t\t\t(551)\t\nDecrease in deferred taxes\t354\t\t\t\t595\t\nFair value adjustment for equity securities\t14\t\t\t\t119\t\nGain on sale of real estate owned\t(29)\t\t\t\t0\t\nIncrease in cash surrender value of bank owned life insurance\t(618)\t\t\t\t(623)\t\nIncrease in accrued interest receivable\t(44)\t\t\t\t(631)\t\nIncrease in other assets\t(6649)\t\t\t\t(1438)\t\nIncrease in other liabilities\t1333\t\t\t\t533\t\nNet cash provided by operating activities\t7262\t\t\t\t10643\t\nCash flows from investing activities:\t\t\t\t\t\t\nNet decrease in loans receivable\t70690\t\t\t\t41469\t\nPurchase of mortgage loans\t0\t\t\t\t(7896)\t\nPurchase of debt securities held to maturity\t(7469)\t\t\t\t0\t\nPurchase of Federal Home Loan Bank stock\t(3141)\t\t\t\t(12563)\t\nProceeds from payments calls and maturities of debt securities available for sale\t2234\t\t\t\t3285\t\nProceeds from payments calls and maturities of debt securities held to maturity\t17531\t\t\t\t15381\t\nProceeds from redemption of Federal Home Loan Bank stock\t6059\t\t\t\t15624\t\nProceeds from sale of real estate owned\t586\t\t\t\t0\t\nPurchase of fixed assets\t(11)\t\t\t\t(64)\t\nNet cash provided by investing activities\t86479\t\t\t\t55236\t\nCash flows from financing activities:\t\t\t\t\t\t\nNet increase in deposits\t13302\t\t\t\t8897\t\nPurchase of treasury stock\t0\t\t\t\t(292)\t\nDividends paid to shareholders\t(10800)\t\t\t\t(11134)\t\nExercise of stock options\t36\t\t\t\t143\t\n(Decrease) increase in advance payments by borrowers for taxes and insurance\t(655)\t\t\t\t435\t\nProceeds from borrowed funds\t0\t\t\t\t45000\t\nRepayment of borrowed funds\t(94992)\t\t\t\t(115213)\t\nNet cash used in financing activities\t(93109)\t\t\t\t(72164)\t\nNet increase (decrease) in cash and cash equivalents\t632\t\t\t\t(6285)\t\nCash and cash equivalents at beginning of period\t26511\t\t\t\t34848\t\nCash and cash equivalents at end of period\t27143\t\t\t28563\t\t\nSupplemental cash flow information:\t\t\t\t\t\t\nCash paid during the period for:\t\t\t\t\t\t\nInterest\t15478\t\t\t12210\t\t\nIncome taxes\t4705\t\t\t5079\t\t\nNoncash item for lease adoption ASU 2016-02\t2208\t\t\t0\t\t\n", "q10k_tbl_7": "\tThree months ended September 30\n\t2019\t\t2018\t\t\n\t(In thousands except per share data)\nNet income\t12300\t\t\t13397\t\t\nWeighted average common shares outstanding-basic\t43286\t\t\t\t44640\t\nEffect of dilutive stock options outstanding\t668\t\t\t\t632\t\nWeighted average common shares outstanding-diluted\t43954\t\t\t\t45272\t\nEarnings per share-basic\t0.28\t\t\t0.30\t\t\nEarnings per share-diluted\t0.28\t\t\t0.30\t\t\n", "q10k_tbl_8": "\tThree Months ended September 30 2018\nOption shares granted\t20000\nExpected dividend yield\t7.47%\nExpected volatility\t17.68%\nRisk-free interest rate\t2.82%\nExpected option life (in years)\t6.5\n", "q10k_tbl_9": "\tNumber of Stock Options\tWeighted Average Grant Date Fair Value\t\tWeighted Average Exercise Price\t\tWeighted Average Remaining Contractual Life (years)\t\nOutstanding at June 30 2019\t2222691\t2.64\t\t12.16\t\t\t2.4\t\nExercised\t(3000)\t\t2.71\t\t11.95\t\t2.0\t\nOutstanding at September 30 2019\t2219691\t2.64\t\t12.16\t\t\t2.2\t\nExercisable at September 30 2019\t2150091\t2.69\t\t12.05\t\t\t2.0\t\n", "q10k_tbl_10": "\tNumber of Shares Awarded\tWeighted Average Grant Date Fair Value\t\nNon-vested at June 30 2019\t16800\t15.97\t\t\nVested\t(2000)\t\t16.15\t\nNon-vested at September 30 2019\t14800\t15.95\t\t\n", "q10k_tbl_11": "Retirement Plan\t\t\tBEP Plan\t\tMedical Plan\t\nThree Months Ended September 30\t\t\t\t\t\t\n2019\t\t2018\t2019\t2018\t2019\t2018\n(In thousands)\t\t\t\t\t\t\nService cost\t35\t31\t0\t0\t17\t11\nInterest cost\t49\t54\t11\t13\t52\t59\nAmortization of unrecognized:\t\t\t\t\t\t\nNet loss\t0\t0\t12\t8\t1\t0\nTotal\t84\t85\t23\t21\t70\t70\n", "q10k_tbl_12": "\tSeptember 30 2019\tJune 30 2019\t\n\t(In thousands)\nResidential\t260651\t267011\t\t\nResidential commercial real estate\t2018584\t\t2086314\t\nGrocery/credit retail commercial real estate\t469753\t\t482831\t\nOther commercial real estate\t689078\t\t683739\t\nConstruction and land loans\t20705\t\t9170\t\nTotal loans\t3458771\t\t3529065\t\nLess:\t\t\t\t\nUnearned deferred fees and discounts net\t8895\t\t9147\t\nAllowance for loan losses\t28608\t\t28596\t\nLoans net\t3421268\t3491322\t\t\n", "q10k_tbl_13": "Three months ended September 30\t\t\t\n(In thousands)\t\t\t\n2019\t\t2018\nBalance at beginning of period\t28596\t30562\t\nReversal of provision for loan losses\t0\t\t(2000)\nRecoveries of loans previously charged off\t12\t\t3\nLoans charged off\t0\t\t0\nBalance at end of period\t28608\t28565\t\n", "q10k_tbl_14": "Three months ended September 30 2019\t\t\t\t\t\t\t\t\t\nResidential\t\tResidential commercial real estate\tGrocery/credit retail commercial real estate\tOther commercial real estate\tConstruction and land loans\tTotal\n(In thousands)\t\t\t\t\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\t\nBeginning balance\t2321\t15694\t\t3249\t\t6968\t\t364\t28596\nCharge-offs\t0\t\t0\t\t0\t\t0\t0\t0\nRecoveries\t12\t\t0\t\t0\t\t0\t0\t12\nProvisions\t(585)\t\t405\t\t(97)\t\t(117)\t394\t0\nEnding balance\t1748\t16099\t\t3152\t\t6851\t\t758\t28608\n", "q10k_tbl_15": "\tThree Months ended September 30 2018\n\tResidential\t\tResidential commercial real estate\t\t\t\tGrocery/credit retail commercial real estate\t\t\t\tOther commercial real estate\t\t\t\tConstruction and land loans\t\t\t\tTotal\t\t\n\t(In thousands)\nAllowance for loan losses:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBeginning balance\t1990\t\t\t17259\t\t\t\t3015\t\t\t\t7828\t\t\t\t470\t\t\t\t30562\t\t\nCharge-offs\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\nRecoveries\t3\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t3\t\nProvisions\t107\t\t\t\t(1825)\t\t\t\t118\t\t\t\t(52)\t\t\t\t(348)\t\t\t\t(2000)\t\nEnding balance\t2100\t\t\t15434\t\t\t\t3133\t\t\t\t7776\t\t\t\t122\t\t\t\t28565\t\t\n", "q10k_tbl_16": "At September 30 2019\t\t\t\t\t\t\t\t\t\nResidential\t\tResidential commercial real estate\tGrocery/credit retail commercial real estate\tOther commercial real estate\tConstruction and land loans\tTotal\n(In thousands)\t\t\t\t\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\t\nIndividually evaluated for impairment\t0\t0\t\t0\t\t0\t\t0\t0\nCollectively evaluated for impairment\t1748\t\t16099\t\t3152\t\t6851\t758\t28608\nTotal\t1748\t16099\t\t3152\t\t6851\t\t758\t28608\nLoans receivable:\t\t\t\t\t\t\t\t\t\nIndividually evaluated for impairment\t2090\t0\t\t0\t\t3476\t\t0\t5566\nCollectively evaluated for impairment\t258561\t\t2018584\t\t469753\t\t685602\t20705\t3453205\nTotal\t260651\t2018584\t\t469753\t\t689078\t\t20705\t3458771\n", "q10k_tbl_17": "\tAt June 30 2019\n\tResidential\t\tResidential commercial real estate\t\t\t\tGrocery/credit retail commercial real estate\t\t\t\tOther commercial real estate\t\t\t\tConstruction and land loans\t\t\t\tTotal\t\t\n\t(In thousands)\nAllowance for loan losses:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nIndividually evaluated for impairment\t0\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\nCollectively evaluated for impairment\t2321\t\t\t\t15694\t\t\t\t3249\t\t\t\t6968\t\t\t\t364\t\t\t\t28596\t\nTotal\t2321\t\t\t15694\t\t\t\t3249\t\t\t\t6968\t\t\t\t364\t\t\t\t28596\t\t\nLoans receivable:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nIndividually evaluated for impairment\t5580\t\t\t0\t\t\t\t0\t\t\t\t3758\t\t\t\t0\t\t\t\t9338\t\t\nCollectively evaluated for impairment\t261431\t\t\t\t2086314\t\t\t\t482831\t\t\t\t679981\t\t\t\t9170\t\t\t\t3519727\t\nTotal\t267011\t\t\t2086314\t\t\t\t482831\t\t\t\t683739\t\t\t\t9170\t\t\t\t3529065\t\t\n", "q10k_tbl_18": "\tAt September 30 2019\n\tSatisfactory\t\tPass/Watch\t\t\t\tSpecial Mention\t\t\t\tSubstandard\t\t\t\tDoubtful\t\t\t\tTotal\t\t\n\t(In thousands)\nResidential\t238533\t\t\t17483\t\t\t\t1009\t\t\t\t3626\t\t\t\t0\t\t\t\t260651\t\t\nResidential commercial real estate\t1998795\t\t\t\t18253\t\t\t\t1536\t\t\t\t0\t\t\t\t0\t\t\t\t2018584\t\nGrocery/credit retail commercial real estate\t466915\t\t\t\t2838\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t469753\t\nOther commercial real estate\t620558\t\t\t\t60445\t\t\t\t4417\t\t\t\t3658\t\t\t\t0\t\t\t\t689078\t\nConstruction and land loans\t20705\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t20705\t\nTotal\t3345506\t\t\t99019\t\t\t\t6962\t\t\t\t7284\t\t\t\t0\t\t\t\t3458771\t\t\n", "q10k_tbl_19": "\tAt June 30 2019\n\tSatisfactory\t\tPass/Watch\t\t\t\tSpecial Mention\t\t\t\tSubstandard\t\t\t\tDoubtful\t\t\t\tTotal\t\t\n\t(In thousands)\nResidential\t241524\t\t\t17965\t\t\t\t351\t\t\t\t7171\t\t\t\t0\t\t\t\t267011\t\t\nResidential commercial real estate\t2068384\t\t\t\t16385\t\t\t\t1545\t\t\t\t0\t\t\t\t0\t\t\t\t2086314\t\nGrocery/credit retail commercial real estate\t479963\t\t\t\t2868\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t482831\t\nOther commercial real estate\t617061\t\t\t\t58219\t\t\t\t4246\t\t\t\t4213\t\t\t\t0\t\t\t\t683739\t\nConstruction and land loans\t9170\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t9170\t\nTotal\t3416102\t\t\t95437\t\t\t\t6142\t\t\t\t11384\t\t\t\t0\t\t\t\t3529065\t\t\n", "q10k_tbl_20": "\tAt September 30 2019\n\t30-59 Days Past Due\t\t60-89 Days Past Due\t\t\t\t90 days or More Past Due\t\t\t\tTotal Past Due\t\t\t\tCurrent\t\t\t\tTotal Loans\t\t\t\tNonaccrual (1)\t\t\n\t(In thousands)\nResidential\t2486\t\t\t2226\t\t\t\t534\t\t\t\t5246\t\t\t\t255405\t\t\t\t260651\t\t\t\t3014\t\t\nResidential commercial real estate\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t2018584\t\t\t\t2018584\t\t\t\t0\t\nGrocery/credit retail commercial real estate\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t469753\t\t\t\t469753\t\t\t\t0\t\nOther commercial real estate\t420\t\t\t\t187\t\t\t\t0\t\t\t\t607\t\t\t\t688471\t\t\t\t689078\t\t\t\t3476\t\nConstruction and land loans\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t20705\t\t\t\t20705\t\t\t\t0\t\nTotal\t2906\t\t\t2413\t\t\t\t534\t\t\t\t5853\t\t\t\t3452918\t\t\t\t3458771\t\t\t\t6490\t\t\n", "q10k_tbl_21": "\tAt June 30 2019\n\t30-59 Days Past Due\t\t60-89 Days Past Due\t\t\t\t90 days or More Past Due\t\t\t\tTotal Past Due\t\t\t\tCurrent\t\t\t\tTotal Loans\t\t\t\tNonaccrual (2)\t\t\n\t(In thousands)\nResidential\t2482\t\t\t1409\t\t\t\t5164\t\t\t\t9055\t\t\t\t257956\t\t\t\t267011\t\t\t\t6531\t\t\nResidential commercial real estate\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t2086314\t\t\t\t2086314\t\t\t\t0\t\nGrocery/credit retail commercial real estate\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t482831\t\t\t\t482831\t\t\t\t0\t\nOther commercial real estate\t1789\t\t\t\t0\t\t\t\t0\t\t\t\t1789\t\t\t\t681950\t\t\t\t683739\t\t\t\t3522\t\nConstruction and land loans\t0\t\t\t\t0\t\t\t\t0\t\t\t\t0\t\t\t\t9170\t\t\t\t9170\t\t\t\t0\t\nTotal\t4271\t\t\t1409\t\t\t\t5164\t\t\t\t10844\t\t\t\t3518221\t\t\t\t3529065\t\t\t\t10053\t\t\n", "q10k_tbl_22": "(1)\tIncluded in nonaccrual loans at September 30 2019 are residential loans totaling $350000 that were 30-59 days past due; and residential loans totaling $952000 that were 60-89 days past due; and residential loans totaling $1.2 and other commercial real estate loans totaling $3.5 million that were less than 30 days past due.\n(2)\tIncluded in nonaccrual loans at June 30 2019 are residential loans totaling $30000 that were 30-59 days past due; residential loans totaling $768000 that were 60-89 days past due; and residential loans totaling $568000 and other commercial real estate loans totaling $2.4 million that were less than 30 days past due.\n", "q10k_tbl_23": "At September 30 2019\t\t\t\tAt June 30 2019\t\t\nRecorded Investment\t\tUnpaid Principal Balance\tAllowance\tRecorded Investment\tUnpaid Principal Balance\tAllowance\n(In thousands)\t\t\t\t\t\t\nWith no related allowance recorded:\t\t\t\t\t\t\nResidential\t2096\t2090\t0\t5580\t5580\t0\nOther commercial real estate\t3299\t3476\t0\t3938\t3758\t0\nTotal\t5395\t5566\t0\t9518\t9338\t0\n", "q10k_tbl_24": "Three months ended September 30\t\t\t\t\n2019\t\t\t2018\t\nAverage Recorded Investment\t\tInterest Income Recognized\tAverage Recorded Investment\tInterest Income Recognized\n(In thousands)\t\t\t\t\nWith no related allowance recorded:\t\t\t\t\nResidential\t2154\t12\t5197\t18\nOther commercial real estate\t3327\t36\t3956\t73\n\t5481\t48\t9153\t91\nCash basis interest income\t\t48\t\t49\n", "q10k_tbl_25": "Troubled Debt Restructurings at September 30 2019\t\t\t\tTroubled Debt Restructurings at June 30 2019\t\t\nPerforming\t\tNonperforming\tTotal\tPerforming\tNonperforming\tTotal\n(In thousands)\t\t\t\t(In thousands)\t\t\nResidential\t0\t167\t167\t0\t167\t167\nOther commercial real estate\t0\t1085\t1085\t236\t1096\t1332\nTotal\t0\t1252\t1252\t236\t1263\t1499\nAllowance\t0\t0\t0\t0\t0\t0\n", "q10k_tbl_26": "\tAt September 30 2019\n\tAmortized cost\t\tGross unrecognized gains\t\t\t\tGross unrecognized losses\t\t\t\tFair value\t\t\n\t(In thousands)\nU.S. Government and Federal agency obligations\t\t\t\t\t\t\t\t\t\t\t\t\t\nDue in less than one year\t5000\t\t\t0\t\t\t\t9\t\t\t\t4991\t\t\nMortgage-backed securities:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nResidential MBS\t203617\t\t\t\t2276\t\t\t\t479\t\t\t\t205414\t\nCommercial MBS\t26788\t\t\t\t871\t\t\t\t1\t\t\t\t27658\t\nCMO\t71436\t\t\t\t470\t\t\t\t448\t\t\t\t71458\t\nCorporate Note\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nDue in five to ten years\t15030\t\t\t\t503\t\t\t\t0\t\t\t\t15533\t\n\t321871\t\t\t4120\t\t\t\t937\t\t\t\t325054\t\t\n", "q10k_tbl_27": "\tAt June 30 2019\n\tAmortized cost\t\tGross unrecognized gains\t\t\t\tGross unrecognized losses\t\t\t\tFair value\t\t\n\t(In thousands)\nU.S. Government and Federal agency obligations\t\t\t\t\t\t\t\t\t\t\t\t\t\nDue in less than one year\t5000\t\t\t0\t\t\t\t21\t\t\t\t4979\t\t\nMortgage-backed securities:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nResidential MBS\t207587\t\t\t\t1952\t\t\t\t639\t\t\t\t208900\t\nCommercial MBS\t26952\t\t\t\t511\t\t\t\t27\t\t\t\t27436\t\nCMO\t77643\t\t\t\t434\t\t\t\t512\t\t\t\t77565\t\nCorporate Note\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nDue in five to ten years\t15033\t\t\t\t266\t\t\t\t0\t\t\t\t15299\t\n\t332215\t\t\t3163\t\t\t\t1199\t\t\t\t334179\t\t\n", "q10k_tbl_28": "Three Months Ended\t\tThree Months Ended\tAt\nSeptember 30 2019\t\tSeptember 30 2018\tJune 30 2019\n(dollars in thousands)\t\t\t\nProceeds from sale of held-to-maturity debt securities\t0\t0\t0\nFair value of debt securities held-to-maturity pledged as collateral for advances\t6934\t8500\t7501\nFair value of debt securities held-to-maturity pledged for interest rate swap\t0\t0\t0\nFair value of debt securities held-to-maturity pledged as collateral for municipal deposits\t18778\t0\t19511\nOther than temporary impairment charges on held-to-maturity debt securities\t0\t0\t0\n", "q10k_tbl_29": "At September 30 2019\t\t\t\t\t\t\nLess than 12 months\t\t\tGreater than 12 months\t\tTotal\t\nFair value\t\tGross unrecognized losses\tFair value\tGross unrecognized losses\tFair value\tGross unrecognized losses\n(In thousands)\t\t\t\t\t\t\nU.S. Government and Federal agency obligations\t\t\t\t\t\t\nDue in less than one year\t0\t0\t4991\t9\t4991\t9\nMortgage-backed securities:\t\t\t\t\t\t\nResidential MBS\t63869\t191\t41176\t288\t105045\t479\nCommercial MBS\t4364\t1\t0\t0\t4364\t1\nCMO\t17446\t110\t28716\t338\t46162\t448\n\t85679\t302\t74883\t635\t160562\t937\n", "q10k_tbl_30": "At June 30 2019\t\t\t\t\t\t\nLess than 12 months\t\t\tGreater than 12 months\t\tTotal\t\nFair value\t\tGross unrecognized losses\tFair value\tGross unrecognized losses\tFair value\tGross unrecognized losses\n(In thousands)\t\t\t\t\t\t\nU.S. Government and Federal agency obligations\t\t\t\t\t\t\nDue in less than one year\t0\t0\t4979\t21\t4979\t21\nMortgage-backed securities:\t\t\t\t\t\t\nResidential MBS\t0\t0\t103110\t639\t103110\t639\nCommercial MBS\t0\t0\t4370\t27\t4370\t27\nCMO\t0\t0\t45043\t512\t45043\t512\n\t0\t0\t157502\t1199\t157502\t1199\n", "q10k_tbl_31": "At September 30 2019\t\t\t\t\nAmortized cost\t\tGross unrealized gains\tGross unrealized losses\tFair value\n(In thousands)\t\t\t\t\nMortgage-backed securities:\t\t\t\t\nResidential MBS\t2\t0\t0\t2\nCommercial MBS\t3882\t0\t7\t3875\nCMO\t26900\t4\t203\t26701\n\t30784\t4\t210\t30578\n", "q10k_tbl_32": "At June 30 2019\t\t\t\t\nAmortized cost\t\tGross unrealized gains\tGross unrealized losses\tFair value\n(In thousands)\t\t\t\t\nMortgage-backed securities:\t\t\t\t\nResidential MBS\t9\t0\t0\t9\nCommercial MBS\t3921\t0\t5\t3916\nCMO\t29108\t3\t284\t28827\n\t33038\t3\t289\t32752\n", "q10k_tbl_33": "Three Months Ended\t\tThree Months Ended\tAt\nSeptember 30 2019\t\tSeptember 30 2018\tJune 30 2019\n(dollars in thousands)\t\t\t\nProceeds from sales of debt securities available for sale\t0\t0\t0\nFair value of debt securities available for sale pledged as collateral for advances\t12290\t0\t12879\nFair value of debt securities available for sale pledged for interest rate swap\t0\t0\t0\nFair value of debt securities available for sale pledged as collateral for municipal deposits\t0\t0\t0\nOther than temporary impairment charges on debt securities available for sale\t0\t0\t0\n", "q10k_tbl_34": "At September 30 2019\t\t\t\t\t\t\t\t\t\nLess than 12 months\t\t\t\tGreater than 12 months\tTotal\nFair value\t\tGross unrealized losses\tFair value\tGross unrealized losses\tFair value\tGross unrealized losses\n(In thousands)\t\t\t\t\t\t\t\t\t\nMortgage-backed securities:\t\t\t\t\t\t\nCommercial MBS\t3875\t7\t\t0\t\t0\t\t3875\t7\nCMO\t4305\t\t8\t\t20991\t\t195\t25296\t203\n\t8180\t15\t\t20991\t\t195\t\t29171\t210\n", "q10k_tbl_35": "At June 30 2019\t\t\t\t\t\t\t\t\t\nLess than 12 months\t\t\t\tGreater than 12 months\tTotal\nFair value\t\tGross unrealized losses\tFair value\tGross unrealized losses\tFair value\tGross unrealized losses\n(In thousands)\t\t\t\t\t\t\t\t\t\nMortgage-backed securities:\t\t\t\t\t\t\nCommercial MBS\t3916\t5\t\t0\t\t0\t\t3916\t5\nCMO\t0\t0\t\t\t27063\t\t284\t27063\t284\n\t3916\t5\t\t27063\t\t284\t\t30979\t289\n", "q10k_tbl_36": "\tSeptember 30 2019\tJune 30 2019\t\n\t(Dollars in thousands)\nChecking accounts\t688899\t668453\t\t\nMoney market deposit accounts\t651976\t\t622670\t\nSavings accounts\t378272\t\t383763\t\nTime deposits\t1217399\t\t1248358\t\n\t2936546\t2923244\t\t\n", "q10k_tbl_37": "\t\tAt September 30 2019\tAt June 30 2019\t\t\t\n.\tBalance Sheet Line Item\tNotional Amount\tFair Value\t\tNotional Amount\t\t\tFair Value\t\t\nCash flow hedge interest rate swaps\t\t\t\t\t\t\t\t\t\t\nGross unrealized gain\tOther Assets\t150000\t884\t\t185000\t\t\t\t1624\t\t\nGross unrealized loss\tOther Liabilities\t195000\t\t(3248)\t\t170000\t\t\t\t(1408)\t\nGross notional / net fair value\t\t345000\t(2364)\t\t355000\t\t\t\t216\t\t\nAverage rate paid\t\t1.54%\t\t\t\t1.50%\t\t\t\t\t\nAverage rate received\t\t2.30%\t\t\t\t2.37%\t\t\t\t\t\nWeighted average maturity (years)\t\t3.2\t\t\t\t3.3\t\t\t\t\t\n", "q10k_tbl_38": "Three Months Ended September 30\t\t\n2019\t\t2018\n(Dollars in thousands)\t\t\nAmount of (loss) gain recognized in other comprehensive income\t(1858)\t1851\nAmount of unrealized gain (loss) reclassified from accumulated other comprehensive loss to interest expense\t722\t616\nNet change in unrealized (loss) gain on interest rate swaps before taxes\t(2580)\t1235\n", "q10k_tbl_39": "\tFair Value as of September 30 2019\tQuoted Prices in Active Markets for Identical Assets (Level 1)\t\tSignificant Other Observable Inputs (Level 2)\t\tUnobservable Inputs (Level 3)\t\n\t(In thousands)\nAssets:\t\t\t\t\t\t\t\nEquity Securities\t1344\t1344\t\t0\t\t0\t\t\nMortgage-backed securities available for sale\t\t\t\t\t\t\t\t\nResidential MBS\t2\t\t0\t\t2\t\t0\t\nCommercial MBS\t3875\t\t0\t\t3875\t\t0\t\nCMO\t26701\t\t0\t\t26701\t\t0\t\nTotal debt securities available for sale\t30578\t\t0\t\t30578\t\t0\t\nInterest rate swaps\t884\t\t0\t\t884\t\t0\t\nTotal assets measured on a recurring basis\t32806\t1344\t\t31462\t\t0\t\t\nLiabilities:\t\t\t\t\t\t\t\t\nInterest rate swaps\t(3248)\t0\t\t(3248)\t\t0\t\t\n", "q10k_tbl_40": "\tFair Value as of June 30 2019\tQuoted Prices in Active Markets for Identical Assets (Level 1)\t\tSignificant Other Observable Inputs (Level 2)\t\tUnobservable Inputs (Level 3)\t\n\t(In thousands)\nAssets:\t\t\t\t\t\t\t\nEquity Securities\t1358\t1358\t\t0\t\t0\t\t\nMortgage-backed securities available for sale\t\t\t\t\t\t\t\t\nResidential MBS\t9\t\t0\t\t9\t\t0\t\nCommercial MBS\t3916\t\t0\t\t3916\t\t0\t\nCMO\t28827\t\t0\t\t28827\t\t0\t\nTotal debt securities available for sale\t32752\t\t0\t\t32752\t\t0\t\nInterest rate swaps\t1624\t\t0\t\t1624\t\t0\t\nTotal assets measured on a recurring basis\t35734\t1358\t\t34376\t\t0\t\t\nLiabilities:\t\t\t\t\t\t\t\t\nInterest rate swaps\t(1408)\t0\t\t(1408)\t\t0\t\t\n", "q10k_tbl_41": "Fair Value as of September 30 2019\t\tQuoted Prices in Active Markets for Identical Assets (Level 1)\tSignificant Other Observable Inputs (Level 2)\tUnobservable Inputs (Level 3)\n(In thousands)\t\t\t\t\t\t\t\t\t\t\nAssets:\t\t\t\t\nImpaired loans:\t\t\t\t\nOther commercial real estate\t1016\t0\t\t0\t\t\t\t1016\t\t\nTotal impaired loans\t1016\t\t0\t\t0\t\t\t\t1016\t\nReal estate owned\t\t\t\t\t\t\t\t\t\t\nTotal real estate owned\t0\t\t0\t\t0\t\t\t\t0\t\nTotal assets measured on a non-recurring basis\t1016\t0\t\t0\t\t\t\t1016\t\t\n", "q10k_tbl_42": "Fair Value as of June 30 2019\t\tQuoted Prices in Active Markets for Identical Assets (Level 1)\tSignificant Other Observable Inputs (Level 2)\tUnobservable Inputs (Level 3)\n(In thousands)\t\t\t\t\t\t\t\t\t\t\nAssets:\t\t\t\t\nImpaired loans:\t\t\t\t\nOther commercial real estate\t1164\t0\t\t0\t\t\t\t1164\t\t\nTotal impaired loans\t1164\t\t0\t\t0\t\t\t\t1164\t\nReal estate owned\t\t\t\t\t\t\t\t\t\t\nOther commercial real estate\t557\t\t0\t\t0\t\t\t\t557\t\nTotal real estate owned\t557\t\t0\t\t0\t\t\t\t557\t\nTotal assets measured on a non-recurring basis\t1721\t0\t\t0\t\t\t\t1721\t\t\n", "q10k_tbl_43": "September 30 2019\t\t\t\t\t\t\t\nCarrying Amount\t\tFair Value\tQuoted Prices in Active Markets for Identical Assets (Level 1)\tSignificant Other Observable Inputs (Level 2)\tUnobservable Inputs (Level 3)\n(In thousands)\t\t\t\t\t\t\t\nFinancial assets:\t\t\t\t\t\nDebt securities held to maturity\t321871\t325054\t\t0\t\t325054\t0\nLoans net\t3421268\t\t3408434\t\t0\t0\t3408434\nFinancial liabilities:\t\t\t\t\t\t\t\nTime deposits\t1217399\t\t1228591\t\t0\t1228591\t0\nTerm borrowings\t426563\t\t431197\t\t0\t431197\t0\n", "q10k_tbl_44": "June 30 2019\t\t\t\t\t\t\t\nCarrying Amount\t\tFair Value\tQuoted Prices in Active Markets for Identical Assets (Level 1)\tSignificant Other Observable Inputs (Level 2)\tUnobservable Inputs (Level 3)\n(In thousands)\t\t\t\t\t\t\t\nFinancial assets:\t\t\t\t\t\nDebt securities held to maturity\t332215\t334179\t\t0\t\t334179\t0\nLoans net\t3491322\t\t3469016\t\t0\t0\t3469016\nFinancial liabilities:\t\t\t\t\t\t\t\nTime deposits\t1248358\t\t1255282\t\t0\t1255282\t0\nTerm borrowings\t490755\t\t493674\t\t0\t493674\t0\n", "q10k_tbl_45": "\tThree Months ended September 30\n\t2019\t\t2018\t\t\nGross:\t\t\t\t\t\nNet income\t16618\t\t\t18489\t\t\nOther comprehensive income\t\t\t\t\t\t\nChange in unrealized holding gain (loss) on debt securities available for sale\t79\t\t\t\t(153)\t\nAmortization related to post-retirement obligations\t13\t\t\t\t8\t\nChange in funded status of retirement obligations\t(547)\t\t\t\t0\t\nNet change in unrealized (loss) gain on interest rate swaps\t(2580)\t\t\t\t1235\t\nTotal other comprehensive (loss) income\t(3035)\t\t\t\t1090\t\nTotal comprehensive income\t13583\t\t\t\t19579\t\nTax applicable to:\t\t\t\t\t\t\nNet income\t4318\t\t\t\t5092\t\nOther comprehensive income\t\t\t\t\t\t\nChange in unrealized holding gain (loss) on debt securities available for sale\t23\t\t\t\t(34)\t\nAmortization related to post-retirement obligations\t4\t\t\t\t0\t\nChange in funded status of retirement obligations\t(163)\t\t\t\t0\t\nNet change in unrealized (loss) gain on interest rate swaps\t(755)\t\t\t\t361\t\nTotal other comprehensive (loss) income\t(891)\t\t\t\t327\t\nTotal comprehensive income\t3427\t\t\t\t5419\t\nNet of tax:\t\t\t\t\t\t\nNet income\t12300\t\t\t\t13397\t\nOther comprehensive income\t\t\t\t\t\t\nChange in unrealized holding gain (loss) on debt securities available for sale\t56\t\t\t\t(119)\t\nAmortization related to post-retirement obligations\t9\t\t\t\t8\t\nChange in funded status of retirement obligations\t(384)\t\t\t\t0\t\nNet change in unrealized (loss) gain on interest rate swaps\t(1825)\t\t\t\t874\t\nTotal other comprehensive (loss) income\t(2144)\t\t\t\t763\t\nTotal comprehensive income\t10156\t\t\t14160\t\t\n", "q10k_tbl_46": "\tUnrealized Holding (Loss) Gain on Debt Securities Available for Sale\tPost Retirement Obligations\t\tUnrealized Holding Gain (Loss) on Interest Rate Swaps\t\tAccumulated Other Comprehensive Income (Loss) Net of Tax\t\nBalance at June 30 2019\t(162)\t(288)\t\t(96)\t\t(546)\t\t\nNet change\t56\t\t(375)\t\t(1825)\t\t(2144)\t\nBalance at September 30 2019\t(106)\t(663)\t\t(1921)\t\t(2690)\t\t\nBalance at June 30 2018\t(86)\t(314)\t\t11623\t\t11223\t\t\nNet change\t(119)\t\t8\t\t874\t\t763\t\nReclassification due to the adoption of ASU No. 2016-01\t(658)\t\t0\t\t0\t\t(658)\t\nBalance at September 30 2018\t(863)\t(306)\t\t12497\t\t11328\t\t\n", "q10k_tbl_47": "Accumulated Other Comprehensive Income (Loss) Component\tAffected line item in the Consolidated Statement of Income\tThree Months ended September 30 2019\tThree Months ended September 30 2018\nAmortization related to post-retirement obligations (1)\t\t\t\nNet loss\tOther expenses\t13\t8\n\tTotal before tax\t13\t8\n\tIncome tax benefit\t4\t0\n\tNet of tax\t9\t8\n", "q10k_tbl_48": "\tThree Months Ended September 30\n\t2019\t\t2018\t\t\n\tunaudited\nFees and service charges for customer services:\t\t\t\t\t\nService charges on deposits\t112\t\t\t125\t\t\nATM and card interchange fees\t141\t\t\t\t131\t\nService charges on loans\t114\t\t\t\t56\t\nTotal fees and service charges\t367\t\t\t312\t\t\nBank owned life insurance\t618\t\t\t\t624\t\nGains (losses) on sale of OREO\t29\t\t\t\t0\t\nChange in fair value of equity securities\t(14)\t\t\t\t(119)\t\nOther income\t2\t\t\t\t4\t\nTotal non-interest income\t1002\t\t\t821\t\t\n", "q10k_tbl_49": "\tSeptember 30 2019\n\t(Dollars in thousands)\n2020\t568\t\n2021\t576\t\n2022\t389\t\n2023\t310\t\n2024\t179\t\nThereafter\t248\t\nTotal lease payments\t2270\t\nless: imputed interest\t(213)\t\nTotal operating lease liabilities\t2057\t\n", "q10k_tbl_50": "\t9/30/2019\t6/30/2019\t\t3/31/2019\t\t12/31/2018\t\t9/30/2018\t\n\t(Dollars in thousands)\nDelinquency Totals\t\t\t\t\t\t\t\t\t\n30-59 days past due\t2556\t3146\t\t1648\t\t2890\t\t15261\t\t\n60-89 days past due\t1461\t\t641\t\t975\t\t8431\t\t356\t\nNonaccrual\t6490\t\t10053\t\t10184\t\t10706\t\t9083\t\nTotal\t10507\t13840\t\t12807\t\t22027\t\t24700\t\t\nNon Performing Asset Totals\t\t\t\t\t\t\t\t\t\t\nNonaccrual loans per above\t6490\t10053\t\t10184\t\t10706\t\t9083\t\t\nReal Estate Owned\t0\t\t557\t\t636\t\t636\t\t1564\t\nTotal\t6490\t10610\t\t10820\t\t11342\t\t10647\t\t\nNonaccrual loans to total loans\t0.19%\t\t0.28%\t\t0.29%\t\t0.30%\t\t0.26%\t\nDelinquent loans to total loans\t0.30%\t\t0.39%\t\t0.36%\t\t0.63%\t\t0.70%\t\nNon performing assets to total assets\t0.16%\t\t0.26%\t\t0.27%\t\t0.28%\t\t0.26%\t\n", "q10k_tbl_51": "\tAverage Balance Sheet and Yield/Rate Information For the Three Months Ended (unaudited)\n\tSeptember 30 2019\t\tSeptember 30 2018\t\t\t\t\t\t\t\t\t\t\n\tAverage Outstanding Balance\t\tInterest Earned/Paid\t\t\t\tAverage Yield/Rate\t\t\t\tAverage Outstanding Balance\t\t\t\tInterest Earned/ Paid\t\t\t\tAverage Yield/Rate\t\t\n\t(Dollars in thousands)\nInterest-earning assets:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nLoans (1)\t3459868\t\t\t37257\t\t\t\t\t4.31%\t\t\t3527085\t\t\t\t35952\t\t\t\t\t4.08%\t\nFederal Home Loan Bank Stock\t23658\t\t\t\t405\t\t\t\t6.85%\t\t\t\t27648\t\t\t\t448\t\t\t\t6.48%\t\nEquity securities\t1335\t\t\t\t11\t\t\t\t3.30%\t\t\t\t1528\t\t\t\t10\t\t\t\t2.62%\t\nDebt securities available for sale\t31992\t\t\t\t184\t\t\t\t2.30%\t\t\t\t41977\t\t\t\t240\t\t\t\t2.29%\t\nDebt securities held to maturity\t327458\t\t\t\t1986\t\t\t\t2.43%\t\t\t\t333989\t\t\t\t1929\t\t\t\t2.31%\t\nFederal funds sold and short term investments\t8612\t\t\t\t54\t\t\t\t2.51%\t\t\t\t4339\t\t\t\t22\t\t\t\t2.03%\t\nTotal interest-earning assets\t3852923\t\t\t\t39897\t\t\t\t4.14%\t\t\t\t3936566\t\t\t\t38601\t\t\t\t3.92%\t\nNon-interest-earning assets\t179844\t\t\t\t\t\t\t\t\t\t\t\t204748\t\t\t\t\t\t\t\t\t\nTotal assets\t4032767\t\t\t\t\t\t\t\t\t\t\t4141314\t\t\t\t\t\t\t\t\t\t\nInterest-bearing liabilities:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nSavings deposits\t380385\t\t\t\t1094\t\t\t\t1.15%\t\t\t\t200300\t\t\t\t190\t\t\t\t0.38%\t\nMoney market\t637726\t\t\t\t2078\t\t\t\t1.30%\t\t\t\t756447\t\t\t\t2057\t\t\t\t1.09%\t\nChecking accounts\t673614\t\t\t\t2244\t\t\t\t1.33%\t\t\t\t723404\t\t\t\t1659\t\t\t\t0.92%\t\nTime deposits\t1248275\t\t\t\t6873\t\t\t\t2.20%\t\t\t\t1229741\t\t\t\t5131\t\t\t\t1.67%\t\nTotal deposits\t2940000\t\t\t\t12289\t\t\t\t1.67%\t\t\t\t2909892\t\t\t\t9037\t\t\t\t1.24%\t\nBorrowings\t464495\t\t\t\t3145\t\t\t\t2.71%\t\t\t\t571012\t\t\t\t3269\t\t\t\t2.29%\t\nTotal interest-bearing liabilities\t3404495\t\t\t\t15434\t\t\t\t1.81%\t\t\t\t3480904\t\t\t\t12306\t\t\t\t1.41%\t\nNon-interest-bearing liabilities\t98821\t\t\t\t\t\t\t\t\t\t\t\t99550\t\t\t\t\t\t\t\t\t\nTotal liabilities\t3503316\t\t\t\t\t\t\t\t\t\t\t\t3580454\t\t\t\t\t\t\t\t\t\nStockholders' equity\t529451\t\t\t\t\t\t\t\t\t\t\t\t560860\t\t\t\t\t\t\t\t\t\nTotal liabilities and stockholders' equity\t4032767\t\t\t\t\t\t\t\t\t\t\t4141314\t\t\t\t\t\t\t\t\t\t\nNet interest income\t\t\t\t24463\t\t\t\t\t\t\t\t\t\t\t\t26295\t\t\t\t\t\t\nNet interest rate spread (2)\t\t\t\t\t\t\t\t\t2.33%\t\t\t\t\t\t\t\t\t\t\t\t2.51%\t\nNet interest-earning assets (3)\t448428\t\t\t\t\t\t\t\t\t\t\t455662\t\t\t\t\t\t\t\t\t\t\nNet interest margin (4)\t\t\t\t\t\t\t\t\t2.54%\t\t\t\t\t\t\t\t\t\t\t\t2.67%\t\nAverage of interest-earning assets to interest-bearing liabilities\t\t\t\t\t\t\t\t\t113.17%\t\t\t\t\t\t\t\t\t\t\t\t113.09%\t\n", "q10k_tbl_52": "\tThree Months ended September 30\tIncrease / (decrease)\t\t\t\t\t\n\t2019\t2018\t\t\t\t\t\t\t\t\t\t\t\t\t\n\tInterest Income\tYield\t\tInterest Income\t\tYield\t\t\tInterest Income\t\t\t\tAverage Balance\t\t\t\tYield\t\t\n\t(Dollars in thousands)\nInterest on mortgage loans\t37257\t\t4.31%\t35952\t\t\t4.08%\t\t\t1305\t\t\t\t(67217)\t\t\t\t\t0.23%\t\nDividends on FHLB stock\t405\t\t6.85%\t\t448\t\t6.48%\t\t\t\t(43)\t\t\t\t(3990)\t\t\t\t0.37%\t\nEquity securities\t11\t\t3.30%\t\t10\t\t2.62%\t\t\t\t1\t\t\t\t(193)\t\t\t\t0.68%\t\nDebt securities AFS\t184\t\t2.30%\t\t240\t\t2.29%\t\t\t\t(56)\t\t\t\t(9985)\t\t\t\t0.01%\t\nDebt securities HTM\t1986\t\t2.43%\t\t1929\t\t2.31%\t\t\t\t57\t\t\t\t(6531)\t\t\t\t0.12%\t\nInterest on federal funds sold and short term investments\t54\t\t2.51%\t\t22\t\t2.03%\t\t\t\t32\t\t\t\t4273\t\t\t\t0.48%\t\nTotal interest income\t39897\t\t4.14%\t38601\t\t\t3.92%\t\t\t1296\t\t\t\t(83643)\t\t\t\t\t0.22%\t\n", "q10k_tbl_53": "Three Months ended September 30\t\t\t\t\tIncrease / (decrease)\t\t\n2019\t\t\t2018\t\t\t\t\nInterest Expense\t\tCost\tInterest Expense\tCost\tInterest Expense\tAverage Balance\tCost\n(Dollars in thousands)\t\t\t\t\t\t\t\nSavings deposits\t1094\t1.15%\t190\t0.38%\t904\t180085\t0.77%\nMoney market\t2078\t1.30%\t2057\t1.09%\t21\t(118721)\t0.21%\nChecking accounts\t2244\t1.33%\t1659\t0.92%\t585\t(49790)\t0.41%\nTime deposits\t6873\t2.20%\t5131\t1.67%\t1742\t18534\t0.53%\nTotal deposits\t12289\t1.67%\t9037\t1.24%\t3252\t30108\t0.43%\nBorrowings\t3145\t2.71%\t3269\t2.29%\t(124)\t(106517)\t0.42%\nTotal interest expense\t15434\t1.81%\t12306\t1.41%\t3128\t(76409)\t0.40%\n", "q10k_tbl_54": "\tNet Interest Income Before\t\tPrepayment Penalty\tNet Interest Income Before Provision Excluding Prepayment\tIncluding Prepayment Penalties\t\tExcluding Prepayment Penalties\t\nQuarter Ended\tProvision\t\tIncome\tPenalties\tSpread\tMargin\tSpread\tMargin\n\t(Dollars in thousands)\t\t\t\t\t\t\t\nSeptember 30 2019\t24463\t\t1382\t23081\t2.33%\t2.54%\t2.19%\t2.40%\nJune 30 2019\t\t24657\t1444\t23213\t2.32%\t2.53%\t2.17%\t2.38%\nMarch 31 2019\t\t24109\t275\t23834\t2.29%\t2.48%\t2.26%\t2.45%\nDecember 31 2018\t\t26027\t1727\t24300\t2.51%\t2.68%\t2.33%\t2.51%\nSeptember 30 2018\t\t26295\t1154\t25141\t2.51%\t2.67%\t2.40%\t2.55%\n", "q10k_tbl_55": "\tThree Months ended September 30\n\t2019\t\t2018\t\t\n\t(Dollars in thousands)\nBalance at beginning of period\t28596\t\t\t30562\t\t\nProvisions charged to operations\t0\t\t\t\t(2000)\t\nRecoveries of loans previously charged off\t12\t\t\t\t3\t\nLoans charged off\t0\t\t\t\t0\t\nBalance at end of period\t28608\t\t\t28565\t\t\nAllowance for loan losses to total loans\t0.83%\t\t\t\t0.81%\t\nNet annualized (recoveries) charge-offs to average loans outstanding\t-%\t\t\t\t-%\t\n", "q10k_tbl_56": "September 30 2019\t\t\t\t\t\t\nActual\t\t\t\tRequired\nAmount\t\tRatio\tAmount\tRatio\n(Dollars in thousands)\t\t\t\t\t\t\nCompany:\t\t\t\t\nCommon Equity Tier 1 (\"CET1\") (to risk-weighted assets)\t531990\t\t14.91%\t160517\t\t4.50%\nTier 1capital (to risk-weighted assets)\t531990\t\t14.91%\t\t214023\t6.00%\nTotal capital (to risk-weighted assets)\t560598\t\t15.72%\t\t285364\t8.00%\nTier 1 leverage capital (to average assets)\t531990\t\t13.19%\t\t161314\t4.00%\nCapital Conservation Buffer\t275234\t\t7.72%\t\t89176\t2.50%\n", "q10k_tbl_57": "June 30 2019\t\t\t\t\t\t\nActual\t\t\t\tRequired\nAmount\t\tRatio\tAmount\tRatio\n(Dollars in thousands)\t\t\t\t\t\t\nCompany:\t\t\t\t\nCommon Equity Tier 1 (\"CET1\") (to risk-weighted assets)\t529692\t\t14.57%\t163558\t\t4.50%\nTier 1capital (to risk-weighted assets)\t529692\t\t14.57%\t\t218078\t6.00%\nTotal capital (to risk-weighted assets)\t558288\t\t15.36%\t\t290770\t8.00%\nTier 1 leverage capital (to average assets)\t529692\t\t12.98%\t\t163288\t4.00%\nCapital Conservation Buffer\t267518\t\t7.36%\t\t90866\t2.50%\n", "q10k_tbl_58": "September 30 2019\t\t\t\t\t\t\nActual\t\t\tRequired\t\tWell-Capitalized\t\nAmount\t\tRate\tAmount\tRate\tAmount\tRate\n(Dollars in thousands)\t\t\t\t\t\t\nBank:\t\t\t\t\t\t\nCommon Equity Tier 1 (\"CET1\") (to risk weighted assets)\t498699\t13.98%\t160492\t4.50%\t231822\t6.50%\nTier 1 capital (to risk-weighted assets)\t498699\t13.98%\t213990\t6.00%\t285320\t8.00%\nTotal capital (to risk-weighted assets)\t527307\t14.79%\t285320\t8.00%\t356650\t10.00%\nTier 1 Leverage capital (to average assets)\t498699\t12.37%\t161284\t4.00%\t201605\t5.00%\nCapital conservation buffer\t241987\t6.78%\t89162\t2.50%\t\t\n", "q10k_tbl_59": "June 30 2019\t\t\t\t\t\t\nActual\t\t\tRequired\t\tWell-Capitalized\t\nAmount\t\tRate\tAmount\tRate\tAmount\tRate\n(Dollars in thousands)\t\t\t\t\t\t\nBank:\t\t\t\t\t\t\nCommon Equity Tier 1 (\"CET1\") (to risk weighted assets)\t485683\t13.36%\t163533\t4.50%\t236215\t6.50%\nTier 1 capital (to risk-weighted assets)\t485683\t13.36%\t218044\t6.00%\t290726\t8.00%\nTotal capital (to risk-weighted assets)\t514279\t14.15%\t290726\t8.00%\t363407\t10.00%\nTier 1 Leverage capital (to average assets)\t485683\t11.90%\t163258\t4.00%\t204073\t5.00%\nCapital conservation buffer\t225553\t6.15%\t90582\t2.50%\t\t\n", "q10k_tbl_60": "Loan Portfolio by Reprice/Maturity Date\t\t\t\t\t\nAt September 30 2019\t\t\t\t\t\n(Dollars in thousands)\t\t\t\t\t\nRepricing or Maturing Within:\tAmount\t\tWeighted Average Rate\t% of Total Loans\tCumulative % of Total Loans\n1 Year or less\t$808549\t\t3.76%\t23.38%\t23.38%\n1 - 3 years\t\t1077781\t3.74%\t31.16%\t54.54%\n3 - 5 years\t\t961910\t4.26%\t27.81%\t82.35%\n5 - 7 years\t\t143087\t4.27%\t4.14%\t86.49%\n7 to 10 years\t\t152354\t4.75%\t4.40%\t90.89%\nGreater than 10 years\t\t315090\t4.36%\t9.11%\t100.00%\nTotal\t$3458771\t\t4.01%\t100.00%\t\n", "q10k_tbl_61": "\t\tEstimated Increase (Decrease) in NPV\t\tNPV as a Percentage of Present Value of Assets (3)\t\nChange in Interest Rates (basis points) (1)\tEstimated NPV (2)\tAmount\tPercent\tNPV Ratio (4)\tIncrease (Decrease) basis points\n\t(Dollars in thousands)\t\t\t\t\n+200\t476773\t(60298)\t(11.2)%\t12.4%\t(108)\n+100\t514264\t(22807)\t(4.2)%\t13.1%\t(36)\n0\t537071\t0\t-%\t13.5%\t0\n(100)\t566428\t29357\t5.5%\t14.0%\t45\n(200)\t587634\t50563\t9.4%\t14.2%\t72\n", "q10k_tbl_62": "3.1\tCertificate of Incorporation of Oritani Financial Corp. *\n3.2\tBylaws of Oritani Financial Corp. *\n4\tForm of Common Stock Certificate of Oritani Financial Corp. *\n31.1\tCertification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\n31.2\tCertification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\n32\tCertification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n101\tInteractive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Financial Condition (ii) the Consolidated Statements of Income (iii) the Consolidated Statements of Comprehensive Income (iv) the Consolidated Statements of Changes in Stockholders' Equity (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements\n101.INS\tInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tinline XBRL Taxonomy Extension Schema Document\n101.CAL\tinline XBRL Taxonomy Extension Calculation Linkbase Document\n101.DEF\tinline XBRL Taxonomy Extension Definition Linkbase Document\n101.LAB\tinline XBRL Taxonomy Extension Labels Linkbase Document\n101.PRE\tinline XBRL Taxonomy Extension Presentation Linkbase Document\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_3", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
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 Jersey07676
(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 every Interactive Data File required to be submitted 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
☐
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 ☒
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common
ORIT
The NASDAQ Stock Market
As of November 12, 2019, there were 56,245,065 shares of the Registrant’s common stock, par value $0.01 per share, issued and 45,153,395 shares outstanding.
Debt securities available for sale, at market value
30,578
32,752
Debt securities held to maturity, fair value of $325,054 and $334,179, respectively
321,871
332,215
Bank Owned Life Insurance (at cash surrender value)
101,490
100,872
Federal Home Loan Bank of New York (“FHLB”) stock at cost
23,007
25,925
Accrued interest receivable
11,979
11,935
Real estate owned
—
557
Office properties and equipment, net
14,796
12,904
Deferred tax assets, net
32,231
31,045
Other assets
3,951
3,120
Total Assets
$
3,989,658
$
4,070,516
Liabilities
Deposits
$
2,936,546
$
2,923,244
Borrowings
426,563
521,555
Advance payments by borrowers for taxes and insurance
23,952
24,607
Other liabilities
73,297
71,963
Total Liabilities
3,460,358
3,541,369
Stockholders’ Equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 56,245,065 shares issued; 45,100,052 shares outstanding at September 30, 2019 and 45,097,052 shares outstanding at June 30, 2019.
562
562
Additional paid-in capital
515,868
515,491
Non-vested restricted stock awards
(190
)
(216
)
Treasury stock, at cost; 11,145,013 shares at September 30, 2019 and 11,148,013 shares at June 30, 2019.
(153,050
)
(153,091
)
Unallocated common stock held by the employee stock ownership plan
(14,733
)
(15,085
)
Retained earnings
183,533
182,032
Accumulated other comprehensive income, net of tax
(2,690
)
(546
)
Total Stockholders’ Equity
529,300
529,147
Total Liabilities and Stockholders’ Equity
$
3,989,658
$
4,070,516
See accompanying notes to unaudited consolidated financial statements.
3
Oritani Financial Corp. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)
Three Months ended September 30,
2019
2018
(unaudited)
Interest income:
Interest on loans
$
37,257
$
35,952
Dividends on FHLB stock
405
448
Equity securities
11
10
Interest on debt securities available for sale
184
240
Interest on debt securities held to maturity
1,986
1,929
Interest on federal funds sold and short term investments
54
22
Total interest income
39,897
38,601
Interest expense:
Deposits
12,289
9,037
Borrowings
3,145
3,269
Total interest expense
15,434
12,306
Net interest income before provision for loan losses
24,463
26,295
Reversal of provision for loan losses
—
(2,000
)
Net interest income after provision for loan losses
24,463
28,295
Non-interest income:
Fees and service charges
367
312
Bank-owned life insurance
618
624
Gains on sale of OREO
29
—
Change in fair value of equity securities
(14
)
(119
)
Other income
2
4
Total non-interest income
1,002
821
Non-interest expense:
Compensation, payroll taxes and fringe benefits
6,233
6,331
Advertising
142
143
Office occupancy and equipment expense
723
760
Data processing service fees
540
499
Federal insurance premiums
—
300
Other expenses
1,209
2,594
Total non-interest expense
8,847
10,627
Income before income tax expense
16,618
18,489
Income tax expense
4,318
5,092
Net income
$
12,300
$
13,397
Earnings per basic common share
$
0.28
$
0.30
Earnings per diluted common share
$
0.28
$
0.30
See accompanying notes to unaudited consolidated financial statements.
4
Oritani Financial Corp. and Subsidiaries
Consolidated Statements of Comprehensive Income
(In thousands)
Three months ended
September 30,
2019
2018
(unaudited)
Net of tax:
Net income
$
12,300
$
13,397
Other comprehensive income
Change in unrealized holding gain (loss) on debt securities available for sale
56
(119
)
Amortization related to post-retirement obligations
9
8
Change in funded status of retirement obligations
(384
)
—
Net change in unrealized (loss) gain on interest rate swaps
(1,825
)
874
Total other comprehensive (loss) income
(2,144
)
763
Total comprehensive income
$
10,156
$
14,160
See accompanying notes to unaudited consolidated financial statements.
5
Oritani Financial Corp. and Subsidiaries
Consolidated Statements of Stockholders’ Equity
Three months ended September 30, 2019 and 2018 (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, 2018
46,616,646
$
562
$
514,002
$
(176
)
$
(129,433
)
$
(16,631
)
$
179,799
$
11,223
$
559,346
Net income
—
—
—
—
—
—
13,397
—
13,397
Other comprehensive income , net of tax
—
—
—
—
—
—
—
763
763
Cash dividends declared (0.25 per share)
—
—
—
—
—
—
(11,134
)
—
(11,134
)
Purchase of treasury stock
(18,788
)
—
—
—
(292
)
—
—
—
(292
)
Issuance of restricted stock awards
10,000
—
—
(135
)
135
—
—
—
—
Compensation cost for stock options and restricted stock
—
—
43
—
—
—
—
—
43
ESOP shares allocated or committed to be released
—
—
328
—
—
350
—
—
678
Exercise of stock options
12,000
—
—
—
161
—
(18
)
—
143
Reclassification due to the adoption of ASU No. 2016-01
—
—
—
—
—
—
658
(658
)
—
Balance at September 30, 2018
46,619,858
$
562
$
514,373
$
(311
)
$
(129,429
)
$
(16,281
)
$
182,702
$
11,328
$
562,944
Balance at June 30, 2019
45,097,052
$
562
$
515,491
$
(216
)
$
(153,091
)
$
(15,085
)
$
182,032
$
(546
)
$
529,147
Net income
—
—
—
—
—
—
12,300
—
12,300
Other comprehensive loss, net of tax
—
—
—
—
—
—
—
(2,144
)
(2,144
)
Cash dividends declared (0.25 per share)
—
—
—
—
—
—
(10,800
)
—
(10,800
)
Compensation cost for stock options and restricted stock
—
—
24
—
—
—
—
—
24
ESOP shares allocated or committed to be released
—
—
385
—
—
352
—
—
737
Exercise of stock options
3,000
—
—
—
41
—
(5
)
—
36
Vesting of restricted stock awards
—
—
(32
)
26
—
—
6
—
—
Balance at September 30, 2019
45,100,052
$
562
$
515,868
$
(190
)
$
(153,050
)
$
(14,733
)
$
183,533
$
(2,690
)
$
529,300
See accompanying notes to unaudited consolidated financial statements.
6
Oritani Financial Corp. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
Three months ended
September 30,
2019
2018
(unaudited)
Cash flows from operating activities:
Net income
$
12,300
$
13,397
Adjustments to reconcile net income to net cash provided by operating activities:
ESOP and stock-based compensation expense
761
721
Tax benefit from stock-based compensation
1
1
Depreciation of premises and equipment
174
196
Net amortization and accretion of premiums and discounts on securities
301
324
Reversal of provision for loan losses
—
(2,000
)
Amortization and accretion of deferred loan fees, net
(636
)
(551
)
Decrease in deferred taxes
354
595
Fair value adjustment for equity securities
14
119
Gain on sale of real estate owned
(29
)
—
Increase in cash surrender value of bank owned life insurance
(618
)
(623
)
Increase in accrued interest receivable
(44
)
(631
)
Increase in other assets
(6,649
)
(1,438
)
Increase in other liabilities
1,333
533
Net cash provided by operating activities
7,262
10,643
Cash flows from investing activities:
Net decrease in loans receivable
70,690
41,469
Purchase of mortgage loans
—
(7,896
)
Purchase of debt securities held to maturity
(7,469
)
—
Purchase of Federal Home Loan Bank stock
(3,141
)
(12,563
)
Proceeds from payments, calls and maturities of debt securities available for sale
2,234
3,285
Proceeds from payments, calls and maturities of debt securities held to maturity
17,531
15,381
Proceeds from redemption of Federal Home Loan Bank stock
6,059
15,624
Proceeds from sale of real estate owned
586
—
Purchase of fixed assets
(11
)
(64
)
Net cash provided by investing activities
86,479
55,236
Cash flows from financing activities:
Net increase in deposits
13,302
8,897
Purchase of treasury stock
—
(292
)
Dividends paid to shareholders
(10,800
)
(11,134
)
Exercise of stock options
36
143
(Decrease) increase in advance payments by borrowers for taxes and insurance
(655
)
435
Proceeds from borrowed funds
—
45,000
Repayment of borrowed funds
(94,992
)
(115,213
)
Net cash used in financing activities
(93,109
)
(72,164
)
Net increase (decrease) in cash and cash equivalents
632
(6,285
)
Cash and cash equivalents at beginning of period
26,511
34,848
Cash and cash equivalents at end of period
$
27,143
$
28,563
Supplemental cash flow information:
Cash paid during the period for:
Interest
$
15,478
$
12,210
Income taxes
$
4,705
$
5,079
Noncash item for lease adoption ASU 2016-02
$
2,208
$
—
See accompanying notes to unaudited consolidated financial statements.
Notes to Unaudited Consolidated Financial Statements
1. Basis of Presentation
The consolidated financial statements are composed of the accounts of Oritani Financial Corp., its wholly owned subsidiaries, Oritani Bank (the “Bank”), Hampshire Financial LLC (inactive) and Oritani LLC (inactive), and the wholly owned subsidiaries of Oritani Bank; Zorm 2009, LLC, Ormon LLC (Ormon) (inactive), 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 month period ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending June 30, 2020.
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, 2019 Annual Report on Form 10-K, filed with the SEC on August 28, 2019.
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 September 30, 2019 and June 30, 2019 and in the Consolidated Statements of Income for the Three Months Ended September 30, 2019 and 2018. 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 incurred 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.
Notes to Unaudited Consolidated Financial Statements
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
September 30,
2019
2018
(In thousands, except per share data)
Net income
$
12,300
$
13,397
Weighted average common shares outstanding—basic
43,286
44,640
Effect of dilutive stock options outstanding
668
632
Weighted average common shares outstanding—diluted
43,954
45,272
Earnings per share-basic
$
0.28
$
0.30
Earnings per share-diluted
$
0.28
$
0.30
For the three months ended September 30, 2019 there were no option shares that could potentially dilute basic earnings per share. For the three months ended September 30, 2018 there were 1,677 option shares, 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.
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 was authorized to repurchase up to 5% of the outstanding shares, or 2,205,451 shares. During the twelve months ended June 30, 2019, a total of 1,888,851 shares had been acquired under repurchase programs at a weighted average cost of $15.20 per share. With these purchases, the fourth repurchase plan was completed. Repurchased shares are 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.
Notes to Unaudited Consolidated Financial Statements
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.
There were no options granted during the three months ended September 30, 2019. The fair value of options granted during the three months ended September 30, 2018 was estimated using the Black-Scholes options-pricing model with the assumptions in the following table.
Three Months ended September 30, 2018
Option shares granted
20,000
Expected dividend yield
7.47%
Expected volatility
17.68%
Risk-free interest rate
2.82%
Expected option life (in years)
6.5
The following is a summary of the Company’s stock option activity and related information as of September 30, 2019 and changes therein during the three months then ended:
Number of
Stock
Options
Weighted
Average
GrantDate
Fair Value
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at June 30, 2019
2,222,691
$
2.64
$
12.16
2.4
Exercised
(3,000
)
2.71
11.95
2.0
Outstanding at September 30, 2019
2,219,691
$
2.64
$
12.16
2.2
Exercisable at September 30, 2019
2,150,091
$
2.69
$
12.05
2.0
The Company recorded $6,000 and $11,000 of share based compensation expense related to options for the three months ended September 30, 2019 and 2018, respectively. Expected future expense related to the non-vested options outstanding at September 30, 2019 is $61,000 over a weighted average period of 3.3 years. Upon exercise of vested options, management expects to draw on treasury stock as the source of the shares.
Notes to Unaudited Consolidated Financial Statements
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 September 30, 2019 and changes therein during the three months then ended:
Number of
Shares
Awarded
Weighted
Average
Grant Date
Fair Value
Non-vested at June 30, 2019
16,800
$
15.97
Vested
(2,000
)
16.15
Non-vested at September 30, 2019
14,800
$
15.95
The Company recorded $19,000 and $32,000 of share based compensation expense related to the restricted stock shares for the three months ended September 30, 2019 and 2018, respectively. Expected future expense related to the non-vested restricted shares at September 30, 2019 is $191,000 over a weighted average period of 2.9 years.
Notes to Unaudited Consolidated Financial Statements
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 months ended September 30, 2019 and 2018 are presented in the following table:
Retirement Plan
BEP Plan
Medical Plan
Three Months Ended September 30,
2019
2018
2019
2018
2019
2018
(In thousands)
Service cost
$
35
$
31
$
—
$
—
$
17
$
11
Interest cost
49
54
11
13
52
59
Amortization of unrecognized:
Net loss
—
—
12
8
1
—
Total
$
84
$
85
$
23
$
21
$
70
$
70
The service cost component of net periodic benefit cost is included in compensation and employee benefits on the Statements of Income. The other components of net periodic benefit cost, including interest cost and amortization of actuarial gain/loss are included in other expenses on the Statements of Income.
Notes to Unaudited Consolidated Financial Statements
6. Loans, net
Loans, net are summarized as follows:
September 30,
2019
June 30,
2019
(In thousands)
Residential
$
260,651
$
267,011
Residential commercial real estate
2,018,584
2,086,314
Grocery/credit retail commercial real estate
469,753
482,831
Other commercial real estate
689,078
683,739
Construction and land loans
20,705
9,170
Total loans
3,458,771
3,529,065
Less:
Unearned deferred fees and discounts, net
8,895
9,147
Allowance for loan losses
28,608
28,596
Loans, net
$
3,421,268
$
3,491,322
The Company’s allowance for loan losses is analyzed quarterly and many factors are considered, including changes 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 August 28, 2019.
The activity in the allowance for loan losses for the three months ended September 30, 2019 and 2018 is summarized as follows: