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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>As filed with the Securities and Exchange Commission on March&nbsp;5, 2010</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><B>Registration No.&nbsp;333-________</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt; margin-top: 4pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 2pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 2pt"><B>FORM S-1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 8pt"><B>REGISTRATION STATEMENT UNDER<BR>
THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>ORITANI FINANCIAL CORP. AND<BR>
ORITANI BANK 401(K) PLAN</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State or Other Jurisdiction of <BR>
Incorporation or Organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>6712</B><BR>
(Primary Standard Industrial<BR>
Classification Code Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Being Applied For</B><BR>
(I.R.S. Employer<BR>
Identification Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 4pt"><B>370 Pascack Road<BR>
Township of Washington, New Jersey 07676<BR>
(201)&nbsp;664-5400</B><BR>
(Address, Including Zip Code, and Telephone Number, Including Area Code, of<BR>
Registrant&#146;s Principal Executive Offices)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 8pt"><B>Kevin J. Lynch<BR>
President and Chief Executive Officer<BR>
370 Pascack Road<BR>
Township of Washington, New Jersey 07676<BR>
(201)&nbsp;664-5400</B><BR>
(Address, Including Zip Code, and Telephone Number, Including Area Code, of<BR>
Agent for Service)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 4pt"><B>Copies to:<BR>
John J. Gorman, Esq.<BR>
Marc P. Levy, Esq.<BR>
Luse Gorman Pomerenk &#038; Schick, P.C.<BR>
5335 Wisconsin Avenue, N.W., Suite&nbsp;780<BR>
Washington, D.C. 20015<BR>
(202)&nbsp;274-2000</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt"><B>Approximate date of commencement of proposed sale to the public: </B>As soon as practicable after this
registration statement becomes effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">If any of the securities being registered on this Form are to be offered on a delayed or continuous
basis pursuant to Rule&nbsp;415 under the Securities Act of 1933, check the following box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#120;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">If this Form is filed to register additional shares for an offering pursuant to Rule 462(b) under
the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large accelerated
filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the Exchange Act.
(Check one):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Large accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#120;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Smaller reporting company&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 0pt">(Do not check if a smaller reporting company)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 4pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed maximum</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed maximum</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of each class of</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount to be</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>offering price</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>aggregate</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>

    <TD nowrap align="center"><B>securities to be registered</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>registered</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>per share</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>offering price</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>registration fee</B></TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, $0.01 par value per share</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="center" style="border-top: 1px solid #000000">69,282,277 shares</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">10.00</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="center" style="border-top: 1px solid #000000; border-top: 1px solid #000000; ">$692,822,770(1)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$49,399</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Participation Interests</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="center" style="border-top: 1px solid #000000">570,000 interests</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">(2)</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee.</TD>
</TR>

<TR style="font-size: 0pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The securities of Oritani Financial Corp. to be purchased by the Oritani Bank 401(k) Plan are
included in the amount shown for common stock. However, pursuant to Rule 457(h) of the
Securities Act of 1933, as amended, no separate fee is required for the participation
interests. Pursuant to such rule, the amount being registered has been calculated on the
basis of the number of shares of common stock that may be purchased with the current assets of
such plan.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The registrant hereby amends this registration statement on such date or dates as may be necessary
to delay its effective date until the registrant shall file a further amendment which specifically
states that this registration shall thereafter become effective in accordance with </B><B>Section 8(a)</B><B> of
the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section&nbsp;</B><B>8(a)</B><B>, may determine.</B><BR>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Prospectus Supplement</B></U>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Interests in<BR>
ORITANI BANK<BR>
EMPLOYEES&#146; SAVINGS &#038; PROFIT SHARING PLAN AND TRUST</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Offering of Participation Interests in up to 570,000 Shares of</B></DIV>

<DIV align="center" style="font-size: 18pt"><B>ORITANI FINANCIAL CORP.</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>Common Stock</B></DIV>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the conversion of Oritani Financial Corp., MHC from the mutual to stock
form of organization, Oritani Financial Corp. is allowing participants in the Oritani Bank
Employees&#146; Savings &#038; Profit Sharing Plan and Trust (the &#147;Plan&#148;) to invest all or a portion of their
accounts in the common stock of Oritani Financial Corp., the newly formed Delaware corporation
(other than amounts the participants presently have invested in the common stock of Oritani
Financial Corp., the federally chartered stock holding company of Oritani Bank). Based upon the
value of the Plan assets at February&nbsp;25, 2010, Oritani Financial Corp. has registered a number of
participation interests through the Plan in order to enable the trustee of the Plan to purchase or
acquire approximately 570,000 shares of common stock at $10 per share. This prospectus supplement
relates to the election of Plan participants to direct the trustee of the Plan to invest all or a
portion of their Plan accounts in stock units representing an ownership interest in the Oritani
Financial Corp. Stock Fund (the &#147;New Employer Stock Fund&#148;) at the time of the stock offering.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus of Oritani Financial Corp., dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, accompanies this
prospectus supplement. It contains detailed information regarding the conversion and stock
offering of Oritani Financial Corp. and the financial condition, results of operations and business
of Oritani Financial Corp. and Oritani Bank. You should read this prospectus supplement, which
provides information with respect to the Plan, together with the prospectus.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>For a discussion of risks that you should consider before making an investment decision, see
&#147;Risk Factors&#148; beginning on page &#95;&#95;&#95; of the prospectus.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The interests in the Plan and the common stock being offered have not been approved or
disapproved by the Office of Thrift Supervision, the Securities and Exchange Commission or any
other federal or state agency. Any representation to the contrary is a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The securities offered in this prospectus supplement are not deposits or accounts and are not
insured or guaranteed by the Federal Deposit Insurance Corporation (&#147;FDIC&#148;) or any other government
agency.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement may be used only in connection with offers and sales by Oritani
Financial Corp., of participation interests in the Plan consisting of shares of common stock of
Oritani Financial Corp. No one may use this prospectus supplement to reoffer or resell interests
or shares of common stock acquired through the Plan.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in this prospectus supplement and the
prospectus. Oritani Financial Corp., Oritani Bank and the Plan have not authorized anyone to
provide you with information that is different.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement does not constitute an offer to sell or solicitation of an offer to
buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer or
solicitation in that jurisdiction. Neither the delivery of this prospectus supplement and the
prospectus nor any sale of common stock or stock units representing an ownership interest in common
stock shall under any circumstances imply that there has been no change in the affairs of Oritani
Financial Corp., Oritani Bank or the Plan since the date of this prospectus supplement, or that the
information contained in this prospectus supplement or incorporated by reference is correct as of
any time after the date of this prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of this prospectus supplement is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">
THE OFFERING</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 10pt"><td>&nbsp;</tD></tR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#102">Securities Offered and Purchase Price</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">Election to Purchase Common Stock in the Offering: Priorities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">Shares Currently Held in the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">Composition of and Purpose of Stock Units</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">Value of Plan Assets</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">Transferring Funds to Purchase Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">How to Order</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">Order Deadline</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">Irrevocability of Transfer Direction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">Other Purchases in your Account during the Offering Period</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">Direction to Purchase Common Stock after the Offering</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">Purchase Price of Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#114">Nature of a Participant&#146;s Interest in the Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#115">Voting Rights of Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 10pt"><td>&nbsp;</tD></tR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">DESCRIPTION OF THE PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 10pt"><td>&nbsp;</tD></tR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">Introduction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">Eligibility and Participation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">Contributions under the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#120">Limitations on Contributions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#121">Benefits under the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#122">Withdrawals and Distributions from the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#123">Investment of Contributions and Account Balances</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#124">Performance History</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#125">Administration of the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#126">Amendment and Termination</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#127">Merger, Consolidation or Transfer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#128">Federal Income Tax Consequences</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#129">Notice of Your Rights Concerning Employer Securities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#130">Additional ERISA Considerations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#131">Securities and Exchange Commission Reporting and Short-Swing Profit Liability</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#132">Financial Information Regarding Plan Assets</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 10pt"><td>&nbsp;</tD></tR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#133">LEGAL OPINION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv1w1.htm">EX-1.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv1w2.htm">EX-1.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv3w1.htm">EX-3.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv3w2.htm">EX-3.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv4.htm">EX-4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv5.htm">EX-5</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv8.htm">EX-8</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv23w2.htm">EX-23.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv23w3.htm">EX-23.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv99w1.htm">EX-99.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv99w2.htm">EX-99.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv99w3.htm">EX-99.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv99w4.htm">EX-99.4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22184exv99w5.htm">EX-99.5</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top" colspan="3"><a name="101"></a><B>THE OFFERING</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><a name="102"></a><B>Securities Offered and Purchase
Price</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oritani Financial Corp. is offering
participants in the Plan the
opportunity to elect to purchase
stock units in the Oritani Bank
401(k) Plan (the &#147;Plan&#148;). The stock
units offered under the Plan
represent indirect ownership of
Oritani Financial Corp.&#146;s common
stock through a new employer stock
fund being established under the Plan
in connection with the stock offering
(&#147;New Employer Stock Fund&#148;). At
February&nbsp;25, 2010, there were
sufficient funds in the Plan to
purchase or acquire approximately
570,000 shares of Oritani Financial
Corp. common stock at $10.00 per
share. The shares of common stock
currently held in the Plan will
automatically be exchanged for shares
of Oritani Financial Corp., a new
Delaware corporation (&#147;OFC-Delaware)
pursuant to an exchange ratio, as is
more fully discussed in the
prospectus. Only employees of
Oritani Bank may become participants
in the Plan. Your investment in the
shares of OFC-Delaware through the
Plan in the offering is subject to
the purchase priorities listed below.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information with regard to the Plan
is contained in this prospectus
supplement and information with
regard to the financial condition,
results of operations and business of
OFC-Delaware and information about
the common stock offering are
contained in the accompanying
prospectus. The address of the
principal executive office of
OFC-Delaware and Oritani Bank is 370
Pascack Road, Township of Washington,
New Jersey 07676.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>All questions about completing the
Special Investment Election Form
should be addressed to Anne E.
Mooradian; telephone number(201)
664-5400, ext. 240; email:</I></B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>amooradian@oritani.com.</I></B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>Questions about the common stock
being offered or about the prospectus
may be directed to the Stock
Information Center at </I></B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><b>.</b></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="103"></A><B>Election to Purchase Common Stock
in the Offering: Priorities</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In connection with the conversion and
stock offering, you may elect to
transfer all or part of your account
balances in the Plan (other than the
amounts you currently have invested
in the Oritani Financial Corp. Stock
Fund (the &#147;Old Employer Stock Fund&#148;)
to the New Employer Stock Fund, to be
used to purchase stock units
representing an ownership interest in
the common stock issued in the stock
offering. The trustee of the Plan
will purchase common stock in
accordance with your directions and
such stock will be held in the New
Employer Stock Fund. However, such
directions are subject to the
purchase priorities set forth in the
plan of conversion and reorganization
of Oritani Financial Corp., MHC.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The shares of common stock are being
offered at $10.00 per share in a
Subscription Offering and Community
Offering. In the offering, the
purchase priorities are as follows
and apply in case more shares are
ordered than are available for sale.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscription Offering:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-25px">(1) &nbsp; Depositors of Oritani Bank with
$50 or more as of close of business
on December&nbsp;31, 2008 get first
priority.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-25px">(2) &nbsp; Tax-qualified employee benefit
plans of Oritani Bank and its
affiliates, including the 401(k)
Plan, get second priority.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-25px">(3) &nbsp; Depositors of Oritani Bank with
$50 or more as of close of business
on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> get third
priority.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-25px">(4) &nbsp; Depositors of Oritani Bank at the
close of business on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,

 <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
get
fourth priority.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Community Offering:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If all shares are not subscribed for
in the Subscription Offering,
OFC-Delaware may offer shares of
common stock for sale in a Community
Offering, to members of the general
public, with a preference given in
the following order:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Persons residing in the New Jersey
counties of Bergen, Passaic, Sussex,
Hudson, Essex, Morris, Warren, Union,
Somerset, Hunterdon, Middlesex and
Mercer; borrowers of Oritani Bank
with an outstanding loan or line of
credit as of December&nbsp;31, 2009 that
are meeting all of the terms and
conditions of their loan agreements
with Oritani Bank as of December&nbsp;31,
2009 and as of the date of purchase
of the common stock (as determined
solely in the discretion of Oritani
Bank). Public stockholders of
Oritani Financial Corp. as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and thereafter, the
general public.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additionally, or instead of placing
an order outside of the Plan through
a Stock Order Form, as a participant
in the Plan, you may place an order
for the purchase of stock units of
OFC-Delaware common stock through the
Plan, using the enclosed Special
Investment Election Form, to be
completed and submitted in the manner
described on the next page.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No later than <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
the Subscription and Community
Offering period ending date, the
portion of each investment fund you
designated will be sold and the
proceeds will be removed from your
existing account and transferred to
an interest-bearing account, pending
the consummation of the offering.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Several weeks later, upon
consummation of the conversion and
stock offering, and subject to a
determination of whether all or any</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">portion of your order may be filled
(based on your purchase priority in
the event that the offering is
oversubscribed), all or a portion of
the amount that you have transferred
will be used to purchase stock units
in the stock offering. The stock
will be placed in the New Employer
Stock Fund and allocated to your Plan
account. Interest earned on your
account will be deposited into
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, which you may
reinvest at your discretion.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event the offering is
cancelled or oversubscribed, <I>i.e.,</I>
there are more orders for common
stock than shares available for sale
in the offering, and the trustee is
unable to use the full amount
allocated by you to purchase stock
units in the offering, the amount
that cannot be invested in stock
units, and any interest earned, will
be reinvested in the other investment
funds in accordance with your then
existing investment election (in
proportion to your investment
direction for future contributions).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If you choose not to direct the
investment of your account balances
towards the purchase of stock units
in the New Employer Stock Fund in
connection with the stock offering,
your account balances will remain in
the investment funds of the Plan as
previously directed by you.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="104"></A><B>Shares Currently Held in the Plan</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All shares of Oritani Financial Corp.
held in the Plan upon consummation of
the conversion and offering (<I>i.e.</I>,
several weeks after the deadline for
submitting your Special Investment
Election Form), will automatically be
converted into shares of
OFC-Delaware, using the exchange
ratio set forth in the prospectus.
No fractional shares of OFC-Delaware
will be issued. Rather, cash equal
to the value of the fractional share
interest, using the $10.00 per share
offering purchase price per share,
will be paid to the holder. All
shares of Oritani Financial Corp.
that are converted to shares of
OFC-Delaware will be held in the Old
Employer Stock Fund and shares of
OFC-Delaware that are acquired during
the stock offering will be held in
the New Employer Stock Fund. Cash
for any fractional shares will be
credited to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
to be reinvested by you in your
discretion. As soon as practicable
after the closing of the stock
offering, the Old Employer Stock Fund
will be merged into the New Employer
Stock Fund.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="105"></A><B>Composition of and Purpose of Stock
Units</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The New Employer Stock Fund, which is
being established in the Plan, will
invest in stock units of the common
stock of OFC-Delaware. Following the
stock offering, the New Employer
Stock Fund will maintain a cash
component for liquidity purposes.
Liquidity is required in order to
facilitate daily transactions such as
investment transfers or distributions
from the New Employer Stock Fund.
For purchases in the offering, there
will be no cash</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">component. A stock
unit will be valued at $10.00. After
the offering, newly issued stock
units will consist of a percentage
interest in both the common stock and
cash held in the New Employer Stock
Fund. Unit values (similar to the
stock&#146;s share price) and the number
of units (similar to number of
shares) will be used to communicate
the dollar value of a participant&#146;s
account. Following the stock
offering, each day, the stock unit
value of the New Employer Stock Fund
will be determined by dividing the
total market value of the fund at the
end of the day by the total number of
units held in the fund by all
participants as of the previous day&#146;s
end. The change in stock unit value
reflects the day&#146;s change in stock
price, any cash dividends accrued and
the interest earned on the cash
component of the fund, less any
investment management fees. The
market value and unit holdings of
your account in the New Employer
Stock Fund will be reported to you on
your quarterly statements.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="106"></A><B>Value of Plan Assets</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As of February&nbsp;25, 2010, the market
value of the assets of the Plan was
approximately $5,700,000. The Plan
administrator informed each
participant of the value of his or
her account balance under the Plan as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

<U>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,

<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="107"></A><B>Transferring Funds to Purchase Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Enclosed is a Special Investment
Election Form on which you can elect
to transfer all or a portion of your
account balance in the Plan to the
New Employer Stock Fund for the
purchase of stock units in connection
with the stock offering (other than
amounts you currently have invested
in the Old Employer Stock Fund). If
you wish to use all or part of your
account balance in the Plan to
purchase stock units of common stock
issued in the offering (other than
amount you currently have invested in
the Old Employer Stock Fund), you
should indicate that decision on the
Special Investment Election Form. <B>If
you do not wish to purchase
OFC-Delaware common stock in the
offering through the Plan, you must
still fill out the Special Investment
Election Form and check the box for
&#147;No Election&#148; in Section&nbsp;D of the
form. The form is then to be
returned to <BR>
Anne E. Mooradian as
indicated on the Special investment
Election Form.</B></TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="108"></A><B>How to Order</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You can elect to transfer all or a
portion of each investment fund in
your account balance in the Plan
(other than amounts in the Old
Employer Stock Fund) to the New
Employer Stock Fund for the purchase
of stock units in the offering. This
is done by following the procedures
described below. Please note the
following stipulations concerning
this election:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
        <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can direct all
or a portion of your current account
balance to the New Employer Stock
Fund.</DIV></TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your election is
subject to a minimum purchase of 25
shares, which equates to $250.00.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your election, plus
any order you placed outside the
Plan, are together subject to a
maximum purchase of 50,000 shares,
which equates to $500,000.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
<DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The election period
closes at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> pm, Eastern time, on</B>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>,
2010.</B></div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the stock
offering period, you will continue to
have the ability to transfer amounts
that are <B><I><u>not </u></I></B>held in either the Old
Employer Stock Fund or the New
Employer Stock Fund among all the
other investment funds. However, you
will <B><I><u>not</u></I></B> be permitted to change the
investment of amounts that you
designated to be transferred to the
New Employer Stock Fund on your
Special Investment Election Form.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the election
period ends, the percentages you
designated will be transferred to the
New Employer Stock Fund.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
<DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount
transferred to the New Employer Stock
Fund will be held separately until
the offering closes. Therefore, this
money is not available for
distributions, loans or withdrawals
until the transaction is completed,
which is after the closing of the
subscription offering period.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You are allowed only one election to
transfer funds to the New Employer
Stock Fund. Follow these steps to
make your election to use all or part
of your account balance in the Plan
to purchase stock units in the stock
offering:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can only purchase in the
offering through the Plan by
returning your Special Investment
Election Form to Anne E. Mooradian by
the due date. You cannot purchase in
the offering by means of telephone
transfers or the internet. That
portion of your Plan account balance
that you elect to apply towards the
purchase of stock in the offering
will be irrevocably committed to such
purchases.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use the enclosed Special
Investment Election Form to transfer
all or a portion of your account
balance to the New Employer Stock
Fund to purchase stock units in the
offering. Indicate next to each fund
in which you have invested, the
percentage from that fund you wish to
transfer to the New Employer Stock
Fund.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please print your name and
social security number on the</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
<DIV style="margin-left:42px; text-indent:-21px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special
Investment Election Form.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
<DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please complete
 Section&nbsp;D of
the Special Investment Election Form&#151;
<I>Purchaser Information &#151;</I> indicating
your individual purchase priority and
provide the information requested on
your accounts in Oritani Bank.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
<DIV style="margin-left:42px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sign and date the Special
Investment Election Form and return
it to Anne E. Mooradian by hand
delivery, regular mail, overnight
delivery, or fax (to
201-497-1215) by the order date
stated below. A pre-addressed,
postage-paid envelope has been
provided with these documents for
your convenience. Overnight delivery
should be addressed to: Anne E.
Mooradian, Oritani Bank, 370 Pascack
Road, Township of Washington, New
Jersey 07676.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="109"></A><B>Order Deadline</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If you wish to purchase stock units
of common stock of OFC-Delaware with
all or part of your Plan account
balance, your Special Investment
Election Form must be received by
Anne E. Mooradian, Senior Vice
President and Human Resources
Officer, Oritani Bank, 370 Pascack
Road, Township of Washington, New
Jersey 07676, fax number (201)
497-1215, no later than <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> p.m.

Eastern Time on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,


<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010. You may send
your Special Investment Election Form
by hand delivery, regular mail,
overnight delivery, or fax. If you have any questions
with respect to the Special
Investment Election Form, please
contact Anne Mooradian at (201) 664-5400, ext. 240.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">
<DIV style="margin-left:0px; text-indent:-0px"><A name="110"></A><B>Irrevocability of Transfer Direction</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>You may not revoke your Special
Investment Election Form once it has
been delivered to Anne Mooradian.</u>
You will, however, continue to have
the ability to transfer amounts not
directed towards the purchase of
stock units in the offering among all
of the other investment funds,
including the Old Employer Stock, on
a daily basis.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="111"></A><B>Other Purchases in your Account
during the Offering Period.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Whether or not you choose to purchase
stock units in the offering through
the Plan, you will at all times have
complete access to those amounts in
your account that you do <u><B>not</B></u> apply
towards purchases in the offering.
For example, you will be able to
purchase Oritani Financial Corp.
common stock through the Old Employer
Stock Fund and also invest in other
funds within the Plan with that
portion of your account balance that
you do not apply towards purchases in
the offering during the offering
period. Such purchases will be made
at the prevailing market price in the
same manner as you make such
purchases now, <I>i.e</I>., through
telephone transfers and internet
access to your account.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="112"></A><B>Direction to Purchase Common Stock
after the Offering</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After the offering, you will again
have complete access to any amounts
that you directed towards the
investment in the New Employer Stock
Fund during the offering period. You
may direct that your future
contributions or your account balance
in the Plan be transferred to the New
Employer Stock Fund. After the stock
offering, you will also have the
ability to sell all or a portion of
your interest in the New Employer
Stock Fund.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special restrictions may apply to
transfers directed to and from the
New Employer Stock Fund by the
participants who are subject to the
provisions of Section&nbsp;16(b) of the
Securities Exchange Act of 1934, as
amended, relating to the purchase and
sale of securities by officers,
directors and principal shareholders
of OFC-Delaware.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A name="113"></A><B>Purchase Price of Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">During the stock offering, the
trustee will pay $10.00 per share,
which will be the same price paid by
all other persons for a share of
OFC-Delaware common stock in the
stock offering.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After the stock offering, the trustee
of the Plan will acquire common stock
in open market transactions at the
prevailing price, which may be less
than or more than $10.00 per share.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">
<DIV style="margin-left:0px; text-indent:-0px"><A name="114"></A><B>Nature of a Participant&#146;s Interest
in the Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The trustee will hold the common
stock, in trust, for the participants
of the Plan. Stock units acquired by
the trustee at your direction will be
allocated to your account.
Therefore, investment decisions of
other participants should not affect
the earnings allocated to your
account.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">
<DIV style="margin-left:0px; text-indent:-0px"><A name="115"></A><B>Voting Rights of Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Plan provides that you may direct
the trustee how to vote any shares of
OFC-Delaware Common Stock held by the
New Employer Stock Fund, and the
interest in such shares that is
credited to your account. If the
trustee does not receive your voting
instructions, the Plan administrator
will exercise these rights as it
determines in its discretion and will
direct the trustee accordingly. All
voting instructions will be kept
confidential.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE PLAN</B>
</DIV>

<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Introduction</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank maintains the Oritani Bank 401(k) Plan (the &#147;Plan&#148;), which is a single employer
prototype plan sponsored by Pentegra. The Plan is a tax-qualified plan, with a cash or deferred
compensation feature, established in accordance with the requirements under Section 401(a) and
Section 401(k) of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;). Oritani Bank intends
that the Plan, in operation, will comply with the requirements under Code Sections 401(a) and
401(k). Oritani Bank will adopt any amendments to the Plan that may be necessary to ensure the
continuing qualified status of the Plan under the Code and applicable Treasury Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employee
 Retirement Income Security Act (&#147;ERISA&#148;). </I>The Plan is an &#147;individual account plan&#148;
other than a &#147;money purchase pension plan&#148; within the meaning of ERISA. As such, the Plan is
subject to all of the provisions of Title I (Protection of Employee Benefit Rights) and Title II
(Amendments to the Code Relating to Retirement Plans) of ERISA, except to the funding requirements
contained in Part&nbsp;3 of Title I of ERISA which, by their terms, do not apply to an individual
account plan (other than a money purchase plan). The Plan is not subject to Title IV (Plan
Termination Insurance) of ERISA. The funding requirements contained in Title IV of ERISA are not
applicable to participants or beneficiaries under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Reference to
Full Text of Plan. </I>The following portions of this prospectus supplement summarize
certain provisions of the Plan. They are not complete and are qualified in their entirety by the
full text of the Plan. Copies of the Plan are available to all
employees by filing a request with Anne E. Mooradian, Senior Vice President and Human Resources Officer, at Oritani Bank, 370
Pascack Road, Township of Washington, New Jersey 07676. You are urged to read carefully the full
text of the Plan.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Eligibility and Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees
of Oritani Bank are eligible to enter the Plan on the first day of the month
coincident with or next following the date on which they have completed 12 consecutive months of
service. The Plan year is January 1 to December&nbsp;31 (the &#147;Plan Year&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of
February&nbsp;19, 2010, there were approximately 170 employees eligible to participate in the
Plan and 117 participating by making salary deferral contributions. There are also 10 former
employees with account balances in the Plan as of February&nbsp;25, 2010.
</DIV>
<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Contributions under the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>4</I><I>01(k)</I><I> Plan
Contributions. </I>You are permitted to defer on a pre-tax basis between 1% and 50%
of your compensation (expressed in terms of whole percentages) for each payroll period, subject to
certain restrictions imposed by the Internal Revenue Code, and to have that amount contributed to
the Plan on your behalf. For purposes of the Plan, &#147;compensation&#148; means your compensation subject
to income tax withholding at the source, as reported on your Form W-2 (excluding any compensation
deferred from a prior year), plus deferred income
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">attributable to any compensation reduction
 agreement in connection with the Plan or
compensation reduction in connection with a Section&nbsp;125 plan or Internal Revenue Code Section
132(f) benefit. In 2010, the annual compensation of each participant taken into account under the
Plan is limited to $245,000. (Limits established by the Internal Revenue Service are subject to
increase pursuant to an annual cost-of-living adjustment, as permitted by the Internal Revenue
Code). You may elect to change the rate at which you are contributing to the Plan as of the first
day of any month by filing a new elective deferral agreement with Anne E. Mooradian, Senior Vice
President and Human Resources Officer at Oritani Bank, at least two weeks prior to the beginning of
such month. You may also elect to apply a special salary deferral election with respect to up to
100% of your bonus payments. In addition, you may allocate a rollover contribution to the Plan
prior to satisfying the eligibility requirements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employer
 Matching Contributions. </I>Oritani Bank will make matching contributions to the Plan in
an amount equal to 50% of your elective deferrals, consisting of up to the first 6% of your monthly
compensation. Accordingly, the maximum matching contribution Oritani Bank could make on your
behalf would be 3% of your monthly compensation. If you stop making elective deferrals for any
period, Oritani Bank will also stop making matching contributions for the same period. Matching
contributions will be reviewed from time to time and may be modified by the employer on a
discretionary basis.
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitations on Contributions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitations
on Employee Salary Deferrals. </I>For the Plan Year beginning January&nbsp;1, 2010, the
amount of your before-tax contributions may not exceed $16,500 per calendar year. This amount may
be adjusted periodically by law, based on changes in the cost of living. In addition, if you are
age 50 or older in 2010, you will be able to make a &#147;catch-up&#148; contribution of up to $5,500, in
addition to the $16,500 limit. The &#147;catch-up&#148; contribution limit may be adjusted periodically by
law, based on changes in the cost of living. Contributions in excess of these limits, as
applicable to you, are known as excess deferrals. If you defer amounts in excess of these
limitations, as applicable to you, your gross income for federal income tax purposes will include
the excess in the year of the deferral. In addition, unless the excess deferral is distributed
before April&nbsp;15 of the following year, it will be taxed again in the year distributed. Income on
the excess deferral distributed by April&nbsp;15 of the immediately succeeding year will be treated, for
federal income tax purposes, as earned and received by you in the tax year in which the
contribution is made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitation
 on Plan Contributions for Highly Compensated Employees. </I>Special provisions of the
Internal Revenue Code limit the amount of elective deferrals and employer non-matching
contributions that may be made to the Plan in any year on behalf of highly compensated employees,
in relation to the amount of elective deferrals and employer non-matching contributions made by or
on behalf of all other employees eligible to participate in the Plan. A highly compensated
employee includes any employee who (1)&nbsp;was a 5% owner of Oritani Financial Corp. at any time during
the current or preceding year, or (2)&nbsp;had compensation for the preceding year of more than
$110,000. The dollar amounts in the foregoing sentence may be adjusted annually to reflect
increases in the cost of living. If these limitations are exceeded, the level of deferrals by
highly compensated employees may have to be adjusted.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits under the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Vesting. </I>At all times,
you have a fully vested, nonforfeitable interest in the elective
deferrals you have made under the Plan and in the employer matching contributions credited to your
account.
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Withdrawals and Distributions from the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In-service withdrawals
from your 401(k) account are not permitted under the Plan until you
attain age 59<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>. However, in the
 event of certain types of financial hardship, participants may
make withdrawals. In general, employer contributions credited on your behalf will not be available
for in-service withdrawal until such employer contributions have been invested in the Plan for at
least two years or you have been a participant in the Plan for at least 5&nbsp;years, or the attainment
of age 59<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Withdrawal upon
Termination of Employment. </I>You may leave your account with the Plan and defer
commencement of receipt of your account balance until April 1 of the calendar year following the
calendar year in which you attain age 70<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>, except to the extent that
 your account balance is less
than $500, in which case your interest in the Plan will be cashed out and distributed to you. If
you leave your account with the Plan and your account balance is less than $20,000, you account
will be assessed an annual administrative fee of $24.00. If your account balance is equal to or
exceeds $20,000, no annual administrative fee will be assessed to your account. You may make
withdrawals from your account at any time after you terminate employment. If your account balance
equals or exceeds $500, you may elect, in lieu of a lump sum payment, to be paid in annual
installments with the right to take your account balance in a lump sum at any time during such
payment period. You may also elect to have your distributions made in kind of employer stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distribution
due to Disability or Death. </I>If you are disabled (as defined under the Plan), you
will be entitled to the same withdrawal rights as if you had terminated your employment. If you
die while you are a participant in the Plan, the value of your account will be payable to your
beneficiary. Payment will be made in a lump sum, unless the payment would exceed $500 and you had
elected payment in annual installments over a period not to exceed 5&nbsp;years (10&nbsp;years if your spouse
is your beneficiary). If you have not made such an election, your beneficiary may elect to receive
the benefit in the form of annual installments over a period not to exceed 5&nbsp;years (10&nbsp;years if
your spouse is your beneficiary) or make withdrawals as often as once per year, except that any
balance remaining must be withdrawn by the 5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
anniversary (10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> anniversary
if your spouse is your beneficiary) of your death.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan participants may also obtain loans from their accounts.
</DIV>
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment of Contributions and Account Balances</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All amounts credited to your accounts under the Plan are held in the Plan trust (the &#147;Trust&#148;)
which is administered by the trustee appointed by Oritani Bank&#146;s Board of Directors.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the effective date of the offering, you were provided the opportunity to direct the
investment of your account into one or more of the following funds:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>International Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nasdaq 100 Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Russell 2000 Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>S&#038;P MidCap Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>S&#038;P Growth Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>S&#038;P Value Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>S&#038;P 500 Stock Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>US REIT Index Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Long Treasury Index Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aggregate Bond Index Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stable Value Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Short Term Investment Fund (Money Market Fund)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Income Plus Asset Allocation Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Growth &#038; Income Asset Allocation Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Growth Asset Allocation Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Target Date Retirement 2015 Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Target Date Retirement 2025 Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Target Date Retirement 2035 Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Target Date Retirement 2045 Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Old Employer Stock Fund</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the offering, the Plan now provides that in addition to the funds specified
above, you may direct the trustee, or its representative, to invest all or a portion of your
account in the New Employer Stock Fund. You may elect to have both past contributions and
earnings, as well as future contributions to your account invested among the funds listed above.
If you fail to provide an effective investment direction, your contributions will be invested in
the Money Market Fund until such time as you provide an effective investment direction. You may
apply different investment instructions to amounts already accumulated as opposed to future
contributions. You may change your investment directions at any time by telephone or electronic
medium.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Performance History</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides performance data with respect to the investment funds available
under the Plan through December&nbsp;31, 2009:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">FUND RETURNS THROUGH DECEMBER 31, 2009

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>5 Calendar</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>10 Calendar</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Monthly</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Year to</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Last 12</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Years</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Years</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Return</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Date</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Months</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Annualized</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Annualized</I></B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Stock Funds</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INTERNATIONAL STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">1,2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.33</TD>
    <TD nowrap>%</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NASDAQ 100 STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">3</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">53.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">53.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-7.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RUSSELL 2000 STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S&#038;P MIDCAP STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">5</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">36.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">36.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.81</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S&#038;P GROWTH STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.28</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-3.29</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S&#038;P VALUE STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-1.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.19</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S&#038;P 500 STOCK FUND <SUP style="font-size: 85%; vertical-align: text-top">5</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-0.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-1.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">US REIT INDEX FUND <SUP style="font-size: 85%; vertical-align: text-top">6</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Bond/Fixed Income Funds</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LONG TREASURY INDEX FUND <SUP style="font-size: 85%; vertical-align: text-top">5</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-5.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-13.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-13.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.31</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AGGREGATE BOND INDEX FUND <SUP style="font-size: 85%; vertical-align: text-top">9</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-1.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.75</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">STABLE VALUE FUND <SUP style="font-size: 85%; vertical-align: text-top">7</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">SHORT TERM INVESTMENT FUND (money
market) <SUP style="font-size: 85%; vertical-align: text-top">5</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-0.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Asset Allocation Funds </I></B><SUP style="font-size: 85%; vertical-align: text-top"><B><I>2,8</I></B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INCOME PLUS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-0.54</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.99</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.89</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GROWTH &#038; INCOME</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GROWTH</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-0.37</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Target Retirement Funds </I></B><SUP style="font-size: 85%; vertical-align: text-top"><B><I>10</I></B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TARGET RETIREMENT 2015 FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TARGET RETIREMENT 2025 FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TARGET RETIREMENT 2035 FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TARGET RETIREMENT 2045 FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n.a.</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective November&nbsp;4, 2005, State Street Global Advisors (&#147;SSgA&#148;) assumed Investment Manager
responsibilities for all Funds from Barclays Global Investors (&#148;BGI&#148;) and became the provider of
benchmark index returns. Historical returns of the index funds reflect BGI management prior to
November&nbsp;4, 2005, and SSgA&#146;s management thereafter. Unit values are determined as of the last
business day of each month. Investment fund returns are shown net of fees. Benchmark indices are
not investment funds and have no fees. Dividends and interest are automatically reinvested. Total
expenses charged to each fund, as a percentage of each fund&#146;s estimated average assets per year,
are for investment management services, trustee services, recordkeeping and administration and are
as follows: As of January&nbsp;1, 2008, they are as follows: International Stock Fund 0.624%; Nasdaq
100 Stock Fund 0.624%; Russell 2000 Stock Fund 0.624%; S&#038;P MidCap Stock Fund 0.624%; S&#038;P Growth
Stock Fund 0.624%; S&#038;P Value Stock Fund 0.624%; S&#038;P 500 Stock Fund 0.624%; Long Treasury Index Fund
0.624%; Aggregate Bond Index Fund 0.624%; REIT Fund 0.624%; Stable Value Fund 0.624%; Short Term
Investment Fund 0.460%; Target Retirement Funds 0.930%; Asset Allocation Fund 0.930%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All funds except Nasdaq 100 Stock Fund, US REIT Index Fund, and Short Term Investment Fund may
engage in securities lending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective October&nbsp;2008, the Lehman Brothers indexes were rebranded under the Barclays Capital name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Past performance is no guarantee of future performance. See following notes.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</div>

<DIV style="margin-top: 0pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prior to September&nbsp;30, 1999, this Fund was limited to no more than 25% exposure to
Japan.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Asset Allocation Funds and the International Stock Fund were first offered July&nbsp;2,
1997. Returns prior to inception are simulated using the returns of market indices for, or
actual funds of, the Fund&#146;s investment components, and are net of fees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Nasdaq 100 Stock Fund was first offered on May&nbsp;1, 2002, while BGI&#146;s underlying
Nasdaq 100 Fund was initially offered on August&nbsp;7, 2000. Returns shown for periods prior
to May&nbsp;1, 2002 are based on returns of the then-existing BGI funds (when available), and on
the (hypothetical)&nbsp;returns of the Nasdaq 100 Index for periods prior to the inception date
of the BGI fund. All returns are net of fees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Russell 2000, S&#038;P Growth and S&#038;P Value Stock Funds were first offered on January&nbsp;4,
2000. Returns prior to January&nbsp;4, 2000 are hypothetical and are based on the returns of
the then-existing BGI funds, and are net of fees. Effective December&nbsp;16, 2005, the S&#038;P
500/Barra Growth and S&#038;P 500/Barra Value indexes were reconstituted as the S&#038;P
500/Citigroup Growth and S&#038;P 500/Citigroup Value Indexes. Additional information can be
found at www.styleindices.standardandpoors.com.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The S&#038;P MidCap, S&#038;P 500, Long Treasury Index, and Short Term Investment Funds were
first offered on June&nbsp;17, 1997. Results prior to that date are hypothetical, based on
previous investment returns of the then-existing BGI funds, and are net of fees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The US REIT Index Fund was first offered on January&nbsp;1, 2005. Returns shown for periods
prior to that date are hypothetical and are based on the returns of the then-existing BGI
fund for the MSCI US REIT Index, and are net of fees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Stable Value Fund is a separately managed account; historical return data
represents its actual performance.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Asset Allocation Funds are designed investment vehicles utilizing various asset
classes represented by index funds and, under BGI management, were managed on an exclusive
basis. Only hypothetical results are available from January, 1992 to July&nbsp;2, 1997 (the
inception date of the Asset Allocation Funds). Note that SSgA changed certain allocations
and underlying indexes (see fund descriptions for information on same).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Aggregate Bond Index Fund became available effective April&nbsp;30, 2006. Results prior
to that date are based on historical investment returns of the then-existing SSgA fund, and
are net of PSI fees which would have been levied.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Target Retirement Funds became available effective August&nbsp;1, 2007. Results prior
to that date are based on historical investment returns of the then-existing SSgA fund, and
are net of PSI fees which would have been levied.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Government Short Term Investment Fund became available effective November&nbsp;1, 2007.
Results prior to that date are based on historical investment returns of the then-existing
SSgA fund, and are net of all relevant fees which would have been levied.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Treasury Inflation Protected Securities Fund became available effective October&nbsp;1,
2009. Results prior to that date are based on historical investment returns on the
then-existing SSgA fund, and are net of all relevant fees which would have been levied.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following is a description of each of the Plan&#146;s investment funds:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>International Stock Fund. </B>This fund seeks to match the performance of the Morgan Stanley Capital
International, Europe, Australia, Far East (MSCI EAFE) Index while providing daily liquidity. The
fund typically invests in all the stocks in the MSCI EAFE Index in proportion to
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">their weighting in the index. The MSCI EAFE Index is a float-adjusted developed markets
international equity index which covers approximately 85% of each industry within each represented
country and measures the performance of over 1,000 companies in 21 countries outside North and
South America. The strategy of investing in the same stocks as the MSCI EAFE Index minimizes the
need for trading and therefore results in lower expenses. As an international stock fund, this
fund may be appropriate for those investors who have a medium to longer investment time frame or
are seeking maximum growth potential and are willing to accept potentially large fluctuations in
value that often accompany international investing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Nasdaq 100 Stock Fund. </B>This fund seeks to match the performance of the NASDAQ 100 Index. The fund
invests in all of the stocks in the NASDAQ 100 Index in proportion to their weighting in the index.
The NASDAQ 100 Index consists of 100 of the largest non-financial companies, both domestic and
international, listed on the NASDAQ exchange. The size of the companies is determined by market
cap. All major industry groups are included, with the exception of financial and investment
companies. The fund may use futures or other derivatives. The strategy of investing in the same
stocks as the NASDAQ 100 Index minimizes the need for trading and therefore results in lower
expenses. As a stock fund, this fund may be appropriate for those investors who have a medium to
longer investment time frame and are willing to ride out stock market fluctuations in the short
term in exchange for the potential for high long-term returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Russell 2000 Stock Fund. </B>This fund seeks to match the performance of the Russell 2000 Index. The
fund attempts to invest in all 2,000 stocks in the Russell 2000 Index in proportion to their
weighting in the index. The Russell 2000 Index is a float-adjusted small cap equity index which
covers approximately 8% of the U.S. equity market and measures the performance of the 2,000
smallest companies in the broad market Russell 3000 Index based on total market capitalization. The
fund may use futures or other derivatives. The strategy of investing in the same stocks as the
Russell 2000 Index minimizes the need for trading and therefore results in lower expenses. As a
stock fund, this fund may be appropriate for those investors who have a medium to longer investment
time frame or are seeking high total return from the potential growth of small companies and are
willing to ride out the potentially volatile market fluctuations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>S&#038;P MidCap Stock Fund. </B>This fund seeks to match the performance of the S&#038;P MidCap 400 Index. The
fund invests in all 400 stocks in the S&#038;P MidCap 400 Index in proportion to their weighting in the
index. The S&#038;P MidCap 400 Index is a float-adjusted mid-cap equity index which covers
approximately 7% of U.S. equity market and measures the performance of 400 leading companies in
leading industries within the mid cap segment of the market. The fund may use futures or other
derivatives. The strategy of investing in the same stocks as the S&#038;P MidCap 400 Index minimizes
the need for trading and therefore results in lower expenses. As a stock fund, this fund may be
appropriate for those investors who have a medium to longer investment time frame and are willing
to ride out stock market fluctuations in the short term in exchange for the potential for high
long-term returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>S&#038;P Growth Stock Fund. </B>This fund seeks to match the performance of the Standard &#038; Poor&#146;s
500/Citigroup Growth Index. The fund invests in all of the stocks in the S&#038;P 500/Citigroup Growth
Index in proportion to their weighting in the index. The S&#038;P
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">500/Citigroup Growth Index is constructed by including those stocks from the S&#038;P 500 Index with
higher price to book ratios. The fund may use futures or other derivatives. The strategy of
investing in the same stocks as the index minimizes the need for trading and therefore results in
lower expenses. As a stock fund, this fund may be appropriate for those investors who have a
medium to longer investment time frame and are willing to ride out stock market fluctuations in the
short term in exchange for the potential for high long-term returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>S&#038;P Value Stock Fund. </B>This fund invests in all of the stocks in the S&#038;P 500/Citigroup Value Index
in proportion to their weighting in the index. The S&#038;P 500/Citigroup Value Index is constructed by
including those stocks from the S&#038;P 500 Index with lower price to book ratios. The fund may use
futures or other derivatives. The strategy of investing in the same stocks as the S&#038;P
500/Citigroup Value Index minimizes the need for trading and therefore results in lower expenses.
As a stock fund, this fund may be appropriate for those investors who have a medium to longer
investment time frame and are willing to ride out stock market fluctuations in the short term in
exchange for the potential for high long-term returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>S&#038;P 500 Stock Fund. </B>This fund seeks to match the performance of the Standard &#038; Poor&#146;s 500 Index.
The fund invests in all 500 stocks in the S&#038;P 500 Index in proportion to their weighting in the
index. The S&#038;P 500 Index is a float-adjusted large-cap equity index which covers approximately 75%
of U.S. equity market and measures the performance of 500 leading companies in leading industries
within the large cap segment of the market. The fund may use futures or other derivatives. The
strategy of investing in the same stocks as the S&#038;P 500 Index minimizes the need for trading and
therefore results in lower expenses. As a stock fund, this fund may be appropriate if you have a
medium to longer investment time frame and are willing to ride out stock market fluctuations in the
short term in exchange for the potential for high long-term returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>US REIT Index Fund</B>. This fund seeks to match the performance of the Dow Jones/Wilshire REIT Index
while providing daily liquidity. The Dow Jones/Wilshire REIT Index is a market capitalization
weighted index which is comprised of approximately 80 publicly traded real estate investment trusts
(REITs). To be included in the index, a company must be an equity owner and operator of commercial
or residential real estate and must generate as least 75% of its revenue from such assets. The
fund invests primarily in equity shares of REITs. REITs invest in loans secured by real estate and
invest directly in real estate properties such as apartments, office buildings, and shopping malls.
REITs generate income from rentals or lease payments and offer the potential for growth from
property appreciation and the potential for capital gains from the sale of properties. As a stock
fund, this fund may be appropriate for investors with a medium to longer investment time frame who
are willing to ride out stock market fluctuations in the short term in exchange for the potential
for high long-term returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Long Treasury Index Fund. </B>This fund seeks to match the returns of the Barclays Capital U.S. Long
Treasury Bond Index. This fund invests primarily in U.S. Treasury securities with a maturity of 10
years or longer. The fund invests in a well diversified portfolio that is representative of the US
Long Treasury bond market. The fund buys and holds securities, trading only when there is a change
to the composition of the index or when cash flow activity occurs in the fund. This process
minimizes turnover and costs while maintaining accurate tracking. As a bond fund, this fund may be
appropriate for those investors who have a short to
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">medium investment time frame or who are looking to generate income and maintain the principal of
their portfolios as they near retirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Aggregate Bond Index Fund</B>. This fund seeks to match the returns of the Barclays Capital U.S
Aggregate Bond Index. The fund invests primarily in government, corporate, mortgage-backed and
asset-backed securities. The fund invests in a well-diversified portfolio that is representative
of the broad domestic bond market. As a bond fund, this fund may be appropriate for investors with
a short to medium investment time frame or for investors who are looking to generate income and add
stability of principal to their portfolios as they near retirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Stable Value Fund. </B>This fund seeks to preserve the principal amount of the investors&#146;
contributions while maintaining a rate of return comparable to other fixed income instruments. The
fund invests in investment contracts issued by insurance companies, banks, and other financial
institutions, as well as enhanced short-term investment products. Each issuer must meet the credit
quality criteria in order to be approved by the investment manager. As a fixed income fund, this
fund may be appropriate if you are looking for an investment that offers a conservative rate of
return but preserves your principal investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Short Term Investment Fund. </B>This fund seeks to maximize current income while preserving capital
and liquidity through investing in a diversified portfolio of short-term securities. The fund&#146;s
yield reflects short-term interest rates. The fund seeks to maintain a diversified portfolio of
short-term securities by investing in high-quality money market securities and other short-term
debt investments. Most of the investments in the fund will generally have a range of maturity from
overnight to 90&nbsp;days. As a fixed income fund, this fund may be appropriate for those investors who
have a short investment time frame or are looking to generate income and add stability of principal
to their portfolios as they near retirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Income Plus Asset Allocation Fund. </B>This fund seeks to provide income from fixed income securities
and some growth of principal from stock funds. The fund&#146;s risk profile is somewhat conservative
due to an emphasis on bond holdings. The fund has a target asset allocation of 25% equities and
75% fixed income achieved by investing in a mix of other funds as follows: S&#038;P 500 Index Fund: 15%;
Russell Small Cap Completeness Index Fund: 5%; Daily EAFE Fund: 5%; and Bond Market Index Fund:
75%. This fund is a pre-mixed portfolio of both stock and bond funds and therefore is appropriate
for those investors less comfortable with investing and who are looking for assistance in the asset
allocation process. The fund may be appropriate for investors who have a short to medium
investment time frame or are looking for a single investment that provides the opportunity for
stable income with controlled risk in addition to some growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Growth &#038; Income Asset Allocation Fund. </B>This fund seeks to provide income from fixed income
securities and growth of principal from stock funds. The fund&#146;s risk profile is moderate due to
the presence of well-diversified stock and bond holdings. The fund has a target asset allocation
of 55% equities and 45% fixed income achieved by investing in a mix of other funds as follows: S&#038;P
500 Index Fund: 35%; Russell Small Cap Completeness Index Fund: 10%; Daily EAFE Fund: 10%; and Bond
Market Index Fund: 45%. This fund is a pre-mixed portfolio of both stock and bond funds and
therefore is appropriate for those investors
</DIV>




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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">less comfortable with investing and who are looking for assistance in the asset allocation process.
The fund may be appropriate for investors who have a longer investment time frame or are looking
for a single investment that balances the opportunity for stable income with the opportunity for
long-term growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Growth Asset Allocation Fund. </B>This fund seeks to provide growth of principal from stock funds and
some income from fixed income securities. The fund&#146;s risk profile is somewhat aggressive due to
its emphasis on stock holdings. The fund has a target asset allocation of 85% equities and 15%
fixed income, achieved by investing in a mix of other funds as follows: S&#038;P 500 Index Fund: 55%;
Russell Small Cap Completeness Index Fund: 15%; Daily EAFE Fund: 15%; and Bond Market Index Fund:
15%. This fund is a pre-mixed portfolio of both stock and bond funds and therefore is appropriate
for those investors less comfortable with investing and who are looking for assistance in the asset
allocation process. The fund may be appropriate for those investors who have a longer investment
time frame or are looking for a single investment that provides the opportunity for long-term
growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Target Retirement Funds (2015, 2025, 2035, 2045, Target Income). </B>The funds (other than the Target
Income Fund) are managed to a specific retirement year (target date) included in its name. Over
time, the allocation to asset classes and funds change according to a predetermined &#147;glide path&#148;
(the glide path does not apply to the Target Income Fund). Each fund&#146;s asset allocation will become
more conservative as it approaches its target retirement date. Target allocations range from 52%
equities and 48% fixed income for the Target Retirement 2015 Fund to 90% equities and 10% fixed
income for the Target Retirement 2045 Fund. Each fund attempts to closely match
characteristics and returns of its custom benchmark as opposed to any attempt to outperform this
benchmark. Once a fund reaches its retirement date, it will begin a five-year transition to the
Target Income fund resulting in an allocation to stocks that will remain fixed at about 35% of
assets. The remainder of the fund will be invested in U.S. fixed income securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Old Employer Stock Fund. </B>The Old Employer Stock Fund consists primarily of common stock of Oritani
Financial Corp, is a federally chartered majority-owned subsidiary of Oritani Financial Corp., MHC,
a mutual holding company. Investments in the Old Employer Stock Fund involves special risks common
to investments in the shares of common stock of Oritani Financial Corp. Following the offering,
Oritani Financial Corp., a federal corporation, will cease to exist, but will be succeeded by a new
Maryland corporation, Oritani Financial Corp. (&#147;OFC-Delaware&#148;), which will be 100% owned by its
public shareholders. Shares of Oritani Financial Corp. which were held in the Old Employer Stock
Fund prior to the conversion and offering will be converted into new shares of common stock of
OFC-Delaware, in accordance with the exchange ratio. As soon as practicable after the closing of
the stock offering, the Old Employer Stock Fund will be merged into the New Employer Stock Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New Employer Stock Fund. </B>In connection with the stock offering, you may, in the manner described
earlier, direct the trustee to invest all or a portion of your Plan account in the New Employer
Stock Fund, which consists primarily of common stock of OFC-Delaware. Subsequent to the stock
offering, you may elect to invest all or a portion of your contributions in the New Employer Stock
Fund; you may also elect to transfer into the New Employer Stock Fund all or a portion of your
accounts currently invested in other funds under the Plan. After the offering, the
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">trustee will, to the extent practicable, use all amounts held by it in the New Employer Stock Fund
to purchase shares of common stock of OFC-Delaware. It is expected that all purchases will be made
at prevailing market prices. Performance of the New Employer Stock Fund depends on a number of
factors, including the financial condition and profitability of OFC-Delaware and the Employer and
market conditions for shares of OFC-Delaware common stock generally. Investments in the New
Employer Stock Fund involves special risks common to investments in the shares of common stock of
OFC-Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>For a discussion of material risks you should consider, see &#147;Risk Factors&#148; section of the attached
prospectus and the Section of the Prospectus Supplement called &#147;Notice of Your Rights Concerning
Employer Securities&#148; (see below).</I>
</DIV>

<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Administration of the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The Trustee</I></B><B>. </B>The trustee of the Plan is Reliance Trust Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Plan Administrator</I></B><B>. </B>Pursuant to the terms of the Plan, the Plan is administered by Oritani
Bank. The address of the Plan Administrator is 370 Pascack Road, Township of Washington, NJ 07676,
telephone number (201)&nbsp;664-5400. The Plan Administrator is responsible for the administration of
the Plan, interpretation of the provisions of the Plan, prescribing procedures for filing
applications for benefits, preparation and distribution of information explaining the Plan,
maintenance of Plan records, books of account and all other data necessary for the proper
administration of the Plan, preparation and filing of all returns and reports relating to the Plan
which are required to be filed with the U.S. Department of Labor and the Internal Revenue Service,
and for all disclosures required to be made to participants, beneficiaries and others under
Sections&nbsp;104 and 105 of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Reports to Plan Participants</I></B>. The Plan Administrator will furnish you a statement at least
quarterly showing the balance in your account as of the end of that period, the amount of
contributions allocated to your account for that period, and any adjustments to your account to
reflect earnings or losses (if any).
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Amendment and Termination</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the intention of Oritani Bank to continue the Plan indefinitely. Nevertheless, Oritani
Bank may terminate the Plan at any time. If the Plan is terminated in whole or in part, then
regardless of other provisions in the Plan, you will have a fully vested interest in your accounts.
Oritani Bank reserves the right to make any amendment or amendments to the Plan which do not cause
any part of the trust to be used for, or diverted to, any purpose other than the exclusive benefit
of participants or their beneficiaries; provided, however, that Oritani Bank may make any amendment
it determines necessary or desirable, with or without retroactive effect, to comply with ERISA.
</DIV>
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Merger, Consolidation or Transfer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of the merger or consolidation of the Plan with another plan, or the transfer of
the trust assets to another plan, you would, if either the Plan or the other plan terminates,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">receive a benefit immediately after the merger, consolidation or transfer that is equal to the
benefit that you would have been entitled to receive immediately before the merger, consolidation
or transfer.
</DIV>

<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the material federal income tax aspects of the Plan. You
should not rely on this summary as a complete or definitive description of the material federal
income tax consequences relating to the Plan. Statutory provisions change, as do their
interpretations, and their application may vary in individual circumstances. Finally, the
consequences under applicable state and local income tax laws may not be the same as under the
federal income tax laws. You are advised to consult your tax advisor with respect to any
distribution from the Plan and transactions involving the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a &#147;tax-qualified retirement plan,&#148; the Code affords the Plan special tax treatment,
including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;the sponsoring employer is allowed an immediate tax deduction for the amount contributed
to the Plan each year;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;participants pay no current income tax on amounts contributed by the employer on their
behalf; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;earnings of the Plan are tax-deferred, thereby permitting the tax-free accumulation of
income and gains on investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lump-Sum Distribution</I>. A distribution from the Plan to a participant or the beneficiary of a
participant will qualify as a lump-sum distribution if it is made within one taxable year, on
account of the participant&#146;s death, disability or separation from service, and consists of the
balance credited to participants under the Plan. The portion of any lump-sum distribution required
to be included in the participant&#146;s or beneficiary&#146;s taxable income for federal income tax purposes
consists of the entire amount of the lump-sum distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employer Common Stock Included in Lump-Sum Distribution</I>. If a lump-sum distribution includes
employer common stock, the distribution generally will be taxed in the manner described above,
except that the total taxable amount may be reduced by the amount of any net unrealized
appreciation with respect to employer common stock; that is, the excess of the value of employer
common stock at the time of the distribution over its cost of the securities to the trust. The tax
basis of employer common stock to the participant or beneficiary, for purposes of computing gain or
loss on its subsequent sale, equals the value of employer common stock at the time of distribution,
less the amount of net unrealized appreciation. Any gain on a subsequent sale or other taxable
disposition of employer common stock, to the extent of the amount of net unrealized appreciation at
the time of distribution, will constitute long-term capital gain, regardless of the holding period
of employer common stock. Any gain in excess of the amount of net unrealized appreciation at the
time of distribution will be considered long-term capital gain, provided the sale or taxable
disposition occurs more than one year after the distribution.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The recipient of a lump-sum distribution may elect to include the amount of any net unrealized
appreciation in the taxable gross income on the date of the distribution,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions: Rollovers and Direct Transfers to Another Qualified Plan or to an IRA</I>. You may
roll over virtually all distributions from the Plan to another qualified plan or to an individual
retirement account that accepts rollovers in accordance with the terms of the other plan or
account, provided, however, that if your distribution includes employer common stock, another
qualified plan or individual retirement account may or may not accept an in-kind rollover or direct
transfer of common stock.
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Notice of Your Rights Concerning Employer Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law provides specific rights concerning investments in employer securities. Because
you may in the future have investments in the New Employer Stock Fund under the Plan, you should
take the time to read the following information carefully.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Your Rights Concerning Employer Securities</I>. The Plan must allow you to elect to move any
portion of your account that is invested in the Old Employer Stock Fund and New Employer Stock Fund
from that investment into other investment alternatives under the Plan. You may contact the Plan
Administrator shown above for specific information regarding this right, including how to make this
election. In deciding whether to exercise this right, you will want to give careful consideration
to the information below that describes the importance of diversification. All of the investment
options under the Plan are available to you if you decide to diversify out of either the Old
Employer Stock Fund or the New Employer Stock Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The Importance of Diversifying Your Retirement Savings</I>. To help achieve long-term retirement
security, you should give careful consideration to the benefits of a well-balanced and diversified
investment portfolio. Spreading your assets among different types of investments can help you
achieve a favorable rate of return, while minimizing your overall risk of losing money. This is
because market or other economic conditions that cause one category of assets, or one particular
security, to perform very well often cause another asset category, or another particular security,
to perform poorly. If you invest more than 20% of your retirement savings in any one company or
industry, your savings may not be properly diversified. Although diversification is not a
guarantee against loss, it is an effective strategy to help you manage investment risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In deciding how to invest your retirement savings, you should take into account all of your
assets, including any retirement savings outside of the Plan. No single approach is right for
everyone because, among other factors, individuals have different financial goals, different time
horizons for meeting their goals, and different tolerance for risk. Therefore, you should
carefully consider the rights described here and how these rights affect the amount of money that
you invest in employer common stock through the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is also important to periodically review your investment portfolio, your investment
objectives, and the investment options under the Plan to help ensure that your retirement savings
will meet your retirement goals.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional ERISA Considerations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As noted above, the Plan is subject to certain provisions of ERISA, including special
provisions relating to control over the Plan&#146;s assets by participants and beneficiaries. The
Plan&#146;s feature that allows you to direct the investment of your account balances is intended to
satisfy the requirements of section 404(c) of ERISA relating to control over plan assets by a
participant or beneficiary. The effect of this is two-fold. First, you will not be deemed a
&#147;fiduciary&#148; because of your exercise of investment discretion. Second, no person who otherwise is
a fiduciary, such as the Plan administrator or the Plan&#146;s trustee, is liable under the fiduciary
responsibility provision of ERISA for any loss which results from your exercise of control over the
assets in your Plan account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because you will be entitled to invest all or a portion of your account balance in the Plan in
employer common stock, the regulations under Section 404(c) of ERISA require that the Plan
establish procedures that ensure the confidentiality of your decision to purchase, hold, or sell
employer securities, except to the extent that disclosure of such information is necessary to
comply with federal or state laws not preempted by ERISA. These regulations also require that your
exercise of voting and similar rights with respect to the common stock be conducted in a way that
ensures the confidentiality of your exercise of these rights.
</DIV>
<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Exchange Commission Reporting and Short-Swing Profit Liability</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16 of the Securities Exchange Act of 1934 imposes reporting and liability requirements
on officers, directors, and persons beneficially owning more than 10% of public companies such as
OFC-Delaware. Section 16(a) of the Securities Exchange Act of 1934 requires the filing of reports
of beneficial ownership. Within 10&nbsp;days of becoming an officer, director or person beneficially
owning more than 10% of the shares of OFC-Delaware, a Form&nbsp;3 reporting initial beneficial ownership
must be filed with the Securities and Exchange Commission. Changes in beneficial ownership, such
as purchases, sales and gifts generally must be reported periodically, either on a Form&nbsp;4 within
two business days after the date on which a change occurs, or annually on a Form&nbsp;5 within 45&nbsp;days
after the close of OFC-Delaware&#146;s fiscal year. Discretionary transactions in and beneficial
ownership of the common stock through the New Employer Stock Fund by officers, directors and
persons beneficially owning more than 10% of the common stock of OFC-Delaware generally must be
reported to the Securities and Exchange Commission by such individuals within two business days
after the date on which the discretionary transactions occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the reporting requirements described above, Section 16(b) of the Securities
Exchange Act of 1934 provides for the recovery by OFC-Delaware of profits realized by an officer,
director or any person beneficially owning more than 10% of OFC-Delaware&#146;s common stock resulting
from non-exempt purchases and sales of OFC-Delaware common stock within any six-month period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Securities and Exchange Commission has adopted rules that provide exemptions from the
profit recovery provisions of Section 16(b) for all transactions in employer securities within an
employee benefit plan, provided certain requirements are met. These requirements
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">generally involve restrictions upon the timing of elections to acquire or dispose of employer
securities for the accounts of Section 16(b) persons.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for distributions of common stock due to death, disability, retirement, termination of
employment or under a qualified domestic relations order, persons affected by Section 16(b) are
required to hold shares of common stock distributed from the Plan for six months following such
distribution and are prohibited from directing additional purchases of units within the New
Employer Stock Fund for six months after receiving such a distribution.
</DIV>
<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Information Regarding Plan Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial information representing the assets available for Plan benefits are available upon
written request to the Plan Administrator at the address shown above.
</DIV>
<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL OPINION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the issuance of the common stock has been passed upon by Luse Gorman Pomerenk
&#038; Schick, P.C., Washington, D.C., which firm acted as special counsel to OFC-Delaware in connection
with OFC-Delaware&#146;s stock offering.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP.<BR>
(Proposed Holding Company for Oritani Bank)<BR>
Up to 44,850,000 Shares of Common Stock<BR>
(Subject to Increase to up to 51,577,500 Shares)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., a Delaware corporation, is offering shares of common stock for sale
at $10.00 per share in connection with the conversion of Oritani Financial Corp., MHC from the
mutual to the stock form of organization. The shares of common stock we are offering represent the
ownership interest in Oritani Financial Corp. currently owned by Oritani Financial Corp., MHC. In
addition, at the conclusion of the offering, existing shares of Oritani Financial Corp. common
stock currently held by the public will be exchanged for shares of common stock of Oritani.
Oritani Financial Corp.&#146;s common stock is currently traded on the Nasdaq Global Market under the
trading symbol &#147;ORIT.&#148; We expect that Oritani&#146;s shares of common stock will trade on the Nasdaq
Global Market under the trading symbol &#147;ORITD&#148; for a period of 20 trading days after the completion
of this stock offering. Thereafter, Oritani&#146;s trading symbol will revert to &#147;ORIT.&#148; We will refer
to Oritani Financial Corp., a Delaware corporation formed for this stock offering, as &#147;Oritani&#148; and
Oritani Financial Corp., the existing federal corporation, as &#147;Oritani Financial Corp.&#148; in this
document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering the shares of common stock to eligible depositors of Oritani Bank in a
&#147;subscription offering.&#148; Depositors of Oritani Bank with aggregate account balances of at least
$50 as of the close of business on December&nbsp;31, 2008 will have first priority rights to buy our
shares of common stock. Shares of common stock not purchased in the subscription offering are
expected to be offered for sale in a &#147;community offering,&#148; which will be limited to persons
residing in New Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren, Union,
Somerset, Hunterdon, Middlesex and Mercer, certain borrowers as of December&nbsp;31, 2009 and the
stockholders of Oritani Financial Corp as of &#091;voting record date&#093;. We also may offer for sale to
the general public shares of common stock not purchased in the subscription offering or community
offering through a &#147;syndicated community offering&#148; managed by Stifel, Nicolaus &#038; Company,
Incorporated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering up to 44,850,000 shares of common stock for sale on a best efforts basis. We
may sell up to 51,577,500 shares of common stock because of demand for the shares of common stock,
as a result of regulatory considerations, or due to changes in the market for financial
institutions stock, without resoliciting purchasers. In addition to the shares we are selling in
the offering, we also will simultaneously issue up to 15,395,458 shares of common stock to existing
public stockholders of Oritani Financial Corp. in exchange for their existing shares. The number
of shares to be issued in the exchange may be increased to up to 17,704,777 shares of common stock,
if we sell 51,577,500 shares of common stock in the offering. We must sell a minimum of 33,150,000
shares in the offering and issue 11,379,252 shares in the exchange in order to complete the
offering and the exchange of existing shares of common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The minimum order is 25 shares. The offering is expected to expire at 2:00 p.m., Eastern
Time, on &#091;expiration date&#093;. We may extend this expiration date without notice to you until
&#091;extension date&#093;, unless the Office of Thrift Supervision approves a later date, which may not be
beyond &#091;final expiration date&#093;. Once submitted, orders are irrevocable unless the offering is
terminated or is extended beyond &#091;extension date&#093;, or the number of shares of common stock to be
sold is increased to more than 51,577,500 shares or decreased to less than 33,150,000 shares. If
the subscription and community offerings are terminated, purchasers will have their funds returned
promptly, with interest. If, with Office of Thrift Supervision approval, the offering is extended
beyond &#091;extension date&#093; or there is a change in the offering range, we will resolicit purchasers,
who will have the opportunity to maintain, change or cancel your order. If you do not provide us
with a written indication of your intent, your order will be canceled and your funds will be
returned to you, with interest. Funds received prior to the completion of the offering will be held
in a segregated account at Oritani Bank or, at our discretion, at another federally insured
depository institution, and will earn interest at Oritani Bank&#146;s passbook savings rate, which is
currently 0.25%. Stifel, Nicolaus &#038; Company, Incorporated will assist us in selling our shares of
common stock on a best efforts basis in the subscription and community offerings. We may also offer
shares of common stock not subscribed for in the subscription and community offerings in a
syndicated community offering through a syndicate of selected dealers with Stifel, Nicolaus &#038;
Company, Incorporated serving as sole book running manager. Stifel, Nicolaus &#038; Company,
Incorporated is not required to purchase any shares of common stock that are being offered for
sale.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OFFERING SUMMARY<BR>
Price: $10.00 per share</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Midpoint</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjusted Maximum</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated offering expenses excluding selling agent commissions and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,762,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,762,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,762,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,762,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated selling agent commissions and expenses(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,368,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,334,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,299,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,560,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,369,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">374,903,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,438,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,452,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net proceeds per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.63</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>For information regarding compensation to be received by Stifel, Nicolaus &#038; Company,
Incorporated and the other broker-dealers that may participate in the syndicated community
offering, including the assumptions regarding the number of shares that may be sold in the
subscription and community offerings and the syndicated community offering to determine the
estimated offering expenses, see &#147;Pro Forma Data&#148; on page 45 and &#147;The Conversion and
Offering&#151;Marketing Arrangements&#148; on page 157.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>This investment involves a degree of risk, including the possible loss of principal.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>Please read &#147;Risk Factors&#148; beginning on page 25.</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>These securities are not deposits or savings accounts and are not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency. None of the
Securities and Exchange Commission, the Office of Thrift Supervision, the Federal Deposit Insurance
Corporation, the New Jersey Department of Banking and Insurance, or any state securities regulator
has approved or disapproved of these securities or determined if this prospectus is accurate or
complete. Any representation to the contrary is a criminal offense.</I></B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>STIFEL NICOLAUS</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">For assistance, please contact the Stock Information Center, toll-free, at 1 (877) &#95;&#95;&#95;-&#95;&#95;&#95;.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">The date of this prospectus is &#091;Prospectus Date&#093;.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;MAP SHOWING ORITANI BANK&#146;S MARKET AREA APPEARS ON INSIDE FRONT COVER&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><U><B>Page</B></U></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#600"><B>SUMMARY</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#601"><B>RISK FACTORS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>25</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#602"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>35</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#603"><B>FORWARD-LOOKING STATEMENTS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>37</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#604"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>39</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#605"><B>OUR POLICY REGARDING DIVIDENDS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>40</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#606"><B>MARKET FOR THE COMMON STOCK</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>41</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#607"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>43</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#608"><B>CAPITALIZATION</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>44</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#609"><B>PRO FORMA DATA</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>45</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#610"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>51</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#611"><B>BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>73</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#612"><B>SUPERVISION AND REGULATION</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>99</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#613"><B>FEDERAL AND STATE TAXATION</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>111</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#614"><B>MANAGEMENT</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>113</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#615"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>140</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#616"><B>THE CONVERSION AND OFFERING</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>141</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#617"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING STOCKHOLDERS OF ORITANI FINANCIAL CORP.</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>168</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#618"><B>RESTRICTIONS ON ACQUISITION OF ORITANI</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>175</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#619"><B>DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><b>180</b></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#620"><B>TRANSFER AGENT</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>181</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#621"><B>EXPERTS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>181</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#622"><B>LEGAL MATTERS</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>181</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#623"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>181</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#624"><B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF ORITANI
FINANCIAL CORP. AND ITS SUBSIDIARIES</B>
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>F-1</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="600"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary explains the material aspects of the conversion, the offering and the
exchange of existing shares of Oritani Financial Corp. common stock for new shares of Oritani
common stock. It may not contain all of the information that is important to you. For additional
information before making an investment decision, you should read this prospectus carefully,
including the consolidated financial statements, the notes to the consolidated financial
statements, and the section entitled &#147;Risk Factors.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Financial Corp., a Delaware corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., is a newly-formed Delaware corporation that was incorporated in
February&nbsp;2010 to be the successor corporation to Oritani Financial Corp. upon completion of the
conversion. Oritani Financial Corp., a Delaware Corporation (&#147;Oritani&#148;) will own all of the
outstanding shares of common stock of Oritani Bank upon completion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s executive offices are located at 370 Pascack Road, Township of Washington, New
Jersey 07676. Our telephone number at this address is (201)&nbsp;664-5400.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oritani Financial Corp., MHC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC is the federally chartered mutual holding company of Oritani
Financial Corp. Oritani Financial Corp., MHC&#146;s principal business activity is the ownership of
27,575,476 shares of common stock of Oritani Financial Corp., or 74.4% of the issued and
outstanding shares as of the date of this prospectus. The remaining 9,465,710 shares of Oritani
Financial Corp. common stock outstanding as of the date of this prospectus were held by the public.
After the completion of the conversion, Oritani Financial Corp., MHC will cease to exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oritani Financial Corp., a Federal corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is a federally chartered stock holding company that owns all of the
outstanding common stock of Oritani Bank. At December&nbsp;31, 2009, Oritani Financial Corp. had
consolidated assets of $2.01&nbsp;billion, deposits of $1.21&nbsp;billion and stockholders&#146; equity of $248.0
million. After the completion of the conversion, Oritani Financial Corp. will cease to exist, and
will be succeeded by Oritani, a new Delaware corporation. As of the date of this prospectus,
Oritani Financial Corp. had 40,552,162 shares of common stock issued and 37,041,184 shares of
common stock outstanding, of which 27,575,476 shares were owned by Oritani Financial Corp., MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oritani Bank</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is a New Jersey-chartered stock savings bank headquartered in Township of
Washington, New Jersey, and the wholly-owned subsidiary of Oritani Financial Corp., a federal
corporation. Oritani Bank was originally founded in 1911 as a mutual (meaning no stockholders)
organization and converted to stock form in 1997 as part of Oritani Bank&#146;s mutual holding company
reorganization. Oritani Bank became a wholly-owned subsidiary of Oritani Financial Corp. in 2007.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a full service retail banking institution. Our primary business lines involve
generating funds from deposits or borrowings and investing such funds in loans and investment
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank conducts business from its main office located at 370 Pascack Road, in the
Township of Washington, New Jersey 07676, and its 21 branch offices located in the New Jersey
counties of Bergen, Hudson and Passaic. Oritani Bank was formerly known as Oritani Savings Bank.
Effective September&nbsp;8, 2008, the name was changed to Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal business consists of attracting retail and commercial deposits from the general
public in the areas surrounding our main office in the Township of Washington, New Jersey and our
branch offices located in the New Jersey counties of Bergen (16 branches, including our main
office), Hudson (five branches) and Passaic (one branch), and investing those deposits, together
with funds generated from operations, in multi-family and commercial real estate loans, one- to
four-family residential mortgage loans as well as in second mortgage and equity loans, construction
loans, business loans, other consumer loans, and investment securities. We originate loans
primarily for investment and hold such loans in our portfolio. Occasionally, we will also enter
into loan participations. Our revenues are derived principally from interest on loans and
securities as well as our investments in real estate and real estate joint ventures. We also
generate revenues from fees and service charges and other income. Our primary sources of funds are
deposits, borrowings and principal and interest payments on loans and securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Area</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From our headquarters in the Township of Washington, New Jersey, we operate 22 full service
branches, including our main office. We operate branches in three counties in New Jersey: Bergen,
Hudson and Passaic. The majority of our branches (sixteen)&nbsp;and deposits are located in Bergen
County. In addition, we operate five branches in Hudson County and one branch in Passaic County.
Our market area for lending is broader and includes the state of New Jersey, the broader New York
metropolitan area, eastern Pennsylvania, and southern Connecticut.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In terms of population, Bergen County ranks as the largest county in New Jersey (out of
twenty-one counties) while Hudson County ranks fifth and Passaic County ranks ninth. The economy
in our primary market area has benefited from being varied and diverse. It is largely urban and
suburban with a broad economic base. As one of the wealthiest states in the nation, New Jersey,
with a population of 8.7&nbsp;million, is considered one of the most attractive banking markets in the
United States. As of December&nbsp;2009, the unemployment rate for New Jersey increased to 10.1%, which
was slightly higher than the national rate of 10.0%. Despite the recent downturn, a total of 3.9
million New Jersey residents remain employed as of December&nbsp;2009. Bergen County is considered part
of the New York metropolitan area. Its county seat is Hackensack. Bergen County ranks 16th among
the highest-income counties in the United States in 2009 in terms of per-capita income. Some of
Bergen County&#146;s major employers are: Hackensack University Medical Center; New Jersey Sports and
Expo Authority; Merck-Medco Managed Care; AT&#038;T Wireless Services, Inc.; Becton Dickinson &#038; Company;
Mellon Investor Services; Marcal Paper Mills; Mercedes-Benz of North America, Inc.; KPMG, LLP and
United States Postal Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bergen County is bordered by Rockland County, New York to the north, the Hudson River to the
east, Hudson County to the south, a small border with Essex County also to the south and Passaic
County to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Passaic County is bordered by Orange County, New York to the north, Rockland County, New York
to the northeast, Bergen County to the east, Essex County to the south, Morris County to the
southwest and Sussex County to the west.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hudson County&#146;s only land border is with Bergen County to the north and west. It is bordered
by the Hudson River and Upper New York Bay to the east; Kill van Kull (which connects Newark Bay
with Upper New York Bay) to the south and Newark Bay and the Hackensack River or the Passaic River
to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face intense competition within our market area both in making loans and attracting
deposits. Our market area has a high concentration of financial institutions including large money
center and regional banks, community banks and credit unions. Some of our competitors offer
products and services that we currently do not offer, such as trust services and private banking.
As of June&nbsp;30, 2009, the latest date for which statistics are available, our market share of
deposits was approximately 2.6% in Bergen County, and less than 1.0% in each of Hudson and Passaic
Counties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our competition for loans and deposits comes principally from commercial banks, savings
institutions, mortgage banking firms, insurance companies and credit unions. We face additional
competition for deposits from short-term money market funds, brokerage firms, mutual funds and
insurance companies. Our primary focus is to build and develop profitable customer relationships
across all lines of business while maintaining our role as a community bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Business Strategy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to continue to operate as a well-capitalized and profitable financial institution
dedicated to understanding the banking needs of both our individual and business customers, and
tailoring our products and services accordingly. This approach enables us to be more flexible and
responsive to our customers and to provide an exceptional level of personal service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Highlights of our business strategy are discussed below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Continue our focus on multi-family and commercial real estate lending</B>. Unlike many
traditional thrifts, we have focused on the origination of multi-family and commercial real estate
loans. Such loans comprise 66.9% of our total loan portfolio at December&nbsp;31, 2009. We have
focused on this type of lending because the interest rates earned for such loans are higher than
the prevailing rates for residential loans, resulting in a greater level of interest income
potential. We are also able to generate significantly higher fee income on such loans. In
addition, the repayment terms usually expose us to less interest rate risk than fixed-rate
residential loans. While our actual origination volume will depend on market conditions, we intend
to continue our emphasis on multi-family and commercial real estate lending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced substantial growth in our combined multi-family and commercial real estate
loan portfolio in recent years. The growth rate of the portfolio has been 20.27%; 40.62%; 32.37%;
18.97% and 39.71% for the six months ended December&nbsp;31, 2009 (annualized)&nbsp;and years ended June&nbsp;30,
2009, 2008, 2007 and 2006, respectively. In addition, despite our more stringent underwriting
standards discussed below, we believe that the exit of many larger banks and conduit lenders from
the commercial real estate lending market due to the financial crisis has enabled us, as a
community bank, to increase the number and size of the commercial real estate loans that we
originate while lending to a higher quality of borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have been involved in multi-family lending for over thirty years. Over the past seven
years, we have assembled a department exclusively devoted to the origination and administration of
multi-family and commercial real estate loans. Over the past two years, we have established a
separate credit department to review all such originations and ensure compliance with our
underwriting standards. There are presently eight loan officers as well as support staff in the
origination department and three officers as well as support staff in the credit department. Our
business plan projects continued growth of the portfolio and continued additions to our staff to
support such growth. In addition, due to current
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">economic conditions and related risks, management has been applying stricter underwriting
guidelines, including requiring higher debt service coverage ratios and lower loan to value ratios,
to these loans. We have also focused our multi-family and commercial real estate lending on more
seasoned and experienced developers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Reduce problem assets and aggressively remedy delinquent loans</B>. One of management&#146;s primary
objectives is to reduce our level of problem assets. While no assurances can be provided regarding
results, management will focus a significant amount of its time on the resolution of problem
assets. Management&#146;s tactics toward delinquent borrowers are considered aggressive. We have
commenced legal action against virtually all borrowers who are more than 45&nbsp;days delinquent. We
have generally refused to extend the maturity date of any construction loan, even if the interest
payments are current, unless the borrower agrees to reduce our exposure through additional
principal payments and/or additional collateral, and agrees to an additional fee if the loan is not
paid in full on or before the new maturity date. We realize that such actions contribute to the
high level of delinquencies but believe this is the most prudent path to addressing delinquent
loans. Since June&nbsp;30, 2009 our level of non-performing assets to total assets has declined from
2.74% to 2.62% at December&nbsp;31, 2009. Additionally, $13.9&nbsp;million of our delinquent loans are
expected to be resolved in the coming months as the underlying collateral are under contracts for
sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Increase core deposits</B>. During the past two years, we have devoted significant internal
attention to growing our deposits. We hired key, experienced personnel and have implemented an
incentive program that rewards branch personnel for attracting core deposit relationships. We have
also begun to emphasize obtaining deposits from our commercial borrowers, reexamined our pricing
strategies and promoted our status as a local community bank. As a result of these efforts, we
have recently experienced a period of unprecedented deposit growth. Our deposit balances grew
61.3% from June&nbsp;30, 2008 to June&nbsp;30, 2009. The growth has continued as our annualized growth for
the six month period ended December&nbsp;31, 2009 was 14.7%. Much of the increase came in the areas of
certificates of deposit and money market accounts. Our ongoing focus will be to build upon this
success, with a particular emphasis on growing core commercial and retails deposits. In addition
to continuing to attract new customers to Oritani Bank, we will also focus on cross-selling core
deposit accounts to customers who have limited deposit services with Oritani Bank and seeking to
further develop the relationship by providing quality customer service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Expand our market share within our primary market area. </B>Our deposit growth significantly
boosted our market penetration in Bergen County, the primary county of our operations. We
increased our percentage of Bergen County deposits from 1.8%, or the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> highest
financial institution, at June&nbsp;30, 2008 to 2.6%, or the 9<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> highest financial
institution, at June&nbsp;30, 2009. In October&nbsp;2008, Oritani Bank opened two de novo branches. These
branches had combined deposit totals of $49.6&nbsp;million at December&nbsp;31, 2009. In February&nbsp;2010, we
opened a de novo branch in Bergenfield, New Jersey. We intend to continue the strategy of
opportunistic de novo branching. We typically seek de novo branch locations in under-banked areas
that are either a contiguous extension or fill-in of our existing branch network. We also have
budgeted monies for infrastructure improvements in our existing branches. We may also consider the
acquisition of branches from other financial institutions in our market area. We believe these
strategies, along with continued growth, will help us achieve our goal of deposit growth and market
expansion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Continue to emphasize operating efficiencies and cost control</B>. One of the hallmarks of our
operations has been expense control as evidenced by an efficiency ratio of 46.5% for the six months
ended December&nbsp;31, 2009. Our efficiency ratio as well as numerous other expense measurement
ratios, have consistently outperformed peers. We intend to maintain our posture on expense control
while continuing to make prudent investments in our operations by effectively managing costs in
relation to revenues. We realize that our expense ratios will be challenged in the future with the
intended implementation of stock benefit plans. However, we have recently been able to generate
favorable peer comparisons with such plans in place.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Remain true to our core competencies</B>. We are very proud of the institution we have helped to
build. We realize many of our peers have ventured into other areas of banking operations, such as
C&#038;I lending, leasing and sales of alternative investment products. While these areas may be
profitable, they also have inherent risks and require significant expertise separate from our core
lending and deposit gathering operations. For the foreseeable future, we do not intend to utilize
our capital to enter into new types of lending or other areas of operations that we consider to be
risky. We believe that we possess expertise in our current types of lending and operations and
intend to rely on this existing expertise for future growth and profitability.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA<BR>
OF<BR>
ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The summary financial information presented below is derived in part from the consolidated
financial statements of Oritani Financial Corp. and subsidiaries. The following is only a summary
and you should read it in conjunction with the consolidated financial statements and notes
beginning on page F-1. The information at June&nbsp;30, 2009 and 2008 and for the fiscal years ended
June&nbsp;30, 2009, 2008 and 2007 is derived in part from the audited consolidated financial statements
of Oritani Financial Corp. that appear in this prospectus. The information at and for the years
ended June&nbsp;30, 2007, 2006 and 2005 is derived in part from audited consolidated financial
statements that do not appear in this prospectus. The operating data for the three months and six
months ended December&nbsp;31, 2009 and 2008 and the financial condition data at December&nbsp;31, 2009 were
not audited. However, in the opinion of management of Oritani Financial Corp., all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of the results of
operations for the unaudited periods have been made. No adjustments were made other than normal
recurring entries. The results of operations for the three months and six months ended December
31, 2009 are not necessarily indicative of the results of operations that may be expected for the
entire year.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Condition Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,913,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,443,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,194,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,031,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,051,702</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">643,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">493,554</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,924</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank of New York stock, at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,967</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,405</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments in real estate joint ventures, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,425</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">695,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">688,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,980</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,796</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,056</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,463</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,340</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,795</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>For the Year Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">71,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,349</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,090</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,309</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,663</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,153</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,664</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,193</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>At or for the Six Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Ended December 31,</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At or For the Year Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Ratios and Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Performance Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on assets <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on equity <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.51</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.54</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Efficiency ratio <SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">46.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">56.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">58.35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">70.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">54.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49.74</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expense to average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets to average
interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">111.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">114.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">123.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">115.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">114.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Asset Quality Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.54</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to nonperforming loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">39.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Capital Ratios:</B><SUP style="font-size: 85%; vertical-align: text-top"> (7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity to assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.55</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to average assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.31</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.62</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of full service offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Full time equivalent employees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Ratios are annualized where appropriate.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net income divided by average total assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net income divided by average equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents average yield on interest-owning assets less average cost of interest-bearing
liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net interest income as a percent of average interest-earning assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents non-interest expense divided by the sum of net interest income before provision
for loan losses and non-interest income.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents consolidated ratios.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt">N/M Not meaningful.</DIV>








<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Current Organizational Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. completed its initial public stock offering on January&nbsp;23, 2007.
Oritani Financial Corp. sold 12,165,649 shares, or 30.0% of its outstanding common stock, to
subscribers in the offering, including 1,589,644 shares purchased by the Oritani Bank Employee
Stock Ownership Plan. Proceeds from the offering, including the value of shares issued to the
charitable foundation but net of expenses, were $127.6&nbsp;million. Oritani Financial Corp.
contributed $59.7&nbsp;million of the proceeds to Oritani Bank. At December&nbsp;31, 2009, Oritani Financial
Corp., MHC owned 74.4% of the Oritani Financial Corp.&#146;s outstanding common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of Oritani Financial Corp., MHC&#146;s plan of conversion and reorganization,
Oritani Financial Corp., MHC will convert from the mutual holding company to the stock holding
company corporate structure. As part of the conversion, we are offering for sale in a subscription
offering, a community offering and possibly a syndicated community offering, the ownership interest
of Oritani Financial Corp. that is currently owned by Oritani Financial Corp., MHC. Upon the
completion of the conversion, Oritani Financial Corp., MHC will cease to exist, and we will
complete the transition from partial to full public stock ownership. In addition, as part of the
conversion existing public stockholders of Oritani Financial Corp. will receive shares of common
stock of Oritani in exchange for their shares of Oritani Financial Corp. common stock pursuant to
an exchange ratio that maintains the same percentage ownership in Oritani (excluding any new shares
purchased by them in the offering and their receipt of cash in lieu of fractional exchange shares)
that existing stockholders had in Oritani Financial Corp. immediately prior to the completion of
the conversion and offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following diagram shows our current organizational structure:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g22184g2218403.gif" alt="(GRAPHICS)">
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Organizational Structure Following the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the conversion and offering are completed, we will be organized as a fully public stock
holding company, as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g22184g2218404.gif" alt="(GRAPHICS)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion and the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary reasons for converting and raising additional capital through the offering are:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the Federal Deposit Insurance
Corporation (the &#147;FDIC&#148;) or the New Jersey Department of Banking and Insurance to raise
capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Terms of the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Oritani Financial Corp., MHC&#146;s plan of conversion and reorganization, our
organization will convert from the partially public mutual holding company form to the fully public
stock holding company structure. In connection with the conversion, we are selling shares of
common stock that represent the ownership interest in Oritani Financial Corp. currently held by
Oritani Financial Corp., MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering between 33,150,000 and 44,850,000 shares of common stock to eligible
depositors of Oritani Bank, to our tax-qualified employee benefit plans, including our employee
stock ownership plan, and, to the extent shares remain available, to persons residing in the New
Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren, Union, Somerset,
Hunterdon, Middlesex and Mercer; certain borrowers as of December&nbsp;31, 2009, and to our existing
public stockholders as of &#091;voting record date&#093;. The number of shares of common stock to be sold
may be increased to up to 51,577,500 as a result of regulatory considerations, demand for our
shares, or changes in the market for financial institution stocks. Unless the number of shares of
common stock to be offered is increased to more than 51,577,500 shares or decreased to fewer than
33,150,000 shares, or the offering is extended beyond &#091;extension date&#093;, purchasers will not have
the opportunity to modify or cancel their stock orders once submitted. If the number of shares of
common stock to be sold is increased to more than 51,577,500 shares or decreased to fewer than
33,150,000 shares, or if the offering is extended beyond &#091;extension date&#093;, purchasers will have the
opportunity to maintain, cancel or change their orders for shares of common stock during a
designated resolicitation period or have their funds returned promptly with interest. If you do
not provide us with written indication of your intent, your stock order will be canceled, your
funds will be returned to you with interest calculated at Oritani Bank&#146;s passbook savings rate and
any deposit account withdrawal authorizations will be canceled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase price of each share of common stock to be offered for sale in the offering is
$10.00. All investors will pay the same purchase price per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. Stifel, Nicolaus &#038; Company,
Incorporated, our conversion advisor and marketing agent in the offering, will use its best efforts
to assist us in selling shares of our common stock. Stifel, Nicolaus &#038; Company, Incorporated is
not obligated to purchase any shares of common stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may also offer for sale to the general public in a syndicated community offering through a
syndicate of selected dealers shares of our common stock not purchased in the subscription offering
or the community offering. We may begin the syndicated community offering at any time following the
commencement of the subscription offering. Stifel, Nicolaus &#038; Company, Incorporated is acting as
sole book-running manager and &#091;co-managers&#093; are acting as co-managers for the syndicated community
offering, which is also being conducted on a best efforts basis. Neither Stifel, Nicolaus &#038;
Company, Incorporated nor any other member of the syndicate is required to purchase any shares in
the syndicated community offering. Alternatively, we may sell remaining shares in an underwritten
public offering, which would be conducted on a firm commitment basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Determined the Offering Range, the Exchange Ratio and the $10.00 Per Share Stock Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offering range and exchange ratio are based on an independent appraisal of the estimated
market value of Oritani, assuming the conversion, the exchange and the offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisals of financial institutions, has
estimated that, as of February&nbsp;19, 2010, this estimated pro forma market value ranged from $445.3
million to a maximum of $602.5&nbsp;million, with a midpoint of $523.8&nbsp;million and an adjusted maximum
of $692.8&nbsp;million. Based on this valuation, the 74.4% ownership interest held by Oritani Financial
Corp., MHC being sold in the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">offering and the $10.00 per share price, the number of shares of common stock being offered
for sale by us will range from 33,150,000 shares to 44,850,000 shares. The $10.00 per share price
was selected primarily because it is the price most commonly used in mutual-to-stock conversions of
financial institutions. The exchange ratio will range from 1.2022 shares at the minimum of the
offering range to 1.6264 shares at the maximum of the offering range in order to approximately
preserve the existing percentage ownership of public stockholders of Oritani Financial Corp.
(excluding any new shares purchased by them in the offering and their receipt of cash in lieu of
fractional exchange shares). If demand for shares or market conditions warrant, the appraisal can
be increased by 15%. At this adjusted maximum of the offering range, the estimated pro forma
market value is $692.8&nbsp;million, the number of shares of common stock offered for sale will be
69,282,277 and the exchange ratio will be 1.8704 shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent appraisal is based in part on Oritani Financial Corp.&#146;s financial condition
and results of operations, the pro forma impact of the additional capital raised by the sale of
shares of common stock in the offering, and an analysis of a peer group of 10 publicly traded
savings bank and thrift holding companies that RP Financial, LC. considered comparable to Oritani
Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The appraisal peer group consists of the following companies. Total assets are as of December
31, 2009, unless otherwise indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Company Name and Ticker Symbol</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Headquarters</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Assets</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="2">(in millions)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beacon Federal Bancorp (BFED)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>East Syracuse, NY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,070</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brookline Bancorp, Inc. (BRKL)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Brookline, MA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,616</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Danvers Bancorp, Inc. (DNBK)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Danvers, MA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ESB Financial Corp. (ESBF)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Ellwood City, PA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,979</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ESSA Bancorp, Inc. (ESSA)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Stroudsburg, PA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OceanFirst Financial Corp. (OCFC)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Toms River, NJ</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,989</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parkvale Financial Corp. (PVSA)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Monroeville, PA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provident NY Bancorp (PBNY)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Montebello, NY</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United Financial Bancorp, Inc. (UBNK)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>West Springfield, MA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,247</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Westfield Financial, Inc. (WFD)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">AMEX</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Westfield, MA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,191</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of September&nbsp;30, 2009.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The independent appraisal does not indicate actual market value. Do not assume or expect
that the estimated pro forma market value as indicated above means that, after the offering, the
shares of our common stock will trade at or above the $10.00 purchase price.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents a summary of selected pricing ratios for the peer group companies
and Oritani (on a pro forma basis). The pricing ratios are based on earnings and other information
as of and for the six months ended December&nbsp;31, 2009, stock price information as of February&nbsp;19,
2010, as reflected in RP Financial, LC.&#146;s appraisal report, dated February&nbsp;19, 2010, and the number
of shares outstanding as described in &#147;Pro Forma Data.&#148; Compared to the average pricing of the
peer group, our pro forma pricing ratios at the maximum of the offering range indicated a premium
of 6.5% on a price-to-book value basis, a discount of 6.4% on a price-to-tangible book value basis,
and a premium of 183.1% on a price-to-earnings basis.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price-to-earnings multiple</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price-to-book</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price-to-tangible</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>book value ratio</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Oritani (on a pro
forma basis,
assuming completion
of the conversion)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.21</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.45</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.50</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.25</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><B>Valuation of peer
group companies, as
of </B><br>February&nbsp;19, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Averages</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.19</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">87.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Medians</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">95.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">103.58</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Information is derived from the RP Financial appraisal report and are based upon
estimated earnings for the twelve months ended December&nbsp;31, 2009. These ratios are
different from the ratios in &#147;Pro Forma Data.&#148;</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors, in reviewing and approving the independent appraisal, considered
the range of price-to- earnings multiples, the range of price-to-book value and price-to-tangible
book value ratios at the different ranges of shares of common stock to be sold in the offering, and
did not consider one valuation approach to be more important than the other. Instead, in approving
the independent appraisal, the Board of Directors concluded that these ranges represented the
appropriate balance of the three approaches to establishing our estimated valuation range, and the
number of shares of common stock to be sold, in comparison to the peer group institutions.
Specifically, in approving the independent appraisal, the Board of Directors believed that we would
not be able to sell our shares at a price-to-book value and price-to-tangible book value that was
in line with the peer group without unreasonably exceeding the peer group on a price-to-earnings
basis. The estimated appraised value and the resulting discounts took into consideration the
potential financial impact of the offering as well as the trading price of Oritani Financial Corp.
common stock, which closed at $13.80 per share on February&nbsp;19, 2010, the date of the independent
appraisal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RP Financial, LC. will update the independent appraisal prior to the completion of the
conversion. If the estimated appraised value, including offering shares and exchange shares,
changes to either below $445.3&nbsp;million or above $692.8&nbsp;million, we will resolicit persons who
submitted stock orders. See &#147;The Conversion and Offering&#151;Stock Pricing and Number of Shares to be
Issued.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Exchange of Existing Shares of Oritani Financial Corp. Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the conclusion of the conversion, shares held by existing stockholders of Oritani Financial
Corp. will be canceled and exchanged for shares of common stock of Oritani. The number of shares
of common stock received will be based on an exchange ratio determined as of the conclusion of the
conversion and offering, which will depend upon our final appraised value. The number of shares
received will not be based on the market price of our currently outstanding shares. Instead, the
exchange ratio will ensure that existing public stockholders of Oritani Financial Corp. will retain
the same percentage ownership of our organization after the offering, exclusive of their purchase
of any additional shares of common stock in the offering or their receipt of cash in lieu of
fractional exchange shares. In addition, if options to purchase shares of Oritani Financial Corp.
common stock are exercised before consummation of the conversion, there will be an increase in the
percentage of shares of Oritani Financial Corp. held by public stockholders, an increase in the
number of shares of common stock issued to public stockholders in the share exchange and a decrease
in the exchange ratio.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows the number of whole shares of Oritani common stock a
hypothetical owner of Oritani Financial Corp. common stock would receive in exchange for 100 shares
of Oritani Financial Corp. common stock owned at the completion of the conversion, depending on the
number of shares of common stock sold in the offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>New Shares to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>New Shares That</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Exchanged for Existing</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equivalent Per</B></TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Would be Received</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>New Shares to be Sold</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Shares of Oritani</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding After</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Share Current</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for 100 Existing</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>in This Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>the Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exchange Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Market Value (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,395,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,704,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oritani common stock received in the conversion by a
holder of one share of Oritani Financial Corp. at the exchange ratio, assuming the market
price of $10.00 per share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. For each fractional share that would otherwise be issued, Oritani will pay
in cash an amount equal to the product obtained by multiplying the fractional share interest to
which the holder would otherwise be entitled by the $10.00 per share purchase price of the common
stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outstanding options to purchase shares of Oritani Financial Corp. common stock also will
convert into and become options to purchase new shares of Oritani common stock. The number of
shares of common stock to be received upon exercise of these options and the exercise price per
share to be adjusted based upon the exchange ratio so that the aggregate exercise price and the
duration of such options remain unchanged. All such options will vest upon completion of the
conversion. Oritani Financial Corp. anticipates the pre-tax expense of such accelerated vesting as
well as the accelerated vesting for outstanding stock awards will be approximately $11.3&nbsp;million,
with such expense to be incurred during the fiscal quarter in which the stock offering is
completed. At December&nbsp;31, 2009, there were 1,841,725 outstanding options to purchase
shares of Oritani Financial Corp. common stock, 368,345 of which have vested. Such
options will be converted into options to purchase 2,214,122 shares of common stock at the minimum
of the offering range and 3,444,762 shares of common stock at the maximum of the offering range.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Intend to Use the Proceeds From the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming we sell 44,850,000 shares of common stock in the stock offering, and we have net
proceeds of $431.4&nbsp;million, we intend to distribute the net proceeds as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$215.7&nbsp;million (50.0% of the net proceeds) will be invested in Oritani Bank;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$17.9&nbsp;million (4.2% of the net proceeds) will be loaned by Oritani to the employee
stock ownership plan to fund its purchase of our shares of common stock; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$197.8&nbsp;million (45.8% of the net proceeds) will be retained by Oritani.</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may use the remaining funds we receive for investments, to pay cash dividends, to
repurchase shares of common stock and for other general corporate purposes. Oritani Bank may use
the proceeds it receives to support increased lending and other products and services. The net
proceeds retained also may be used for future business expansion through opening or acquiring
branch offices and the acquisition of banks, thrifts and other financial services companies. We
have no current arrangements or agreements with respect to any such acquisitions. Initially, a
substantial portion of the net proceeds be invested in short-term investments and mortgage-backed
securities consistent with our investment policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see &#147;How We Intend to Use the Proceeds from the Offering&#148; for more information on the
proposed use of the proceeds from the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Dividend Policy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. Oritani expects the annual dividends to equal
$0.30 per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering
range, respectively, which represents an annual dividend yield of 3.0%, at each of the minimum,
midpoint, maximum and adjusted maximum of the offering range, respectively, based upon a price of
$10.00 per share. The amount of dividends that we intend to pay after the conversion will preserve
the dividend rate that Oritani Financial Corp. stockholders currently receive, however, total
dividends received will be positively adjusted to reflect the exchange ratio. The dividend rate and
the continued payment of dividends will depend on a number of factors, including our capital
requirements, our financial condition and results of operations, tax considerations, statutory and
regulatory limitations, and general economic conditions. No assurance can be given that we will
continue to pay dividends or that they will not be reduced or eliminated in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Consolidated Financial and Other Data&#148; and &#147;Market for the Common Stock&#148; for
information regarding our historical dividend payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchases and Ownership by our Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect our directors, executive officers and their associates, to purchase 150,000 shares
of common stock in the offering. The purchase price paid by them will be the same $10.00 per share
price paid by all other persons who purchase shares of common stock in the offering. After the
conversion, as a result of purchases in the offering and the shares they will receive in exchange
for shares of Oritani Financial Corp. that they currently own, our directors and executive
officers, together with their associates, are expected to beneficially own approximately &#95;&#95;&#95;
and &#95;&#95;&#95; shares of common stock, or &#95;&#95;&#95;% and &#95;&#95;&#95;% of our total outstanding shares of common
stock, at the minimum and the maximum of the offering range, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employee Stock Ownership Plan</I></B>. Our tax-qualified employee stock ownership plan may purchase
up to 4.0% of the shares of common stock we sell in the offering, or 2,063,100 shares of common
stock, assuming we sell the maximum, as adjusted, number of shares proposed to be sold which, when
combined with the existing employee stock ownership plan, will be less than 8% of the shares
outstanding following the conversion. If we receive orders for more shares of common stock than
the maximum of the offering range, the employee stock ownership plan will have first priority to
purchase shares over this maximum, up to a total of 4.0% of the shares of common stock sold in the
offering. We reserve the right to purchase shares of common stock in the open market following the
offering in order to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fund all or a portion of the employee stock ownership plan. Assuming the employee stock
ownership plan purchases 1,560,000 shares in the offering, the midpoint of the offering range, we
will recognize additional compensation expense of approximately $780,000 annually (or approximately
$476,000 after tax) over a 20-year period, assuming the loan to the employee stock ownership plan
has a 20-year term and an interest rate equal to the prime rate as published in <I>The Wall Street
Journal</I>, and the shares of common stock have a fair market value of $10.00 per share for the full
20-year period. If, in the future, the shares of common stock have a fair market value greater or
less than $10.00, the compensation expense will increase or decrease accordingly. We also reserve
the right to have the employee stock ownership plan purchase more than 4.0% of the shares of common
stock sold in the offering if necessary to complete the offering at the minimum of the offering
range.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock-Based Incentive Plan</I></B>. Our current intention is to implement a new stock-based incentive
plan no earlier than twelve months after completion of the conversion. Stockholder approval of
this plan will be required. If implemented 12&nbsp;months or more following completion of the
conversion, the stock-based incentive plan will reserve a number of shares equal to 4.0% of the
shares of common stock sold in the offering, or 2,063,100 shares of common stock at the maximum as
adjusted of the offering range, for awards of restricted stock to key employees and directors, at
no cost to the recipients. If the shares of restricted stock awarded under the stock-based
incentive plan come from authorized but unissued shares of common stock, stockholders would
experience dilution of up to approximately 2.89% in their ownership interest in Oritani. If
implemented 12&nbsp;months or more following the completion of the conversion, the stock-based incentive
plan will also reserve a number of shares equal to 10.0% of the shares of common stock sold in the
offering, or 5,157,750 shares of common stock at the maximum as adjusted of the offering range, for
issuance pursuant to grants of stock options to key employees and directors. For a description of
our current stock-based incentive plans, see &#147;Management&#151;Compensation Discussion and Analysis.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the number of shares of common stock and the aggregate dollar
value of grants that are expected under the new stock-based incentive plan as a result of the
conversion. The table also shows the dilution to stockholders if all such shares are issued from
authorized but unissued shares, instead of shares purchased in the open market. A portion of the
stock grants shown in the table below may be made to non-management employees.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Number of Shares to be Granted or Purchased (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dilution Resulting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Value of Grants (2)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>As a Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>From Issuance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Maximum as</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares for</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Maximum as</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Minimum of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>adjusted of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Sold in the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock-Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Minimum of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>adjusted of Offering</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Incentive Plans (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,326,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,063,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted stock awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,326,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,063,100</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,315,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5,157,750</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,691</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,967,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,283,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,953</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12&nbsp;months of
the completion of the conversion, the number of shares that may be reserved for grants of
restricted stock cannot exceed 4% of the total number of shares to be outstanding upon
completion of the conversion, less the number of shares of restricted stock (adjusted for the
exchange ratio) reserved under previously adopted benefit plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12&nbsp;months of
the completion of the conversion, the number of shares that may be reserved for grants of
stock options cannot exceed 10% of the total number of shares to be outstanding upon
completion of the conversion, less the number of option shares (adjusted for the exchange
ratio) reserved under previously adopted benefit plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value for stock awards is
assumed to be the same as the offering price of $10.00 per share. The fair value of stock
options has been estimated at $3.43 per option using the Black-Scholes option pricing model
with the following assumptions: a grant-date share price</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>and option exercise price of $10.00; an expected option life of ten years; a dividend yield of
3.0%; an interest rate of 3.85%; and a volatility rate of 36.45% based on an index of publicly
traded thrift institutions. The actual value of option grants will be determined by the
grant-date fair value of the options, which will depend on a number of factors, including the
valuation assumptions used in the option pricing model ultimately adopted.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the dilution of stock ownership interest. No dilution is reflected for the
employee stock ownership plan because such shares are assumed to be purchased in the offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may fund our plans through open market purchases, as opposed to new issuances of
common stock; however, if any options previously granted under our existing stock option plans are
exercised during the first year following completion of the offering, they will be funded with
newly-issued shares as Office of Thrift Supervision (the &#147;OTS&#148;) regulations do not permit us to
repurchase our shares during the first year following the completion of this offering except to
fund the grants of restricted stock under the stock-based incentive plan or, with prior regulatory
approval, under extraordinary circumstances. The OTS has previously advised that the exercise of
outstanding options and cancellation of treasury shares in the conversion will not constitute an
extraordinary circumstance or a compelling business purpose for satisfying this test.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents information as of December&nbsp;31, 2009 regarding our existing
employee stock ownership plan, our existing stock option plans, our existing recognition and
retention plan, our proposed employee stock ownership plan purchases and our proposed stock-based
incentive plan, all assuming an exchange ratio of 1.6264. The table below assumes that 60,245,458
shares are outstanding after the offering, which includes the sale of 44,850,000 shares in the
offering at the maximum of the offering range, and the issuance of 15,395,458 shares in exchange
for shares of Oritani Financial Corp. using an exchange ratio of 1.6264. It also assumes that the
value of the stock is $10.00 per share.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">E<B>xisting and New Stock-Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After the</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Incentive Plans</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Participants</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Conversion</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existing employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Employees</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,585,397</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.29</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,794,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,379,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.27</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existing shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Directors, Officers and Employees</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,292,700</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12,927</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Directors, Officers and Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,794,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Directors, Officers and Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,086,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existing stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Directors, Officers and  Employees</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3,231,746</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Directors, Officers and  Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,485,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15,384</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.44</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Directors, Officers and   Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,716,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total of stock-based incentive plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,182,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, Oritani Financial Corp.&#146;s existing employee stock ownership plan
held 1,588,649 shares, 237,451 of which have been allocated.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares of restricted stock authorized for grant under our existing recognition and
retention plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value is assumed to be the same
as the offering price of $10.00 per share.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares authorized for grant under our existing stock option plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The fair value of stock options to be granted under the new stock-based incentive plan has
been estimated based on an index of publicly traded thrift institutions at $3.43 per option
using the Black-Scholes option pricing model with the following assumptions; exercise price,
$10.00; trading price on date of grant, $10.00; dividend yield, 3.0%; expected life, ten
years; expected volatility, 36.45%; and interest rate, 3.85%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares of restricted stock and stock options set forth in the table would
exceed regulatory limits if a stock-based incentive plan was adopted within one year of the
completion of the conversion and offering. Accordingly, the number of new shares of
restricted</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>stock and stock options set forth in the table would have to be reduced such that the aggregate
amount of outstanding stock awards would be 4.0% or less and outstanding stock options would be
10.0% or less, unless we obtain a waiver from the OTS, or we implement the incentive plan after
twelve months following the completion of the conversion and offering. Our current intention is
to implement a new stock-based incentive plan no earlier than twelve months after completion of
the conversion and offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of the restricted shares awarded under the stock-based incentive plan will be
based on the market value of our common stock at the time the shares are awarded. The stock-based
incentive plan is subject to stockholder approval, and cannot be implemented until at least six
months after completion of the offering. The following table presents the total value of all
shares of restricted stock that would be available for award and issuance under the new stock-based
incentive plan, assuming the new stock-based incentive plan is adopted more than one year after
completion of the conversion, the shares are awarded when the market price of our common stock
ranges from $8.00 per share to $14.00 per share.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2,063,100 Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1,362,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1,560,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1,794,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awarded at Maximum</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awarded at Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awarded at Midpoint</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awarded at Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Range, As</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" colspan="2" style="border-bottom: 1px solid #000000"><B>Share Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands, except per share data)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$8.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,505</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,757</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,883</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The grant-date fair value of the options granted under the new stock-based incentive plan
will be based in part on the price of shares of common stock of Oritani at the time the options are
granted. The value will also depend on the various assumptions used in the option pricing model
ultimately adopted. The following table presents the total estimated value of the options to be
available for grant under the stock-based incentive plan, assuming the new stock-based incentive
plan is adopted more than one year after completion of the conversion, the market price and
exercise price for the stock options are equal and the range of market prices for the shares is
$8.00 per share to $14.00 per share.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3,900,000 Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>5,157,750 Options</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grant-Date Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3,315,000 Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at Midpoint of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>4,485,000 Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at Maximum of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value Per Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>at Minimum of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>at Maximum of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Range, As Adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands, except per share data))</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$8.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,691</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,757</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The tables presented above are provided for informational purposes only. Our shares of
common stock may trade below $10.00 per share. Before you make an investment decision, we urge you
to read this entire prospectus carefully, including, but not limited to, the section entitled &#147;Risk
Factors&#148; beginning on page 25.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limits on How Much Common Stock You May Purchase</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The minimum number of shares of common stock that may be purchased in the offering is 25.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of shares of common stock that may be purchased by a person, or persons exercising
subscription rights through a single qualifying deposit account held jointly, is $500,000 (50,000
shares). If any of the following persons purchase shares of common stock, their purchases, in all
categories of the offering combined, when aggregated with your purchases, cannot exceed $1.0
million (100,000 shares) of common stock:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>your spouse or relatives of you or your spouse living in your house;</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>companies, trusts or other entities in which you are a trustee, have a
controlling beneficial interest or hold a senior position; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other persons who may be your associates or persons acting in concert with
you.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless we determine otherwise, persons and persons exercising subscription rights through a
single qualifying deposit account held jointly will be subject to the overall purchase limitation
of $1.0&nbsp;million (100,000 shares) of common stock in all categories of the offering combined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the above purchase limitations, there is an ownership limitation for
stockholders other than our employee stock ownership plan. Shares of common stock that you
purchase in the offering individually and together with persons described above, <I>plus </I>any shares
you and they receive in exchange for existing shares of Oritani Financial Corp. common stock, may
not exceed 5% of the total shares of common stock to be issued and outstanding after the completion
of the conversion and offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to OTS approval, we may increase or decrease the purchase and ownership limitations at
any time. In the event that the maximum purchase limitation is increased to 5% of the shares sold
in the offering, such limitation may be further increased to 9.99%, provided that orders for shares
of common stock exceeding 5% of the shares sold in the offering shall not exceed in the aggregate
10.0% of the total shares sold in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the detailed description of purchase limitations and definitions of &#147;acting in concert&#148;
and &#147;associate&#148; in &#147;The Conversion and Offering&#151;Additional Limitations on Common Stock Purchases.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Steps We May Take if We Do Not Receive Orders for the Minimum Number of Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not receive orders for at least 33,150,000 shares of common stock in the
subscription, community and/or syndicated community offering, we may take several steps in order to
issue the minimum number of shares of common stock in the offering range. Specifically, we may:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase the purchase and ownership limitations; and/or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>seek regulatory approval to extend the offering beyond &#091;extension date&#093;,
provided that any such extension will require us to resolicit subscriptions received in
the offering.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Alternatively, we may terminate the offering, return funds with interest and cancel deposit account
withdrawal authorizations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OTS has conditionally approved the plan of conversion and reorganization; however, such
approval does not constitute recommendations or endorsements of the plan of conversion and
reorganization by that agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot complete the conversion unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by at least <I>a
majority of votes eligible </I>to be cast by members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) as of &#091;depositor record date&#093;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by a vote of at
least <I>two-thirds of the outstanding shares </I>of common stock of Oritani Financial Corp.
as of &#091;stockholder</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>record date&#093;, including shares held by Oritani Financial Corp., MHC (because Oritani
Financial Corp., MHC owns 74.4% of the outstanding shares of Oritani Financial Corp.
common stock, we expect that Oritani Financial Corp., MHC and our directors and
executive officers will control the outcome of this vote);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by a vote of at
least <I>a majority of the outstanding shares </I>of common stock of Oritani Financial Corp.
as of &#091;stockholder record date&#093;, excluding those shares held by Oritani Financial
Corp., MHC;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We sell at least the minimum number of shares of common stock offered; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We receive the final approval of the OTS to complete the conversion;
however, such approval does not constitute a recommendation or endorsement of the plan
of conversion and reorganization by that agency.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At &#091;stockholder record date&#093;, Oritani Financial Corp., MHC owned
74.4% of the outstanding shares of common stock of Oritani Financial Corp. The directors and
executive officers of Oritani Financial Corp. and their affiliates
owned &#95;&#95;&#95;&#95;&#95;&#95;&#95; shares of Oritani
Financial Corp., or &#95;&#95;&#95;% of the outstanding shares of common stock as of &#091;stockholder record date&#093;.
They have indicated their intention to vote those shares in favor of the plan of conversion and
reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market for the Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Oritani Financial Corp.&#146;s common stock currently trade on the Nasdaq Global Market
under the symbol &#147;ORIT.&#148; Upon completion of the conversion, the shares of common stock of Oritani
will replace Oritani Financial Corp.&#146;s existing shares. We expect that Oritani&#146;s shares
of common stock will trade on the Nasdaq Global Market under the trading symbol &#147;ORITD&#148; for a
period of 20 trading days after the completion of the offering. Thereafter, Oritani&#146;s trading
symbol will revert to &#147;ORIT.&#148; In order to list our common stock on the Nasdaq Global Market, we
are required to have at least three broker-dealers who will make a market in our common stock.
Oritani Financial Corp. currently has &#95;&#95;&#95; registered market makers. Persons purchasing shares of
common stock in the offering may not be able to sell their shares at or above the $10.00 price per
share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a general matter, the conversion will not be a taxable transaction for federal or state
income tax purposes to Oritani Financial Corp., MHC, Oritani Financial Corp., Oritani Bank,
Oritani, persons eligible to subscribe in the subscription offering, or existing stockholders of
Oritani Financial Corp. Existing stockholders of Oritani Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oritani common stock will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Persons Who May Order Shares of Common Stock in the Subscription and Community Offerings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription rights to purchase shares of common stock in a &#147;subscription offering&#148; have been
granted in the following descending order of priority:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>First, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on December&nbsp;31, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second, to our tax-qualified employee benefit plans, including our employee
stock ownership plan and 401(k) plan, which will receive nontransferable subscription
rights to</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchase in the aggregate up to 10.0% of the shares of common stock sold in the
offering. We expect our employee stock ownership plan to purchase up
to 4.0% of the shares of common stock sold in the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Third, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on &#091;supplemental eligibility record date&#093;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fourth, to depositors of Oritani Bank at the close of business on &#091;depositor
record date&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of common stock not purchased in the subscription offering may be offered for sale in a
&#147;community offering&#148; with a preference given first to natural persons residing in the New Jersey
counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren, Union, Somerset, Hunterdon,
Middlesex and Mercer; then to eligible borrowers of Oritani Bank with an outstanding loan or line
of credit as of December&nbsp;31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December&nbsp;31, 2009 and the date of purchase of the common stock
(as determined solely in the discretion of Oritani Bank); and then to Oritani Financial Corp.
public stockholders as of &#091;stockholder record date&#093;, in a &#147;community offering.&#148; The community
offering, if held, may begin concurrently with, during or promptly after the subscription offering,
as we may determine at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we receive orders for more shares than we are offering, we may not be able to fully or
partially fill your order. Shares will be allocated first to categories in the subscription
offering in accordance with Oritani Financial Corp., MHC&#146;s plan of conversion and reorganization.
A detailed description of share allocation procedures can be found in the section of this
prospectus entitled &#147;The Conversion and Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also offering any shares of our common stock not purchased in the subscription offering
or community offering for sale to the general public in a syndicated community offering through a
syndicate of selected dealers. We may begin the syndicated community offering at any time following
the commencement of the subscription offering. Stifel, Nicolaus &#038; Company, Incorporated is acting
as sole book-running manager and &#091;co-managers&#093; are acting as co-managers for the syndicated
community offering, which is also being conducted on a best efforts basis. The syndicated
community offering will terminate no later than 45&nbsp;days after the expiration of the subscription
offering, unless extended by us with approval of the OTS. Neither Stifel, Nicolaus &#038; Company,
Incorporated nor any other member of the syndicate is required to purchase any shares in the
syndicated community offering. Alternatively, we may sell any remaining shares in an underwritten
public offering, which would be conducted on a firm commitment basis. See &#147;The Conversion and
Offering&#151;Syndicated Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How You May Purchase Shares of Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the subscription and community offerings, you may pay for your shares only by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal check, bank check or money order made payable directly to Oritani
Bank; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>authorizing us to withdraw funds from the types of Oritani Bank deposit
accounts designated on the stock order form.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is not permitted to lend funds to anyone for the purpose of purchasing shares of
common stock in the offering. Additionally, you may not use a Oritani Bank line of credit check or
any type of third party check or wire transfer to pay for shares of common stock. Please do not
submit cash.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may purchase shares of common stock in the offering by delivering a signed and completed
original stock order form, together with full payment payable to Oritani or authorization to
withdraw funds from one or more of your Oritani Bank deposit accounts, provided that the stock
order form is <I>received </I>before 2:00 p.m., Eastern Time, on &#091;expiration date&#093;, which is the end of
the offering period. Checks and money orders will be immediately deposited in a segregated account
with Oritani Bank or another insured depository institution upon receipt. We will pay interest
calculated at Oritani Bank&#146;s passbook savings rate from the date funds are processed until
completion of the conversion, at which time a subscriber will be issued a check for interest
earned. On your stock order form, you may not authorize direct withdrawal from an Oritani Bank
retirement account. If you wish to use funds in an individual or other retirement account to
purchase shares of our common stock, please see &#147;&#151;Using Retirement Account Funds to Purchase
Shares&#148; below. You also may not designate on your stock order form a withdrawal from Oritani Bank
accounts with check-writing privileges. Please provide a check instead. If you request direct
withdrawal, we reserve the right to interpret that as your authorization to treat those funds as if
we had received a check for the designated amount, and we will immediately withdraw the amount from
your checking account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withdrawals from certificates of deposit to purchase shares of common stock in the offering
may be made without incurring an early withdrawal penalty. If a withdrawal results in a
certificate of deposit account with a balance less than the applicable minimum balance requirement,
the certificate of deposit will be canceled at the time of withdrawal without penalty and the
remaining balance will earn interest at the current passbook savings rate subsequent to the
withdrawal. All funds authorized for withdrawal from deposit accounts at Oritani Bank must be
available in the accounts at the time the stock order is received. A hold will be placed on those
funds when your stock order is received, making the designated funds unavailable to you during the
offering period. Funds will not be withdrawn from an account until the completion of the
conversion and offering and will earn interest within the account at the applicable deposit account
rate until that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not required to accept copies or facsimiles of stock order forms. By signing the stock
order form, you are acknowledging both the receipt of this prospectus and that the shares of common
stock are not federally insured deposits or savings accounts or otherwise guaranteed by Oritani
Bank, Oritani or the federal or state governments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Submitting Your Order in the Subscription and Community Offerings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may submit your stock order form by mail using the stock order reply envelope provided, by
overnight courier to the indicated address on the stock order form, or by hand-delivery to our
Stock Information Center, which is located at Oritani Bank&#146;s main office, 370 Pascack Road,
Township of Washington, New Jersey 07676. Stock order forms may not be delivered to other Oritani
Bank offices. Once submitted, your order is irrevocable unless the offering is terminated or
extended beyond &#091;extension date&#093;, or the number of shares of common stock to be sold is increased
to more than 51,577,500 shares or decreased to fewer than 33,150,000 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Deadline for Orders of Common Stock in the Subscription or Community Offerings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you wish to purchase shares of common stock, a properly completed and signed original stock
order form, together with full payment for the shares of common stock, must be received (not
postmarked) no later than 2:00 p.m., Eastern Time, on &#091;expiration date&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once submitted, your order is irrevocable unless the offering is terminated or extended or the
number of shares to be issued increases to more than 51,577,500 shares or decreases to less than
33,150,000 shares. We may extend the &#091;expiration date&#093; expiration date, without notice to
you, until
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;extension date&#093;. If the offering is extended beyond &#091;extension date&#093; or if the offering
range is increased or decreased, we will be required to resolicit purchasers before proceeding with
the offering. In either of these cases, purchasers will have the right to maintain, change or
cancel their orders. If we do not receive a written response from a purchaser regarding any
resolicitation, the purchaser&#146;s order will be canceled and all funds received will be returned
promptly with interest, and deposit account withdrawal authorizations will be canceled. No
extension may last longer than 90&nbsp;days. All extensions, in the aggregate, may not last beyond
&#091;final expiration date&#093;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we will make reasonable attempts to provide this prospectus and offering materials to
holders of subscription rights, the subscription offering and all subscription rights will expire
at 2:00 p.m., Eastern Time, on &#091;expiration date&#093;, whether or not we have been able to locate each
person entitled to subscription rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TO ENSURE THAT EACH PERSON RECEIVES A PROSPECTUS AT LEAST 48 HOURS PRIOR TO THE
EXPIRATION DATE OF THE OFFERING IN ACCORDANCE WITH FEDERAL LAW, NO PROSPECTUS WILL BE MAILED ANY
LATER THAN FIVE DAYS PRIOR TO THE OFFERING EXPIRATION DATE OR HAND-DELIVERED ANY LATER THAN TWO
DAYS PRIOR TO THE OFFERING EXPIRATION DATE.</B>
</DIV>


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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Using Retirement Account Funds to Purchase Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons interested in purchasing common stock using funds currently in an individual
retirement account (&#147;IRA&#148;) or any other retirement account, whether held through Oritani Bank or
elsewhere, should contact our Stock Information Center for guidance. Please contact the Stock
Information Center as soon as possible, preferably at least two weeks prior to the &#091;expiration
date&#093; offering deadline, because processing such transactions takes additional time, and whether
such funds can be used may depend on limitations imposed by the institution where the funds are
currently held. Additionally, if such funds are not currently held in a self-directed retirement
account, then before placing your stock order, you will need to establish one with an independent
trustee or custodian, such as a brokerage firm. The new trustee or custodian will hold the shares
of common stock in a self-directed account in the same manner as we now hold retirement account
funds. An annual administrative fee may be payable to the new trustee or custodian. Assistance on
how to transfer such retirement accounts can be obtained from the Stock Information Center.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank cannot offer self-directed retirement accounts. If you wish to use some or all
of your funds that are currently held in an Oritani Bank, IRA or other retirement account, you may
not designate on the stock order form that you wish funds to be withdrawn from the account(s) for
the purchase of common stock. Before you place your stock order, the funds you wish to use must be
transferred from those accounts to a self-directed retirement account at an independent trustee or
custodian, as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Delivery of Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates representing shares of common stock sold in the subscription and community
offerings will be mailed by regular mail to the persons entitled thereto at the certificate
registration address noted on the stock order form, as soon as practicable following consummation
of the offering and receipt of all necessary regulatory approvals as described above in
&#147;&#151;Conditions to Completion of the Conversion.&#148; <B>It is possible that, until certificates for the
common stock are delivered, purchasers may not be able to sell the shares of common stock that they
ordered, even though the common stock will have begun trading. </B>Your ability to sell shares of
common stock before you receive stock certificates will depend upon the arrangements you may make
with your brokerage firm. If you are currently a stockholder of Oritani Financial Corp., see &#147;The
Conversion and Offering&#151;Exchange of Existing Stockholders&#146; Stock Certificates.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>You May Not Sell or Transfer Your Subscription Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit you from transferring your subscription rights. If you order shares
of common stock in the subscription offering, you will be required to state that you are purchasing
the common stock for yourself and that you have no agreement or understanding to sell or transfer
your subscription rights. We intend to take legal action, including reporting persons to federal
agencies, against anyone who we believe has sold or transferred his or her subscription rights. We
will not accept your order if we have reason to believe that you have sold or transferred your
subscription rights. On the stock order form, you may not add the names of others for joint stock
registration who do not have subscription rights or who qualify only in a lower subscription
offering priority than you do. You may add only those who were eligible to purchase shares of
common stock in the subscription offering at your date of eligibility. In addition, the stock
order form requires that you list all deposit accounts, giving all names on each account and the
account number at the applicable eligibility date. <B>Failure to provide this information, or
providing incomplete or incorrect information, may result in a loss of part or all of your share
allocation, in the event of an oversubscription</B>.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How You Can Obtain Additional Information &#151; Stock Information Center</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call or visit
our Stock Information Center, located at Oritani Bank&#146;s main office, 370 Pascack Road, Township of
Washington, New Jersey 07676. The Stock Information Center is open Monday through Friday between
10:00&nbsp;a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed weekends and
bank holidays. Other Oritani Bank offices will not have offering materials and will not accept
stock order forms or proxy cards. The Stock Information Center&#146;s toll-free telephone number is
1-877-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="601"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should consider carefully the following risk factors in evaluating an investment in the
shares of common stock.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Continued Emphasis On Multi-Family and Commercial Real Estate Lending Could Expose Us To
Increased Lending Risks.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business strategy centers on continuing our emphasis on multi-family and commercial real
estate lending. We have grown our loan portfolio in recent years with respect to these types of
loans and intend to continue to emphasize these types of lending. At December&nbsp;31, 2009, $296.3
million, or 21.4%, of our total loan portfolio consisted of multi-family loans and $628.5&nbsp;million,
or 45.5%, of our total loan portfolio consisted of commercial real estate loans. As a result, our
credit risk profile will be higher than traditional thrift institutions that have higher
concentrations of one- to four-family residential loans. Loans secured by multi-family and
commercial real estate generally expose a lender to greater risk of non-payment and loss than one-
to four-family residential mortgage loans because repayment of the loans often depends on the
successful operation of the property and the income stream of the underlying property.
Additionally, such loans typically involve larger loan balances to single borrowers or groups of
related borrowers compared to one- to four-family residential mortgage loans. Accordingly, an
adverse development with respect to one loan or one credit relationship can expose us to greater
risk of loss compared to an adverse development with respect to a one- to four-family residential
mortgage loan. We seek to minimize these risks through our underwriting policies, which require
such loans to be qualified on the basis of the property&#146;s collateral value, net income and debt
service ratio; however, there is no assurance that our underwriting policies will protect us from
credit-related losses. Finally, if we foreclose on multi-family and commercial real estate loans,
our holding period for the collateral typically is longer than one-to four- family residential
mortgage loans because there are fewer potential purchasers of the collateral. As discussed in
&#147;Business of Oritani Financial Corp., MHC, Oritani Financial Corp. and Oritani Bank&#151;Lending
Activities,&#148; we have recently been utilizing stricter underwriting standards for these types of
loans, and have curtailed our construction lending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The largest commercial real estate loan in our portfolio at December&nbsp;31, 2009 was a $21.0
million loan secured by a shopping mall located in Ocean County, New Jersey. Our largest
commercial real estate relationship consisted of properties located mainly in our primary market
area with a real estate investor. The aggregate outstanding loan balance for this relationship is
$47.6&nbsp;million.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>If Our Allowance for Loan Losses is Not Sufficient to Cover Actual Loan Losses, Our Earnings Will
Decrease.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make various assumptions and judgments about the collectability of our loan portfolio,
including the creditworthiness of our borrowers and the value of the real estate and other assets
serving as collateral for the repayment of many of our loans. In determining the amount of the
allowance for loan losses, we review our loans and our loss and delinquency experience, and we
evaluate economic conditions. If our assumptions are incorrect, our allowance for loan losses may
not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to our
allowance. Our delinquent and nonaccrual loans have risen significantly over the past 24&nbsp;months,
and this growth increases the possibility that our allowance for loan losses may be insufficient in
the future. In addition, the majority of our loan growth since June&nbsp;30, 2005 has been in
commercial real estate loans. According to Real Estate Econometrics, a property research firm,
default rates on commercial loans climbed to a 16&nbsp;year high during the quarter ended September&nbsp;30,
2009. Real Estate Econometrics projects that the default rate will
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">peak in 2011, before falling back. While our allowance for loan losses was 1.60% of total
loans at December&nbsp;31, 2009, material additions to our allowance could materially decrease our net
income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, bank regulators periodically review our allowance for loan losses and may require
us to increase our provision for loan losses or recognize further loan charge-offs. Any increase
in our allowance for loan losses or loan charge-offs as required by these regulatory authorities
might have a material adverse effect on our financial condition and results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Future Changes in Interest Rates Could Reduce Our Profits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to make a profit largely depends on our net interest income, which could be
negatively affected by changes in interest rates. Net interest income is the difference between:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest income we earn on our interest-earning assets, such as loans and
securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest expense we pay on our interest-bearing liabilities, such as
deposits and borrowings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, changes in interest rates can affect the average life of loans and
mortgage-backed and related securities. A reduction in interest rates usually results in increased
prepayments of loans and mortgage-backed and related securities, as borrowers refinance their debt
in order to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we
may not be able to reinvest prepayments at rates that are comparable to the rates we earned on the
original loans or securities. Increases in interest rates may decrease loan demand and/or make it
more difficult for borrowers to repay adjustable rate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest rates also affect the current market value of our interest-earning
securities portfolio. Generally, the value of securities moves inversely with changes in interest
rates. At December&nbsp;31, 2009, the fair value of our securities and mortgage-backed securities
available for sale totaled $419.0&nbsp;million. Unrealized net gains on these available for sale
securities totaled approximately $2.4&nbsp;million, net of taxes, at December&nbsp;31, 2009 and are reported
as a separate component of stockholders&#146; equity. Decreases in the fair value of securities
available for sale in future periods would have an adverse effect on stockholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, many of our FHLB-NY advances are callable, often five years from the date of
issuance. To the extent the FHLB-NY calls all or a portion of these advances, we would need to
find another funding source, which might be more expensive to us than these advances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We evaluate interest rate sensitivity by estimating the change in Oritani Bank&#146;s net portfolio
value over a range of interest rate scenarios. Net portfolio value is the discounted present value
of expected cash flows from assets, liabilities and off-balance sheet contracts. At December&nbsp;31,
2009, in the event of an immediate 200 basis point increase in interest rates, the model projects
that we would experience a $53.6&nbsp;million, or 20.9%, decrease in net portfolio value. See
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#151;Management
of Market Risk.&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Direct Investments in Real Estate May Be Riskier than More Traditional Real Estate Loans.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. and Oritani Bank each have formed companies that have invested
directly in real estate. While these investments have provided us net income during the course of
these investments, they are direct investments and represent a greater risk than loans. With
loans, the borrower
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">has an investment interest in the property that partially insulates the loan from the negative
consequences of decreases in the property&#146;s value. There is no such protection with a direct real
estate investment. Any decline in performance of these investments may have an adverse effect on
our net income. As detailed in &#147;Business of Oritani Financial Corp., MHC, Oritani Financial Corp.
and Oritani Bank-Subsidiary Activities and Joint Venture Information,&#148; we have increased our
investments in these types of assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Current Market and Economics Conditions May Significantly Affect Our Operations and Financial
Condition.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent negative developments in the national and global credit markets have resulted in
uncertainty in the financial markets and downturn in general economic conditions, including
increased levels of unemployment. The resulting economic pressure on consumers and businesses may
adversely affect our business, financial condition, and results of operations. A worsening of
these conditions would likely exacerbate the adverse effects of these difficult market conditions
on us and others in the financial services industry. In general, loan and investment securities
credit quality has deteriorated at many institutions and the values of real estate collateral
supporting many commercial loans and home mortgages have declined and may continue to decline.
Indications of the deterioration of the value of real estate collateral have been evidenced on a
national level as well as in our market area. These developments could have a significant negative
effect on our borrowers and the values of underlying collateral securing loans, which could
negatively affect our financial performance. Housing market conditions in the New York metro area,
where most of our lending activity occurs, have deteriorated as evidenced by reduced levels of
sales, increasing inventories of houses on the market, declining house prices and an increase in
the length of time houses remain on the market. The S&#038;P/Case-Shiller Home Price Indices, the
leading measure of U.S. home prices, showed that the price of existing single family homes in the
New York metro area at June&nbsp;30, 2009, suffered a 12.0% decline versus the prior year. RealtyTrac,
a leading online marketplace for foreclosure properties, noted in its 2008 U.S. Foreclosure Market
Report, that New Jersey foreclosures in 2008 had increased 101.2% from 2007, and that the overall
foreclosure rate in New Jersey for 2008 was 1.80%. Foreclosure filings in New Jersey in the first
six months of 2009, increased 31.6% compared to the first half of 2008. Weakening economic
conditions in the residential and commercial real estate sector have adversely affected, and may
continue to adversely affect, our loan portfolio. Total non-performing assets increased from $44.1
million at December&nbsp;31, 2008 to $52.5&nbsp;million at December&nbsp;31, 2009. Total non-performing loans as
a percentage of total assets decreased to 2.59% at December&nbsp;31, 2009 as compared to 2.66% at
December&nbsp;31, 2008. If loans that are currently non-performing further deteriorate or loans that
are currently performing become non-performing loans, we may need to increase our allowance for
loan losses, which would have an adverse impact on our financial condition and results of
operations. We would have recognized an additional $1.3&nbsp;million and $3.7&nbsp;million in interest
income during the six months ended December&nbsp;31, 2009 and year ended June&nbsp;30, 2009, respectively,
had non-performing loans performed in accordance with the original terms.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Deposit Growth Has Been a Primary Funding Source. If Deposit Growth Slows, It May Be More
Expensive For Us to Fund Loan Originations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recently experienced a period of unprecedented deposit growth, with a 61.3% increase
in deposit balances from June&nbsp;30, 2008 to June&nbsp;30, 2009, and annualized growth for the six month
period ended December&nbsp;31, 2009 of 14.7%. We will continue to focus on deposit growth, which we use
to fund loan originations and purchase investment securities. If we are unable to continue to
increase our deposit balances, we may be required to utilize alternative sources of funding,
including Federal Home Loan Bank (&#147;FHLB) advances, or increase our deposit rates, each of which
will increase our cost of funds.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Any future Federal Deposit Insurance Corporation insurance premiums or special assessments will
adversely impact our earnings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;22, 2009, the FDIC adopted a final rule levying a five basis point special assessment
on each insured depository institution&#146;s assets minus Tier 1 capital as of June&nbsp;30, 2009. We
recorded an expense of $846,000 during the quarter ended June&nbsp;30, 2009, to reflect the special
assessment. Any further special assessments that the FDIC levies will be recorded as an expense
during the appropriate period. In addition, the FDIC increased the general assessment rate and,
therefore, our FDIC general insurance premium expense will increase compared to prior periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC also issued a final rule pursuant to which all insured depository institutions were
required to prepay on December&nbsp;30, 2009 their estimated assessments for the fourth quarter of 2009,
and for all of 2010, 2011 and 2012. The assessment rate for the fourth quarter of 2009 and for
2010 was based on each institution&#146;s total base assessment rate for the third quarter of 2009,
modified to assume that the assessment rate in effect on September&nbsp;30, 2009 had been in effect for
the entire third quarter, and the assessment rate for 2011 and 2012 would be equal to the modified
third quarter assessment rate plus an additional three basis points. In addition, each
institution&#146;s base assessment rate for each period was calculated using its third quarter
assessment base, adjusted quarterly for an estimated 5% annual growth rate in the assessment base
through the end of 2012. We made a payment of $7.6&nbsp;million to the FDIC on December&nbsp;30, 2009, and
recorded the payment as a prepaid expense, which will be amortized to expense over three years.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>If Our Investment in the Federal Home Loan Bank of New York is Classified as Other-Than-Temporarily
Impaired or as Permanently Impaired, Our Earnings Could Decrease.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We own common stock of the Federal Home Loan Bank of New York (the &#147;FHLB-NY&#148;). We hold the
FHLB-NY common stock to qualify for membership in the Federal Home Loan Bank System and to be
eligible to borrow funds under the FHLB-NY&#146;s advance program. The aggregate cost and fair value of
our FHLB-NY common stock as of December&nbsp;31, 2009 was $25.5&nbsp;million based on its par value. There
is no market for our FHLB-NY common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent published reports indicate that certain member banks of the Federal Home Loan Bank
System may be subject to asset quality-related risks that could result in materially lower
regulatory capital levels. In an extreme situation, it is possible that the capitalization of a
FHLB, including the FHLB-NY, could be substantially diminished or reduced to zero. Consequently,
we believe that there is a risk that our investment in FHLB-NY common stock could be deemed
other-than-temporarily impaired at some time in the future, and if this occurs, it would cause our
earnings to decrease by the after-tax amount of the impairment charge.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Inability to Achieve Profitability on New Branches May Negatively Affect Our Earnings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have expanded our presence throughout our market area and we intend to pursue further
expansion through de novo branching. The profitability of our expansion strategy will depend on
whether the income that we generate from the new branches will offset the increased expenses
resulting from operating these branches. We expect that it may take a period of time before these
branches can become profitable, especially in areas in which we do not have an established
presence. During this period, the expense of operating these branches may negatively affect our
net income.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Strong Competition Within Our Market Area May Limit Our Growth and Profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the banking and financial services industry is intense. In our market area, we
compete with numerous commercial banks, savings institutions, mortgage brokerage firms, credit
unions,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">finance companies, mutual funds, insurance companies, and brokerage and investment banking
firms operating locally and elsewhere. Some of our competitors have substantially greater resources
and lending limits than we have, have greater name recognition and market presence that benefit
them in attracting business, and offer certain services that we do not or cannot provide. In
addition, larger competitors may be able to price loans and deposits more aggressively than we do.
Our profitability depends upon our continued ability to successfully compete in our market area.
The greater resources and deposit and loan products offered by some of our competitors may limit
our ability to increase our interest-earning assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Operate in a Highly Regulated Industry, Which Limits the Manner and Scope of Our Business
Activities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to extensive supervision, regulation and examination by the New Jersey
Department of Banking and Insurance and by the FDIC. As a result, we are limited in the manner in
which we conduct our business, undertake new investments and activities and obtain financing. This
regulatory structure is designed primarily for the protection of the FDIC&#146;s Deposit Insurance Fund
(the &#147;DIF&#148;) and our depositors, and not to benefit our stockholders. This regulatory structure
also gives the regulatory authorities extensive discretion in connection with their supervisory and
enforcement activities and examination policies, including policies with respect to capital levels,
the timing and amount of dividend payments, the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes. In addition, we must comply with significant
anti-money laundering and anti-terrorism laws. Government agencies have substantial discretion to
impose significant monetary penalties on institutions which fail to comply with these laws.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>A Legislative Proposal Has Been Introduced That Would Require Oritani to Become a Bank Holding
Company.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislation has been proposed that would implement sweeping changes to the current bank
regulatory structure. The proposal would, among other things, merge the OTS into the Office of the
Comptroller of the Currency. As discussed further under &#147;Supervision and Regulation&#151;Holding
Company Regulation,&#148; federal law allows a state savings bank that qualifies as a Qualified Thrift
Lender, such as Oritani Bank, to elect to be treated as a savings association for purposes of the
savings and loan holding company provisions of the Home Owners&#146; Loan Act of 1933, as amended. Such
election results in the state savings bank&#146;s holding company being regulated as a savings and loan
holding company by the OTS rather than as a bank holding company regulated by the Board of
Governors of the Federal Reserve System. If the OTS is eliminated, Oritani would become a bank
holding company subject to regulation and supervision under the Bank Holding Company Act of 1956,
as amended, and the supervision and regulation of the Board of Governors of the Federal Reserve
System, including holding company regulatory capital requirements to which Oritani Financial Corp.
is not currently subject. Such regulatory changes could impact our ability to continue our real
estate investments and joint ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to the Offering</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The future price of the shares of common stock may be less than the $10.00 purchase price per share
in the offering.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you purchase shares of common stock in the offering, you may not be able to sell them later
at or above the $10.00 purchase price in the offering. In several cases, shares of common stock
issued by newly converted savings institutions or mutual holding companies have traded below the
initial offering price. The aggregate purchase price of the shares of common stock sold in the
offering will be based on an independent appraisal. The independent appraisal is not intended, and
should not be construed, as a recommendation of any kind as to the advisability of purchasing
shares of common stock. The
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">independent appraisal is based on certain estimates, assumptions and projections, all of which
are subject to change from time to time. After our shares begin trading, the trading price of our
common stock will be determined by the marketplace, and may be influenced by many factors,
including prevailing interest rates, the overall performance of the economy, investor perceptions
of Oritani and the outlook for the financial services industry in general. Price fluctuations may
be unrelated to the operating performance of particular companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We have broad discretion to deploy our net proceeds. Our failure to timely or effectively deploy
the net proceeds may have an adverse impact on our financial performance and the value of our
common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani intends to contribute between $159.4&nbsp;million and $215.9&nbsp;million of the net proceeds of
the offering (or $248.4&nbsp;million at the adjusted maximum of the offering range) to Oritani Bank.
Oritani may use the remaining net proceeds to invest in short-term investments (which generally
have low interest rates), to repurchase shares of common stock, to pay dividends or for other
general corporate purposes. Oritani also expects to use a portion of the net proceeds it retains
to fund a loan for the purchase of shares of common stock in the offering by the employee stock
ownership plan. Oritani Bank may use the net proceeds it receives to fund new loans, to purchase
investment securities, to acquire financial institutions or financial services companies, build or
acquire new branches, or for other general corporate purposes. With the exception of the loan to
the employee stock ownership plan and some of our branching initiatives, we have not allocated
specific amounts of the net proceeds for any of these purposes, and we will have significant
flexibility in determining the amount of the net proceeds we apply to different uses and the timing
of such applications. We have not established a timetable for reinvesting of the net proceeds, and
we cannot predict how long we will require to reinvest the net proceeds.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our return on equity initially will be low compared to our historical performance. A lower return
on equity may negatively impact the trading price of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income divided by average stockholders&#146; equity, known as &#147;return on average equity&#148; is a
ratio many investors use to compare the performance of a financial institution to its peers. Our
return on average equity ratio of 6.08% for the six months ended December&nbsp;31, 2009, compared to an
average negative return on equity of 0.57% based on trailing twelve-month earnings for all publicly
traded fully converted savings institutions as of February&nbsp;19, 2010. Although we expect that our
net income will increase following the offering, we expect that our return on average equity will
decrease as a result of the additional capital that we will raise in the offering. For example,
our pro forma return on equity for the six months ended December&nbsp;31, 2009 is 2.50%, assuming the
sale of shares at the maximum of the offering range. Over time, we intend to use the net proceeds
from the offering to increase earnings per share and book value per share, without assuming undue
risk, with the goal of achieving a return on equity that is comparable to our historical
performance. This goal may take a number of years to achieve, and we cannot assure you that we
will be able to achieve it. Consequently, you should not expect a return on equity similar to our
current return on equity in the near future. Failure to achieve a competitive return on equity may
make an investment in our common stock unattractive to some investors and may cause our common
stock to trade at lower prices than comparable companies with higher returns on equity. See &#147;Pro
Forma Data&#148; for an illustration of the financial impact of the offering.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The ownership interest of management and employees could enable insiders to prevent a merger that
may provide stockholders a premium for their shares.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock that our directors and officers intend to purchase in the offering,
when combined with the shares that they will receive in the exchange for their existing shares of
Oritani Financial Corp. common stock are expected to result in management and the Board of
Directors
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">controlling approximately &#95;&#95;&#95;% of our outstanding shares of common stock at the midpoint of
the offering range. In addition, our employee stock ownership plan is expected to purchase 4.0% of
the shares of common stock sold in the stock offering, and additional stock options and shares of
common stock would be granted to our directors and employees if a stock-based incentive plan is
adopted in the future. This would result in management and employees controlling a significant
percentage of our shares of common stock. If these individuals were to act together, they could
have significant influence over the outcome of any stockholder vote. This voting power may
discourage a potential sale of Oritani that our stockholders may desire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The implementation of the stock-based incentive plan may dilute your ownership interest.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to adopt a new stock-based incentive plan following the offering, subject to receipt
of stockholder approval. This stock-based incentive plan may be funded either through open market
purchases or from the issuance of authorized but unissued shares of common stock of Oritani. While
our intention is to fund this plan through open market purchases, stockholders would experience an
8.15% reduction in ownership interest at the adjusted maximum of the offering range in the event
newly issued shares of our common stock are used to fund stock options or shares of restricted
common stock under the plan in an amount equal to up to 10.0% and 4.0%, respectively, of the shares
sold in the offering. In the event we adopt the plan within twelve months following the
conversion, shares of common stock reserved for issuance pursuant to awards of restricted stock and
grants of options under the stock-based incentive plan would be limited to 4.0% and 10.0%,
respectively, of the total shares to be outstanding upon completion of the conversion, less the
number of shares of common stock reserved for stock awards and stock options (adjusted by the
exchange ratio) received under previously adopted benefit plans. In the event we adopt the plan
more than one year following the conversion, the plan will not be subject to these limitations.
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion and offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, historically, the overwhelming majority of stock-based benefit plans adopted by savings
institutions and their holding companies following mutual-to-stock conversions have been approved
by stockholders.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Additional expenses following the conversion from the compensation and benefit expenses associated
with the implementation of the new stock-based incentive benefit plan will adversely affect our
profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to adopt a new stock-based incentive plan after the offering, subject to stockholder
approval, pursuant to which plan participants would be awarded restricted shares of our common
stock (at no cost to them) and options to purchase shares of our common stock. If the stock-based
incentive plan is implemented within twelve months of the completion of the offering, the number of
shares of common stock reserved for issuance for awards of restricted stock or grants of options
under such stock-based incentive plan may not exceed 4.0% and 10.0%, respectively, of the total
shares to be outstanding upon completion of the conversion, less the number of shares of common
stock reserved for stock awards and stock option (adjusted by the exchange ratio) received under
previously adopted benefit plans. If we award restricted shares of common stock or grant options
in excess of these amounts under a stock-based incentive plan adopted more than one year after the
completion of the offering, our costs would increase further. Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after completion of the
offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the offering, our non-interest expenses are likely to increase as we will recognize
additional annual employee compensation and benefit expenses related to the shares granted to
employees
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and executives under our stock-based incentive plan. We cannot predict the actual amount of
these new stock-related compensation and benefit expenses because applicable accounting practices
require that expenses be based on the fair market value of the shares of common stock at specific
points in the future; however, we expect them to be material. In addition, we would recognize
expense for our employee stock ownership plan when shares are committed to be released to
participants&#146; accounts (i.e., as the loan used to acquire these shares is repaid), and we would
recognize expense for restricted stock awards and stock options over the vesting period of awards
made to recipients. The expense in the first year following the offering has been estimated to be
approximately $8.7&nbsp;million ($6.0&nbsp;million after tax) at the adjusted maximum of the offering range
as set forth in the pro forma financial information under &#147;Pro Forma Data,&#148; assuming the $10.00 per
share purchase price as fair market value. Actual expenses, however, may be higher or lower,
depending on the price of our common stock. In addition, all stock options and stock awards
currently outstanding will vest upon completion of the conversion. We anticipate the pre-tax
expense of such accelerated vesting as well as the accelerated vesting for outstanding stock awards
will be approximately $11.3&nbsp;million, with such expense to be incurred during the fiscal quarter in
which the stock offering is completed. For further discussion of our proposed stock-based plans,
see &#147;Management&#151;Compensation Discussion and Analysis.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Stock-based incentive plans implemented twelve months following the stock offering may exceed
regulatory restrictions on the size of stock-based incentive plans.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we implement stock-based incentive plans within twelve months following the completion of
the stock offering, then we may reserve shares of common stock for awards of restricted stock or
grants of stock options under our stock-based incentive plans for up to 4.0% and 10.0%,
respectively, of the shares of stock to be outstanding upon completion of the stock offering, less
the number of shares of restricted stock and option shares (adjusted for the exchange ratio)
reserved under previously adopted benefit plans. The amount of stock awards and stock options
available for grant under the stock-based incentive plans may exceed these amounts, provided the
stock-based incentive plans are implemented twelve months or more following the stock offering.
Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, the determination as to the timing of the implementation of such a plan will be at the
discretion of our Board of Directors. Stock-based incentive plans that provide for awards in excess
of these amounts would increase our costs beyond the amounts estimated in &#147;&#151;Additional expenses
following the conversion from the compensation and benefit expenses associated with the
implementation of the new stock-based incentive benefit plan will adversely affect our
profitability.&#148; Stock-based incentive plans that provide for awards in excess of these amounts
could also result in dilution to stockholders in excess of that described in &#147;&#151;The implementation
of the stock-based incentive plan may dilute your ownership interest.&#148; Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after the completion of
the conversion. Pro forma data is presented herein assumes the reservation of 4% and 10% of the
outstanding shares of common stock upon completion of the stock offering for awards of estimated
stock or grants of stock options, respectively, and the expenses associated with such amounts.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Various factors may make takeover attempts more difficult to achieve.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has no current intention to sell control of Oritani. Provisions of our
certificate of incorporation and bylaws, federal regulations, Delaware law and various other
factors may make it more difficult for companies or persons to acquire control of Oritani without
the consent of our Board of Directors. You may want a takeover attempt to succeed because, for
example, a potential acquirer could offer a premium over the then prevailing price of our common
stock. The factors that may discourage takeover attempts or make them more difficult include:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Office of Thrift Supervision Regulations</I></B><B>. </B>OTS regulations prohibit, for
three years following the completion of a conversion, the direct or indirect
acquisition of more than 10.0% of any class of equity security of a savings institution
or holding company regulated by the OTS regulated holding company of a converted
institution without the prior approval of the OTS.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Certificate of incorporation and statutory provisions. </I></B>Provisions of the
certificate of incorporation and bylaws of Oritani and Delaware law may make it more
difficult and expensive to pursue a takeover attempt that management opposes, even if
the takeover is favored by a majority of our stockholders. These provisions also would
make it more difficult to remove our current Board of Directors or management, or to
elect new directors. Additional provisions include limitations on voting rights of
beneficial owners of more than 10.0% of our common stock, the election of directors to
staggered terms of three years and not permitting cumulative voting in the election of
directors. Our bylaws also contain provisions regarding the timing and content of
stockholder proposals and nominations and qualification for service on the Board of
Directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Issuance of stock options and restricted stock</I></B><B>. </B>We also intend to issue
stock options and shares of restricted stock to key employees and directors that will
require payments to these persons in the event of a change in control of Oritani.
These payments may have the effect of increasing the costs of acquiring Oritani,
thereby discouraging future takeover attempts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Employment agreements</I></B><B>. </B>Oritani Financial Corp. has employment agreements
with each of its executive officers which will remain in effect following the stock
offering. These agreements may have the effect of increasing the costs of acquiring
Oritani, thereby discouraging future takeover attempts.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>There may be a decrease in stockholders&#146; rights for existing stockholders of Oritani Financial
Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, existing stockholders of Oritani Financial Corp. will become
stockholders of Oritani. Some rights of stockholders of Oritani will be reduced compared to the
rights stockholders currently have in Oritani Financial Corp. The reduction in stockholder rights
results from differences between the federal and Delaware charters and bylaws, and from
distinctions between federal and Delaware law. Many of the differences in stockholder rights under
the certificate of incorporation and bylaws of Oritani are not mandated by Delaware law but have
been chosen by management as being in the best interests of Oritani and its stockholders. The
certificate of incorporation and bylaws of Oritani include the following provisions: (i)&nbsp;approval
by at least a majority of outstanding shares required to remove a director for cause; (ii)&nbsp;greater
lead time required for stockholders to submit proposals for new business or to nominate directors;
and (iii)&nbsp;approval by at least 80% of outstanding shares of capital stock entitled to vote
generally is required to amend the bylaws and certain provisions of the certificate of
incorporation. See &#147;Comparison of Stockholders&#146; Rights For Existing Stockholders of Oritani
Financial Corp.&#148; for a discussion of these differences.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>You may not revoke your decision to purchase Oritani common stock in the subscription offering
after you send us your subscription.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds submitted or automatic withdrawals authorized in the connection with a purchase of
shares of common stock in the subscription offering will be held by us until the completion or
termination of the conversion and offering, including any extension of the expiration date.
Because completion of the conversion and offering will be subject to regulatory approvals and an
update of the independent appraisal
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prepared by RP Financial, LC., among other factors, there may be one or more delays in the
completion of the conversion and offering. Orders submitted in the subscription offering are
irrevocable, and subscribers will have no access to subscription funds unless the offering is
terminated, or extended beyond &#091;extension date&#093;, or the number of shares to be sold in the offering
is increased to more than 51,577,500 shares or decreased to less than 33,150,000 shares.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="602"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The summary financial information presented below is derived in part from the consolidated
financial statements of Oritani Financial Corp. and subsidiaries. The following is only a summary
and you should read it in conjunction with the consolidated financial statements and notes
beginning on page F-1. The information at June&nbsp;30, 2009 and 2008 and for the years ended June&nbsp;30,
2008 and 2007 is derived in part from the audited consolidated financial statements of Oritani
Financial Corp. that appear in this prospectus. The operating data for the three months and six
months ended December&nbsp;31, 2009 and 2008 and the financial condition data at December&nbsp;31, 2009 were
not audited. However, in the opinion of management of Oritani Financial Corp., all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of the results of
operations for the unaudited periods have been made. No adjustments were made other than normal
recurring entries. The results of operations for the three months and six months ended December
31, 2009 are not necessarily indicative of the results of operations that may be expected for the
entire year.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>At December</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Condition Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,913,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,443,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,194,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,031,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,051,702</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">643,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">493,554</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,924</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank of New York stock, at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,967</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,405</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments in real estate joint ventures, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,425</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">695,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">688,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,980</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,796</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,056</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,463</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after
provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,340</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,795</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>For the Year Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">71,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,349</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,090</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,309</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,663</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,153</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,664</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,193</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>At or for the Six Months</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Ended December 31,</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended June 30,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Ratios and Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Performance Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on assets <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on equity <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.51</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.54</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Efficiency ratio <SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">46.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">56.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">58.35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">49.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">70.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">54.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">49.74</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expense to average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets to average
interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Asset Quality Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.54</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to nonperforming loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">39.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Capital Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity to assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">22.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">21.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">27.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">34.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">30.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">29.55</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to average assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.31</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">23.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.62</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of full service offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Full time equivalent employees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Ratios are annualized where appropriate.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net income divided by average total assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net income divided by average equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents average yield on interest-owning assets less average cost of interest-bearing
liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net interest income as a percent of average interest-earning assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents non-interest expense divided by the sum of net interest income before provision for loan losses and non-interest income.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>Not meaningful.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="603"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains forward-looking statements, which can be identified by the use of
words such as &#147;estimate,&#148; &#147;project,&#148; &#147;believe,&#148; &#147;intend,&#148; &#147;anticipate,&#148; &#147;plan,&#148; &#147;seek,&#148; &#147;expect&#148;
and words of similar meaning. These forward-looking statements include, but are not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements of our goals, intentions and expectations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements regarding our business plans, prospects, growth and operating
strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements regarding the asset quality of our loan and investment
portfolios; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>estimates of our risks and future costs and benefits.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These forward-looking statements are based on current beliefs and expectations of our
management and are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in laws or government regulations or policies affecting financial
institutions, including changes in regulatory fees and capital requirements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic conditions, either nationally or in our market areas,
that are worse than expected;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition among depository and other financial institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inflation and changes in the interest rate environment that reduce our
margins or reduce the fair value of financial instruments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in the securities markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to enter new markets successfully and capitalize on growth
opportunities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to successfully integrate acquired entities, if any;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in consumer spending, borrowing and savings habits;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our organization, compensation and benefit plans;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to continue to increase and manage our commercial and
residential real estate, multi-family, and commercial and industrial loans;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible impairments of securities held by us, including those issued by
government entities and government sponsored enterprises;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of future deposit premium assessments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the current recession on our loan portfolio (including cash
flow and collateral values), investment portfolio, customers and capital market
activities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the current governmental effort to restructure the U.S.
financial and regulatory system;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the financial performance and/or condition of our borrowers;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Securities and Exchange Commission,
the Public Company Accounting Oversight Board, the Financial Accounting Standards Board
and other accounting standard setters.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. Please see &#147;Risk
Factors&#148; beginning on page &#95;&#95;&#95;.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="604"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we cannot determine what the actual net proceeds from the sale of the shares of
common stock in the offering will be until the offering is completed, we anticipate that the
aggregate net proceeds will be between $318.4&nbsp;million and $431.4&nbsp;million, or $496.5&nbsp;million if the
offering range is increased by 15%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to distribute the net proceeds from the stock offering as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $10.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>33,150,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>39,000,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>44,850,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>51,577,500 Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: offering expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,322</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">374,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distribution of net proceeds:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">To Oritani Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">159,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">To fund the loan to
employee stock ownership
plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained by Oritani</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">145,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">197,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">227,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares which could occur due to a
15% increase in the offering range to reflect demand for the shares or changes in market or
general financial conditions following the commencement of the offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for shares of common stock made through withdrawals from existing deposit
accounts will not result in the receipt of new funds for investment but will result in a reduction
of Oritani Bank&#146;s deposits. The net proceeds may vary because total expenses relating to the
offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the
subscription and community offerings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oritani and Oritani Bank May Use the Proceeds it Retains From the Offering:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current OTS regulations, we may not repurchase shares of our common stock during the
twelve months following the completion of the conversion, except to fund certain stock-based plans
or, with prior regulatory approval, when extraordinary circumstances exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially, a substantial portion of the net proceeds will likely be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities. The use of proceeds
may change based on changes in interest rates, equity markets, laws and regulations affecting the
financial services industry, our relative position in the financial services industry, the
attractiveness of potential acquisitions, and overall market conditions. Our business strategy for
the deployment of the net proceeds raised in the offering is discussed in more detail in
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#151;Business
Strategy.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our return on equity may be relatively low until we are able to effectively reinvest the
additional capital raised in the offering. Until we can deploy our capital until we have a
leverage ratio similar to peers, our return on equity may be below the industry average, which may
negatively affect the value of our common stock. See &#147;Risk Factors&#151;Our return on equity initially
will be low compared to our historical performance. A lower return on equity may negatively impact
the trading price of our common stock.&#148;
</DIV>
<DIV align="left">
<A name="605"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OUR POLICY REGARDING DIVIDENDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. We expect the annual dividends to equal $0.30
per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering range,
respectively, which represents an annual dividend yield of 3.0% at each of the minimum, midpoint,
maximum and adjusted maximum of the offering range, respectively, based upon a stock price of
$10.00 per share. The amount of dividends that we intend to pay to our stockholders following the
conversion is intended to preserve the per share dividend rate that Oritani Financial Corp.
stockholders currently receive. The dividend rate and the continued payment of dividends will
depend on a number of factors including our capital requirements, our financial condition and
results of operations, tax considerations, statutory and regulatory limitations, and general
economic conditions. We cannot assure you that we will not reduce or eliminate dividends in the
future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rules of the OTS, Oritani Bank will not be permitted to pay dividends on its capital
stock to Oritani, its sole stockholder, if Oritani Bank&#146;s stockholder&#146;s equity would be reduced
below the amount of the liquidation account established in connection with the conversion. In
addition, Oritani Bank will not be permitted to make a capital distribution if, after making such
distribution, it would be undercapitalized. See &#147;The Conversion and Offering&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unlike Oritani Bank, we are not restricted by OTS regulations on the payment of dividends to
our stockholders, although the source of dividends will depend on the net proceeds retained by us
and earnings and dividends from Oritani Bank. However, we will be subject to state law limitations
on the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payment of dividends. Delaware law generally limits dividends to be paid out of its capital
surplus or, if there is no surplus, out of net profits from the fiscal year in which the dividend
is declared, and the preceding fiscal year, subject to certain limitations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, pursuant to OTS regulations, during the three-year period following the conversion,
we will not take any action to declare an extraordinary dividend to stockholders that would be
treated by recipients as a tax-free return of capital for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Consolidated Financial and Other Data&#148; and &#147;Market for the Common Stock&#148; for
information regarding our historical dividend payments.
</DIV>
<DIV align="left">
<A name="606"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MARKET FOR THE COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s common stock currently trades on the Nasdaq Global Market under the
symbol &#147;ORIT.&#148; Upon completion of the offering, the shares of common stock of Oritani will replace
Oritani Financial Corp.&#146;s shares of common stock. We expect that Oritani&#146;s shares of
common stock will trade on the Nasdaq Global Market under the trading symbol &#147;ORITD&#148; for a period
of 20 trading days after the completion of the offering. Thereafter, Oritani&#146;s trading symbol will
revert to &#147;ORIT.&#148; In order to list our common stock on the Nasdaq Global Market, we are required
to have at least three broker-dealers who will make a market in our common stock. Oritani
Financial Corp. currently has &#95;&#95;&#95; registered market makers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The development of a public market having the desirable characteristics of depth, liquidity
and orderliness depends on the existence of willing buyers and sellers, the presence of which is
not within our control or that of any market maker. The number of active buyers and sellers of our
common stock at any particular time may be limited, which may have an adverse effect on the price
at which our common stock can be sold. You may not be able to sell your shares at or above the
$10.00 price per share in the offering. Purchasers of our common stock should have a long-term
investment intent and should recognize that there may be a limited trading market in our common
stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the conversion and offering, each existing publicly held share of common
stock of Oritani Financial Corp. will be converted into a right to receive a number of shares of
Oritani common stock, based upon the exchange ratio that is described in other sections of this
prospectus. See &#147;The Conversion and Offering&#151;Share Exchange Ratio for Current Stockholders.&#148;
Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio. The vesting period of such options
as well as any outstanding stock awards will be accelerated upon the closing of the conversion and
the term of such options will remain unchanged. We anticipate the pre-tax expense of such
accelerated vesting will be approximately $11.3&nbsp;million, which represents the remaining
amortization for such accelerated options and awards, with such expense to be incurred during the
fiscal quarter in which the stock offering is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares of common stock are traded on the Nasdaq Global Market under the symbol &#147;ORIT&#148;. The
approximate number of holders of record of Oritani Financial Corp.&#146;s common stock as of
&#091;shareholder record date&#093; was &#95;&#95;&#95;. Certain shares of Oritani Financial Corp. are held in
&#147;nominee&#148; or &#147;street&#148; name and accordingly, the number of beneficial owners of such shares is not
known or included in the foregoing number. The following table presents quarterly market
information for Oritani Financial Corp.&#146;s common stock for the periods indicated.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Fiscal 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividends per</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>share</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.075</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter (through _____)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Fiscal 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Fiscal 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividend per</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividend per</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>share</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sources of funds for the payment of a cash dividend are the retained proceeds from
the initial sale of shares of common stock and earnings on those proceeds, interest and principal
payments with respect to Oritani Financial Corp.&#146;s loan to the Employee Stock Ownership Plan, and
dividends from Oritani Bank. For a discussion of the limitations applicable to Oritani Bank&#146;s
ability to pay dividends, see &#147;Supervision and Regulation&#151;Federal Banking Regulation.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;18, 2010, the business day immediately preceding the public announcement of the
conversion, the closing price of Oritani Financial Corp. common stock as reported on the Nasdaq
Global Market was $13.88 per share. At <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the closing price of Oritani Financial
Corp.&#146;s common stock was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and there were approximately <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> stockholders of record.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- landscape -->
<DIV align="left">
<A name="607"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, Oritani Bank exceeded all of the applicable regulatory capital
requirements. The table below sets forth the historical equity capital and regulatory capital of
Oritani Bank at December&nbsp;31, 2009, and the pro forma regulatory capital of Oritani Bank, after
giving effect to the sale of Oritani&#146;s shares of common stock at a $10.00 per share purchase price.
Accordingly, the table assumes the receipt by Oritani Bank of at least 50% of the net proceeds.
See &#147;How We Intend to Use the Proceeds from the Offering.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="8"><B>Oritani Bank Historical at</B></TD>


    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Pro Forma at December 31, 2009 Based Upon the Sale at $10.00 Per Share</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center"  STYLE="BORDER-BOTTOM: 1PX SOLID #000000" colspan="6"><B>December 31, 2009</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>33,150,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>39,000,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>44,850,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="center" colspan="6" style="border-bottom: 1px solid #000000" nowrap><B>51,577,500 Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="center" colspan="2" style="border-bottom: 1px solid #000000" nowrap><B>Percent
of Assets (2)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">194,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">327,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">350,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.22</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">374,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">401,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (leverage)&nbsp;capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">326,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">373,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (leverage)
requirement (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">263,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">285,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">311,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 risk-based
capital (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">326,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">373,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 requirement (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,943</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">107,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">238,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">261,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">284,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">311,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk-based
capital (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">211,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">344,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">367,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">391,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-based requirement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">96,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">226,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">250,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">273,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">299,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reconciliation of
capital infused into
Oritani Bank:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">159,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock acquired
by employee stock
ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock acquired
by the stock-based
incentive plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets received from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma increase
in GAAP and
regulatory capital (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">132,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">207,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares of common stock that
could occur due to a 15% increase in the offering range to reflect demand for the
shares, or changes in market or general financial conditions following the commencement
of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Tangible and core capital levels are shown as a percentage of total adjusted assets.
Risk-based capital levels are shown as a percentage of risk-weighted assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Although not adopted in regulation form, the New Jersey Department of Banking and Insurance
utilizes capital standards of 6% leverage capital and 8.0% risk-based capital. In addition,
the FDIC requires a Tier 1 risk-based capital ratio of 4.0% or greater.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Pro forma capital levels assume that we fund the stock-based incentive plans with purchases
in the open market equal to 4.0% of the shares of common stock sold in the stock offering at a
price equal to the price for which the shares of common stock are sold in the stock offering,
and that the employee stock ownership plan purchases 4.0% of the shares of common stock sold
in the stock offering with funds we lend. Pro forma GAAP and regulatory capital have been
reduced by the amount required to fund both of these plans. See &#147;Management&#148; for a discussion
of the stock-based incentive plan and employee stock ownership plan. We may award shares of
common stock under one or more stock-based incentive plans in excess of this amount if the
stock-based incentive plans are adopted more than one year following the stock offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20%
risk weighting.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="608"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the historical consolidated capitalization of Oritani Financial
Corp. at December&nbsp;31, 2009 and the pro forma consolidated capitalization of Oritani after giving
effect to the offering, based upon the assumptions set forth in the &#147;Pro Forma Data&#148; section.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Oritani</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Financial
Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Oritani $10.00 Per Share Pro Forma Based on the Sale of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><b>Historical at</b></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>33,150,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>39,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>44,850,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>51,577,500</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December
31, 2009</b></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total deposits and borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock $0.01 par value,
150,000,000 shares authorized
(post-conversion); shares to be
issued as reflected (3) (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Paid-in capital (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">506,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628,229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Oritani Financial Corp., MHC
capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive
income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock to be acquired by the
ESOP (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,512</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,772</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,112</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34,143</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock to be acquired by the
stock-based incentive plan (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">591,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">703,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Shares outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Exchange shares issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,395,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,704,777</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares offered for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity as a
percentage of total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tangible equity ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.57</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares of common stock that could
occur due to a 15% increase in the offering range to reflect demand for the shares, or changes
in market or general financial conditions following the commencement of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not reflect withdrawals from deposit accounts for the purchase of shares of common stock
in the offering. These withdrawals would reduce pro forma deposits by the amount of the
withdrawals.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Oritani Financial Corp. currently has 10,000,000 authorized shares of preferred stock and
80,000,000 authorized shares of common stock, par value $0.01 per share. On a pro forma
basis, Oritani common stock and additional paid-in capital have been revised to reflect the
number of shares of Oritani common stock to be outstanding, which is 44,592,252 shares,
52,387,355 shares, 60,245,458 shares and 69,282,277 shares at the minimum, midpoint, maximum
and adjusted maximum of the offering range, respectively.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>No effect has been given to the issuance of additional shares of Oritani common stock
pursuant to stock options to be granted under a stock-based incentive plan. If this plan is
implemented within one year of the completion of the offering, an amount up to 10.0% of the
shares of Oritani common stock sold in the offering will be reserved for issuance upon the
exercise of options. We may exceed this limit if the plan is implemented more than one year
following the completion of the offering. No effect has been given to the exercise of options
currently outstanding. See &#147;Management&#151;Benefits to be Considered Following Completion of the
Conversion.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and &#147;Supervision and Regulation.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of the shares sold in the offering will be acquired by the employee stock
ownership plan financed by a loan from Oritani The loan will have a term of 20&nbsp;years and an
interest rate equal to the prime rate as published in <I>The Wall
Street Journal</I>, and be
repaid principally from Oritani Bank&#146;s contributions to the employee stock ownership plan.
Since Oritani will finance the employee stock ownership plan debt, this debt will be
eliminated through consolidation and no liability will be reflected on Oritani&#146;s consolidated
financial statements. Accordingly, the amount of shares of common stock acquired by the
employee stock ownership plan is shown in this table as a reduction of total stockholders&#146;
equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes at the minimum, midpoint, the maximum and the maximum as adjusted, of the offering
range that a number of shares of common stock equal to 4.0% of the shares of common stock to
be sold in the offering will be purchased by the stock-based incentive plan in open market
purchases. The stock-based incentive plan will be submitted to a vote of stockholders
following the completion of the offering. Our current intention is to implement a new
stock-based incentive plan no earlier than twelve months after completion of the conversion.
The funds to be used by the stock-based incentive plan to purchase the shares will be provided
by Oritani. The dollar amount of common stock to be purchased is based on the $10.00 per
share offering price and represents unearned compensation. This amount does not reflect
possible increases or decreases in the value of common stock relative to the subscription
price in the offering. As Oritani accrues compensation expense to reflect the vesting of
shares pursuant to the stock-based incentive plan, the credit to capital will be offset by a
charge to operations. Implementation of the stock-based incentive plan will require
stockholder approval.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="609"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRO FORMA DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables summarize historical data of Oritani Financial Corp. and pro forma data
at and for the six months ended December&nbsp;31, 2009 and at and for the year ended June&nbsp;30, 2009.
This information is based on assumptions set forth below and in the tables, and should not be used
as a basis for projections of market value of the shares of common stock following the offering.
Moreover, pro forma stockholders&#146; equity per share does not give effect to the liquidation account
to be established in the conversion or, in the unlikely event of a liquidation of Oritani Bank, to
the recoverability of intangible assets or the tax effect of the recapture of the bad debt reserve.
See &#147;The Conversion and Offering&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net proceeds in the tables are based upon the following assumptions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>forty percent of all shares of common stock will be sold in the subscription
and community offerings, including shares purchased by insiders, with the remaining
 shares to be sold in the syndicated community offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>150,000 shares of common stock will be purchased by our executive officers and
directors, and their associates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our employee stock ownership plan will purchase 4.0% of the shares of common
stock sold in the offering, with a loan from Oritani. The loan will be repaid in
substantially equal payments of principal and interest over a period of 20&nbsp;years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stifel, Nicolaus &#038; Company, Incorporated will receive a fee equal to 1% of all
 shares of common stock sold in the subscription and community offerings and a fee equal
to 5% of all shares sold in the syndicated community offering. No fee will be paid
with respect to shares of common stock purchased by our qualified and non-qualified
employee stock benefit plans, or stock purchased by our officers, directors and
employees, and their immediate families; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>total expenses of the offering, including the marketing fees to be paid to
Stifel, Nicolaus &#038; Company, Incorporated, will be between $13.1&nbsp;million at the minimum
of the offering range and $19.3&nbsp;million at the maximum of the offering range, as
adjusted.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculated pro forma consolidated net income for the six months ended December&nbsp;31, 2009 and
the year ended June&nbsp;30, 2009 as if the estimated net proceeds we received had been invested at the
beginning of each period at an assumed interest rate of 2.69% (1.64% on an after-tax basis) and
2.54% (1.55% on an after-tax basis). This represents the five-year United States Treasury note
yield as of December&nbsp;31, 2009 and June&nbsp;30, 2009. We consider the resulting rate to reflect more
accurately the pro forma reinvestment rate than an arithmetic average method in light of current
market interest rates. The effect of withdrawals from deposit accounts for the purchase of shares
of common stock has not been reflected. Historical and pro forma per share amounts have been
calculated by dividing historical and pro forma amounts by the indicated number of shares of common
stock. No effect has been given in the pro forma stockholders&#146; equity calculations for the assumed
earnings on the net proceeds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma tables give effect to the implementation of the stock-based incentive plan.
Subject to the receipt of stockholder approval, we have assumed that the stock-based incentive plan
will acquire for restricted stock awards a number of shares of common stock equal to 4.0% of the
shares of common stock sold in the stock offering at the same price for which they were sold in the
stock offering. We
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assumed that shares of common stock are granted under the plans in awards that vest over a
five-year period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also assumed that the stock-based incentive plans will grant options to acquire shares
of common stock equal to 10.0% of the shares of common stock sold in the stock offering. In
preparing the tables below, we assumed that stockholder approval was obtained, that the exercise
price of the stock options and the market price of the stock at the date of grant were $10.00 per
share and that the stock options had a term of ten years and vested over five years. We applied
the Black-Scholes option pricing model to estimate a grant-date fair value of $3.43 for each
option. In addition to the terms of the options described above, the Black-Scholes option pricing
model assumed an estimated volatility rate of 36.45% for the shares of common stock, a dividend
yield of 3.0%, an expected option life of eight years and a risk-free interest rate of 3.85%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may grant options and award shares of common stock under one or more stock-based incentive
plans in excess of 10.0% and 4.0%, respectively, of the shares of common stock sold in the stock
offering if the stock-based incentive plans are adopted more than twelve months following the stock
offering. Our current intention is to implement a new stock-based incentive plan no earlier than
twelve months after completion of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed under &#147;How We Intend to Use the Proceeds from the Offering,&#148; we intend to
contribute at least 50% of the net proceeds from the stock offering to Oritani Bank, and we will
retain the remainder of the net proceeds from the stock offering. We will use a portion of the
proceeds we retain for the purpose of making a loan to the employee stock ownership plan and retain
the rest of the proceeds for future use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma table does not give effect to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>withdrawals from deposit accounts for the purpose of purchasing shares of
common stock in the stock offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our results of operations after the stock offering; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the market price of the shares of common stock after the stock
offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following pro forma information may not represent the financial effects of the stock
offering at the date on which the stock offering actually occurs and you should not use the table
to indicate future results of operations. Pro forma stockholders&#146; equity represents the difference
between the stated amount of our assets and liabilities, computed in accordance with GAAP. We did
not increase or decrease stockholders&#146; equity to reflect the difference between the carrying value
of loans and other assets and their market value. Pro forma stockholders&#146; equity is not intended
to represent the fair market value of the shares of common stock and may be different than the
amounts that would be available for distribution to stockholders if we liquidated. Per share
figures have been calculated based on shares of Oritani Financial Corp. issued and outstanding as
of the date of this prospectus.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>At or for the Six Months Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $10.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>33,150,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>39,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>44,850,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>51,577,500</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value of shares issued in the exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,048</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma market capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">445,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">523,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">602,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">692,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,322</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus: Assets received from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by the stock-based incentive
plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Estimated net proceeds, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">292,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">343,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">395,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">455,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the Six Months Ended December&nbsp;31, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated net income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,735</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(238</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(274</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(315</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(809</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(952</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,095</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,259</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(916</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,077</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,239</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,424</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income per share (5):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income per share (5) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price to pro forma net income per share (annualized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.78x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.25x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.71x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.67x</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares used in net income per share calculations
(5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,236,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,866,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,496,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,270,754</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>At December&nbsp;31, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">374,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership
plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive
plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Pro forma tangible stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">591,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">703,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity per share (7):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership
plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive
plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Pro forma tangible stockholders&#146; equity per share (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma stockholders&#146;
equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma tangible
stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares outstanding for pro forma book value per
share calculations (8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market or
financial conditions following the commencement of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire these
shares are assumed to have been borrowed by the employee stock ownership plan from Oritani.
The loan will have a term of 20&nbsp;years and an interest rate equal to the prime rate as
published in <I>The Wall Street Journal</I>. Oritani Bank intends to make annual contributions to
the employee stock ownership plan in an amount at least equal to the required principal and
interest payments on the debt. Oritani Bank&#146;s total annual payments on the employee stock
ownership plan debt are based upon 20 equal annual installments of principal and interest.
Statement of Position 93-6, &#147;Employers&#146; Accounting for Employee Stock Ownership Plans&#148; (&#147;SOP
93-6&#148;), requires that an employer record compensation expense in an amount equal to the fair
value of the shares committed to be released to employees. The pro forma adjustments assume
that: (i)&nbsp;the employee stock ownership plan shares are allocated in equal annual installments
based on the number of loan repayment installments assumed to be paid by Oritani Bank, (ii)
the fair value of the common stock remains equal to the $10.00 subscription price; and (iii)
the employee stock ownership plan expense reflects an effective combined federal and state tax
rate of 39.0%. The unallocated employee stock ownership plan shares are reflected as a
reduction of stockholders&#146; equity. No reinvestment is assumed on proceeds contributed to fund
the employee stock ownership plan. The pro forma net income further assumes that 33,150,
39,000, 44,850 and 51,578 shares were committed to be released during the period at the
minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively, and in
accordance with SOP 93-6, only the employee stock ownership plan shares committed to be
released during the period were considered outstanding for purposes of net income per share
calculations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the grant of restricted stock awards pursuant to the stock-based incentive
plan expected to be adopted by following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that at the minimum, midpoint, maximum and maximum as adjusted, of the offering range this
plan acquires a number of shares of restricted common stock equal to 4.0% of the shares sold
in the offering, either through open market purchases, from authorized but unissued shares of
common stock or treasury stock. Funds used by the stock-based incentive plan to purchase the
shares of common stock will be contributed by Oritani. In calculating the pro forma effect of
the stock-based incentive plan, it is assumed that the shares of restricted stock were
acquired by the plan in open market purchases at the beginning of the period presented for a
purchase price equal to the price for which the shares are sold in the offering, and that
10.0% of the amount contributed was an amortized expense (20.0% annually based upon a
five-year vesting period) during the six months ended December&nbsp;31, 2009. There can be no
assurance that the actual purchase price of the shares of common stock granted under the
stock-based incentive plan will be equal to the $10.00 subscription price. If shares are
acquired from authorized but unissued shares of common stock or from treasury shares, our net
income per share and stockholders&#146; equity per share will decrease. This will also have a
dilutive effect of approximately 2.89% (at the maximum of the offering range) on the ownership
interest of stockholders. The impact on pro forma net income per share and pro forma
stockholders&#146; equity per share is not material.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by Oritani following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that options will be granted to acquire shares of common stock equal to 10.0% of the shares
sold in the offering. In calculating the pro forma effect of the stock options, it is assumed
that the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant-date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i)&nbsp;the trading price on date of grant was $10.00 per share;
(ii)&nbsp;exercise price is equal to the trading price on the date of grant; (iii)&nbsp;dividend yield
of 3.0%; (iv)&nbsp;expected life of ten years; (v)&nbsp;expected volatility of 36.45%; (vi)&nbsp;risk-free
interest rate of 3.85%, and (vii)&nbsp;50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders&#146; equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, and subtracting the
employee stock ownership plan shares which have not been committed for release during the
period in accordance with SOP 93-6. See footnote 2, above.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See &#147;Our Policy Regarding Dividends,&#148; &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and
&#147;Supervision and Regulation.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders&#146; equity
per share calculations are based upon the sum of (i)&nbsp;the number of subscription shares assumed
to be sold in the offering; and (ii)&nbsp;shares to be issued in exchange for publicly held shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma stockholders&#146; equity per share is equal to
the total number of shares to be outstanding upon completion of the offering.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->48<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>At or for the Year Ended June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $10.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>33,150,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>39,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>44,850,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>51,577,500</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value of shares issued in the exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,048</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma market capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">445,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">523,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">602,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">692,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,322</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus: Assets received from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by the stock-based incentive
plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Estimated net proceeds, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">292,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">343,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">395,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">455,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the Year Ended June&nbsp;30, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated net income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,053</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(404</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(476</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(547</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(629</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,618</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,903</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,189</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,517</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,831</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,154</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,477</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,848</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,611</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income per share (5):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income per share (5) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price to pro forma net income per share (annualized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.43x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83.33x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90.91x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.00x</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares used in net income per share calculations
(5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,269,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,905,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,541,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,322,332</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>At June&nbsp;30, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">374,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership
plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive
plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Pro forma tangible stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">532,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">584,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">635,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">695,498</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity per share (7):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership
plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive
plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Pro forma tangible stockholders&#146; equity per share (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma stockholders&#146;
equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">83.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">94.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma tangible
stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">53.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">94.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares outstanding for pro forma book value per
share calculations (8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market and
financial conditions following the commencement of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire
these shares are assumed to have been borrowed by the employee stock ownership plan from
Oritani. The loan will have a term of 20&nbsp;years and an interest rate equal to the prime
rate as published in <I>The Wall Street Journal</I>. Oritani Bank intends to make annual
contributions to the employee stock ownership plan in an amount at least equal to the
required principal and interest payments on the debt. Oritani Bank&#146;s total annual
payments on the employee stock ownership plan debt are based upon 20 equal annual
installments of principal and interest. SOP 93-6 requires that an employer record
compensation expense in an amount equal to the fair value of the shares committed to be
released to employees. The pro forma adjustments assume that: (i)&nbsp;the employee stock
ownership plan shares are allocated in equal annual installments based on the number of
loan repayment installments assumed to be paid by Oritani Bank; (ii)&nbsp;the fair value of the
common stock remains equal to the $10.00 subscription price and (iii)&nbsp;the employee stock
ownership plan expense reflects an effective combined federal and state tax rate of 39%.
The unallocated employee stock ownership plan shares are reflected as a reduction of
stockholders&#146; equity. No reinvestment is assumed on proceeds contributed to fund the
employee stock ownership plan. The pro forma net income further assumes that 66,300,
78,000, 89,700 and 103,155 shares were committed to be released during the year at the
minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively, and
in accordance with SOP 93-6, only the employee stock ownership plan shares committed to be
released during the year were considered outstanding for purposes of net income per share
calculations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the grant of restricted stock awards pursuant to the stock-based
incentive plan expected to be adopted by following the offering and presented to
stockholders for approval not earlier than six months after the completion of the
offering. We have assumed that at the midpoint, maximum and maximum as adjusted, of the
offering range this plan acquires a number of shares of restricted common stock equal to
4.0% of the shares sold in the stock offering, either through open market purchases, from
authorized but unissued shares of common stock or treasury stock. Funds used by the
stock-based incentive plan to purchase the shares of restricted stock will be contributed
by Oritani. In calculating the pro forma effect of the stock-based incentive plan, it is
assumed that the shares of common stock were acquired by the plan in open market purchases
at the beginning of the period presented for a purchase price equal to the price for which
the shares are sold in the offering, and that 20.0% of the amount contributed was an
amortized expense (based upon a five-year vesting period) during the year ended June&nbsp;30,
2009. There can be no assurance that the actual purchase price of the shares of common
stock granted under the stock-based incentive plan will be equal to the $10.00
subscription price. If shares are acquired from authorized but unissued shares of common
stock or from treasury shares, our net income per share and stockholders&#146; equity per share
will decrease. This will also have a dilutive effect of approximately 2.89% (at the
maximum of the offering range) on the ownership interest of stockholders. The impact on
pro forma net income per share and pro forma stockholders&#146; equity per share is not
material.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by following the offering and presented to stockholders for approval
not earlier than twelve months after the completion of the offering. We have assumed that
options will be granted to acquire shares of common stock equal to 10.0% of the shares sold in
the offering. In calculating the pro forma effect of the stock options, it is assumed that
the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i)&nbsp;the trading price on date of grant was $10.00 per share;
(ii)&nbsp;exercise price is equal to the trading price on the date of grant; (iii)&nbsp;dividend yield
of 3.00%; (iv)&nbsp;expected life of ten years; (v)&nbsp;expected volatility of 36.45%; (vi)&nbsp;risk-free
interest rate of 3.85%, and (vii)&nbsp;50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant-date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders&#146; equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, and subtracting the
employee stock ownership plan shares which have not been committed for release during the
period in accordance with SOP 93-6. See footnote 2, above.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See &#147;Our Policy Regarding Dividends,&#148; &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and
&#147;Supervision and Regulation.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders&#146; equity
per share calculations are based upon the sum of (i)&nbsp;the number of subscription shares assumed
to be sold in the offering; and (ii)&nbsp;shares to be issued in exchange for publicly held shares.
The number of subscription shares actually sold and the corresponding number of exchange
shares may be more or less than the assumed amounts.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma stockholders&#146; equity per share is equal
to the total number of shares to be outstanding upon completion of the offering.</TD>
</TR>

</TABLE>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="610"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<BR>
AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion and analysis reflects our consolidated financial statements and other relevant
statistical data. The information in this section has been derived from the audited and unaudited
consolidated financial statements, which appear beginning on page F-1 of this prospectus. You
should read the information in this section in conjunction with the business and financial
information regarding Oritani Financial Corp. provided in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business Strategy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to continue to operate as a well-capitalized and profitable financial institution
dedicated to understanding the banking needs of both our individual and business customers, and
tailoring our products and services accordingly. This approach enables us to be more flexible and
responsive to our customers and to provide an exceptional level of personal service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Highlights of our business strategy are discussed below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Continue our focus on multi-family and commercial real estate lending</B>. Unlike many
traditional thrifts, we have focused on the origination of multi-family and commercial real estate
loans. Such loans comprise 66.9% of our total loan portfolio at December&nbsp;31, 2009. We have
focused on this type of lending because the interest rates earned for such loans are higher than
the prevailing rates for residential loans, resulting in a greater level of interest income
potential. We are also able to generate significantly higher fee income on such loans. In
addition, the repayment terms usually expose us to less interest rate risk than fixed-rate
residential loans. While our actual origination volume will depend on market conditions, we intend
to continue our emphasis on multi-family and commercial real estate lending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced substantial growth in our combined multi-family and commercial real estate
loan portfolio in recent years. The growth rate of the portfolio has been 20.27%; 40.62%; 32.37%;
18.97% and 39.71% for the six months ended December&nbsp;31, 2009 (annualized)&nbsp;and years ended June&nbsp;30,
2009, 2008, 2007 and 2006, respectively. In addition, despite our more stringent underwriting
standards discussed below, we believe that the exit of many larger banks and conduit lenders from
the commercial real estate lending market due to the financial crisis has enabled us, as a
community bank, to increase the number and size of the commercial real estate loans that we
originate while lending to a higher quality of borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have been involved in multi-family lending for over thirty years. Over the past seven
years, we have assembled a department exclusively devoted to the origination and administration of
multi-family and commercial real estate loans. Over the past two years, we have established a
separate credit department to review all such originations and ensure compliance with our
underwriting standards. There are presently eight loan officers as well as support staff in the
origination department and three officers as well as support staff in the credit department. Our
business plan projects continued growth of the portfolio and continued additions to our staff to
support such growth. In addition, due to current economic conditions and related risks, management
has been applying stricter underwriting guidelines, including requiring higher debt service
coverage ratios and lower loan to value ratios, to these loans. We have also focused our
multi-family and commercial real estate lending on more seasoned and experienced developers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Reduce problem assets and aggressively remedy delinquent loans</B>. One of management&#146;s primary
objectives is to reduce our level of problem assets. While no assurances can be provided regarding
results, management will focus a significant amount of its time on the resolution of problem
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assets. Management&#146;s tactics toward delinquent borrowers are considered aggressive. We have
commenced legal action against virtually all borrowers who are more than 45&nbsp;days delinquent. We
have generally refused to extend the maturity date of any construction loan, even if the interest
payments are current, unless the borrower agrees to reduce our exposure through additional
principal payments and/or additional collateral, and agrees to an additional fee if the loan is not
paid in full on or before the new maturity date. We realize that such actions contribute to the
high level of delinquencies but believe this is the most prudent path to addressing delinquent
loans. Since June&nbsp;30, 2009 our level of non-performing assets to total assets has declined from
2.74% to 2.62% at December&nbsp;31, 2009. Additionally, $13.9&nbsp;million of our delinquent loans are
expected to be resolved in the coming months as the underlying collateral are under contracts for
sale.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Increase core deposits</B>. During the past two years, we have devoted significant internal
attention to growing our deposits. We hired key, experienced personnel and have implemented an
incentive program that rewards branch personnel for attracting core deposit relationships. We have
also begun to emphasize obtaining deposits from our commercial borrowers, reexamined our pricing
strategies and promoted our status as a local community bank. As a result of these efforts, we
have recently experienced a period of unprecedented deposit growth. Our deposit balances grew
61.3% from June&nbsp;30, 2008 to June&nbsp;30, 2009. The growth has continued as our annualized growth for
the six month period ended December&nbsp;31, 2009 was 14.7%. Much of the increase came in the areas of
certificates of deposit and money market accounts. Our ongoing focus will be to build upon this
success, with a particular emphasis on growing core commercial and retails deposits. In addition
to continuing to attract new customers to Oritani Bank, we will also focus on cross-selling core
deposit accounts to customers who have limited deposit services with Oritani Bank and seeking to
further develop the relationship by providing quality customer service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Expand our market share within our primary market area. </B>Our deposit growth significantly
boosted our market penetration in Bergen County, the primary county of our operations. We
increased our percentage of Bergen County deposits from 1.8%, or the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> highest
financial institution, at June&nbsp;30, 2008 to 2.6%, or the 9<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> highest financial
institution, at June&nbsp;30, 2009. In October&nbsp;2008, Oritani Bank opened two de novo branches. These
branches had combined deposit totals of $49.6&nbsp;million at December&nbsp;31, 2009. In February&nbsp;2010, we
opened a de novo branch in Bergenfield, New Jersey. We intend to continue the strategy of
opportunistic de novo branching. We typically seek de novo branch locations in under-banked areas
that are either a contiguous extension or fill-in of our existing branch network. We also have
budgeted monies for infrastructure improvements in our existing branches. We may also consider the
acquisition of branches from other financial institutions in our market area. We believe these
strategies, along with continued growth, will help us achieve our goal of deposit growth and market
expansion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Continue to emphasize operating efficiencies and cost control</B>. One of the hallmarks of our
operations has been expense control as evidenced by an efficiency ratio of 46.5% for the six months
ended December&nbsp;31, 2009. Our efficiency ratio as well as numerous other expense measurement
ratios, have consistently outperformed peers. We intend to maintain our posture on expense control
while continuing to make prudent investments in our operations by effectively managing costs in a
relation to revenues. We realize that our expense ratios will be challenged in the future with the
intended implementation of stock benefit plans. However, we have recently been able to generate
favorable peer comparisons with such plans in place.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Remain true to our core competencies</B>. We are very proud of the institution we have helped to
build. We realize many of our peers have ventured into other areas of banking operations, such as
C&#038;I lending, leasing and sales of alternative investment products. While these areas may be
profitable, they also have inherent risks and require significant expertise separate from our core
lending and deposit gathering operations. For the foreseeable future, we do not intend to utilize
our capital to enter into new types of lending or other areas of operations that we consider to be
risky. We believe that we possess
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expertise in our current types of lending and operations and intend to rely on this existing
expertise for future growth and profitability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Critical Accounting Policies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider accounting policies that require management to exercise significant judgment or
discretion or to make significant assumptions that have, or could have, a material impact on the
carrying value of certain assets or on income, to be critical accounting policies. We consider the
following to be our critical accounting policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Allowance for Loan Losses</B>. The allowance for loan losses is the estimated amount considered
necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The
allowance is established through the provision for loan losses that is charged against income. The
allowance for loan losses is considered a critical accounting policy by management because of the
high degree of judgment involved, the subjectivity of the assumptions used, and the potential for
changes in the economic environment that could result in changes to the amount of the recorded
allowance for loan losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for loan losses has been determined in accordance with U.S. generally accepted
accounting principles, under which we are required to maintain an allowance for probable losses at
the balance sheet date. We are responsible for the timely and periodic determination of the amount
of the allowance required. We believe that our allowance for loan losses is adequate to cover
specifically identifiable losses, as well as estimated losses inherent in our portfolio for which
certain losses are probable but not specifically identifiable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management performs a quarterly evaluation of the adequacy of the allowance for loan losses.
The analysis of the allowance for loan losses has two components: specific and general allocations.
Specific allocations may be made for loans that are criticized or impaired. Management will
identify loans that have demonstrated issues that cause concern regarding full collectibility in
the required time frame. Delinquency is a key indicator of such issues. In addition, we utilize
the services of an external loan review firm to review a significant portion of new originations
and the existing portfolio over the course of the year. Their scope is determined by the Audit
Committee. This firm prepares quarterly reports that include recommendations for classification.
Their services assist in identifying loans that should be classified, particularly prior to
delinquency issues. Management summarizes all problem loans and classifies such loans within the
following industry standard categories: Watch; Special Mention; Substandard; Doubtful or Loss. In
addition, a classified loan may be considered impaired. Impairment is measured by determining the
present value of expected future cash flows or, for collateral-dependent loans, the fair value of
the collateral adjusted for market conditions and selling expenses. The general allocation is
determined by segregating the remaining loans by type of loan, and specific collateral category.
We also analyze historical loss experience, delinquency trends, general economic conditions and
geographic concentrations. This analysis establishes factors that are applied to the loan groups
to determine the amount of the general allocation. This evaluation is inherently subjective, as it
requires material estimates that may be susceptible to significant revisions based upon changes in
economic and real estate market conditions. Actual loan losses may be significantly more than the
allowance for loan losses we have established, which could have a material negative effect on our
financial results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On a quarterly basis, the Chief Financial Officer reviews the current status of various loan
assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation
process, specific loans are analyzed to determine their risk of loss. This process includes all
loans, concentrating on non-accrual and classified loans. Each non-accrual or classified loan is
evaluated for loss exposure. To determine the adequacy of collateral on a particular loan, an
estimate of the fair market value of the collateral is based on the most current appraised value
available. This appraised value is then reduced to
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">reflect estimated liquidation expenses. Any shortfall results in a charge to the allowance if
the likelihood of loss is evaluated as probable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of this quarterly process are summarized along with recommendations and presented
to executive management for their review. Based on these recommendations, specific loan loss
reserves are approved by executive management. All supporting documentation with regard to the
evaluation process, loan loss experience, allowance levels and the schedules of classified loans
are maintained by the Chief Financial Officer. A summary of specific loan loss reserves is
presented to the Board of Directors on a quarterly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a concentration of loans secured by real property located in New Jersey. As a
substantial amount of our loan portfolio is collateralized by real estate, appraisals of the
underlying value of property securing loans are critical in determining the amount of the allowance
required for specific loans. Assumptions for appraisal valuations are instrumental in determining
the value of properties. Overly optimistic assumptions or negative changes to assumptions could
significantly impact the valuation of a property securing a loan and the related allowance
determined. Only Board-approved appraisers are utilized. The assumptions supporting such
appraisals are carefully reviewed by management to determine that the resulting values reasonably
reflect amounts realizable on the related loans. Based on the composition of our loan portfolio,
we believe the primary risks are increases in interest rates, a decline in the economy generally,
and a decline in real estate market values in New Jersey. Any one or combination of these events
may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and
future levels of loan loss provisions. We consider it important to maintain the ratio of our
allowance for loan losses to total loans at an adequate level. Factors such as current economic
conditions, interest rates, and the composition of the loan portfolio will effect our determination
of the level of this ratio for any particular period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our allowance for loan losses in recent years reflects probable future losses resulting from
the actual growth in our loan portfolio. We recognize that our overall delinquencies, impaired
loans and nonaccrual loans have increased significantly over the past two years. We believe the
allowance for loan losses at December&nbsp;31, 2009 adequately reflects our portfolio credit risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe we have established and maintained the allowance for loan losses at
adequate levels, additions may be necessary if future economic and other conditions differ
substantially from the current operating environment. Although management uses the best
information available, the level of the allowance for loan losses remains an estimate that is
subject to significant judgment and short-term change. In addition, the FDIC and the New Jersey
Department of Banking and Insurance, as an integral part of their examination process, will
periodically review our allowance for loan losses. Such agencies may require us to recognize
adjustments to the allowance based on its judgments about information available to them at the time
of their examination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Deferred Income Taxes</B>. We use the asset and liability method of accounting for income taxes.
Under this method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. If current available
information raises doubt as to the realization of the deferred tax assets, a valuation allowance
may be established. We consider the determination of this valuation allowance to be a critical
accounting policy because of the need to exercise significant judgment in evaluating the amount and
timing of recognition of deferred tax liabilities and assets, including projections of future
taxable income. These judgments and estimates are reviewed on a quarterly basis as regulatory and
business factors change. A valuation allowance for deferred tax assets may be required if the
amounts of taxes recoverable through loss carry backs decline, or if we project lower levels of
future
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">taxable income. Such a valuation allowance would be established through a charge to income
tax expense that would adversely affect our operating results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Asset Impairment Judgments</B>. Some of our assets are carried on our consolidated balance sheets
at cost, fair value or at the lower of cost or fair value. Valuation allowances or write-downs are
established when necessary to recognize impairment of such assets. We periodically perform
analyses to test for impairment of such assets. In addition to the impairment analyses related to
our loans discussed above, another significant impairment analysis is the determination of whether
there has been an other-than-temporary decline in the value of one or more of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our available-for-sale securities portfolio is carried at estimated fair value, with any
unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or
loss in stockholders&#146; equity. Our held-to-maturity securities portfolio, consisting of debt
securities for which we have a positive intent and ability to hold to maturity, is carried at
amortized cost. We conduct a periodic review and evaluation of the securities portfolio to
determine if the value of any security has declined below its cost or amortized cost, and whether
such decline is other-than-temporary. If such decline is deemed other-than-temporary, we would
adjust the cost basis of the security by writing down the security to fair market value through a
charge to current period operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Stock-Based Compensation</B>. We recognize the cost of employee services received in exchange for
awards of equity instruments based on the grant-date fair value of those awards in accordance with
SFAS No.&nbsp;123(R) and its successor, FASB ASC Topic 718.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate the per share fair value of option grants on the date of grant using the
Black-Scholes option pricing model using assumptions for the expected dividend yield, expected
stock price volatility, risk-free interest rate and expected option term. These assumptions are
subjective in nature, involve uncertainties and, therefore, cannot be determined with precision.
The Black-Scholes option pricing model also contains inherent limitations when applied to options
that are not traded on public markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The per share fair value of options is highly sensitive to changes in assumptions. In general,
the per share fair value of options will move in the same direction as changes in the expected
stock price volatility, risk-free interest rate and expected option term, and in the opposite
direction as changes in the expected dividend yield. For example, the per share fair value of
options will generally increase as expected stock price volatility increases, risk-free interest
rate increases, expected option term increases and expected dividend yield decreases. The use of
different assumptions or different option pricing models could result in materially different per
share fair values of options.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Financial Condition at December&nbsp;31, 2009 and June&nbsp;30, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Balance Sheet Summary</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Assets. </I></B>Total assets increased $93.4&nbsp;million, or 4.9%, to $2.01&nbsp;billion at December&nbsp;31,
2009, from $1.91&nbsp;billion at June&nbsp;30, 2009. The increase was due primarily to the growth of loans
and securities AFS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Cash and Cash Equivalents. </I></B>Cash and cash equivalents (which includes fed funds and short term
investments) decreased $109.1&nbsp;million to $26.3&nbsp;million at December&nbsp;31, 2009 from $135.4&nbsp;million at
June&nbsp;30, 2009 as excess liquidity was deployed primarily into securities available for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loans, net. </I></B>Net loans increased $78.5&nbsp;million, or 6.1%, to $1.36&nbsp;billion at December&nbsp;31, 2009 from
$1.28&nbsp;billion at June&nbsp;30, 2009. We continued our emphasis on loan originations, particularly
multi-family and commercial real estate loans. Loan originations and purchases totaled $192.1
million for the six months ended December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The allowance for loan losses increased $1.5&nbsp;million to $22.2&nbsp;million at December&nbsp;31, 2009 from
$20.7&nbsp;million at June&nbsp;30, 2009. We charged off loans of $3.6&nbsp;million and recovered $3,000 in
previously charged off loans during the six months ended December&nbsp;31, 2009. There were no
charge-offs or recoveries during the six months ended December&nbsp;31, 2008. The delinquency and
nonaccrual totals, along with charge-offs and economic factors, remain the primary contributors to
the current level of provision for loan losses. Loan growth was also a component of the provision
for loan losses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delinquency information is provided below:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Delinquency Totals
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>September 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>March 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30 - 59&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,979</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60 - 89&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,942</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,067</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total delinquent loans decreased by $13.5&nbsp;million during the six months ended December
31, 2009 and by $4.4&nbsp;million over the three months ended December&nbsp;31, 2009. While the totals
decreased over the 2009 periods, nonaccrual and total delinquent loan totals remain at elevated
levels. The nonaccrual loan total was fairly stable from September&nbsp;30, 2009 to December&nbsp;31, 2009.
However, as further described below, $13.9&nbsp;million of this total is expected to be resolved shortly
as the underlying collateral is currently under contracts for sale. We have been utilizing all
legal remedies reasonably possible to expedite these closings, however, circumstances may occur
that could cause closings to be deferred or not occur at all. The $3.1&nbsp;million property described
below was originally estimated for a March, 2010 closing, but that has now been postponed until
April. We have continued our aggressive posture toward delinquent borrowers. We have commenced
legal action against virtually all borrowers who are more than 45&nbsp;days delinquent. The Company has
refused to extend the maturity date of any construction loan, even if the interest payments are
current, unless the borrower agrees to reduce the Company&#146;s exposure through additional principal
payments and/or additional collateral, and agrees to an additional fee if the loan is not paid in
full on or before the new maturity date. We realize that such actions contribute to the high level
of delinquencies but believe this is the most prudent path to addressing problem loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion of the significant components of the nonaccrual loan total at December&nbsp;31, 2009
follows. These loans comprise $50.2&nbsp;million of total nonaccrual loans at December&nbsp;31, 2009.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;Two of these loans are to one borrower and totaled $15.9&nbsp;million at December&nbsp;31, 2009. The
loans are secured by a condominium construction project and raw land with all building approvals,
both of which are in Northern New Jersey. The borrower declared bankruptcy and Oritani Bank has
provided debtor in possession financing for the completion of the condominium construction project.
While significant costs and delays have been encountered in finalizing the project and obtaining
certificates of occupancy (&#147;CO&#148;) for the residential units, we believe that the final matters
necessary to realize these items are in the final phases of completion. Numerous residential units
remain under contract and new sales are continuing, providing a clear indicator of current value.
These contracts are not included in the $13.9&nbsp;million of loans described above that are expected to
be resolved shortly through the sale of the underlying collateral. They were not included in this
total due to prior disappointments regarding the attainment of a CO and uncertainty regarding the
ultimate closing dates. Prior charge offs of the construction loan total $4.0&nbsp;million. During
the quarter ended December&nbsp;31, 2009, Oritani Bank charged off $661,000 of the land loan. Both
loans are classified as impaired as of December&nbsp;31, 2009. In addition, specific reserves totaling
$1.7&nbsp;million have been recorded against these loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $7.9&nbsp;million loan secured by a retail mall in Northern New Jersey is classified as
nonaccrual and impaired at December&nbsp;31, 2009. The borrower has declared bankruptcy. Foreclosure
proceedings are progressing and the bankruptcy trustee has accepted a contract for sale of this
property. In accordance with the results of the impairment analyses, no reserve was required for
this loan as it was considered to be well collateralized. Foreclosure auction date was scheduled
for February of 2010 but has been postponed until March. Management currently expects that the
current contract will close shortly after the auction date. However, an investor in the original
project is attempting to use legal remedies to postpone or cancel this sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;Three loans to one borrower totaling $5.8&nbsp;million, secured by various warehouse properties
in Rockland, Nassau and Westchester counties, New York, are classified as nonaccrual and impaired
at December&nbsp;31, 2009. Oritani Bank is in litigation with the borrower and the guarantor.
Foreclosure auctions have occurred for two of the three properties and, in both instances, the
properties were sold at the auction. These two sales have closed and proceeds have been received
in the current quarter. Foreclosure proceedings are progressing on the third property and a
foreclosure date has been scheduled for April, 2010. During the quarter ended December&nbsp;31, 2009,
Oritani Bank charged off $785,000 of the loans associated with the properties sold at auction. In
addition, specific reserves totaling $355,000 have been recorded against the loan on the remaining
property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $14.1&nbsp;million loan secured by a multi-tenant commercial property in Hudson County, New
Jersey. The borrower has experienced cash flow difficulties. Oritani Bank is in litigation with
this borrower, foreclosure proceedings are progressing and all tenant rent payments are being made
directly to Oritani Bank. The rents received were sufficient to make each of the monthly payments
during the quarter. Specific reserves totaling $1.1&nbsp;million have been recorded against this loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $3.1&nbsp;million loan secured by a commercial property located in Bergen County, New Jersey.
The borrower and guarantor on this loan have declared bankruptcy. A contract for the sale of the
property has been accepted by the bankruptcy trustee. This contract is currently expected to close
in April, 2010. In accordance with the results of the impairment analysis for this loan, no
reserve was required as the loan is considered to be well collateralized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $1.1&nbsp;million multi-family loan located in Hudson County, New Jersey. Oritani Bank and the
borrower have signed a forbearance agreement and the borrower continues to make payments in
accordance with the agreement. The loan was removed from nonaccrual classification in February as
a sufficient history of satisfactory payment under the forbearance agreement has been demonstrated.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $2.3&nbsp;million residential construction loan for two luxury homes and an improved lot
located in Essex County, New Jersey. The borrower encountered cash flow difficulties due to an
extended construction and marketing period. An extension request was declined, and we are now
pursuing legal remedies.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Securities Available for Sale (&#147;AFS&#148;). </I></B>Securities AFS increased $176.0&nbsp;million to $320.4&nbsp;million
at December&nbsp;31, 2009, from $144.4&nbsp;million at June&nbsp;30, 2009. As described in the discussion of
total interest income in the &#147;Comparison of Operating Results for the Six Months ended December&nbsp;31,
2009 and 2008,&#148; we believe this investment option currently presents the best risk/reward profile.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mortgage-Backed Securities (&#147;MBS&#148;) Held to Maturity (&#147;HTM&#148;). </I></B>Mortgage-backed securities held to
maturity decreased $32.6&nbsp;million, or 27.5%, to $86.2&nbsp;million at December&nbsp;31, 2009 from $118.8
million at June&nbsp;30, 2009. This decrease was primarily due to principal repayments received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mortgage-Backed Securities Available for Sale. </I></B>Mortgage-backed securities available for sale
decreased $30.1&nbsp;million, or 23.4%, to $98.5&nbsp;million at December&nbsp;31, 2009 from $128.6&nbsp;million at
June&nbsp;30, 2009. This decrease was primarily due to principal repayments received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Deposits. </I></B>Deposits increased $82.9&nbsp;million, or 7.3%, to $1.21&nbsp;billion at December&nbsp;31, 2009 from
$1.13&nbsp;million at June&nbsp;30, 2009. Oritani Bank has implemented several initiatives designed to
achieve deposit growth. A new branch location opened in February, 2010. Strong deposit growth
remains one of our strategic objectives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Stockholders&#146; Equity. </I></B>Stockholders&#146; equity increased $7.9&nbsp;million, or 3.3%, to $248.0&nbsp;million at
December&nbsp;31, 2009 from $240.1&nbsp;million at June&nbsp;30, 2009. The increase was primarily the result of
net income of $7.4&nbsp;million for the six months ended December&nbsp;31, 2009. On March&nbsp;18, 2009, we
announced the commencement of a fourth (967,828 shares) 10.0% repurchase program. As of December
31, 2009, we had repurchased a total of 3,669,937 shares at a total cost of $57.1&nbsp;million and an
average cost of $15.57 per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Operating Results for the Six Months Ended December&nbsp;31, 2009 and 2008</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income. </I></B>Net income increased $4.9&nbsp;million to $7.4&nbsp;million for the six months ended December
31, 2009 from net income of $2.5&nbsp;million for the corresponding 2008 period. The primary cause of
the increased income in the 2009 period was increased net interest income and decreased impairment
charges related to equity investments. Our annualized return on average assets was .76% for the
six months ended December&nbsp;31, 2009, and .33% for the corresponding 2008 period. Our annualized
return on average equity was 6.19% for the six months ended December&nbsp;31, 2009, and 1.94% for the
corresponding 2008 period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Income. </I></B>Total interest income increased by $8.7&nbsp;million, or 20.5%, to $51.2&nbsp;million
for the six months ended December&nbsp;31, 2009, from $42.5&nbsp;million for the six months ended December
31, 2008. The largest increase occurred in interest on loans, which increased $7.4&nbsp;million or
21.4%, to $42.1&nbsp;million for the six months ended December&nbsp;31, 2009, from $34.6&nbsp;million for the six
months ended December&nbsp;31, 2008. Over that same period, the average balance of loans increased
$213.4&nbsp;million and the yield on the portfolio increased 13 basis points. Included in total
interest income for the 2009 period is $1.3&nbsp;million in interest income, prepayment penalties,
default interest and deferred fee earnings recovered on the resolution of three classified loans.
These recoveries occurred during the quarter ended September&nbsp;30, 2009. There were also significant
changes to income on securities AFS; MBS HTM and MBS AFS. Over the period, excess liquidity was
generally deployed in securities classified as available
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for sale as management felt such investments provided the best risk/reward profile considering the
current and projected cash needs of the Company. Such investments were typically callable notes of
government sponsored agencies with limited optionality and call features that made the notes likely
to be called when management estimated we would need the liquidity. Management classified the
investments as AFS so they could be sold should unexpected liquidity needs develop. Interest on
securities AFS increased by $3.1&nbsp;million to $3.7&nbsp;million for the six months ended December&nbsp;31,
2009, from $633,000 for the six months ended December&nbsp;31, 2008. The average balance of securities
AFS increased $231.3&nbsp;million over that same period. The yield on the portfolio decreased
considerably due to current market rates as well as the conservative structure of the new
investments. Cash flows from other investment categories were redeployed into securities AFS
because, as described above, management felt securities AFS provided the best risk/reward profile
given current economic circumstances and investment options. Interest on MBS HTM decreased by $1.1
million to $1.9&nbsp;million for the six months ended December&nbsp;31, 2009, from $3.0&nbsp;million for the six
months ended December&nbsp;31, 2008. Interest on MBS AFS decreased by $955,000 to $2.7&nbsp;million for the
six months ended December&nbsp;31, 2009, from $3.7&nbsp;million for the six months ended December&nbsp;31, 2008.
The combined average balances of the two MBS portfolios decreased $81.7&nbsp;million over the period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Expense. </I></B>Total interest expense increased by $1.6&nbsp;million, or 7.4%, to $22.6&nbsp;million
for the six months ended December&nbsp;31, 2009, from $21.1&nbsp;million for the six months ended December
31, 2008. Interest expense on deposits increased by $1.0&nbsp;million, or 9.1%, to $12.1&nbsp;million for
the six months ended December&nbsp;31, 2009, from $11.1&nbsp;million for the six months ended December&nbsp;31,
2008. The average balance of interest bearing deposits increased $426.7&nbsp;million while the average
cost of these funds decreased 88 basis points over this period. Market interest rates allowed
Oritani Bank to reprice many maturing time deposits, as well as other interest bearing deposits, at
lower rates, decreasing the cost of funds. Interest expense on borrowings increased by $554,000,
or 5.6%, to $10.5&nbsp;million for the six months ended December&nbsp;31, 2009, from $9.9&nbsp;million for the six
months ended December&nbsp;31, 2008. The average balance of borrowings increased $5.8&nbsp;million and the
cost increased 17 basis points over this period. The primary reason for this increased cost was
that we had greater reliance on short term borrowings in the 2008 period. Short term borrowings
are generally lower cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Income Before Provision for Loan Losses. </I></B>Net interest income increased by $7.2
million, or 33.4%, to $28.6&nbsp;million for the six months ended December&nbsp;31, 2009, from $21.5&nbsp;million
for the six months ended December&nbsp;31, 2008. Our net interest rate spread increased to 2.61%
(normalized)&nbsp;for the six months ended December&nbsp;31, 2009, from 2.42% for the six months ended
December&nbsp;31, 2008. The normalized spread calculation does not include the $1.3&nbsp;million in loan
interest income realized on the resolution of three classified loans in the September&nbsp;30, 2009
quarter. Our actual net interest rate spread for the six months ended December&nbsp;31, 2009 was 2.75%.
Our actual and normalized net interest margin for the six months ended December&nbsp;31, 2009 were
3.03% and 2.89%, respectively, versus 2.90% for the six months ended December&nbsp;31, 2008. Our net
interest income was reduced by $1.3&nbsp;million and $1.4&nbsp;million for the six months ended December&nbsp;31,
2009 and 2008, respectively, due to the impact of nonaccrual loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Provision for Loan Losses. </I></B>We recorded provisions for loan losses of $5.1&nbsp;million for the six
months ended December&nbsp;31, 2009 as compared to $5.4&nbsp;million for the six months ended December&nbsp;31,
2008. See discussion of the allowance for loan losses in &#147;Comparison of Financial Condition at
December&nbsp;31, 2009 and June&nbsp;30, 2009&#148; and note 7 of the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Income. </I></B>Other income increased to $3.6&nbsp;million for the six months ended December&nbsp;31, 2009
from $668,000 for the six months ended December&nbsp;31, 2008. The 2008 period was muted by an $1.8
million impairment charge taken regarding equity securities in our AFS portfolio, compared to a
$202,000
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">charge in the 2009 period. In addition, in the 2009 period, we realized a $1.0&nbsp;million gain on the
sale of a commercial office property that had been held and operated as a real estate investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Expense. </I></B>Other expense increased by $2.6&nbsp;million or 20.8% to $15.0&nbsp;million for the six
months ended December&nbsp;31, 2009, from $12.4&nbsp;million for the six months ended December&nbsp;31, 2008. The
increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.2
million, or 13.1%, over the period. This increase consisted of various components. There was an
increase of $550,000 directly pertaining to compensation, due to additional staff and merit
increases. Bonus expense increased $356,000 as management met all goals and the maximum bonus
level was achieved in our incentive compensation plan. Payroll taxes increased $115,000, primarily
due to social security tax on the increased pay. Expenses and accruals associated with the
Company&#146;s qualified and nonqualified benefit plans increased $67,000. There was also a $66,000
increase in health care insurance expense. Federal deposit insurance premiums increased
significantly over six months ended December&nbsp;31, 2009 due to an increase in FDIC deposit insurance
rates, an increase in insurable deposits and the depletion of a credit against FDIC deposit
insurance charges. Federal deposit insurance premiums increased $1.1&nbsp;million, to $1.2&nbsp;million for
the six months ended December&nbsp;31, 2009, from $60,000 for the six months ended December&nbsp;31, 2008.
Other expenses increased by $29,000 during the six months ended December&nbsp;31, 2009 as compared to
the six months ended December&nbsp;31, 2008. In the 2009 period, a recovery of legal expenses in
conjunction with the resolution of three classified loans partially offset increased problem asset
expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Tax Expense</I></B>. Income tax expense for the six months ended December&nbsp;31, 2009, was $4.8
million, due to pre-tax income of $12.2&nbsp;million, resulting in an effective tax rate of 39.2%. For
the six months ended December&nbsp;31, 2008, income tax expense was $1.8&nbsp;million, due to pre-tax income
of $4.3&nbsp;million, resulting in an effective tax rate of 41.4%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Operating Results for the Years Ended June&nbsp;30, 2009 and June&nbsp;30, 2008</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income</I></B>. Net income decreased $3.4&nbsp;million, or 38.0%, to $5.6&nbsp;million for the year ended June
30, 2009, versus $9.0&nbsp;million for the corresponding 2008 period. The items primarily impacting the
twelve month period ended June&nbsp;30, 2009 were provision for loan losses totaling $9.9&nbsp;million, a
pre-tax charge of $2.0&nbsp;million as a result of an other than temporary impairment in the value of
investment securities available for sale, and increased FDIC expense of $1.7&nbsp;million. The items
primarily impacting the year ended June&nbsp;30, 2008 were provision for loan losses totaling $4.7
million, a pre-tax charge of $998,000 as a result of an other than temporary impairment in the
value of investment securities available for sale, and a $1.1&nbsp;million gain on the sale of a real
estate held for investment property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Income</I></B>. For the year ended June&nbsp;30, 2009, total interest income increased by $16.8
million, or 23.5%, to $88.4&nbsp;million, from $71.6&nbsp;million for the year ended June&nbsp;30, 2008. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $17.1
million, or 31.1%, to $72.2&nbsp;million for the year ended June&nbsp;30, 2009, from $55.1&nbsp;million for the
year ended June&nbsp;30, 2008. The average balance of loans, net increased $323.2&nbsp;million while the
yield on the portfolio decreased 31 basis points. The yield on the portfolio in 2009 was
negatively impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest
in nonaccrual loans), the yield remained stable. Interest on federal funds sold and short term
investments decreased by $1.6&nbsp;million to $73,000 for the year ended June&nbsp;30, 2009, from $1.7
million for the year ended June&nbsp;30, 2008. The decrease is related to a $20.3&nbsp;million decrease in
the average balance and a decrease in yield of 347 basis points. The Federal Open Market Committee
has significantly decreased the federal funds target rate over the period. While the Company seeks
to prudently deploy cash inflows as quickly as possible, the significant growth in deposits has
increased liquidity above an optimal level. Our primary asset investment had been loans. However,
for this period, deposit growth outpaced loan growth. Excess cash flows were initially invested
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in MBS AFS. Over the course of the year, as the risk/reward profiles of the investment options
changed, and our current and projected cash needs changed, the primary investment vehicle for the
excess cash became securities AFS. Interest on MBS AFS increased by $2.3&nbsp;million to $7.0&nbsp;million
for the year ended June&nbsp;30, 2009, from $4.7&nbsp;million for the year ended June&nbsp;30, 2008. The average
balance increased $54.7&nbsp;million while the yield decreased 34 basis points. Interest on the other
investment related captions of securities HTM, securities AFS and MBS HTM decreased by $972,000, or
9.6%, to $9.2&nbsp;million for the year ended June&nbsp;30, 2009, from $10.1&nbsp;million for the year ended June
30, 2008. The decrease was primarily due to a decrease in the combined average balance of $10.8
million and a decreased yield.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Expense. </I></B>Total interest expense increased by $7.3&nbsp;million, or 19.6%, to $44.5&nbsp;million for
the year ended June&nbsp;30, 2009, from $37.2&nbsp;million for the year ended June&nbsp;30, 2008. The vast
majority of the increase was due to borrowings as interest expense on deposits increased by
$397,000 while interest expense on borrowings increased by $6.9&nbsp;million. The average balance of
deposits increased 27.0% to $880.8&nbsp;million for the year ended June&nbsp;30, 2009 from $693.3&nbsp;million for
the year ended June&nbsp;30, 2008. The cost of deposits decreased to 2.75% for the year ended June&nbsp;30,
2009 from 3.44% for the year ended June&nbsp;30, 2008. The average balance of borrowings increased to
$505.6&nbsp;million for the year ended June&nbsp;30, 2009 from $310.2&nbsp;million for the year ended June&nbsp;30,
2008. The cost of borrowings decreased to 4.00% for the year ended June&nbsp;30, 2009 from 4.30% for the
year ended June&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Income. </I></B>Net interest income increased by $9.5&nbsp;million, or 27.8%, to $43.9&nbsp;million for
the year ended June&nbsp;30, 2009, from $34.4&nbsp;million for the year ended June&nbsp;30, 2008. Our net
interest income and net interest rate spread were both negatively impacted for the year ended June
30, 2009 due to the reversal of accrued interest income on loans delinquent more than 90&nbsp;days. The
total of such income reversed was $3.7&nbsp;million for the year ended June&nbsp;30, 2009 compared to
$521,000 for the year ended June&nbsp;30, 2008. Our net interest rate spreads for the years ended June
30, 2009 and June&nbsp;30, 2008 were 2.36% and 2.06%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Provision for Loan Losses. </I></B>We recorded provisions for loan losses of $9.9&nbsp;million for the year
ended June&nbsp;30, 2009 as compared to $4.7&nbsp;million for the year ended June&nbsp;30, 2008. We charged off a
total of $2.7&nbsp;million in loans during the year ended June&nbsp;30, 2009 related to losses deemed
probable. There were no recoveries in any of the periods. Our allowance for loan losses is
analyzed quarterly and many factors are considered. As in prior periods, loan growth was a
component of the provision for loan losses in the 2009 periods. The delinquency and nonaccrual
totals, however, were the primary contributors to the increased level of provision for loan losses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Delinquency information is provided below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Delinquency Totals</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30 - 59&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60 - 89&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">594</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Income</I></B><I>. </I>Other income decreased by $2.2&nbsp;million to $2.8&nbsp;million for the year ended June
30, 2009, from $4.9&nbsp;million for the year ended June&nbsp;30, 2008, primarily due to impairment charges
during the 2009 fiscal year and gain on sale of assets recognized during the 2008 fiscal year. Net
gain on sale of assets decreased $1.1&nbsp;million for the year ended June&nbsp;30, 2009, due to the sale of
a multi-family property that had been held and operated as a real estate investment during fiscal
2008. Writedowns due to investment impairments increased by $1.0&nbsp;million to $2.0&nbsp;million for the
year ended June&nbsp;30, 2009, from $1.0&nbsp;million
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for the year ended June&nbsp;30, 2008. The writedowns in the 2009 period primarily pertain to
impairment charges recorded in relation to equity securities in our AFS portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Expenses. </I></B>Other expenses increased by $7.8&nbsp;million, or 39.8%, to $27.3&nbsp;million for the year
ended June&nbsp;30, 2009, from $19.5&nbsp;million for the year ended June&nbsp;30, 2008. Compensation, payroll
taxes and fringe benefits increased by $4.7&nbsp;million to $18.7&nbsp;million for the year ended June&nbsp;30,
2009, from $13.9&nbsp;million for the year ended June&nbsp;30, 2008. In May&nbsp;2008, stock and options grants
that had been approved in our 2008 Equity Incentive Plan were awarded. The amortization of the
cost of this plan began in May&nbsp;2008. The increase in the amortization of the costs of Equity
Incentive Plan costs are greater as an entire 12&nbsp;months worth of expense is included in the 2009
period. Such expenses totaled $3.8&nbsp;million for the year ended June&nbsp;30, 2009, versus $610,000 for
the year ended June&nbsp;30, 2008. Compensation costs increased $1.0&nbsp;million primarily due to increased
personnel to assist with implementing the organic growth strategy. Another significant component
of the increase was FDIC insurance premiums increasing $1.7&nbsp;million to $1.8&nbsp;million for the year
ended June&nbsp;30, 2009, versus $92,000 for the year ended June&nbsp;30, 2008. Other significant factors
contributing to the 2009 increase were an increase of $493,000 in office occupancy expense
primarily due to cost associated with the branch openings in October&nbsp;2008 and an increase of
$668,000 in other expense primarily due to expenses associated with problem loans, such as legal
costs related to foreclosure actions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Taxes. </I></B>For the year ended June&nbsp;30, 2009, income tax expense of $4.0&nbsp;million was recognized
against pre-tax income of $9.6&nbsp;million. For the year ended June&nbsp;30, 2008, income tax expense of
$6.2&nbsp;million was recognized against pre-tax income of $15.2&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Operating Results for the Years Ended June&nbsp;30, 2008 and June&nbsp;30, 2007</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income</I></B>. Net income decreased $2.1&nbsp;million, or 18.8%, to $9.0&nbsp;million for the year ended June
30, 2008, versus $11.0&nbsp;million for the corresponding 2007 period. There were several atypical
items that affected the Company&#146;s results of operations in both periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The items primarily impacting the twelve month period ended June&nbsp;30, 2008 were provision for loan
losses totaling $4.7&nbsp;million, a pre-tax charge of $998,000 as a result of an other than temporary
impairment in the value of investment securities available for sale, and a $1.1&nbsp;million gain on the
sale of a real estate held for investment property. The items primarily impacting the twelve month
period ended June&nbsp;30, 2007 were the reversal of a $3.2&nbsp;million valuation allowance related to
certain New Jersey State deferred tax assets, the reinvestment of the proceeds related to the stock
subscription offering, a gain of $514,000 regarding the sale of our former headquarters, and a $9.1
million pre-tax charitable contribution to the OritaniBank Charitable Foundation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Income</I></B>. For the year ended June&nbsp;30, 2008, total interest income increased by $8.2
million, or 13.0%, to $71.6&nbsp;million, from $63.3&nbsp;million for the year ended June&nbsp;30, 2007. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $10.8
million, or 24.3%, to $55.1&nbsp;million for the year ended June&nbsp;30, 2008, from $44.3&nbsp;million for the
year ended June&nbsp;30, 2007. The average balance of loans, net increased $164.3&nbsp;million and the yield
on the portfolio increased 3 basis points. The yield on the portfolio in 2008 was negatively
impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest in
nonaccrual loans), the yield increased 10 basis points. Interest on federal funds sold and short
term investments decreased by $5.1&nbsp;million to $1.7&nbsp;million for the year ended June&nbsp;30, 2008, from
$6.8&nbsp;million for the year ended June&nbsp;30, 2007. The decrease is related to an $81.9&nbsp;million
decrease in the average balance and a decrease in yield of 162 basis points. The federal funds
rate decreased over the year from 5.25% at June&nbsp;30, 2007 to 2.00% at June&nbsp;30, 2008. Partially due
to this decreased return, we shifted liquid assets into longer term assets. Interest on MBS AFS
increased by $3.9&nbsp;million to $4.7&nbsp;million for the year ended June&nbsp;30, 2008, from $813,000 for the
year ended June
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">30, 2007. The average balance increased $74.9&nbsp;million and the yield increased 14 basis points.
Interest on the other investment related captions of securities HTM, securities AFS and MBS HTM
decreased by $1.3&nbsp;million, or 11.3%, to $10.1&nbsp;million for the year ended June&nbsp;30, 2008, from $11.4
million for the year ended June&nbsp;30, 2007. The decrease was primarily due to a decrease in the
combined average balance of $34.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Expense. </I></B>Total interest expense increased by $4.4&nbsp;million, or 13.3%, to $37.2&nbsp;million for
the year ended June&nbsp;30, 2008, from $32.8&nbsp;million for the year ended June&nbsp;30, 2007. Interest
expense on deposits and stock subscription proceeds was relatively stable, increasing by $183,000
in fiscal 2008 versus fiscal 2007. Results for the 2007 period were enhanced by the lower rate of
interest paid on stock subscription proceeds. The average balance of deposits decreased $51.5
million and the cost increased 26 basis points. Interest expense on borrowings increased by $4.2
million to $13.3&nbsp;million for the year ended June&nbsp;30, 2008, from $9.1&nbsp;million for the year ended
June&nbsp;30, 2007. The average balance of borrowings increased by $99.6&nbsp;million over the period while
the cost decreased 4 basis points.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Income. </I></B>Net interest income increased by $3.9&nbsp;million, or 12.7%, to $34.4&nbsp;million for
the year ended June&nbsp;30, 2008, from $30.5&nbsp;million for the year ended June&nbsp;30, 2007. Our net
interest income and net interest rate spread were both negatively impacted in the three month
period ended June&nbsp;30, 2008 due to the reversal of accrued interest income on loans delinquent more
than 90&nbsp;days. Our net interest rate spreads for the years ended June&nbsp;30, 2008 and June&nbsp;30, 2007
were 2.06% and 2.23%, respectively. Our net interest rate margins for the years ended June&nbsp;30,
2008 and June&nbsp;30, 2007 were 2.77% and 2.73%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Provision for Loan Losses. </I></B>We recorded provisions for loan losses of $4.7&nbsp;million for the year
ended June&nbsp;30, 2008 as compared to $1.2&nbsp;million for the year ended June&nbsp;30, 2007. There were no
recoveries or charge-offs in either period. A significant component of the increased 2008
provisions was loan growth during the periods. Loans, net increased $248.5&nbsp;million during the year
ended June&nbsp;30, 2008, as compared to growth of $115.5&nbsp;million during the year ended June&nbsp;30, 2007.
Another significant component of the increased 2008 provisions was increased delinquent and
impaired loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Delinquency information is provided below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Delinquency
Totals</B></div>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30 - 59&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60 - 89&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">594</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Income</I></B><I>. </I>Other income decreased by $373,000, or 7.0%, to $4.9&nbsp;million for the year ended
June&nbsp;30, 2008, from $5.3&nbsp;million for the year ended June&nbsp;30, 2007. Net gain on sale of assets
increased by $582,000 to $1.1&nbsp;million for the year ended June&nbsp;30, 2008, from $514,000 for the year
ended June&nbsp;30, 2007. The 2008 total is due to a $1.1&nbsp;million gain on the sale of a multi-family
property that had been held and operated as a real estate investment. The 2007 gain pertains to
the sale of our former headquarters in Hackensack, New Jersey. Writedowns due to investment
impairments totaled $998,000 for the year ended June&nbsp;30, 2008. The writedowns consisted of a
$646,000 impairment charge taken on Oritani Bank&#146;s investment in a mutual fund investment as well
as a $352,000 impairment charge related to equity securities that we recorded in the March&nbsp;31, 2008
period. There were no impairment charges taken in 2007. The mutual fund invests primarily in
agency and private label MBS. The market values of the fund&#146;s holdings have been steadily
decreasing which has caused a corresponding decrease in the fund&#146;s net asset value. Oritani Bank
has a $7.8&nbsp;million investment remaining in this asset. The &#147;other&#148; caption within other income
decreased by $257,000 to $146,000 for the year ended June&nbsp;30, 2008, from
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->63<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$403,000 for the year ended June&nbsp;30, 2007. The decrease in this caption was primarily due to float
earnings on the oversubscription funds returned to subscribers that was realized in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Expenses. </I></B>Other expenses decreased by $5.8&nbsp;million to $19.5&nbsp;million for the year ended June
30, 2008, from $25.2&nbsp;million for the year ended June&nbsp;30, 2007. The primary reason for the decrease
was the $9.1&nbsp;million contribution to the OritaniBank Charitable Foundation in the 2007 period.
Compensation, payroll taxes and fringe benefits increased by $2.7&nbsp;million, or 24.2%, to $13.9
million for the year ended June&nbsp;30, 2008, from $11.2&nbsp;million for the year ended June&nbsp;30, 2007. In
May&nbsp;2008, stock and options grants that had been approved in our 2007 Equity Incentive Plan were
awarded. The amortization of the cost of this plan began in May&nbsp;2008 and totaled $610,000 for the
year ended June&nbsp;30, 2008. Employee stock ownership plan-related expenses increased $758,000 to
$1.4&nbsp;million for the year ended June&nbsp;30, 2008 from $607,000 for the twelve months June&nbsp;30, 2007.
Expenses for the 2007 period were reduced due to a $492,000 refund of a prior period pension
contribution. Other significant factors contributing to the 2008 increase (versus 2007) were an
increase in Director related costs of $218,000; payroll tax expenses of $103,000 and employee
health insurance expenses of $120,000. The balance of the increase is due to increased
compensation costs as we have increased personnel to assist with implementing the organic growth
strategy. Insurance, Legal, Audit and Accounting expenses increased by $477,000 to $1.3&nbsp;million
for the year ended June&nbsp;30, 2008, from $779,000 for the year ended June&nbsp;30, 2007. The increase is
primarily related to increased external auditing fees and costs associated with implementation and
compliance with Section&nbsp;404 of the Sarbanes-Oxley Act of 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Taxes. </I></B>For the year ended June&nbsp;30, 2008, income tax expense of $6.2&nbsp;million was recognized
against pre-tax income of $15.2&nbsp;million. For the year ended June&nbsp;30, 2007, income tax benefit of
$1.7&nbsp;million was recognized against pre-tax income of $9.4&nbsp;million. The tax benefit was due to the
$3.2&nbsp;million valuation allowance reversal as well as a decreased effective tax rate. The
contribution to OritaniBank Charitable Foundation resulted in a decrease in the effective tax rate
for 2007.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->64<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Average Balances and Yields. </I></B>The following tables set forth average balance sheets, average yields
and costs, and certain other information for the periods indicated. No tax-equivalent yield
adjustments were made, as the effect thereof was not material. All average balances are daily
average balances. Non-accrual loans were included in the computation of average balances, but have
been reflected in the table as loans carrying a zero yield. The yields set forth below include the
effect of deferred fees, discounts and premiums that are amortized or accreted to interest income
or expense.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>For the Six Months Ended (unaudited)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Earned/Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Earned/Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,336,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,123,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,892,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,480,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.75</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,978,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,557,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,313</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470,220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,187,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">502,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,695,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,263,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,734,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,295,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,978,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,557,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest-earning assets<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">216,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.90</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average of interest-earning assets to interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">111.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.16</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes nonaccrual loans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes FHLB Stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest rate spread represents the difference between the yield on average
interest-earning assets and the cost of average interest-bearing liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest-earning assets represents total interest-earning assets less total
interest-bearing liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest margin represents net interest income divided by average total interest-earning
assets.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->65<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,181,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">858,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">693,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.38</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,484</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,587,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,240,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,117,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.67</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,671,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,310,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,180,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">151,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">211,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.46</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">425,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">880,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">505,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,386,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,003,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">955,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,419,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,030,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978,703</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">252,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities and Stockholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,671,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,310,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,180,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest-earning assets<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">236,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">162,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.73</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of interest-earning assets to interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">114.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">123.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes nonaccrual loans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest rate spread represents the difference between the weighted-average yield on
interest-earning assets and the weighted- average cost of interest-bearing liabilities for the
period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest-earning assets represents total interest-earning assets less interest-bearing
liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest margin represents net interest income as a percent of average interest-earning
assets for the period.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->66<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Rate/Volume Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the effects of changing rates and volumes on our net interest
income for the periods indicated. The rate column shows the effects attributable to changes in
rate (changes in rate multiplied by prior volume). The volume column shows the effects
attributable to changes in volume (changes in volume multiplied by prior rate). The total increase
(decrease)&nbsp;column represents the sum of the prior columns. For purposes of this table, changes
attributable to both rate and volume which can not be segregated have been allocated to volume.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Six Months Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009 vs. 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009 vs. 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008 vs. 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase (Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase (Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase (Decrease) Due</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Due to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Due to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,582</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,625</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,938</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(892</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,027</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(179</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(229</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(80</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(74</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(784</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(171</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(955</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(491</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,897</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(985</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(129</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,114</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,911</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,794</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,068</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,066</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(98</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(763</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(868</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,631</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,406</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(732</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,138</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,335</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,988</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(574</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(406</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(394</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(101</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(347</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(448</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(883</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(666</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Money market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(1,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(951</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(184</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,876</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,972</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(208</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,911</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,501</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(494</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,508</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,471</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,009</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,379</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,120</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,863</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->67<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management of Market Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B>. The majority of our assets and liabilities are monetary in nature. Consequently,
our most significant form of market risk is interest rate risk. Our assets, consisting primarily
of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits.
As a result, a principal part of our business strategy is to manage interest rate risk and reduce
the exposure of our net interest income to changes in market interest rates. Accordingly, our
Board of Directors has the authority and responsibility for managing interest rate risk. Oritani
Bank has established an Asset/Liability Management Committee, comprised of various members of its
senior management, which is responsible for evaluating the interest rate risk inherent in our
assets and liabilities, for recommending to the Board of Directors the level of risk that is
appropriate, given our business strategy, operating environment, capital, liquidity and performance
objectives, and for managing this risk consistent with the guidelines approved by the Board of
Directors. The Asset/Liability Management Committee reports its activities to the Board of
Directors on a monthly basis. An interest rate risk analysis is presented to the Board of
Directors on a quarterly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have sought to manage our interest rate risk in order to minimize the exposure of our
earnings and capital to changes in interest rates. As part of our ongoing asset-liability
management, we currently use the following strategies to manage our interest rate risk:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>originating multi-family and commercial real estate loans that generally tend
to have shorter interest duration and generally reset at five years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investing in shorter duration securities and mortgage-backed securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtaining general financing through FHLB advances with either a fixed long
term or with call options that are considered unlikely.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shortening the average maturity of our interest-earning assets by increasing our investments
in shorter-term loans and securities, as well as loans and securities with variable rates of
interest, helps to better match the maturities and interest rates of our assets and liabilities,
thereby reducing the exposure of our net interest income to changes in market interest rates. By
following these strategies, we believe that we are well-positioned to react to increases in market
interest rates. However, in conjunction with the growth of our net interest spread, and net
interest income, we recognize that our interest rate risk has increased. We accept the current
level of interest rate risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Net Portfolio Value</I></B><B>. </B>We compute the amounts by which our net present value of cash flow from
assets, liabilities and off balance sheet items (the institution&#146;s net portfolio value or &#147;NPV&#148;)
would change in the event of a range of assumed changes in market interest rates. A basis point
equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in
interest rates from 3% to 4.0% would mean, for example, a 100 basis point increase in the &#147;Change
in Interest Rates&#148; column below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth, as of December&nbsp;31, 2009, the estimated changes in our net
portfolio value that would result from the designated instantaneous changes in the United States
Treasury yield curve. Computations of prospective effects of hypothetical interest rate changes
are based on numerous assumptions, including relative levels of market interest rates and loan
prepayment and deposit decay rates, and should not be relied upon as indicative of actual results.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>NPV as a Percentage of Present</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Estimated Increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Value of Assets (3)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Decrease) in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Change in Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>NPV</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Rates (basis points) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>NPV (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>NPV Ratio (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(basis points)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#043;200</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53,593</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20.86</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(209</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">0</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">-100</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes an instantaneous uniform change in interest rates at all maturities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>NPV is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet contracts.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Present value of assets represents the discounted present value of incoming
cash flows on interest-earning assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>NPV Ratio represents NPV divided by the present value of assets.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table above indicates that at December&nbsp;31, 2009 in the event of a 100 basis point
decrease in interest rates, we would experience a 8.5% increase in net portfolio value. In the
event of a 200 basis point increase in interest rates, we would experience a 20.9% decrease in net
portfolio value. These changes in net portfolio value are within the limitations established in
our asset and liability management policies. This data does not reflect any future actions we may
take in response to changes in interest rates, such as changing the mix of our assets and
liabilities, which could change the results of the NPV and net interest income calculations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain shortcomings are inherent in the methodology used in the above interest rate risk
measurement. Modeling changes in net portfolio value require making certain assumptions that may
or may not reflect the manner in which actual yields and costs respond to changes in market
interest rates. In this regard, the net portfolio value table presented assumes that the
composition of our interest-sensitive assets and liabilities existing at the beginning of a period
remains constant over the period being measured and assumes that a particular change in interest
rates is reflected uniformly across the yield curve regardless of the duration or repricing of
specific assets and liabilities. Accordingly, although the net portfolio value table provides an
indication of our interest rate risk exposure at a particular point in time, such measurements are
not intended to and do not provide a precise forecast of the effect of changes in market interest
rates on our net interest income and will differ from actual results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Liquidity and Capital Resources</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity is the ability to meet current and future financial obligations of a short-term
nature. Our primary sources of funds consist of deposit inflows, loan and mortgage-backed security
repayments, maturities and sales of securities and FHLB borrowings. While maturities and scheduled
amortization of loans and securities are predictable sources of funds, deposit flows and mortgage
prepayments are greatly influenced by general interest rates, economic conditions and competition.
Our Asset/Liability Management Committee is responsible for establishing and monitoring our
liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting
the borrowing needs of our customers as well as unanticipated contingencies. Our Asset/Liability
Management Committee focuses on our level of liquid assets as well as our borrowing capacity with
the FHLB. Funds can be obtained from the FHLB on a same day basis, significantly reducing the need
to maintain excess liquid assets to address liquidity concerns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We regularly adjust our investments in liquid assets based upon our assessment of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected loan demand;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected deposit flows;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected payments from the loan and investment portfolios;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>funds available through borrowings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>yields available on interest-earning deposits and securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>yields and structures available on alternate investments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the objectives of our asset/liability management program</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess liquid assets are invested generally in interest-earning deposits and short- and
intermediate-term securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent
on our operating, financing, lending and investing activities during any given period. At December
31, 2009, cash and cash equivalents totaled $26.3&nbsp;million. Securities and mortgage-backed
securities classified as available for sale, which provide additional sources of liquidity, totaled
$419.0&nbsp;million at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our cash flows are derived from operating activities, investing activities and financing
activities as reported in our Consolidated Statements of Cash Flows included in our Consolidated
Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the normal course of business, we routinely enter into various commitments, primarily
relating to the origination of loans. At December&nbsp;31, 2009, outstanding commitments to originate
loans totaled $47.6&nbsp;million and outstanding commitments to extend credit totaled $62.3&nbsp;million. We
expect to have sufficient funds available to meet current commitments in the normal course of
business. Time deposits due within one year of December&nbsp;31, 2009 totaled $583.8&nbsp;million, or 48.2%
of total deposits. If these deposits do not remain with us, we will be required to seek other
sources of funds, including other time deposits and FHLB advances. Depending on market conditions,
we may be required to pay higher rates on such deposits or other borrowings than we currently pay
on the time deposits. We believe, however, based on past experience, that a significant portion of
our time deposits will remain with us. We have the ability to attract and retain deposits by
adjusting the interest rates offered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary investing activity currently is the origination of loans and the purchase of loans
and securities. During the six months ended December&nbsp;31, 2009, we originated $188.4&nbsp;million of
loans, purchased $3.7&nbsp;million of loans and purchased $251.0&nbsp;million of securities. During the year
ended June&nbsp;30, 2009, we originated $412.8&nbsp;million of loans, purchased $37.0&nbsp;million of loans, and
purchased $174.9&nbsp;million of securities. During the year ended June&nbsp;30, 2008, we originated $359.3
million of loans, purchased $11.83&nbsp;million of loans, and purchased $141.8&nbsp;million of securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing activities consist primarily of activity in deposit accounts and FHLB advances. We
experienced a net increase in total deposits of $428.7&nbsp;million and $3.2&nbsp;million for the fiscal
years ended June&nbsp;30, 2009 and 2008, respectively. Deposit flows are affected by the overall level
of interest rates, the interest rates and products offered by us and our local competitors and
other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity management is both a daily and long-term function of business management. If we
require funds beyond our ability to generate them internally, borrowing agreements exist with the
FHLB-NY, which provide an additional source of funds. FHLB advances reflected a net increase of
$75.3&nbsp;million and a net increase of $237.0&nbsp;million during the fiscal years ended June&nbsp;30, 2009 and
2008, respectively. Our total borrowings at December&nbsp;31, 2009, consisted of the $507.1&nbsp;million in
longer term
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">borrowings with the FHLB and minor amounts due to Oritani Financial Corp., MHC. FHLB advances
have primarily been used to fund loan demand and provide longer-term sources of funding. At
December&nbsp;31, 2009, we had a commitment for an overnight line of credit with the FHLB totaling
$200.0&nbsp;million, of which there were no balances. The line of credit is priced at federal funds
rate plus a spread (generally between 20 and 40 basis points) and re-prices daily. At December&nbsp;31,
2009, we also had $45.0&nbsp;million in discount window borrowing capacity through the Federal Reserve
Bank of New York, of which there were no balances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;29, 2009, the FDIC issued a rule pursuant to which all insured depository
institutions would be required to prepay their estimated assessments for the fourth quarter of
2009, and for all of 2010, 2011 and 2012. On December&nbsp;30, 2009, we paid $8.2&nbsp;million in estimated
assessments, of which $7.6&nbsp;million is prepaid for the 2010, 2011and 2012 assessment periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is subject to various regulatory capital requirements, including a risk-based
capital measure. The risk-based capital guidelines include both a definition of capital and a
framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance
sheet items to broad risk categories. As of December&nbsp;31, 2009, Oritani Bank exceeded all regulatory
capital requirements as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Required</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to average assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;14, 2008, the United States Department of the Treasury announced a voluntary
Capital Purchase Program under the Troubled Asset Relief Program to encourage U.S. financial
institutions to build capital and increase financing. We are not participating in this program.
We currently support very strong capital ratios and capital levels have not been, and are not
anticipated to be, a hindrance on our ability to lend. The United States Department of the
Treasury and the FDIC have also announced an insurance guarantee program, whereby all funds in
non-interest bearing transaction deposit account, regardless of their balance, would be covered by
FDIC insurance through June&nbsp;30, 2010. Oritani Bank is a participant in this program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Off-Balance Sheet Arrangements and Aggregate Contractual Obligations</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Commitments. </I></B>As a financial services provider, we routinely are a party to various financial
instruments with off-balance-sheet risks, such as commitments to extend credit, standby letters of
credit and unused lines of credit. While these contractual obligations represent our future cash
requirements, a significant portion of commitments to extend credit may expire without being drawn
upon. Such commitments are subject to the same credit policies and approval process accorded to
loans we make. We consider commitments to extend credit in determining our allowance for loan
losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Contractual Obligations. </I></B>In the ordinary course of our operations, we enter into certain
contractual obligations. Such obligations include operating leases for premises and equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes our significant fixed and determinable contractual obligations
and other funding needs by payment date at December&nbsp;31, 2009. The payment amounts represent those
amounts due to the recipient and do not include any unamortized premiums or discounts or other
similar carrying amount adjustments.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->71<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Payments Due by Period</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>More than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Contractual Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One to Three Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Three to Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">131,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">509,019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to extend credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">49,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,588</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unadvanced construction loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unused lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,673</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to purchase securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes our significant fixed and determinable contractual
obligations and other funding needs by payment date at June&nbsp;30, 2009. The payment amounts
represent those amounts due to the recipient and do not include any unamortized premiums or
discounts or other similar carrying amount adjustments.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Payments Due by Period</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>More than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Contractual Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One to Three Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Three to Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="16"><B>(In thousands)</B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">330,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,725</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">330,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to extend credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,729</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unadvanced construction loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,708</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unused lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to purchase securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Impact of Inflation and Changing Prices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our consolidated financial statements and related notes have been prepared in accordance with
U.S. Generally Accepted Accounting Principles (&#147;GAAP&#148;). GAAP generally requires the measurement of
financial position and operating results in terms of historical dollars without consideration for
changes in the relative purchasing power of money over time due to inflation. The impact of
inflation is reflected in the increased cost of our operations. Unlike industrial companies, our
assets and liabilities are primarily monetary in nature. As a result, changes in market interest
rates have a greater impact on performance than the effects of inflation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->72<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="611"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Financial Corp., MHC</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC is a federally chartered mutual holding company and currently
owns 74.4% of the outstanding shares of common stock of Oritani Financial Corp. Oritani Financial
Corp., MHC has not engaged in any significant business activity other than owning the common stock
of Oritani Financial Corp., and does not intend to expand its business activities. So long as
Oritani Financial Corp., MHC exists, it is required to own a majority of the voting stock of
Oritani Financial Corp. The executive office of Oritani Financial Corp., MHC, is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp., MHC is subject to comprehensive regulation and examination by
the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Financial Corp.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is the federally chartered mid-tier stock holding company of Oritani
Bank. Oritani Financial Corp. owns 100% of the outstanding shares of common stock of Oritani Bank.
Since being formed in 1998, Oritani Financial Corp. has engaged primarily in the business of
holding the common stock of Oritani Bank as well as two limited liability companies that own a
variety of real estate investments. Oritani Financial Corp.&#146;s executive office is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp. is subject to comprehensive regulation and examination by the
OTS. At December&nbsp;31, 2009, Oritani Financial Corp. had consolidated assets of $2.01&nbsp;billion,
consolidated deposits of $1.21&nbsp;billion and consolidated stockholders&#146; equity of $248.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Bank</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>General</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is a New Jersey-chartered savings bank headquartered in the Township of
Washington, New Jersey. Oritani Bank was originally founded in 1911, as a New Jersey building and
loan association. Over the years, Oritani Bank has expanded primarily through internal growth. In
1997, Oritani Bank converted to a mutual savings bank charter, and in March&nbsp;1998, reorganized into
the two-tier mutual holding company structure. Oritani Bank conducts business from its main office
located at 370 Pascack Road, in the Township of Washington, New Jersey 07676, and its 21 branch
offices located in the New Jersey counties of Bergen, Hudson and Passaic. The telephone number at
its main office is (201)&nbsp;664-5400. Oritani Bank was formerly known as Oritani Savings Bank.
Effective September&nbsp;8, 2008, the name was changed to Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal business consists of attracting retail and commercial bank deposits from the
general public in the areas surrounding our main office in the Township of Washington, New Jersey
and our branch offices located in the New Jersey counties of Bergen (16 branches, including our
main office), Hudson (five branches) and Passaic (one branch), and investing those deposits,
together with funds generated from operations, in multi-family and commercial real estate loans,
one- to four-family residential mortgage loans as well as in second mortgage and equity loans,
construction loans, business loans, other consumer loans, and investment securities. We originate
loans primarily for investment and hold such loans in our portfolio. Occasionally, we will also
enter into loan participations. Our revenues are derived principally from interest on loans and
securities as well as our investments in real estate and real estate joint ventures. We also
generate revenues from fees and service charges and other income.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->73<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our primary sources of funds are deposits, borrowings and principal and interest payments on
loans and securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our website address is <U>www.oritani.com</U>. Information on our website should not be
considered a part of this report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Area</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From our headquarters in the Township of Washington, New Jersey, we operate 22 full service
branches, including our main office. We operate branches in three separate counties of New Jersey:
Bergen, Hudson and Passaic. The majority of our branches (sixteen)&nbsp;and deposits are located in
Bergen County. In addition, we operate five branches in Hudson County and one branch in Passaic
County. Our market area for lending is broader and includes the state of New Jersey, the broader
New York metropolitan area, eastern Pennsylvania, and southern Connecticut.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In terms of population, Bergen County ranks as the largest county in New Jersey (out of
twenty-one counties) while Hudson County ranks fifth and Passaic County ranks ninth. The economy
in our primary market area has benefited from being varied and diverse. It is largely urban and
suburban with a broad economic base. As one of the wealthiest states in the nation, New Jersey,
with a population of 8.7&nbsp;million, is considered one of the most attractive banking markets in the
United States. As of December, 2009 the unemployment rate for New Jersey increased to 10.1% which
was slightly higher than the national rate of 10.0%. Despite the recent downturn, a total of 3.9
million New Jersey residents remain employed as of December&nbsp;2009. Bergen County is considered part
of the New York metropolitan area. Its county seat is Hackensack. Bergen County ranks 16th among
the highest-income counties in the United States in 2009 in terms of per-capita income. Some of
Bergen County&#146;s major employers are: Hackensack University Medical Center; New Jersey Sports and
Expo Authority; Merck-Medco Managed Care; AT&#038;T Wireless Services, Inc.; Becton Dickinson &#038; Company;
Mellon Investor Services; Marcal Paper Mills; Mercedes-Benz of North America, Inc.; KPMG, LLP and
United States Postal Service. See &#147;Risk Factors &#151; Current Market and Economic Conditions May
Significantly Affect Our Operations and Financial Condition.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bergen County is bordered by Rockland County, New York to the north, the Hudson River to the
east, Hudson County to the south, a small border with Essex County also to the south and Passaic
County to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Passaic County is bordered by Orange County, New York to the north, Rockland County, New York
to the northeast, Bergen County to the east, Essex County to the south, Morris County to the
southwest and Sussex County to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hudson County&#146;s only land border is with Bergen County to the north and west. It is bordered
by the Hudson River and Upper New York Bay to the east; Kill van Kull (which connects Newark Bay
with Upper New York Bay) to the south and Newark Bay and the Hackensack River or the Passaic River
to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Competition</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face intense competition within our market area both in making loans and attracting
deposits. Our market area has a high concentration of financial institutions including large money
center and regional banks, community banks and credit unions. Some of our competitors offer
products and services that we currently do not offer, such as trust services and private banking.
As of June&nbsp;30, 2009, the latest
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->74<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">date for which statistics are available, our market share of deposits was approximately 2.6%
in Bergen County, and less than 1.0% in each of Hudson and Passaic Counties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our competition for loans and deposits comes principally from locally owned and out-of-state
commercial banks, savings institutions, mortgage banking firms, insurance companies and credit
unions. We face additional competition for deposits from short-term money market funds, brokerage
firms, mutual funds and insurance companies. Our primary focus is to build and develop profitable
customer relationships across all lines of business while maintaining our role as a community bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Lending Activities</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal lending activity is the origination of multi-family loans and commercial real
estate loans as well as residential real estate mortgage loans and construction loans secured by
property located primarily in our market area. Our multi-family loans consist primarily of
mortgage loans secured by apartment buildings. Our commercial real estate loans consist primarily
of mortgage loans secured by commercial offices, retail space, warehouses and mixed-use buildings.
Our residential real estate mortgage loans consist of one- to four-family residential real property
and consumer loans. Construction loans consist primarily of one- to four-family development,
condominiums and commercial development projects. We significantly curtailed construction lending
in 2009 due to current market and economic conditions and expect to maintain this posture for the
foreseeable future. Construction loans are now only approved on an exception basis and are subject
to arduous underwriting requirements. Second mortgage and equity loans consist primarily of home
equity loans and home equity lines of credit. Commercial real estate loans represented $628.5
million, or 45.5%, of our total loan portfolio at December&nbsp;31, 2009. Multi-family loans represented
$296.3&nbsp;million, or 21.4%, of our total loan portfolio at December&nbsp;31, 2009. One- to four-family
residential real estate mortgage loans represented $260.1&nbsp;million, or 18.8%, of our total loan
portfolio at December&nbsp;31, 2009. We also offer second mortgages and equity loans. At December&nbsp;31,
2009, such loans totaled $51.0&nbsp;million, or 3.7%, of our loan portfolio. At December&nbsp;31, 2009,
construction and land loans totaled $124.9&nbsp;million, or 9.0%, of our loan portfolio. At December
31, 2009, other loans, which primarily consist of secured business and to a smaller extent, account
loans, totaled $21.6&nbsp;million, or 1.6%, of our loan portfolio.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->75<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Portfolio Composition. </I></B>The following table sets forth the composition of our loan portfolio,
by type of loan at the dates indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><!-- LANDSCAPE -->
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>

    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"  style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="46"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional one- to four-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">260,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">265,962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">223,087</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">165,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">147,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">562,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">359,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,382,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,302,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,023,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">769,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">652,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">501,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other items:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net deferred loan origination fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">758,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">493,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Portfolio Maturities and Yields. </I></B>The following table summarizes the scheduled
repayments of our loan portfolio at June&nbsp;30, 2009.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>First Mortgage</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Second Mortgage</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Construction and Land</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Other Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 10pt">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due During the
Years Ending June
30,
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">103,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.97</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012 to 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014 to 2018</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2019 to 2023</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2024 and beyond</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">497,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,105,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,302,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->76<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth at June&nbsp;30, 2009 the dollar amount of all fixed- and
adjustable-rate loans that are contractually due after June&nbsp;30, 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Due After June 30, 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fixed</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjustable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">(In thousands)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional one- to four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">219,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">265,937</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556,218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,680</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,309</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,946</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">634,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">549,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,183,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>First Mortgage Loans:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Conventional One- to Four-Family Residential Loans. </I></B>We originate one- to four-family
residential mortgage loans substantially all of which are secured by properties located in our
primary market area. At December&nbsp;31, 2009, $260.1&nbsp;million, or 18.8% of our loan portfolio,
consisted of one- to four-family residential mortgage loans. We generally retain for our portfolio
substantially all of these loans that we originate. One- to four-family mortgage loan originations
are generally obtained from existing or past customers, through advertising, and through referrals
from local builders, real estate brokers, and attorneys and are underwritten pursuant to Oritani
Bank&#146;s policies and standards. In 2008, we began a program where a fee is paid to a broker for a
loan referral that results in an origination or a purchase of a recently closed loan. Generally,
one- to four-family residential mortgage loans are originated in amounts up to 80% of the lesser of
the appraised value or purchase price of the property, with private mortgage insurance required on
loans with a loan-to-value ratio in excess of 80%. We generally will not make loans with a
loan-to-value ratio in excess of 90%. Fixed rate mortgage loans are originated for terms of up to
40&nbsp;years. Generally, fixed rate residential mortgage loans are underwritten according to Freddie
Mac guidelines, policies and procedures, with a maximum origination amount of $2.0&nbsp;million. Our
fixed rate origination volume decreased in calendar 2009. Management felt that the market rates
for such products did not provide adequate compensation for the interest rate risk associated with
the products. Consequently, the pricing of our products were higher than market, causing a
negative impact on origination volumes. This situation is expected to sustain as long as the
market rates for fixed rate residential loans remain at approximately their current levels (or
lower). We do not originate or purchase, and our loan portfolio does not include, any sub-prime
loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also offer adjustable rate mortgage loans for one- to four-family properties, with an
interest rate based on the weekly average yield on U.S. Treasuries adjusted to a constant maturity
of one-year, which adjust either annually or every three years from the outset of the loan or which
adjusts annually after a five-, seven- or ten-year initial fixed rate period. Originations and
purchases of adjustable rate one- to four-family residential loans totaled $27.7&nbsp;million during the
fiscal year ended June&nbsp;30, 2009 as compared to total originations and purchases of $89.9&nbsp;million of
one- to four-family residential loans during the same fiscal year. Our adjustable rate mortgage
loans generally provide for maximum rate adjustments of 2% per adjustment, with a lifetime maximum
adjustment up to 6%, regardless of the initial rate. Our adjustable rate mortgage loans amortize
over terms of up to 30&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustable rate mortgage loans decrease the risk associated with changes in market interest
rates by periodically repricing, but involve other risks because, as interest rates increase, the
underlying payments by the borrower increase, thus increasing the potential for default by the
borrower. At the same time, the marketability of the underlying collateral may be adversely
affected by higher interest rates.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upward adjustment of the contractual interest rate is also limited by the maximum periodic and
lifetime interest rate adjustments permitted by our loan documents and, therefore, the
effectiveness of adjustable rate mortgage loans may be limited during periods of rapidly rising
interest rates. At June&nbsp;30, 2009, $46.2&nbsp;million, or 17.4% of our one- to four-family residential
real estate loans, had adjustable rates of interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an effort to provide financing for first-time homebuyers, we offer our own first-time
homebuyer loan program. This program offers one- to four-family residential mortgage loans to
qualified individuals. These loans are offered with terms and adjustable and fixed rates of
interest similar to our other one- to four-family mortgage loan products. With this program,
borrowers receive a discounted mortgage interest rate and do not pay certain loan origination fees.
Such loans must be secured by an owner-occupied residence. These loans are originated using
similar underwriting guidelines as our other one- to four-family mortgage loans. Such loans are
originated in amounts of up to 90% of the lower of the property&#146;s appraised value or the sale
price. Private mortgage insurance is not required for such loans. The maximum amount of such loan
is $275,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also offer our directors, officers and employees who satisfy certain criteria and our
general underwriting standards fixed or adjustable rate loan products with reduced interest rates.
Employee loans adhere to all other terms and conditions contained in the loan policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All residential mortgage loans that we originate include &#147;due-on-sale&#148; clauses, which give us
the right to declare a loan immediately due and payable in the event that, among other things, the
borrower sells or otherwise disposes of the real property subject to the mortgage and the loan is
not repaid. Regulations limit the amount that a savings bank may lend relative to the appraised
value of the real estate securing the loan, as determined by an appraisal of the property at the
time the loan is originated. All borrowers are required to obtain title insurance for the benefit
of Oritani Bank. We also require homeowner&#146;s insurance and fire and casualty insurance and, where
circumstances warrant, flood insurance on properties securing real estate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Multi-Family and Commercial Real Estate Loans. </I></B>We originate non-residential commercial real
estate mortgage loans and loans on multi-family dwellings. At December&nbsp;31, 2009, $628.5&nbsp;million,
or 45.5% of our loan portfolio, consisted of commercial real estate loans and $296.3&nbsp;million, or
21.4% of our loan portfolio, consisted of multi-family loans. Our commercial real estate mortgage
loans are primarily permanent loans secured by improved property such as mixed-use properties,
office buildings, retail stores and commercial warehouses. Our multi-family mortgage loans are
primarily permanent loans secured by apartment buildings. The typical loan has a fixed rate of
interest for the first five years, after which the loan reprices to a market index plus a spread.
The fixed rate period is occasionally extended to as much as ten years. These loans typically
amortize over 25&nbsp;years and the maximum amortization period is 30&nbsp;years. We also offer such loans
on a self-amortizing basis with fixed rate terms up to 20&nbsp;years. Originations with these terms are
monitored and limited. References to commercial real estate loans below refer to multi-family and
commercial real estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of each loan are tailored to the needs of the borrower and based on
the financial strength of the project and any guarantors. In reaching a decision on whether to
make a commercial real estate loan, we consider the net operating income of the property, the
borrower&#146;s expertise and credit history and the value of the underlying property. Loan to value
ratios are a very important consideration. Generally, however, commercial real estate loans
originated by us will not exceed 80% of the appraised value or the purchase price of the property,
whichever is less. Other factors we consider, with respect to commercial real estate rental
properties, include the term of the lease(s) and the quality of the tenant(s). We generally
require that the properties securing these real estate loans have
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">debt service coverage ratios (the ratio of earnings before debt service to debt service) of at
least 1.2 times. Environmental reports are generally required for commercial real estate loans.
Commercial real estate loans made to corporations, partnerships and other business entities may
require personal guarantees by the principals as warranted. Property inspections are conducted no
less than every three years, or more frequently as warranted. Oritani Bank lending policies allow
lending up to the 80% loan to value level and 1.2 times debt service coverage ratio. Over the
course of 2009, however, we informally reduced our maximum loan to value ratios and increased our
maximum debt service coverage ratio, as well as taking a more conservative approach on other
underwriting issues. We believe these actions have resulted in originations that are more
conservative in nature than Oritani Bank policy allows. We intend to maintain this conservative
posture at least as long as we perceive a heightened economic risk in this type of lending.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A commercial borrower&#146;s financial information is monitored on an ongoing basis by requiring
periodic financial statement updates, payment history reviews and periodic face-to-face meetings
with the borrower. We require commercial borrowers to provide annually updated financial
statements and federal tax returns. These requirements also apply to the individual principals of
our commercial borrowers. We also require borrowers with rental investment property to provide an
annual report of income and expenses for the property, including a tenant list and copies of
leases, as applicable. The largest commercial real estate loan in our portfolio at December&nbsp;31,
2009 was a $21.0&nbsp;million loan located in Ocean County, New Jersey and secured by a shopping mall.
This loan was performing according to its terms at December&nbsp;31, 2009. Our largest commercial real
estate relationship consisted of properties located mainly in our primary market area with a real
estate investor. The aggregate outstanding loan balance for this relationship is $47.6&nbsp;million,
and these loans are all performing in accordance with their terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans secured by commercial real estate, including multi-family properties, generally involve
larger principal amounts and a greater degree of risk than one- to four-family residential mortgage
loans. Because payments on loans secured by commercial real estate are often dependent on
successful operation or management of the properties, repayment of such loans may be affected by
adverse conditions in the real estate market or the economy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Second Mortgage and Equity Loans</I></B>. We also offer second mortgage and equity loans and home
equity of lines of credit, each of which are secured by one- to four-family residences,
substantially all of which are located in our primary market area. At December&nbsp;31, 2009, second
mortgage and equity loans totaled $51.0&nbsp;million, or 3.7% of total loans. Additionally, at December
31, 2009, the unadvanced amounts of home equity lines of credit totaled $17.3&nbsp;million. The
underwriting standards utilized for home equity loans and equity lines of credit include a
determination of the applicant&#146;s credit history, an assessment of the applicant&#146;s ability to meet
existing obligations and payments on the proposed loan and the value of the collateral securing the
loan. The combined (first and second mortgage liens) loan-to-value ratio for home equity loans and
equity lines of credit is generally limited to 80%. Home equity loans are offered with fixed and
adjustable rates of interest and with terms of up to 30&nbsp;years. Our home equity lines of credit
have adjustable rates of interest which are indexed to the prime rate, as reported in <I>The Wall
Street Journal</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity loans entail greater risk than do residential mortgage loans, particularly if they are
secured by an asset that has a superior security interest. In addition, equity loan collections
depend on the borrower&#146;s continuing financial stability, and thus are more likely to be adversely
affected by job loss, divorce, illness or personal bankruptcy.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Construction Loans. </I></B>We originate construction loans for the development of one- to
four-family residential properties located in our primary market area. Residential construction
loans are generally offered to experienced local developers operating in our primary market area
and to individuals for the construction of their personal residences. At December&nbsp;31, 2009,
residential construction loans amounted to $90.5&nbsp;million, or 6.6% of total loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our residential construction loans generally provide for the payment of interest only during
the construction phase, but in no event exceeding 24&nbsp;months. Residential construction loans can be
made with a maximum loan-to-value ratio of 75% of the appraised value of the land and 100% of the
costs associated with the construction. Residential construction loans are generally made on the
same terms as our one- to four-family mortgage loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also make construction loans for commercial development projects. The projects include
multi-family, apartment, retail and office buildings. We generally require that a commitment for
permanent financing be in place prior to closing the construction loan. The maximum loan-to-value
ratio limit applicable to these loans is generally 80%. At December&nbsp;31, 2009, commercial
construction loans totaled $34.4&nbsp;million, or 2.5% of total loans. At December&nbsp;31, 2009, the
largest outstanding commercial construction loan balance was for $13.9&nbsp;million and is secured by a
condominium project. This loan is one of two loans to the same borrower totaling $15.9&nbsp;million
that are classified as non-accrual and considered impaired with a specific reserve of $1.7&nbsp;million
at December&nbsp;31, 2009. Oritani charged off $4.5&nbsp;million of the construction loan as of December&nbsp;31,
2009, as this portion has been determined to be an incurred loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before making a commitment to fund a construction loan, we require an appraisal on the
property by an independent licensed appraiser. We require title insurance and, if applicable, an
environmental survey prior to making a commitment to fund a construction loan. We generally also
review and inspect each property before disbursement of funds during the terms of the construction
loan. Loan proceeds are disbursed after inspection based on the percentage of completion method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and development financing is generally considered to involve a higher degree of
credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a
construction loan depends largely upon the accuracy of the initial estimate of the value of the
property at completion of construction compared to the estimated cost (including interest) of
construction and other assumptions. If the estimate of construction cost proves to be inaccurate,
we may be required to advance funds beyond the amount originally committed in order to protect the
value of the property. Additionally, if the estimate of value proves to be inaccurate, we may be
confronted with a project, when completed, having a value which is insufficient to assure full
repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We chose to reduce our exposure to construction lending in 2009 due to current market and
economic conditions. Construction originations for the year ended June&nbsp;30, 2009 were $45.1
million, compared to $99.2&nbsp;million for the comparable 2008 period. Construction originations for
the six month period ended December&nbsp;31, 2009 were $7.4&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Other Loans. </I></B>Other loans totaled $21.6&nbsp;million, or 1.6% of our total loan portfolio, at
December&nbsp;31, 2009. Other loans primarily consist of business loans secured by cash or other
business assets, account loans, and commercial line of credit loans. Commercial line of credit
loans totaled $3.1&nbsp;million at December&nbsp;31, 2009. In 2009, Oritani decided to limit new line of
credit lending to well-established customers.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Originations, Purchases, Sales, Participations and Servicing of Loans. </I></B>Lending
activities are conducted primarily by our loan personnel operating at our main office. All loans
originated by us are underwritten pursuant to our policies and procedures. We originate both
adjustable rate and fixed rate loans. Our ability to originate fixed or adjustable rate loans is
dependent upon the relative customer demand for such loans, which is affected by the current and
expected future levels of market interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We retain in our portfolio substantially all loans that we originate, although we have
occasionally sold longer-term, fixed-rate one- to four-family residential mortgage loans into the
secondary market. There were no sales of residential mortgage loans in fiscal 2008 or 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occasionally, we will also participate in loans, sometimes as the &#147;lead lender.&#148; Whether we
are the lead lender or not, we underwrite our participation portion of the loan according to our
own underwriting criteria and procedures. At December&nbsp;31, 2009, we had $60.5&nbsp;million in loan
participation interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, we were servicing loans sold in the amount of $9.9&nbsp;million. Loan
servicing includes collecting and remitting loan payments, accounting for principal and interest,
contacting delinquent mortgagors, supervising foreclosures and property dispositions in the event
of unremedied defaults, making certain insurance and tax payments on behalf of the borrowers and
generally administering the loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended December&nbsp;31, 2009, we originated $27.0&nbsp;million of fixed- and
adjustable-rate one- to four-family residential mortgage loans, all of which were retained by us.
The fixed-rate loans retained by us consisted primarily of loans with terms of 30&nbsp;years or less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-performing and Problem Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We commence collection efforts for residential loans (excluding multi-family) when a loan
becomes ten days past due with system generated reminder notices. Subsequent late charges and
delinquent notices are issued and the account is monitored on a regular basis thereafter. Personal,
direct contact with the borrower is attempted early in the collection process as a courtesy
reminder and later to determine the reason for the delinquency and to safeguard our collateral.
When a loan is more than 45&nbsp;days past due, the credit file is reviewed and, if deemed necessary,
information is updated or confirmed and collateral re-evaluated. We make every effort to contact
the borrower and develop a plan of repayment to cure the delinquency. If no repayment plan is in
process and the loan is delinquent at least two payments, the file is referred to counsel for the
commencement of foreclosure or other collection efforts. A very similar process is followed for
non-residential and multi-family loans. However, the direct, personal contact begins earlier in
the process. Contact is attempted as soon as a late charge is incurred. Also, for such loans, a
plan of repayment to cure the delinquency is not necessarily the only remediation process pursued.
In such instances, counsel is consulted and an approach for resolution is determined and
aggressively pursued. A summary report of all loans 30&nbsp;days or more past due is reported to the
Board of Directors. The status of each of these loans is discussed with the Board of Directors on
a monthly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans are placed on non-accrual status when they are more than 90&nbsp;days delinquent. When loans
are placed on a non-accrual status, unpaid accrued interest is fully reversed. Once the
outstanding principal balance is brought current, income is recognized to the extent it is deemed
collectible. If the deficiencies causing the delinquency are resolved, such loans may be placed on
accrual status once all
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">arrearages are resolved. See additional discussion regarding our non-performing assets at
December&nbsp;31, 2009 in &#147;Management Discussion and Analysis of Financial Condition and Results of
Operations.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Non-Performing Assets</I></B><I>. </I>The table below sets forth the amounts and categories of our
non-performing assets at the dates indicated. At each date presented, we had no troubled debt
restructurings (loans for which a portion of interest or principal has been forgiven and loans
modified at interest rates materially less than current market rates).
</DIV>
<DIV align="center">
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>At December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-accrual loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total non-accrual loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans greater than 90&nbsp;days delinquent
and still accruing:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD nowrap align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans 90&nbsp;days and still
accruing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total non-performing loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate owned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-performing assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-performing loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-performing assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Two construction loans totaling $4.2&nbsp;million are less than 60&nbsp;days delinquent at June&nbsp;30,
2009 and are classified as non-accrual.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>One construction loan totaling $335,000 was less than 60&nbsp;days delinquent at June&nbsp;30, 2008 and
was classified as non-accrual.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As noted in the above table, there were nonaccrual loans of $51.9&nbsp;million at December&nbsp;31,
2009, $52.5&nbsp;million at June&nbsp;30, 2009 and $14.2&nbsp;million at June&nbsp;30, 2008. Additional interest
income of $2.1&nbsp;million, $3.6&nbsp;million and $521,000 would have been recorded during the six months
ended December&nbsp;31, 2009 and the years ended June&nbsp;30, 2009 and 2008, respectively, if the loans had
performed in accordance with their original terms.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->82<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Delinquent Loans</I></B>. The following table sets forth our loan delinquencies by type, by
amount and by percentage of type at the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Loans Delinquent For</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>60-89 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>90 Days and Over</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,537</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,652</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,881</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,810</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,664</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,808</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">279</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">352</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->83<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the delinquent loans listed above, we had loans that were delinquent 90
days or more past due as to principal. Such loans had passed their maturity date but continued
making monthly payments, keeping their interest current. All such loans have subsequently been
paid in full or were extended by us, which negated their past due maturity status. These loans
totaled $2.7&nbsp;million, $3.1&nbsp;million, $316,000, and $3.2&nbsp;million at December&nbsp;31, 2009, June&nbsp;30, 2009,
2008 and 2007, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Real Estate Owned</I></B>. Real estate acquired by us as a result of foreclosure or by deed in lieu
of foreclosure is classified as real estate owned until sold. When property is acquired it is
recorded at the lower of cost or fair market value at the date of foreclosure, establishing a new
cost basis. Holding costs and declines in fair value result in charges to expense after
acquisition. At June&nbsp;30, 2009 and 2008, we had no real estate owned. During the six months ended
December&nbsp;31, 2009, Oritani Bank obtained title to a property which secured a $877,000
non-performing loan which had been classified as impaired. The property was written down to
$800,000 upon acquisition and was subsequently written down further to $600,000. The property is
currently being marketed for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Classified Assets. </I></B>Federal regulations provide that loans and other assets of lesser quality
should be classified as &#147;substandard,&#148; &#147;doubtful&#148; or &#147;loss&#148; assets. An asset is considered
&#147;substandard&#148; if it is inadequately protected by the current net worth and paying capacity of the
obligor or of the collateral pledged, if any. &#147;Substandard&#148; assets include those characterized by
the &#147;distinct possibility&#148; that we will sustain &#147;some loss&#148; if the deficiencies are not corrected.
Assets classified as &#147;doubtful&#148; have all of the weaknesses inherent in those classified
&#147;substandard,&#148; with the added characteristic that the weaknesses present make &#147;collection or
liquidation in full,&#148; on the basis of currently existing facts, conditions, and values, &#147;highly
questionable and improbable.&#148; Assets classified as &#147;loss&#148; are those considered &#147;uncollectible&#148; and
of such little value that their continuance as assets without the establishment of a specific loss
reserve is not warranted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to establish general allowances for loan losses for loans classified
substandard or doubtful, as well as for other problem loans. General allowances represent loss
allowances which have been established to recognize the inherent losses associated with lending
activities, but which, unlike specific allowances, have not been allocated to particular problem
assets. When we classify problem assets as &#147;loss,&#148; we are required either to establish a specific
allowance for losses equal to 100% of the amount of the asset so classified or to charge off such
amount. Our determination as to the classification of our assets and the amount of our valuation
allowances is subject to review by the FDIC and the New Jersey Department of Banking and Insurance
which can order the establishment of additional general or specific loss allowances. Such
examinations typically occur annually. Our last examination was as of March&nbsp;31, 2009 by the FDIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the aggregate amounts of our classified assets at the date indicated
for both residential real estate and non-residential real estate loans.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->84<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Classified Assets At</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30"><B>(Dollars in thousands</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Substandard assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">238</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance allocated to total
classified assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The loan portfolio is reviewed on a regular basis to determine whether any loans require
classification in accordance with applicable regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also utilize additional classification for assets that do not meet the definition of any of
the classified assets yet contain an element that warrants a rating that is less than &#147;pass.&#148; We
classify an asset as &#147;special mention&#148; if the asset has a potential weakness that warrants
management&#146;s close attention. While such assets are not impaired, management has concluded that if
the potential weakness in the asset is not addressed, the value of the asset may deteriorate,
adversely affecting the repayment of the asset. Our assets classified as &#147;special mention&#148; totaled
$9.8&nbsp;million, $24.2&nbsp;million, $21.7&nbsp;million and $9.8&nbsp;million at December&nbsp;31, 2009 and June&nbsp;30, 2009,
2008 and 2007, respectively. Effective September&nbsp;30, 2009, we began to also utilize the
classification of &#147;watch&#148; for assets where complete current information has not been procured or a
minor weakness is indicated. Our assets classified as &#147;watch&#148; totaled $9.8&nbsp;million at December&nbsp;31,
2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Impaired Loans</I></B>. In accordance with Statement of Financial Accounting Standards 114 (&#147;FAS
114&#148;), we define an impaired loan as a loan for which it is probable, based on current information,
that we will not collect all amounts due under the contractual terms of the loan agreement. We
generally classify qualifying loans as impaired if they exceed 90&nbsp;days delinquency, as principal
and interest would not be being repaid under the contractual terms in such a situation. Loans we
individually classify as impaired include multi-family, commercial mortgage and construction loans.
Impaired loans are individually assessed to determine that each loan&#146;s carrying value is not in
excess of the fair value of the related collateral or the present value of the expected future cash
flows. If the loan&#146;s carrying value does exceed the fair value, specific reserves are established
to reduce the loan&#146;s carrying value. For classification purposes, impaired loans are typically
classified as substandard. Residential mortgage and consumer loans are deemed smaller balance
homogeneous loans which are evaluated collectively for impairment and are therefore excluded from
the population of impaired loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Allowance for Loan Losses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our allowance for loan losses is maintained at a level necessary to absorb loan losses that
are both probable and reasonably estimable. Management, in determining the allowance for loan
losses, considers the losses inherent in our loan portfolio and changes in the nature and volume of
loan activities, along with the general economic and real estate market conditions. A description
of our methodology in establishing our allowance for loan losses is set forth in the section
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#151;Critical
Accounting Policies&#151;Allowance for Loan Losses.&#148; The allowance for loan losses as of December&nbsp;31,
2009 was maintained at a level that represents management&#146;s best estimate of losses inherent in the
loan portfolio, and such losses were both probable and reasonably estimable. However, this analysis
process is inherently subjective, as it requires
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->85<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">us to make estimates that are susceptible to revisions as more information becomes available.
Although we believe that we have established the allowance at levels to absorb probable and
estimable losses, future additions may be necessary if economic or other conditions in the future
differ from the current environment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, as an integral part of their examination process, the FDIC, OTS, and the New
Jersey Department of Banking and Insurance has authority to periodically review our allowance for
loan losses. Such agencies may require that we recognize additions to the allowance based on their
judgments of information available to them at the time of their examination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Allowance for Loan Losses</I></B><B>. </B>The following table sets forth activity in our allowance for loan
losses for the fiscal years indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>For the Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="26"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,372</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charge-offs:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total charge-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recoveries:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family and commercial
real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (charge-offs) recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,567</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,732</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans
outstanding (annualized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to total
loans at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.54</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.23</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->86<!-- /Folio -->
</DIV>






<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Allocation of Allowance for Loan Losses. </I></B>The following table sets forth the allowance
for loan losses allocated by loan category, the total loan balances by category (including loans
held for sale), and the percent of loans in each category to total loans at the dates indicated.
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.
</DIV>
<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>


    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Loans in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loans in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loans in Each</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Each Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loans in Each</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance for</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loan Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity
loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->87<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in the allowance for loan losses, and related provision, is primarily due to
the large increases in delinquent and impaired loans at December&nbsp;31, 2009. Such loans are
discussed in &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations.&#148; In addition, the continued increase in the multi-family and commercial real estate
loan portfolio was also a factor. These types of loans inherently contain more credit risk than
one- to four-family residential loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors is responsible for adopting our investment policy. The investment
policy is reviewed periodically by management and any changes to the policy are recommended to and
subject to the approval of the Board of Directors. Authority to make investments under the
approved investment policy guidelines is delegated to appropriate officers. While general
investment strategies are developed and authorized by the Board of Directors, the execution of
specific actions primarily rests with Oritani Bank&#146;s President, Chief Financial Officer and
Asset/Liability Committee, which have responsibility for ensuring that the guidelines and
requirements included in the investment policy are followed and that all securities are considered
prudent for investment. Each of our Chief Financial Officer, President and Asset/Liability
Committee have increasing authority to purchase various types of investments; all individual
investment purchases in excess of $20.0&nbsp;million and all daily purchases in excess of $30.0&nbsp;million
must be approved by our Board of Directors. All investment transactions are reviewed and ratified
or approved (as the case may be) at regularly scheduled meetings of the Board of Directors. Any
investment which, subsequent to its purchase, fails to meet the guidelines of the policy is
reported to the Board of Directors at its next meeting where the Board of Directors decides whether
to hold or sell the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Jersey chartered savings banks have authority to invest in various types of assets,
including U.S. Treasury obligations, securities of various federal agencies, mortgage-backed
securities, certain certificates of deposit of insured financial institutions, overnight and
short-term loans to other banks, corporate debt instruments, and Fannie Mae and Freddie Mac equity
securities. Oritani Financial Corp., as a federally chartered mid-tier stock holding company, may
invest in equity securities subject to certain limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investment policy requires that all securities transactions be conducted in a safe and
sound manner. Investment decisions must be based upon a thorough analysis of each security
instrument to determine if its quality and inherent risks fit within Oritani Bank&#146;s overall
asset/liability management objectives, the effect on its risk-based capital measurement and the
prospects for yield and/or appreciation. The investment policy provides that Oritani Bank may
invest in U.S. treasury notes, U.S. and state agency securities, mortgage-backed securities, and
other conservative investment opportunities. Typical investments are currently in U.S. agency
securities and government sponsored mortgage-backed securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment portfolio at December&nbsp;31, 2009, consisted of $311.2&nbsp;million in federal agency
obligations, a $5.4&nbsp;million investment in a mutual fund, $2.1&nbsp;million of corporate debt instruments
and $1.8&nbsp;million in equity securities. We also invest in mortgage-backed securities, all of which
are guaranteed by government sponsored enterprises. At December&nbsp;31, 2009, our mortgage-backed
securities portfolio totaled $184.7&nbsp;million, or 9.2% of total assets, and consisted of $144.1
million in fixed-rate securities and $40.6&nbsp;million in adjustable-rate securities, guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. Securities can be classified as held to maturity or
available for sale at the date of purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>U.S. Government and Federal Agency Obligations. </I></B>At December&nbsp;31, 2009, our U.S. Government and
federal agency securities portfolio totaled $311.2&nbsp;million, all of which was classified as
available for sale.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->88<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Corporate Bonds</I></B>. At December&nbsp;31, 2009, our corporate bond portfolio totaled $2.1&nbsp;million,
which consisted of one security, rated BBB- and was classified as available for sale. The industry
represented by our corporate bond issuer was financial. Although corporate bonds may offer higher
yields than U.S. Treasury or agency securities of comparable duration, corporate bonds also have a
higher risk of default due to possible adverse changes in the credit-worthiness of the issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mutual Funds. </I></B>At December&nbsp;31, 2009, our mutual fund portfolio totaled $5.4&nbsp;million, and was
classified as available for sale. The portfolio consisted of an investment in a mutual fund that
holds adjustable-rate mortgage loans and similar securities. During fiscal 2009, the portfolio was
deemed other-than-temporarily impaired and we recorded a non-cash impairment charge to earnings of
$1.7&nbsp;million for the year ended June&nbsp;30, 2009. No further impairment charges were required on this
investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Equity Securities. </I></B>At December&nbsp;31, 2009, our equity securities portfolio totaled $1.8
million, all of which were classified as available for sale. The portfolio consists of financial
industry common stocks. During fiscal 2009, several of these holdings were deemed
other-than-temporarily impaired and we recorded a non-cash impairment charge to earnings of
$399,000. A further impairment charge totaling $202,000 was recognized regarding these securities
during the quarter ended December&nbsp;31, 2009. Equity securities are not insured or guaranteed
investments and are affected by market interest rates and stock market fluctuations. Such
investments are carried at their fair value and fluctuations in the fair value of such investments,
including temporary declines in value, directly affect our net capital position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mortgage-Backed Securities. </I></B>We purchase mortgage-backed securities primarily insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We invest in mortgage-backed securities to
achieve positive interest rate spreads with minimal administrative expense, to lower our credit
risk as a result of the guarantees provided by Freddie Mac, Fannie Mae or Ginnie Mae and to offset
a portion of the interest rate risk inherent in our loan portfolio. Our investment policy also
authorizes the investment in collateralized mortgage obligations (&#147;CMOs&#148;), also insured or issued
by Freddie Mac, Fannie Mae and Ginnie Mae. We limit CMO investments to those classes of CMOs
carrying the most stable cash flows and lowest prepayment risk of any class of CMOs and which pass
the Federal Financial Institutions Examination Council&#146;s average life restriction tests at the time
of purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our mortgage-backed securities totaled $184.7&nbsp;million or 9.2%, of total
assets. At December&nbsp;31, 2009, 22.0% of the mortgage-backed securities were backed by adjustable
rate mortgage loans and 78.0% were backed by fixed rate mortgage loans. The mortgage-backed
securities portfolio had a weighted average yield of 4.3% at December&nbsp;31, 2009. The estimated fair
value of our mortgage-backed securities at December&nbsp;31, 2009 was $186.7&nbsp;million, which is $5.4
million more than the amortized cost of $181.4&nbsp;million. Investments in mortgage-backed securities
involve a risk that actual prepayments may differ from estimated prepayments over the life of the
security, which may require adjustments to the amortization of any premium or accretion of any
discount relating to such instruments thereby changing the net yield on such securities. There is
also reinvestment risk associated with the cash flows from such securities or if such securities
are redeemed by the issuer. In addition, the market value of such securities may be adversely
affected by changes in interest rates. All of our mortgage-backed securities are insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->89<!-- /Folio -->
</DIV>



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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Securities Portfolios. </I></B>The following table sets forth the composition of our investment
securities portfolio at the dates indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Mortgage-Backed Securities Held to Maturity</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,347</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,082</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,329</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,907</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,943</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,094</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,314</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,955</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">120,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">162,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">222,821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,582</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Mortgage-Backed Securities Available for Sale</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">134,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">134,837</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,412</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,837</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,363</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage
obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,964</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">414,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">269,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">273,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">170,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,236</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->90<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE -->
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Portfolio Maturities and Yields. </I></B>The composition and maturities of the investment
securities portfolio at December&nbsp;31, 2009 are summarized in the following table. Maturities are
based on the final contractual payment dates, and do not reflect the impact of prepayments or early
redemptions that may occur.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>One Year or Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>More than One Year through Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>More than Five Years through Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>More than Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Total Securities</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States Government and federal
agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">311,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">377,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">414,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->91<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sources of Funds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>Deposits have traditionally been the primary source of funds for use in lending and
investment activities. We also use borrowings, primarily FHLB advances, to supplement cash flow
needs, to lengthen the maturities of liabilities for interest rate risk management purposes and to
manage the cost of funds. In addition, funds are derived from scheduled loan payments,
mortgaged-backed securities scheduled payments and prepayments, investment maturities, loan
prepayments, retained earnings and income on other earning assets. While scheduled loan payments
and income on earning assets are relatively stable sources of funds, deposit inflows and outflows
can vary widely and are influenced by prevailing interest rates, market conditions and levels of
competition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Deposits. </I></B>Our deposits are generated primarily from residents and businesses within our
primary market area. We offer a selection of deposit accounts, including demand accounts, NOW
accounts, money market deposit accounts, savings accounts, retirement accounts and time deposits.
Deposit account terms vary, with the principal differences being the minimum balance required, the
amount of time the funds must remain on deposit and the interest rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rates, maturity terms, service fees and other account features are established on a
periodic basis. Deposit rates and terms are based primarily on current operating strategies and
market rates, liquidity requirements, rates paid by competitors and growth goals. Personalized
customer service, attractive account features, long-standing relationships with customers,
convenient locations, competitive rates of interest and an active marketing program are relied upon
to attract and retain deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The flow of deposits is influenced significantly by general economic conditions, changes in
prevailing interest rates and competition. The variety of deposit accounts offered allows us to be
competitive in obtaining funds and responding to changes in consumer demand while managing interest
rate risk and minimizing interest expense. At December&nbsp;31, 2009, $685.5&nbsp;million, or 56.6% of our
deposit accounts were time deposits, of which $583.8&nbsp;million had maturities of one year or less.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->92<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the distribution of total deposits by account type, at the
dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Deposit type:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.89</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">271,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">685,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">691,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Deposit type:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">422,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">695,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.59</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->93<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, the aggregate amount of outstanding time deposits in amounts
greater than or equal to $100,000 was approximately $240.3&nbsp;million. The following table sets forth
the maturity of those deposits as of December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Three months or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,723</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over three months through six months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over six months through one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over one year to three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,688</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,345</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Borrowings. </I></B>Our borrowings primarily consist of advances from the FHLB-NY. As of
December&nbsp;31, 2009, we had total borrowings in the amount of $507.4&nbsp;million, which represented 28.8%
of total liabilities, with an estimated weighted average maturity of 5.5&nbsp;years and a weighted
average rate of 3.96%. The weighted average maturity is estimated because several of our
borrowings, under certain circumstances, can be called by the FHLB prior to the scheduled maturity.
If this were to occur, our weighted average maturity would decrease. At December&nbsp;31, 2009,
advances from the FHLB constituted 99.9% of borrowings. At December&nbsp;31, 2009, borrowings are
secured by mortgage-backed securities and investment securities with a book value of $352.6&nbsp;million
and performing mortgage loans with an outstanding balance of $881.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information concerning balances and interest rates on our FHLB
advances and other borrowings at and for the periods shown:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196,661</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average balance during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">505,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">210,598</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum outstanding at any month end</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">544,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">233,797</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average interest rate at
end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest rate during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subsidiary Activities and Joint Venture Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is the owner of Oritani Bank, Hampshire Financial LLC and Oritani LLC.
Hampshire Financial LLC and Oritani LLC are New Jersey limited liability companies that own real
estate and investments in real estate as described below. In addition, at December&nbsp;31, 2009,
Oritani Financial Corp., either directly or through one of its subsidiaries, had loans with an
aggregate balance of $29.4&nbsp;million on 12 of the properties in which it (either directly or through
one of its subsidiaries) had an ownership interest. All such loans are performing in accordance
with their terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended June&nbsp;30, 2009, we invested in two new joint venture projects. We
invested in an additional project during the six months ended December&nbsp;31, 2009. All of the new
projects were made through Oritani LLC. We will continue to opportunistically invest in real
estate investments and joint venture projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank has the following subsidiaries: Ormon LLC and Oritani Asset Corporation. Ormon
LLC is a New Jersey limited liability company that owns real estate investments in New Jersey as
well as
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->94<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">investments in joint ventures that own income-producing commercial and residential rental
properties in New Jersey as described below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Asset Corporation is a real estate investment trust formed in 1998 for the sole
purpose of acquiring mortgage loans and mortgage-backed securities from Oritani Bank. Oritani
Asset Corporation&#146;s primary objective is to maximize long-term returns on equity. At December&nbsp;31,
2009, Oritani Asset Corporation had $351.2&nbsp;million in assets. Oritani Asset Corporation is taxed
and operates in a manner that enables it to qualify as a real estate investment trust under the
Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through these various subsidiaries and pursuant to regulatory authority permitting Oritani
Bank to conduct such activities on a &#147;grandfathered&#148; basis, we maintain investments in real estate
and investment in joint ventures. Detailed below is a summary of these various investments by
subsidiary and by type.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ormon LLC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ormon LLC is a wholly-owned subsidiary of Oritani Bank. Ormon LLC maintains the following
investments in real estate and joint ventures:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Investments in Real Estate</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Park Lane Associates </I>&#151; Ormon LLC maintains a 50% undivided ownership interest in Park Lane
Associates. Park Lane Associates is a 142-unit apartment complex located in Little Falls, New
Jersey. Our initial investment was made in March&nbsp;1980. For the year ended June&nbsp;30, 2009, we
recognized net income of $396,000 on this investment and received cash distributions of $321,000
during this period. At December&nbsp;31, 2009, we had a loan to Park Lane Associates totaling $1.9
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Park View Apartments </I>&#151; Ormon LLC maintains a 50% undivided ownership interest in Park View
Apartments. Park View Apartments is a 114-unit apartment complex located in White Hall,
Pennsylvania. We initially invested in Park View in December&nbsp;1986. For the year ended June&nbsp;30,
2009, we recognized net income of $82,000 on its investment in Park View and received cash
distributions of $39,000 during this period. At December&nbsp;31, 2009, we had a loan to Park View
Apartments totaling $1.2&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Winstead Village </I>&#151; Ormon LLC maintains a 50% undivided ownership interest in Winstead Village.
Winstead Village is a 40-unit apartment complex located in Moorestown, New Jersey. We initially
invested in Winstead in December&nbsp;1986. For the year ended June&nbsp;30, 2009 we recognized net income
of $50,000 on its investment and also received cash distributions of $67,000 during that period.
At December&nbsp;31, 2009, we had a loan to Winstead Village totaling $817,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Parkway East </I>&#151; Ormon LLC maintains a 50% undivided ownership interest in Parkway East. Parkway
East is a 43-unit apartment complex located in Caldwell, New Jersey. We initially invested in
Parkway East in July&nbsp;1981. For the year ended June&nbsp;30, 2009, we recognized net income of $92,000
on its investment in Parkway East and received cash distributions of $94,000 during this period.
We have no loan to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Marine View Apartments </I>&#151; Ormon LLC maintains a 75% undivided ownership interest in Marine View
Apartments. Marine View is an 85-unit apartment complex located in Perth Amboy, New Jersey. We
initially invested in Marine View in October&nbsp;1993. For the year ended June&nbsp;30, 2009, we recognized
net
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->95<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income of $219,000 on its investment in Marine View and received cash distributions of $203,000
over that period. We have no loans to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ormon LLC also wholly owns one property that is held and operated for investment purposes. The
property is a 54-unit mixed-use property (49 residential units and 5 store fronts) located in
Palisades Park, New Jersey. We recognized net income of $457,000 for the year ended June&nbsp;30, 2009
from the operation of this property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the quarter ended September&nbsp;30, 2009, Ormon LLC sold a 19-unit office building located in
Hillsdale, New Jersey and recognized a net gain of $1.0&nbsp;million. During the fourth quarter of the
fiscal year ended June&nbsp;30, 2008, Ormon LLC sold an 18-unit apartment complex located in Englewood,
New Jersey and recognized a net gain of $1.1&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Investments in Joint Ventures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Oaklyn Associates </I>- Oaklyn Associates is a 50% owned joint venture on a 100-unit apartment complex
located in Oaklyn, New Jersey. We initially invested in this joint venture in February&nbsp;1978. For
the year ended June&nbsp;30, 2009, we recognized net income of $67,000 on this investment and received
cash distributions of $42,000 over that period. At December&nbsp;31, 2009, we had a loan to Oaklyn
Associates totaling $873,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Madison Associates </I>- Madison Associates is a 50% owned joint venture on 30-unit apartment complex
located in Madison, New Jersey. We initially invested in this joint venture in January&nbsp;1989. For
the year ended June&nbsp;30, 2009, we recognized net income of $77,000 on this investment and received
cash distribution of $80,000 over that period. We have no loans to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Brighton Court Associates </I>- Brighton Court Associate is a 50% owned joint venture on a 47-unit
apartment complex located in Bethlehem, Pennsylvania. We initially invested in Brighton Court in
July&nbsp;1996. For the year ended June&nbsp;30, 2009, we recognized a net income of $9,000 on this
investment and received cash distributions totaling $37,000 over that period. At December&nbsp;31,
2009, our loans to Brighton Court Associates totaled $1.5&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Plaza 23 Associates </I>- Plaza 23 Associates is 50% owned joint venture on a shopping center in
Pequannock, New Jersey. We initially invested in Plaza 23 Associates in October&nbsp;1983. For the
year ended June&nbsp;30, 2009, we recognized net income of $816,000 related to this investment and
received cash distributions of $1.1&nbsp;million during that period. We have no loans to Plaza 23
Associates but had $10.3&nbsp;million loan to its partner in this joint venture, Plains Plaza Ltd. at
December&nbsp;31, 2009. Plains Plaza Ltd. has pledged its equity interest in Plaza 23 Associates as
collateral for this loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oritani, LLC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani, LLC is a wholly-owned limited liability corporation of Oritani Financial Corp. The
primary business of Oritani, LLC is real estate investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Investments in Joint Ventures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Ridge Manor Associates </I>- Ridge Manor Associates is a 50% owned joint venture on a 44-unit apartment
complex located in Park Ridge, New Jersey. We initially invested in Ridge Manor Associates in May
2004. For the year ended June&nbsp;30, 2009, we recognized net income of $11,000 related to this
investment, and also received cash distributions of $24,000 during that period. At December&nbsp;31,
2009, we had a loan to this entity that totaled $4.3&nbsp;million.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->96<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Van Buren Apartments </I>- Van Buren Apartments is a 50% owned joint venture on a 32-unit apartment
complex located in River Edge, New Jersey. We initially invested in Van Buren in March&nbsp;2002. For
the year ended June&nbsp;30, 2009, we recognized a net income on this investment of $37,000 and received
cash distributions of $49,000 during that period. At December&nbsp;31, 2009, we had a loan to Van Buren
Apartments that totaled $2.3&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>10 Landing Lane </I>- 10 Landing Lane is a 50% owned joint venture on a 143-unit apartment complex
located in New Brunswick, New Jersey. We initially invested in 10 Landing Lane in August&nbsp;1998.
For the year ended June&nbsp;30, 2009, we recognized net income of $204,000 related to this investment
and received cash distributions of $62,000 during that period. We have no loans to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FAO Hasbrouck Heights </I>- FAO Hasbrouck Heights is a 50% owned joint venture on 93 mixed-use units
(primarily residential) in Hasbrouck Heights, New Jersey. We initially invested in FAO Hasbrouck
Heights in November&nbsp;2005. For the year ended June&nbsp;30, 2009, we recognized a net loss of $55,000
related to this investment and received cash distributions of $365,000 over that period. In
February, 2009, the loan to this entity was refinanced and the amount outstanding was increased.
This was the primary reason for the cash distribution despite the net loss. At December&nbsp;31, 2009,
we had a loan to FAO Hasbrouck Heights that totaled $7.8&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FAO Terrace Associates</I>- FAO Terrace Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hasbrouck Heights, New Jersey. We initially invested in FAO Terrace Associates
in January&nbsp;2009. For the year ended June&nbsp;30, 2009, we recognized a net income of $7,000 related to
this investment and received cash distributions of $28,000 over that period. At December&nbsp;31, 2009,
we had a loan to FAO Terrace Associates that totaled $2.6&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FAO Gardens Associates</I>- FAO Garden Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hackensack, New Jersey. We initially invested in FAO Garden Associates in
February&nbsp;2009. For the year ended June&nbsp;30, 2009, we recognized a net income of $1,000 related to
this investment and received cash distributions of $18,000 over that period. At December&nbsp;31, 2009,
we had a loan to FAO Garden Associates that totaled $2.6&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>River Villa Mews</I>- River Villa Mews is a 50% owned joint venture on a 44-unit apartment complex
located in Palmyra, New Jersey. We initially invested in River Villa Mews in August&nbsp;2009. At
December&nbsp;31, 2009, we had a loan to River Villa Mews that totaled $624,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Hampshire Financial</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hampshire Financial is a wholly-owned subsidiary of Oritani Financial Corp. The primary
business of Hampshire Financial is real estate investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Investments in Joint Ventures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Hampshire Realty </I>- Hampshire Realty is a 50% owned joint venture on an 81-unit apartment complex
located in Allentown, Pennsylvania. We initially invested in Hampshire in June&nbsp;2002. For the year
ended June&nbsp;30, 2009, we recognized a net loss of $49,000 related to this investment and received
cash distributions of $6,000 over that period. At December&nbsp;31, 2009, we had a loan to Hampshire
that totaled $3.0&nbsp;million.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->97<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents a summary of our investments in real estate and investments in
joint ventures for the periods presented.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>For the Six Months Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Book</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Book Value at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Profit/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Distributions</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Value at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Property Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Received</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Held for Investment</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Ormon, LLC &#151; Undivided Interests in Real Estate</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Park Lane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(428</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(185</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(429</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Park View</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(439</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(432</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Winstead Village</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(228</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(207</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parkway East</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(334</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(342</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marine View</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Ormon, LLC &#151; Wholly Owned Properties</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Palisades Park <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hillsdale <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Held For Investment Summary</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,429</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(271</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,410</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Investments in Joint Ventures</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Ormon, LLC</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oaklyn Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(203</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(24</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(172</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Madison Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brighton Court Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plaza 23 Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,023</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Oritani, LLC</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ridge Manor Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">523</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Van Buren Apartments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 Landing Lane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAO Hasbrouck Heights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAO Terrace Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAO Gardens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">River Villas Mews</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">403</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Hampshire Financial</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hampshire Realty</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Investments in Joint Ventures Summary</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(753</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(208</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(164</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(199</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The book values for wholly owned properties represent the costs of the fixed assets
associated with the property, less accumulated depreciation.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2009, the net book value of real estate held for investment is $(188,000).
The gross appraised value and equity is $42.0&nbsp;million and $37.0&nbsp;million, respectively. Our share
of the equity is $23.9&nbsp;million, or $24.1&nbsp;million in excess of the book value. At December&nbsp;31, 2009,
the net book value of real estate joint ventures is $5.6&nbsp;million. The gross appraised value and
equity is $96.3&nbsp;million and $62.3&nbsp;million, respectively. Our share of the equity is $31.2&nbsp;million,
or $25.5&nbsp;million in excess of the book value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Personnel</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, we had 148 full-time employees and 54 part-time employees. Our
employees are not represented by any collective bargaining group. Management believes that we have
good relations with our employees.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->98<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="612"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUPERVISION AND REGULATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law allows a state savings bank, such as Oritani Bank, that qualifies as a &#147;qualified
thrift lender&#148; (discussed below), to elect to be treated as a savings association for purposes of
the savings and loan holding company provisions of the Home Owners&#146; Loan Act, as amended (&#147;HOLA&#148;).
Such an election results in the savings bank&#146;s holding company being regulated as savings and loan
holding companies by the OTS rather than as bank holding company regulated by the Board of
Governors of the Federal Reserve System. At the time of its reorganization into a holding company
structure, Oritani Bank elected to be treated as a savings association under the applicable
provisions of the HOLA. Accordingly, Oritani Financial Corp. and Oritani Financial Corp., MHC are
savings and loan holding companies and are required to file certain reports with, and are subject
to examination by, and otherwise must comply with the rules and regulations of, the OTS. Oritani
Financial Corp. is also subject to the rules and regulations of the Securities and Exchange
Commission under the federal securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is a New Jersey-chartered savings bank, and its deposit accounts are insured up
to applicable limits by the FDIC. Oritani Bank is subject to extensive regulation, examination and
supervision by the Commissioner of the New Jersey Department of Banking and Insurance (the
&#147;Commissioner&#148;) as the issuer of its charter, and by the FDIC as the deposit insurer and its
primary federal regulator. Oritani Bank must file reports with the Commissioner and the FDIC
concerning its activities and financial condition, and it must obtain regulatory approval prior to
entering into certain transactions, such as mergers with, or acquisitions of, other depository
institutions and opening or acquiring branch offices. The Commissioner and the FDIC conduct
periodic examinations to assess Oritani Bank&#146;s compliance with various regulatory requirements.
This regulation and supervision establishes a comprehensive framework of activities in which a
savings bank may engage and is intended primarily for the protection of the deposit insurance fund
and depositors. The regulatory structure also gives the regulatory authorities extensive
discretion in connection with their supervisory and enforcement activities and examination
policies, including policies with respect to the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any change in these laws or regulations, whether by the New Jersey Department of Banking and
Insurance, the FDIC, the OTS or the U.S. Congress, could have a material adverse impact on Oritani
Financial Corp., Oritani Bank and their operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the regulatory requirements that are or will be applicable to Oritani Bank, Oritani
Financial Corp. and Oritani Financial Corp., MHC are described below. This description of statutes
and regulations is not intended to be a complete explanation of such statutes and regulations and
their effects on Oritani Bank, Oritani Financial Corp. and Oritani Financial Corp., MHC and is
qualified in its entirety by reference to the actual statutes and regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New Jersey Banking Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Activity Powers. </I></B>Oritani Bank derives its lending, investment and other powers primarily from
the applicable provisions of the New Jersey Banking Act and its related regulations. Under these
laws and regulations, savings banks, such as Oritani Bank, generally may invest in:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>real estate mortgages;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consumer and commercial loans;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->99<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>specific types of debt securities, including certain corporate debt securities
and obligations of federal, state and local governments and agencies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain types of corporate equity securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain other assets.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A savings bank may also invest pursuant to a &#147;leeway&#148; power that permits investments not
otherwise permitted by the New Jersey Banking Act. &#147;Leeway&#148; investments must comply with a number
of limitations on the individual and aggregate amounts of &#147;leeway&#148; investments. Under this
&#147;leeway&#148; authority, New Jersey savings banks may exercise those powers, rights, benefits or
privileges authorized for national banks or out-of-state banks or for federal or out-of-state
savings banks or savings associations, provided that before exercising any such power, right,
benefit or privilege, prior approval by the Commissioner by regulation or by specific authorization
is required. A savings bank may also exercise trust powers upon approval of the Commissioner. The
exercise of these lending, investment and activity powers are limited by federal law and the
related regulations. See &#147;&#151;Federal Banking Regulation&#151;Activity Restrictions on State Chartered
Banks&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loans-to-One-Borrower Limitations. </I></B>With certain specified exceptions, a New Jersey-chartered
savings bank may not make loans or extend credit to a single borrower or to entities related to the
borrower in an aggregate amount that would exceed 15% of the bank&#146;s capital funds. A savings bank
may lend an additional 10.0% of its capital funds if the loan is secured by collateral meeting the
requirements of the New Jersey Banking Act. Oritani Bank currently complies with applicable
loans-to-one-borrower limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dividends. </I></B>Under the New Jersey Banking Act, a stock savings bank may declare and pay a
dividend on its capital stock only to the extent that the payment of the dividend would not impair
the capital stock of the savings bank. In addition, a stock savings bank may not pay a dividend
unless the savings bank would, after the payment of the dividend, have a surplus of not less than
50% of its capital stock, or alternatively, the payment of the dividend would not reduce the
surplus. Federal law may also limit the amount of dividends that may be paid by Oritani Bank. See
&#147;&#151;Federal Banking Regulation&#151;Prompt Corrective Action&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Minimum Capital Requirements. </I></B>Regulations of the Commissioner impose on New Jersey-chartered
depository institutions, such as Oritani Bank, minimum capital requirements similar to those
imposed by the FDIC on insured state banks. See &#147;&#151;Federal Banking Regulation&#151;Capital
Requirements&#148; Below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Examination and Enforcement. </I></B>The New Jersey Department of Banking and Insurance may examine
Oritani Bank whenever it deems an examination advisable. The New Jersey Department of Banking and
Insurance examines Oritani Bank at least every two years. The Commissioner may order any savings
bank to discontinue any violation of law or unsafe or unsound banking practice, and may direct any
director, officer, attorney or employee of a savings bank engaged in an objectionable activity,
after the Commissioner has ordered the activity to be terminated, to show cause at a hearing before
the Commissioner why such person should not be removed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Banking Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Capital Requirements. </I></B>FDIC regulations require banks to maintain minimum levels of capital.
The FDIC regulations define two tiers, or classes, of capital.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->100<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital is comprised of the sum of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>common stockholders&#146; equity, excluding the unrealized appreciation or
depreciation, net of tax, from available for sale securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>non-cumulative perpetual preferred stock, including any related retained
earnings; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>minority interests in consolidated subsidiaries minus all intangible assets,
other than qualifying servicing rights and any net unrealized loss on marketable
equity securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of Tier 2 capital currently include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cumulative perpetual preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain perpetual preferred stock for which the dividend rate may be reset
periodically;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hybrid capital instruments, including mandatory convertible securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>term subordinated debt;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>intermediate term preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>allowance for loan losses; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>up to 45% of pretax net unrealized holding gains on available for sale equity
securities with readily determinable fair market values.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for loan losses includible in Tier 2 capital is limited to a maximum of 1.25% of
risk-weighted assets (as discussed below). Overall, the amount of Tier 2 capital that may be
included in total capital cannot exceed 100% of Tier 1 capital. The FDIC regulations establish a
minimum leverage capital requirement for banks in the strongest financial and managerial condition
of not less than a ratio of 3% of Tier 1 capital to total assets. For all other banks, the minimum
leverage capital requirement is 4%, unless a higher leverage capital ratio is warranted by the
particular circumstances or risk profile of the depository institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC regulations also require that banks meet a risk-based capital standard. The
risk-based capital standard requires the maintenance of a ratio of total capital, which is defined
as the sum of Tier 1 capital and Tier 2 capital, to risk-weighted assets of at least 8% and a ratio
of Tier 1 capital to risk-weighted assets of at least 4%. In determining the amount of
risk-weighted assets, all assets, plus certain off balance sheet items, are multiplied by a
risk-weight of 0% to 100%, based on the risks the FDIC believes are inherent in the type of asset
or item.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The federal banking agencies, including the FDIC, have also adopted regulations to require an
assessment of an institution&#146;s exposure to declines in the economic value of a bank&#146;s capital due
to changes in interest rates when assessing the bank&#146;s capital adequacy. Under such a risk
assessment, examiners evaluate a bank&#146;s capital for interest rate risk on a case-by-case basis,
with consideration of both quantitative and qualitative factors. Institutions with significant
interest rate risk may be required to hold additional capital. According to the agencies,
applicable considerations include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the quality of the bank&#146;s interest rate risk management process;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->101<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the overall financial condition of the bank; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of other risks at the bank for which capital is needed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows Oritani Bank&#146;s Core capital, Tier 1 risk-based capital, and Total
risk-based capital ratios at December&nbsp;31, 2009:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>As of December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Assets</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.76</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 risk-based capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk-based capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.75</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>For purposes of calculating Core capital, assets
are based on adjusted total leverage assets. In calculating Tier 1
risk-based capital and total risk-based capital, assets are based on
total risk-weighted assets.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the table shows, as of December&nbsp;31, 2009, Oritani Bank was considered &#147;well
capitalized&#148; under FDIC guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prompt Corrective Action. </I></B>Federal law requires, among other things, that the federal bank
regulatory authorities take &#147;prompt corrective action&#148; with respect to institutions that do not
meet minimum capital requirements. For these purposes, the law establishes five categories: well
capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and
critically undercapitalized. The FDIC&#146;s regulations define the five capital categories as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;well capitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of total capital to risk-weighted assets is at least 10% ;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to risk-weighted assets is at least 6%; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to total assets is at least 5%, and it is not
subject to any order or directive by the FDIC to meet a specific capital level.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;adequately capitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of total capital to risk-weighted assets is at least 8%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to risk-weighted assets is at least 4%; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to total assets is at least 4% (3% if the bank
receives the highest rating under the Uniform Financial Institutions Rating System)
and it is not a well-capitalized institution.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;undercapitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its total risk-based capital is less than 8%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its Tier 1 risk-based-capital is less than 4%; and
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its leverage ratio is less than 4% (or less than 3% if the institution receives
the highest rating under the Uniform Financial Institutions Rating System).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;significantly undercapitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its total risk-based capital is less than 6%;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its Tier 1 capital is less than 3%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its leverage ratio is less than 3%.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution that has a tangible capital to total assets ratio equal to or less than 2%
would be deemed to be &#147;critically undercapitalized.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC is required, with some exceptions, to appoint a receiver or conservator for an
insured state bank if that bank is &#147;critically undercapitalized.&#148; For this purpose, &#147;critically
undercapitalized&#148; means having a ratio of tangible capital to total assets of less than 2%. The
FDIC may also appoint a conservator or receiver for a state bank on the basis of the institution&#146;s
financial condition or upon the occurrence of certain events, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insolvency, or when the assets of the bank are less than its liabilities to
depositors and others;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>substantial dissipation of assets or earnings through violations of law or
unsafe or unsound practices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>existence of an unsafe or unsound condition to transact business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>likelihood that the bank will be unable to meet the demands of its depositors or
to pay its obligations in the normal course of business; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insufficient capital, or the incurring or likely incurring of losses that will
deplete substantially all of the institution&#146;s capital with no reasonable prospect
of replenishment of capital without federal assistance.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Activity Restrictions on State Chartered Banks. </I></B>Federal law and FDIC regulations generally
limit the activities and investments of state chartered FDIC insured banks and their subsidiaries
to those permissible for national banks and their subsidiaries, unless such activities and
investments are specifically exempted by law or consented to by the FDIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before making a new investment or engaging in a new activity that is not permissible for a
national bank or otherwise permissible under federal law or FDIC regulations, an insured bank must
seek approval from the FDIC to make such investment or engage in such activity. The FDIC will not
approve the activity unless the bank meets its minimum capital requirements and the FDIC determines
that the activity does not present a significant risk to the FDIC insurance funds. Certain
activities of subsidiaries that are engaged in activities permitted for national banks only through
a &#147;financial subsidiary&#148; are subject to additional restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law permits a state chartered savings bank to engage, through financial subsidiaries,
in any activity in which a national bank may engage through a financial subsidiary and on
substantially the same terms and conditions. In general, the law permits a national bank that is
well-capitalized and well-
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">managed to conduct, through a financial subsidiary, any activity permitted for a financial
holding company other than insurance underwriting, insurance investments, real estate investment or
development or merchant banking. The total assets of all such financial subsidiaries may not
exceed the lesser of 45% of the bank&#146;s total assets or $50&nbsp;billion. The bank must have policies
and procedures to assess the financial subsidiary&#146;s risk and protect the bank from such risk and
potential liability, must not consolidate the financial subsidiary&#146;s assets with the bank&#146;s and
must exclude from its own assets and equity all equity investments, including retained earnings, in
the financial subsidiary. State chartered savings banks may retain subsidiaries in existence as of
March&nbsp;11, 2000 and may engage in activities that are not authorized under federal law. Although
Oritani Bank meets all conditions necessary to establish and engage in permitted activities through
financial subsidiaries, it has not yet determined whether or the extent to which it will seek to
engage in such activities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Insurance of Deposit Accounts. </I></B>Oritani Bank is a member of the DIF, which is administered by
the FDIC. Deposit accounts at Oritani Bank are insured by the FDIC, generally up to a maximum of
$100,000 for each separately insured depositor and up to a maximum of $250,000 for self-directed
retirement accounts. However, the FDIC increased the deposit insurance available on all deposit
accounts to $250,000, effective until December&nbsp;31, 2013. In addition, certain noninterest-bearing
transaction accounts maintained with financial institutions participating in the FDIC&#146;s Temporary
Liquidity Guarantee Program (&#147;TLG&#148;) are fully insured regardless of the dollar amount until June
30, 2010. Oritani Bank has opted to participate in the FDIC&#146;s TLG Program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC imposes an assessment against all depository institutions for deposit insurance.
This assessment is based on the risk category of the institution and, prior to 2009, ranged from 5
to 43 basis points of the institution&#146;s deposits. On February&nbsp;27, 2009, the FDIC published a final
rule raising the current deposit insurance assessment rates to a range from 12 to 45 basis points
beginning April&nbsp;1, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;22, 2009, the FDIC adopted a final rule imposing a 5 basis point special assessment on
each insured depository institution&#146;s assets minus Tier 1 capital as of June&nbsp;30, 2009. The amount
of the special assessment for any institution will not exceed 10 basis points times the
institution&#146;s assessment base for the second quarter 2009. Our total expense for the special
assessment was $845,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deposit insurance assessment rates are in addition to the assessments for payments on the
bonds issued in the late 1980s by the Financing Corporation, or FICO, to recapitalize the now
defunct Federal Savings and Loan Insurance Corporation. The FICO payments will continue until the
FICO bonds mature in 2017 through 2019. Excluding the special assessment noted above, our expense
for the assessment of deposit insurance and the FICO payments was $928,000 for the year ended June
30, 2009 and $92,000 for the year ended June&nbsp;30, 2008. The FDIC also established 1.25% of
estimated insured deposits as the designated reserve ratio of the DIF. The FDIC is authorized to
change the assessment rates as necessary, subject to the previously discussed limitations, to
maintain the required reserve ratio of 1.25%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC also approved a One-Time Assessment Credit to institutions that were in existence on
December&nbsp;31, 1996 and paid deposit insurance assessments prior to that date, or are a successor to
such an institution. The Bank received a $2.8&nbsp;million One-Time Assessment Credit, all of which was
used to offset substantially all of our deposit insurance assessment, excluding the FICO payments,
for the period from January&nbsp;1, 2007 through March&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is participating in the FDIC&#146;s Temporary Account Guarantee (&#147;TAG&#148;) program, which
is a part of the FDIC&#146;s TLG program. The purpose of the TLG is to strengthen confidence and
encourage liquidity in the banking system. Under the TAG, funds in non-interest-bearing accounts,
in interest-bearing transaction accounts with interest rate of 0.50% or less and in Interest on
Lawyers Trust
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accounts will have a temporary unlimited guarantee from the FDIC until June&nbsp;30, 2010. The
coverage of the TAG is in addition to and separate from coverage available under the FDIC&#146;s general
deposit insurance rules, which insure accounts up to $250,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Federal Home Loan Bank System. </I></B>Oritani Bank is a member of the Federal Home Loan Bank System,
which consists of 12 regional Federal Home Loan Banks. The Federal Home Loan Bank System provides
a central credit facility primarily for member institutions. As a member of the FHLB-NY, Oritani
Bank is required to acquire and hold shares of capital stock in the FHLB in an amount at least
equal to 1% of the aggregate principal amount of its unpaid residential mortgage loans and similar
obligations at the beginning of each year, 4.5% of its borrowings from the FHLB, or 0.3% of assets,
whichever is greater. As of December&nbsp;31, 2009, Oritani Bank was in compliance with this
requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Enforcement. </I></B>The FDIC has extensive enforcement authority over insured savings banks,
including Oritani Bank. This enforcement authority includes, among other things, the ability to
assess civil money penalties, to issue cease and desist orders and to remove directors and
officers. In general, these enforcement actions may be initiated in response to violations of laws
and regulations and to unsafe or unsound practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Transactions with Affiliates of Oritani Bank. </I></B>Transactions between an insured bank, such as
Oritani Bank, and any of its affiliates are governed by Sections&nbsp;23A and 23B of the Federal Reserve
Act and implementing regulations. An affiliate of a insured bank is any company or entity that
controls, is controlled by or is under common control with the bank. Generally, a subsidiary of a
bank that is not also a depository institution or financial subsidiary is not treated as an
affiliate of the bank for purposes of Sections&nbsp;23A and 23B.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;23A:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limits the extent to which the bank or its subsidiaries may engage in &#147;covered
transactions&#148; with any one affiliate to an amount equal to 10.0% of such bank&#146;s
capital stock and retained earnings, and limits all such transactions with all
affiliates to an amount equal to 20% of such capital stock and retained earnings;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>requires that all such transactions be on terms that are consistent with safe
and sound banking practices.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;covered transaction&#148; includes the making of loans, purchase of assets, issuance of
guarantees and other similar types of transactions. Further, most loans by a bank to any of its
affiliates must be secured by collateral in amounts ranging from 100% to 130% of the loan amounts.
In addition, any covered transaction by a bank with an affiliate and any purchase of assets or
services by a bank from an affiliate must be on terms that are substantially the same, or at least
as favorable to the bank, as those that would be provided to a non-affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prohibitions Against Tying Arrangements. </I></B>Banks are subject to the prohibitions of 12 U.S.C.
Section&nbsp;1972 on certain tying arrangements. A depository institution is prohibited, subject to
some exceptions, from extending credit to or offering any other service, or fixing or varying the
consideration for such extension of credit or service, on the condition that the customer obtain
some additional service from the institution or its affiliates or not obtain services of a
competitor of the institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Privacy Standards. </I></B>FDIC regulations require Oritani Bank to disclose their privacy policy,
including identifying with whom they share &#147;non-public personal information,&#148; to customers at the
time
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of establishing the customer relationship and annually thereafter. Oritani Bank does not
share &#147;non-public personal information&#148; with third parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Oritani Bank is required to provide its customers with the ability to &#147;opt-out&#148;
of having Oritani Bank share their non-public personal information with unaffiliated third parties
before they can disclose such information, subject to certain exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC and other federal banking agencies adopted guidelines establishing standards for
safeguarding customer information. The guidelines describe the agencies&#146; expectations for the
creation, implementation and maintenance of an information security program, which would include
administrative, technical and physical safeguards appropriate to the size and complexity of the
institution and the nature and scope of its activities. The standards set forth in the guidelines
are intended to insure the security and confidentiality of customer records and information,
protect against any anticipated threats or hazards to the security or integrity of such records and
protect against unauthorized access to or use of such records or information that could result in
substantial harm or inconvenience to any customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Community Reinvestment Act and Fair Lending Laws. </I></B>All FDIC insured institutions have a
responsibility under the Community Reinvestment Act and related regulations to help meet the credit
needs of their communities, including low- and moderate-income neighborhoods. In connection with
its examination of a state chartered savings bank, the FDIC is required to assess the institution&#146;s
record of compliance with the Community Reinvestment Act. Among other things, the current
Community Reinvestment Act regulations replace the prior process-based assessment factors with a
new evaluation system that rates an institution based on its actual performance in meeting
community needs. In particular, the current evaluation system focuses on three tests:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a lending test, to evaluate the institution&#146;s record of making loans in its
service areas;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an investment test, to evaluate the institution&#146;s record of investing in
community development projects, affordable housing, and programs benefiting low or
moderate income individuals and businesses; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a service test, to evaluate the institution&#146;s delivery of services through its
branches, ATMs and other offices.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution&#146;s failure to comply with the provisions of the Community Reinvestment Act
could, at a minimum, result in regulatory restrictions on its activities. Oritani Bank received a
&#147;satisfactory&#148; Community Reinvestment Act rating in our most recently completed federal
examination, which was conducted by the FDIC in September&nbsp;2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from
discriminating in their lending practices on the basis of characteristics specified in those
statutes. The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act
could result in enforcement actions by the FDIC, as well as other federal regulatory agencies and
the Department of Justice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Loans to a Bank&#146;s Insiders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Federal Regulation. </I></B>A bank&#146;s loans to its executive officers, directors, any owner of more
than 10.0% or more of its stock (each, an insider) and any of certain entities affiliated with any
such persons (an insider&#146;s related interest) are subject to the conditions and limitations imposed
by Section 22(h) of the Federal Reserve Act and its implementing regulations. Under these
restrictions, the aggregate amount of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the loans to any insider and the insider&#146;s related interests may not exceed the
loans-to-one-borrower limit applicable to national banks, which is comparable to the
loans-to-one-borrower limit applicable to Oritani Bank. See &#147;-New Jersey Banking
Regulation-Loans-to-One Borrower Limitations.&#148; All loans by a bank to all insiders and insiders&#146;
related interests in the aggregate generally may not exceed the bank&#146;s unimpaired capital and
unimpaired surplus. With certain exceptions, loans to an executive officer, other than loans for
the education of the officer&#146;s children and certain loans secured by the officer&#146;s primary
residence, may not exceed the lesser of (1) $100,000 or (2)&nbsp;the greater of $25,000 or 2.5% of the
bank&#146;s unimpaired capital and surplus. Federal regulation also requires that any proposed loan to
an insider or a related interest of that insider be approved in advance by a majority of the Board
of Directors of the bank, with any interested directors not participating in the voting, if such
loan, when aggregated with any existing loans to that insider and the insider&#146;s related interests,
would exceed either (1) $500,000 or (2)&nbsp;the greater of $25,000 or 5% of the bank&#146;s unimpaired
capital and surplus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, loans to insiders must be made on substantially the same terms as, and follow
credit underwriting procedures that are not less stringent than, those that are prevailing at the
time for comparable transactions with other persons. An exception is made for extensions of credit
made pursuant to a benefit or compensation plan of a bank that is widely available to employees of
the bank and that does not give any preference to insiders of the bank over other employees of the
bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, federal law prohibits extensions of credit to a bank&#146;s insiders and their related
interests by any other institution that has a correspondent banking relationship with the bank,
unless such extension of credit is on substantially the same terms as those prevailing at the time
for comparable transactions with other persons and does not involve more than the normal risk of
repayment or present other unfavorable features.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>New Jersey Regulation. </I></B>Provisions of the New Jersey Banking Act impose conditions and
limitations on the liabilities to a savings bank of its directors and executive officers and of
corporations and partnerships controlled by such persons that are comparable in many respects to
the conditions and limitations imposed on the loans and extensions of credit to insiders and their
related interests under federal law, as discussed above. The New Jersey Banking Act also provides
that a savings bank that is in compliance with federal law is deemed to be in compliance with such
provisions of the New Jersey Banking Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Other Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other charges collected or contracted for by Oritani Bank are subject to state
usury laws and federal laws concerning interest rates. Oritani Bank&#146;s operations are also subject
to federal laws applicable to credit transactions, such as the:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Truth-In-Lending Act, governing disclosures of credit terms to consumer
borrowers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Home Mortgage Disclosure Act of 1975, requiring financial institutions to
provide information to enable the public and public officials to determine whether
a financial institution is fulfilling its obligation to help meet the housing needs
of the community it serves;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Equal Credit Opportunity Act, prohibiting discrimination on the basis of race,
creed or other prohibited factors in extending credit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair Credit Reporting Act of 1978, governing the use and provision of
information to credit reporting agencies;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->107<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair Debt Collection Act, governing the manner in which consumer debts may be
collected by collection agencies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rules and regulations of the various federal agencies charged with the
responsibility of implementing such federal laws.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The operations of Oritani Bank also are subject to the:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Right to Financial Privacy Act, which imposes a duty to maintain confidentiality
of consumer financial records and prescribes procedures for complying with
administrative subpoenas of financial records;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronic Funds Transfer Act and Regulation&nbsp;E promulgated thereunder, which
govern automatic deposits to and withdrawals from deposit accounts and customers&#146;
rights and liabilities arising from the use of automated teller machines and other
electronic banking services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Check Clearing for the 21<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> Century Act (also known as &#147;Check 21&#148;),
which gives &#147;substitute checks,&#148; such as digital check images and copies made from
that image, the same legal standing as the original paper check;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title III of The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred to as the
&#147;USA PATRIOT Act&#148;), which significantly expanded the responsibilities of financial
institutions, including savings banks, in preventing the use of the U.S. financial
system to fund terrorist activities. Among other provisions, the USA PATRIOT Act
and the related regulations of the OTS require savings associations operating in
the United States to develop new anti-money laundering compliance programs, due
diligence policies and controls to ensure the detection and reporting of money
laundering. Such required compliance programs are intended to supplement existing
compliance requirements, also applicable to financial institutions, under the Bank
Secrecy Act and the Office of Foreign Assets Control Regulations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Gramm-Leach-Bliley Act, which placed limitations on the sharing of consumer
financial information by financial institutions with unaffiliated third parties.
Specifically, the Gramm-Leach-Bliley Act requires all financial institutions
offering financial products or services to retail customers to provide such
customers with the financial institution&#146;s privacy policy and provide such
customers the opportunity to &#147;opt out&#148; of the sharing of certain personal financial
information with unaffiliated third parties.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Holding Company Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B>. Oritani Financial Corp., MHC and Oritani Financial Corp. are non-diversified savings
and loan holding companies within the meaning of the HOLA. As such, Oritani Financial Corp., MHC
and Oritani Financial Corp. are registered with the OTS and subject to OTS regulations,
examinations, supervision and reporting requirements. In addition, the OTS has enforcement
authority over Oritani Financial Corp. and Oritani Financial Corp., MHC, and their subsidiaries.
Among other things, this authority permits the OTS to restrict or prohibit activities that are
determined to be a serious risk to the subsidiary savings institution. As federal corporations,
Oritani Financial Corp. and Oritani Financial Corp., MHC are generally not subject to state
business organization laws.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->108<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Permitted Activities</I></B>. Pursuant to Section 10(o) of the HOLA and OTS regulations and policy, a
mutual holding company and a federally chartered mid-tier holding company such as Oritani Financial
Corp. may engage in the following activities:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investing in the stock of a savings bank;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquiring a mutual association through the merger of such association
into a savings bank subsidiary of such holding company or an interim savings
bank subsidiary of such holding company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>merging with or acquiring another holding company, one of whose
subsidiaries is a savings bank;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investing in a corporation, the capital stock of which is available
for purchase by a savings bank under federal law or under the law of any state
where the subsidiary savings bank or associations share their home offices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>furnishing or performing management services for a savings bank
subsidiary of such company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holding, managing or liquidating assets owned or acquired from a
savings subsidiary of such company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holding or managing properties used or occupied by a savings bank
subsidiary of such company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acting as trustee under deeds of trust;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other activity:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%">A. that the Federal Reserve Board, by regulation, has determined to be
permissible for bank holding companies under Section 4(c) of the Bank
Holding Company Act of 1956, unless the Director, by regulation, prohibits
or limits any such activity for savings and loan holding companies; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%">B. in which multiple savings and loan holding companies were authorized (by
regulation) to directly engage on March&nbsp;5, 1987;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any activity permissible for financial holding companies under Section
4(k) of the Bank Holding Company Act, including securities and insurance
underwriting; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchasing, holding, or disposing of stock acquired in connection
with a qualified stock issuance if the purchase of such stock by such savings
and loan holding company is approved by the Director. If a mutual holding
company acquires or merges with another holding company, the holding company
acquired or the holding company resulting from such merger or acquisition may
only invest in assets and engage in activities listed in (i)&nbsp;through (x)&nbsp;above,
and has a period of two years to cease any nonconforming activities and divest
any nonconforming investments.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The HOLA prohibits a savings and loan holding company, including Oritani Financial Corp. and
Oritani Financial Corp., MHC, directly or indirectly, or through one or more subsidiaries, from
acquiring more than 5% of another savings institution or holding company thereof, without prior
written approval of the OTS. It also prohibits the acquisition or retention of, with certain
exceptions, more than 5% of a nonsubsidiary company engaged in activities other than those
permitted by the HOLA, or acquiring or retaining control of an institution that is not federally
insured. In evaluating applications by holding companies to acquire savings institutions, the OTS
must consider the financial and managerial resources, future prospects of the company and
institution involved, the effect of the acquisition on the risk to the federal deposit insurance
fund, the convenience and needs of the community and competitive factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OTS is prohibited from approving any acquisition that would result in a multiple savings
and loan holding company controlling savings institutions in more than one state, subject to two
exceptions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the approval of interstate supervisory acquisitions by savings and loan holding companies;
and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The states vary in the extent to which they permit interstate savings and loan holding company
acquisitions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Waivers of Dividends by Oritani Financial Corp., MHC</I></B>. Until the completion of the
reorganization and stock offering, OTS regulations require Oritani Financial Corp., MHC to notify
the OTS of any proposed waiver of its receipt of dividends from Oritani Financial Corp. The OTS
reviews dividend waiver notices on a case-by-case basis, and, in general, does not object to any
such waiver if:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the waiver would not be detrimental to the safe and sound operation of the
subsidiary savings association; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the mutual holding company&#146;s Board of Directors determines that such waiver is
consistent with such directors&#146; fiduciary duties to the mutual holding company&#146;s
members.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Oritani Financial Corp., MHC, applied for, and was granted, permission from the OTS to waive the
dividend paid by Oritani Financial Corp. on July&nbsp;24, 2009. We anticipate that Oritani Financial
Corp., MHC will waive any additional dividends paid by Oritani Financial Corp. Under OTS
regulations, our public stockholders would not be diluted because of any dividends waived by
Oritani Financial Corp., MHC (and waived dividends would not be considered in determining an
appropriate exchange ratio) in the event Oritani Financial Corp., MHC converts to stock form.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Qualified Thrift Lender Test. </I></B>In order for Oritani Financial Corp. and Oritani Financial
Corp., MHC to continue to be regulated as savings and loan holding companies by the OTS (rather
than as a bank holding companies by the Board of Governors of the Federal Reserve System), Oritani
Bank must qualify as a &#147;qualified thrift lender&#148; under OTS regulations or satisfy the &#147;domestic
building and loan association&#148; test under the Internal Revenue Code. Under the qualified thrift
lender test, a savings institution is required to maintain at least 65% of its &#147;portfolio assets&#148;
(total assets less: (i)&nbsp;specified liquid assets up to 20% of total assets; (ii)&nbsp;intangible,
including goodwill; and (iii)&nbsp;the value of property used to conduct business) in certain &#147;qualified
thrift investments&#148; (primarily residential mortgages and related investments, including certain
mortgage-backed and related securities) in at least nine out of each
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12&nbsp;month period. Oritani Bank currently maintains the majority of its portfolio assets in
qualified thrift investments and has met the qualified thrift lender test in each of the last 12
months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Securities Laws</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s common stock is registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended. Oritani Financial Corp. is
subject to the information, proxy solicitation, insider trading restrictions and other requirements
under the Securities Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. common stock held by persons who are affiliates (generally officers,
directors and principal stockholders) of Oritani Financial Corp. may not be resold without
registration or unless sold in accordance with certain resale restrictions. If Oritani Financial
Corp. meets specified current public information requirements, each affiliate of Oritani Financial
Corp. is able to sell in the public market, without registration, a limited number of shares in any
three-month period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sarbanes-Oxley Act of 2002</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Sarbanes-Oxley Act of 2002 addresses, among other issues, corporate governance, auditing
and accounting, executive compensation, and enhanced and timely disclosure of corporate
information. As directed by the Sarbanes-Oxley Act of 2002, our Chief Executive Officer and Chief
Financial Officer each will be required to certify that our quarterly and annual reports do not
contain any untrue statement of a material fact. The rules adopted by the Securities and Exchange
Commission under the Sarbanes-Oxley Act of 2002 have several requirements, including having these
officers certify that: they are responsible for establishing, maintaining and regularly evaluating
the effectiveness of our internal controls; they have made certain disclosures to our auditors and
the audit committee of the Board of Directors about our internal controls; and they have included
information in our quarterly and annual reports about their evaluation and whether there have been
significant changes in our internal controls or in other factors that could significantly affect
internal controls. Oritani Financial Corp is required to report under Section&nbsp;404 of the
Sarbanes-Oxley Act and has reported that it complies with such in all material respects.
</DIV>
<DIV align="left">
<A name="613"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FEDERAL AND STATE TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Taxation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B><I>. </I>Oritani Financial Corp. and Oritani Bank are subject to federal income taxation in
the same general manner as other corporations, with some exceptions discussed below. Neither
Oritani Financial Corp.&#146;s nor Oritani Bank&#146;s federal tax returns are currently under audit, and
neither entity has been audited during the past five years. The following discussion of federal
taxation is intended only to summarize certain pertinent federal income tax matters and is not a
comprehensive description of the tax rules applicable to Oritani Financial Corp. or Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Method of Accounting</I></B><I>. </I>For federal income tax purposes, Oritani Financial Corp. currently
reports its income and expenses on the accrual method of accounting and uses a tax year ending
December&nbsp;31 for filing its federal and state income tax returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Bad Debt Reserves</I></B><I>. </I>Historically, Oritani Bank has been subject to special provisions in the
tax law regarding allowable tax bad debt deductions and related reserves. Tax law changes were
enacted in 1996, pursuant to the Small Business Protection Act of 1996 (the &#147;1996 Act&#148;), that
eliminated the use of the percentage of taxable income method for tax years after 1995 and required
recapture into taxable
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->111<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income over a six year period of all bad debt reserves accumulated after 1988. Oritani Bank
recaptured its reserve balance over the six-year period ended December&nbsp;31, 2003.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, the Oritani Bank consolidated group uses the specific charge-off method to account
for bad debt deductions for income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Taxable Distributions and Recapture</I></B><I>. </I>Prior to the 1996 Act, bad debt reserves created prior
to January&nbsp;1, 1988 were subject to recapture into taxable income should Oritani Bank fail to meet
certain thrift asset and definitional tests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our total federal pre-base year reserve was approximately $15.1&nbsp;million.
However, under current law, pre-base year reserves remain subject to recapture should Oritani Bank
make certain non-dividend distributions, repurchase any of its stock, pay dividends in excess of
tax earnings and profits, or cease to maintain a bank charter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Alternative Minimum Tax</I></B><I>. </I>The Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) imposes
an alternative minimum tax (&#147;AMT&#148;) at a rate of 20% on a base of regular taxable income plus
certain tax preferences (&#147;alternative minimum taxable income&#148; or &#147;AMTI&#148;). The AMT is payable to
the extent such AMTI is in excess of an exemption amount and the AMT exceeds the regular income
tax. Net operating losses can offset no more than 90% of AMTI. Certain payments of alternative
minimum tax may be used as credits against regular tax liabilities in future years. Oritani
Financial Corp. and Oritani Bank have not been subject to the AMT and have no such amounts
available as credits for carryover.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Net Operating Loss Carryforwards</I></B><I>. </I>A financial institution may carry back net operating losses
to the preceding two taxable years and forward to the succeeding 20 taxable years. At December&nbsp;31,
2009, Oritani Bank had no net operating loss carryforwards for federal income tax purposes.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->112<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="614"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani will consist of six individuals who currently serve as
directors of Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank. The Board of
Directors of Oritani will be divided into three classes, as nearly equal as possible, with
one-third of the directors elected each year. The directors will be elected by the stockholders of
Oritani for three-year terms, and until their successors are elected and have qualified. The terms
of the directors of each of Oritani and Oritani Bank are identical. The executive officers of
Oritani are also executive officers of Oritani Financial Corp. We expect that Oritani and Oritani
Bank will continue to have common directors until there is a business reason to establish separate
management structures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following individuals will serve as the executive officers of Oritani and hold the offices
set forth below opposite their name.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Positions Held</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Kevin J. Lynch
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael A. DeBernardi
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Operating Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John M. Fields, Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas Guinan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Lending Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Philip M. Wyks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President and Corporate Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive officers of Oritani are elected annually and hold office until their respective
successors have been elected or until death, resignation or removal by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides the positions, ages and terms of office as applicable to our
directors and executive officers, along with the beneficial ownership of our common stock held by
our directors and executive officers, individually and as a group, as of December&nbsp;31, 2009.
Percentages are based on 37,041,184 shares outstanding.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unvested Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards included in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Directly and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficial</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name(1)</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Indirectly(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>within 60 days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Beneficial Ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ownership</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>DIRECTORS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicholas Antonaccio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert S. Hekemian, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James J. Doyle, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John J. Skelly, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="9" align="left"><B>NAMED EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas G. Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Directors and
Executive Officers as
a Group (13 persons)</DIV></TD>


    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,173,722 </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">612,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,785,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">453,897</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Unless otherwise indicated, each person effectively exercises sole, or shared with spouse,
voting and dispositive power as to the shares reported. Totals include unvested stock awards
that were granted pursuant to the 2007 Equity Incentive Plan. The totals for Messrs.&nbsp;Skelly
and Hekemian include 50,000 shares and 16,241 shares, respectively, owned through a company in
which each individual has a beneficial ownership.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 38,724 shares of common stock allocated to the accounts of executive officers under
the Oritani Bank Employee Stock Ownership Plan.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->113<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Business Background of Our Directors and Executive Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business experience for the past five years, as well as the experience, qualifications,
attributes and skills, of each of our directors and executive officers are set forth below. Unless
otherwise indicated, directors and executive officers have held their positions for the past five
years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal occupation during the past five years of each of our directors is set forth
below. All directors have held their present positions for five years unless otherwise stated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Nicholas Antonaccio, </B>age 62, is President of CMA Enterprises LLC, a financial advisory firm
founded by Mr.&nbsp;Antonaccio in 2000. Previously, Mr.&nbsp;Antonaccio was the chief financial officer at a
variety of public and private companies, including serving for five years as senior vice president
and chief financial officer of Copelco Capital, Inc. Mr.&nbsp;Antonaccio has extensive financial and
public company expertise, with responsibilities that have spanned all major areas of financial
management, including financial operations and contract, tax, treasury, financial planning, credit,
information technology, human resources and risk management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Michael A. DeBernardi, </B>age 55, served as Lead Director until April&nbsp;2008 when he was appointed
Executive Vice President and Chief Operating Officer of Oritani Bank. Mr.&nbsp;DeBernardi has
previously served in executive positions with AT&#038;T Capital Corporation, Newcourt Credit Group, CIT
Global Vendor Finance, Aternus Partners, LLC, and US Express Leasing. Mr.&nbsp;DeBernardi is also a
trustee of Chilton Memorial Hospital in Pompton Plains, New Jersey where he serves as Vice-Chairman
of the Audit Committee and Co-Chairman of the Strategic Planning Committee. Mr.&nbsp;DeBernardi has
held executive positions at a variety of capital finance companies throughout his career.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>James J. Doyle, Jr., </B>age 59, served as the President and Chief Executive Officer of Chilton
Memorial Hospital from 1991 until 2004, and also as a consultant to The Chilton Memorial Hospital&#146;s
Foundation Board until 2008. Mr.&nbsp;Doyle has also served as Executive Vice President of Atlantic
Health System from 1994 until 1998, and Executive Vice President of the Valley Health System from
1998 until 2002. Mr.&nbsp;Doyle has significant executive management experience, overseeing
administrative, finance, marketing and human resources activities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Robert S. Hekemian, Jr., </B>age 49, has been with the 75-year-old, family-owned Hekemian &#038; Co.,
Inc. since 1982, becoming President and Chief Operating Officer in 2004. Hekemian &#038; Co. and its
affiliates own, manage and develop apartments, shopping centers and mixed-use projects primarily
throughout New Jersey, Maryland, Virginia, New York and Pennsylvania. Mr.&nbsp;Hekemian has been
involved in all aspects of real estate development and acquisitions throughout his career.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Kevin J. Lynch, </B>age 63, has been the President and Chief Executive Officer of Oritani Bank
since 1993 and has served as President and Chief Executive Officer of Oritani Financial Corp. since
its creation in 1998. Mr.&nbsp;Lynch is a director of the FHLB-NY and serves on its Executive,
Compensation, and Housing Committees. He is also a director of Pentegra Retirement Services
Financial Institutions Retirement Fund, a national provider of full-service retirement programs.
Mr.&nbsp;Lynch is a former Chairman of the New Jersey League of Community and Savings Bankers and served
as a member of its Board of Governors for several years, and also served on the Board of Directors
of Thrift Institutions Community Investment Corp. Mr.&nbsp;Lynch is a member of the Professional
Development and Education Committee of the American Bankers Association. He is a member of the
American Bar Association and a former member of the Board of Directors of Bergen County Habitat for
Humanity.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>John J. Skelly, Jr., </B>age 69, is the President and Chief Executive Officer of West Side
Management, which owns and manages affordable and low-income housing developments throughout New
Jersey, New York and Maryland. Mr.&nbsp;Skelly also served as the Deputy Commissioner of Housing for
the City of New York and was a founding Board Member for Habitat for Humanity of Greater Jersey
City. Mr.&nbsp;Skelly has extensive experience with real estate development and finance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Officers of the Bank Who Are Not Also Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>John M. Fields, Jr.</B>, age 46, has been employed by Oritani Financial Corp. since 1999 and
currently serves as Executive Vice President and Chief Financial Officer. He is also responsible
for information technology, electronic banking and deposit operations, as well as investment and
treasury functions. Prior to 1999, Mr.&nbsp;Fields, Jr. was chief accounting officer and controller at
a local publicly-traded financial institution. Mr.&nbsp;Fields, Jr. is a certified public accountant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Thomas Guinan</B>, age 45, has been employed by the Oritani Financial Corp since 2003 and
currently serves as Executive Vice President and Chief Lending Officer. Prior to that, Mr.&nbsp;Guinan
served as a senior vice president of commercial lending at a local financial institution. Mr.
Guinan is responsible for overseeing all aspects of the retail and commercial lending operations of
Oritani Bank, including originations, portfolio growth and developing strategies to enhance Oritani
Bank&#146;s market share and profitability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Philip M. Wyks</B>, age 55, has been employed by Oritani Financial Corp. since 1976 and currently
serves as Senior Vice President and Secretary. Mr.&nbsp;Wyks is also responsible for facilities
management. In addition, Mr.&nbsp;Wyks is a director of Thrift Institutions Community Investment
Corporation, a subsidiary of the New Jersey League of Community Bankers that assists League members
in forming consortia to originate loans on low to moderate income housing loans and initiate
economic development projects throughout the State of New Jersey.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Anthony V. Bilotta, Jr.</B>, age 49, began employment with Oritani Financial Corp. in 2008 as
Senior Vice President Retail Banking. Prior to that, Mr.&nbsp;Bilotta served as senior vice president
of retail banking at a local financial institution. Mr.&nbsp;Bilotta is responsible for all aspects of
retail branch banking, sales development, and Oritani Financial Corp.&#146;s marketing program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Rosanne P. Buscemi</B>, age 57, has been employed by Oritani Bank since 1978 and currently serves
served as Senior Vice President&#151;Chief Compliance Officer. Ms.&nbsp;Buscemi also assists with training
as well as oversight of new branch development and renovations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Anne Mooradian</B>, age 48, has been employed by Oritani Bank since 1985 and currently serves as
Senior Vice President and Human Resources Officer. Ms.&nbsp;Mooradian has also held branch retail
positions at Oritani Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Paul M. Cordero</B>, age 54, has been employed by Oritani Bank since 1980 and currently serves as
Vice President and Chief Residential Lending Officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ann Marie Jetton</B>, age 43, has been employed by Oritani Bank since 2000 and currently serves as
Vice President and Principal Accounting Officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Paul C. Skinner</B>, age 47, began employment with Oritani Financial Corp. in 2008 as Vice
President/Chief Information Officer. Prior to that, Mr.&nbsp;Skinner served as senior vice president of
information technology and operations at a local financial institution. Mr.&nbsp;Skinner is responsible
for
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">information technology, deposit operations, electronic banking and also serves as the
Company&#146;s privacy officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Corporate Governance, Code of Ethics and Business Conduct</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is committed to maintaining sound corporate governance principles and
the highest standards of ethical conduct and is in compliance with applicable corporate governance
laws and regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has adopted a code of ethics for the principal executive officer,
principal financial officer, principal accounting officer and all persons performing similar
functions, and corporate governance guidelines for directors. These codes are designed to deter
wrongdoing and to promote honest and ethical conduct, the avoidance of conflicts of interest, full
and accurate disclosure and compliance with all applicable laws, rules and regulations. Both of
these documents are available on Oritani Financial Corp.&#146;s website at <u>www.oritani.com</u>. Amendments
to and waivers from the code of ethics and corporate governance guidelines for directors are
disclosed on Oritani Financial Corp.&#146;s website.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has determined that, except as to Mr.&nbsp;Lynch and Mr.&nbsp;DeBernardi, each
member of the Board of Directors is an &#147;independent director&#148; within the meaning of the Nasdaq
corporate governance listing standards and Oritani Financial Corp.&#146;s corporate governance policies.
Mr.&nbsp;Lynch and Mr.&nbsp;DeBernardi are not considered independent as each is an executive officer of
Oritani Financial Corp.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Board of Directors has appointed Mr.&nbsp;Antonaccio as Lead Director. The Lead
Director has the following functions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preside at executive session of the non-management directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Facilitate communications between other members of the Board of Directors and
the Chief Executive Officer. Any director is free to communicate directly with the
Chief Executive Officer. The Lead Director&#146;s role is to attempt to improve such
communications if they are not entirely satisfactory.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Work with the Chief Executive Officer in the preparation of the Board of
Directors meeting agenda and information to be provided to the Board of Directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chair the annual review of the performance of the Chief Executive Officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Otherwise consult with the Chief Executive Officer on matters relating to
corporate governance and board performance.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given the duties of the Lead Director, the Board of Directors has reaffirmed its position of
allowing one individual to serve as Chairman and Chief Executive Officer. Mr.&nbsp;Lynch has served as
Chairman, President and Chief Executive Officer since the inception of Oritani Financial Corp.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2009, each of Directors John J. Skelly, Jr., James J. Doyle, Jr. and Kevin J.
Lynch had residential mortgage loans with Oritani Bank. Additionally, Oritani Bank had loans
outstanding to entities in which Directors Hekemian and Skelly had an ownership interest in the
amounts of $25.2
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">million and $8.8&nbsp;million, respectively. These loans were made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for comparable
transactions with the general public. Oritani Financial Corp. also utilizes the property
management services of Hekemian &#038; Co., Inc. to manage two properties owned by its subsidiaries.
Director Hekemian has a partial ownership interest in Hekemian &#038; Co., Inc. During the fiscal year
ended June&nbsp;30, 2009, Oritani Financial Corp., through its subsidiaries, paid $87,000 to Hekemian &#038;
Co., Inc. for these management services. In addition, during the fiscal year ended June&nbsp;30, 2009,
Oritani Bank made rent payments for its Cliffside Park branch totaling $88,080 to the landlord,
Willet &#038; Co. Director Hekemian has a partial ownership interest in Willet &#038; Co. The terms of these
agreements were determined in the ordinary course of business and were made on substantially the
same terms by us as could have been made with unaffiliated parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board of Directors Meetings and Committees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani Financial Corp. and Oritani Bank met 12 times during the
fiscal year ended June&nbsp;30, 2009. All directors attended all Board of Directors and committee
meetings during fiscal 2009, including Board and committee meetings of Oritani Bank. Executive
sessions of the independent directors are regularly scheduled. Although not required, attendance
of directors at the Annual Meeting of Stockholders is encouraged. Each of Oritani Financial
Corp.&#146;s directors attended the Oritani Financial Corp.&#146;s 2009 Annual Meeting of Stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. and Oritani Bank have four standing committees of the Board of
Directors: Compensation and Corporate Governance Committee; Audit Committee; Loan Committee; and
CRA and Compliance Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactions with Certain Related Persons</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law and regulation generally require that all loans or extensions of credit to
executive officers and directors must be made in the ordinary course of business on substantially
the same terms, including interest rates and collateral, as those prevailing at the time for
comparable loans with persons not related to Oritani Bank or Oritani Financial Corp. and must not
involve more than the normal risk of collectibility or present other unfavorable features.
However, applicable regulations permit executive officers and directors to receive the same terms
through loan programs that are widely available to other employees, as long as the director or
executive officer is not given preferential treatment compared to the other participating
employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;402 of the Sarbanes-Oxley Act of 2002 generally prohibits an issuer from: (1)
extending or maintaining credit; (2)&nbsp;arranging for the extension of credit; or (3)&nbsp;renewing an
extension of credit in the form of a personal loan for an officer or director. There are several
exceptions to this general prohibition, one of which is applicable to Oritani Bank. Sarbanes-Oxley
does not apply to loans made by a depository institution that is insured by the FDIC and is subject
to the insider lending restrictions of the Federal Reserve Act. All loans to the Company&#146;s
directors and officers are made in conformity with the Federal Reserve Act and Regulation&nbsp;O.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate amount of our loans to our executive officers and directors, and their related
entities, was $38.3&nbsp;million at December&nbsp;31, 2009. These loans were performing according to their
original terms at December&nbsp;31, 2009.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Compensation and Corporate Governance Committee Interlocks and Insider Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Compensation and Corporate Governance Committee (&#147;C&#038;CG Committee&#148;) determines the salaries
to be paid each year to the Chief Executive Officer and those executive officers who report
directly to the Chief Executive Officer. The C&#038;CG Committee consists of Directors Doyle (Chair),
Antonaccio, Hekemian and Skelly. None of these individuals was an officer or employee of Oritani
Financial Corp. or Oritani Bank during the fiscal year ended June&nbsp;30, 2009, or is a former officer
of Oritani Financial Corp. or Oritani Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended June&nbsp;30, 2009, (i)&nbsp;no executive of Oritani Financial Corp. served
as a member of the compensation committee (or other Board committee performing equivalent functions
or, in the absence of any such committee, the entire Board of Directors) of another entity, one of
whose executive officers served on the C&#038;CG Committee of Oritani Financial Corp.; (ii)&nbsp;no executive
officer of Oritani Financial Corp. served as a director of another entity, one of whose executive
officers served on the C&#038;CG Committee of Oritani Financial Corp.; and (iii)&nbsp;no executive officer of
Oritani Financial Corp. served as a member of the compensation committee (or other board committee
performing equivalent functions or, in the absence of any such committee, the entire Board of
Directors) of another entity, one of whose executive officers served as a director of Oritani
Financial Corp.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Discussion and Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Compensation Philosophy and Objectives</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The goal of the Executive Compensation Program is to enable us to attract, develop, and retain
strong executive officers capable of maximizing our performance for the benefit of its
stockholders. Our compensation philosophy is to provide competitive compensation opportunities
that are aligned with our financial performance and the generation of value for stockholders
through stock-price appreciation. Our focus is on retaining and motivating key executives,
maintaining profitability, asset quality and loan growth, while aggressively controlling expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Role of the Compensation and Corporate Governance Committee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee assists the Board of Directors in discharging its responsibilities
regarding the Company&#146;s compensation and benefit plans and practices. Authority granted to the
C&#038;CG Committee is established in its charter, which is available on the Company&#146;s website at
www.oritani.com. The C&#038;CG Committee meets as necessary. One of the responsibilities of the C&#038;CG
Committee is to provide, on an annual basis, final approval of the significant components of the
total compensation of the named executive officers. In making these determinations, the C&#038;CG
Committee considers the executive&#146;s level of job responsibility, the compensation paid by peers for
similar levels of responsibility, industry survey data regarding executive compensation, the
financial condition and performance of the Company, and an assessment of the executive&#146;s individual
performance. The C&#038;CG Committee also strongly considers the recommendations of the CEO regarding
the other named executive officers. The actions of the C&#038;CG Committee are presented for discussion
at meetings of the full Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Use of Outside Advisors and Survey Data. </B>The C&#038;CG Committee uses industry survey data from
independent sources and had previously engaged a consulting firm to assist it in performing its
duties. The independent sources of industry survey data utilized by the C&#038;CG Committee are the
executive compensation reports prepared by the New Jersey League of Community Bankers and L.R.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Webber Associates, Inc. (&#147;Webber Survey&#148;). The Webber Survey provides timely and reliable
information on wages, salaries, employee benefits, and compensation practices and trends for
financial institutions. It is widely utilized within the industry. The C&#038;CG Committee engaged a
compensation consulting firm, GK Partners, to prepare a compensation report and analysis in
connection with the compensation package of the named executive officers. The report they produced
is dated September&nbsp;28, 2007. GK Partners is an independent, executive compensation consulting firm
with experience in, and knowledge of, the financial services industry. The data contained in their
report were still considered pertinent and appropriate for usage by the C&#038;CG Committee in
performing its responsibilities in calendar 2008. GK Partners was not engaged specifically for
calendar 2008 data in order to save costs. They were engaged for 2009. The peers selected for the
2007 GK Partners report for purposes of compiling peer data were local publically traded banks that
were considered reasonable competitors based on size, profitability, market capitalization and
lines of business. The specific peers were:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Clifton Savings Bank
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> OceanFirst Financial Corp.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Dime Community Bancshares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Partners Trust Financial</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Greater Community Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> PennFed Financial Services, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Investors Bancorp, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Provident Financial Services, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Kearny Financial Corp.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Provident New York</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Lakeland Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Roma Financial Corp.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> NBT Bancorp Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Synergy Financial Corp.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee communicated directly with, and received certain reports directly from, GK
Partners. In addition to the raw peer data, the C&#038;CG Committee also considered the relative
business models, loan growth, asset quality, and profitability of the banks and thrifts in the peer
groups. The report prepared by GK Partners included a peer median and average salary and cash
incentive for each of the named executive officers based on their title and responsibilities. The
C&#038;CG Committee considered the executive&#146;s current base salary and historical annual cash incentive,
and compared these amounts to the median and average compensation detailed in the GK Partners
Report for the executive&#146;s title and responsibilities. The peer median and average compensation
were strongly considered by the C&#038;CG Committee when contemplating the executive&#146;s salary and cash
incentive (described in the procedures below). The C&#038;CG Committee decided that the acceptable
range for base salary increases was 0 &#151; 20% and the acceptable range of target bonus opportunity
for annual cash incentives was 20 &#151; 100% of the executive&#146;s current base salary. Given these
restrictions, and considering the information provided in the GK Partners Report, the C&#038;CG
Committee determined a preliminary range of base salary and annual cash incentive for each of the
named executive officers. A final amount for each executive was determined using the procedures
described in the paragraphs below.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->119<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Elements of The Compensation Package</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our 2008/2009 compensation program for named executive officers consisted of base salary,
annual cash incentives, equity incentive awards (such as stock options and restricted stock
awards), a comprehensive benefits package and perquisites.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Base Salary. </B>Executive base salary levels are generally reviewed on an annual basis and
adjusted as appropriate. We desire to compensate executives fairly. During the fiscal year ended
June&nbsp;30, 2009 the C&#038;CG Committee considered prevailing market conditions and approved certain
salary adjustments as indicated below. The C&#038;CG Committee also considered the overall performance
of the individual, including their achievement of individual goals as well as their contribution to
our goals in making their determinations. The C&#038;CG Committee relied on the data contained in the
GK Partners Report, as well as the data from independent surveys, in formulating its opinion of
prevailing market conditions. The C&#038;CG Committee viewed this information as a broad database of
the Company&#146;s peers with detailed information on Base Salary and Incentive Compensation. The
following table sets forth the base salary increases for the named executive officers approved by
the C&#038;CG Committee during fiscal year 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Base Salary History at June&nbsp;30, 2009</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Base Salary</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Increase Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Increase</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">% Increase</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">New Base Salary</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">545,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A.
DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">22,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">272,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">218,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">218,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">189,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">189,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the C&#038;CG Committee considered the existing base salaries of the named executive
officers to be within a reasonable range based on their perception of existing market conditions,
it also felt that an adjustment was warranted. In general, the C&#038;CG Committee was pleased with the
progress management made in quality balance sheet growth and capital deployment. It felt that our
growth, while adhering to strict quality and profitability standards, was exemplary. The
measurement period for this conclusion was primarily the fiscal year ended June&nbsp;30, 2008. The C&#038;CG
Committee awarded 9% base salary increases to the named executive officers that they felt were most
responsible for these achievements. In the instance of Mr.&nbsp;Wyks, the C&#038;CG Committee decided that
no increase in base salary was appropriate at this time as they felt his current salary was
sufficient when considered in conjunction with his current responsibilities. The C&#038;CG Committee
considered the ending base salaries of all of the named executive officers to be appropriate and
reasonable considering, their responsibilities, in comparison to their peers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Annual Cash Incentives. </B>Annual cash incentive opportunities are provided to the named
executive officers as an incentive to achieve annual goals and objectives. For fiscal 2009 the
C&#038;CG Committee determined each named executive officer&#146;s bonus based on a retrospective review of a
variety of corporate performance factors and each individual&#146;s contribution to us, taking in to
account the operating environment existing during the year. This review is in addition to our
actual performance against its operating budget, which is adopted at the beginning of the year
along with strategic objectives and projects to be accomplished during the year. At the November
21, 2008 Annual Meeting of Stockholders of Oritani Financial Corp., stockholders approved the
Executive Officer Annual Incentive Plan. This plan became effective at that time and formalized
the process of annual cash incentives for
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->120<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">named executive officers. Prospective annual cash
incentives, if any, will be awarded in accordance with this plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payments for the named executive officers were based on the achievement of certain goals
on a Bank-wide basis as well as individual performance goals. Bank-wide goals included financial
performance of Oritani Bank measured on a return-on-assets (ROA)&nbsp;and Efficiency Ratio basis as
compared to a peer group. The C&#038;CG Committee held management to a &#147;meet or beat peers&#148; standard.
The peer group selected by the C&#038;CG Committee consisted of area banks with a mutual holding company
structure. The specific group selected was:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Kearny Federal Savings Bank
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Roma Bank</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Investors Savings Bank
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Northfield Bank</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B> Clifton Savings Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peer group results were determined using the FDIC Website for Statistics on Depository
Institutions. Peer data regarding ROA and Efficiency Ratio were obtained for the quarterly periods
ending September&nbsp;30, 2008; June&nbsp;30, 2008; March&nbsp;31, 2008 and December&nbsp;31, 2008. The twelve month
period ended September&nbsp;30, 2008 was utilized as this was the most recent period of data available
when the cash incentives were being determined. The peer results were averaged and compared to the
average results for Oritani Bank (from the same source) for the same periods. Oritani&#146;s ROA was
0.58%, versus the peer result of 0.53%. Oritani Bank&#146;s Efficiency Ratio was 53.99%, versus the
peer result of 65.15% (a lower efficiency ratio is desired). Accordingly, the C&#038;CG Committee felt
that management had met the goal for financial performance. The other bank-wide goals considered
were loan portfolio growth, delinquency levels, deployment of excess capital, staffing changes,
facility renovations, and new branch openings. In the opinion of the C&#038;CG Committee, all the
bank-wide goals had been attained. In addition, the C&#038;CG Committee also felt that the individual
performance goals were attained for all of the named executive officers. The C&#038;CG Committee
determined that Mr.&nbsp;Lynch had the primary responsibility for the attainment of our Company-wide
goals. The C&#038;CG Committee awarded Mr.&nbsp;Lynch an annual cash incentive equal to 50% of his base
salary in recognition of his accomplishments. A base annual cash incentive equal to 35% of their
respective base salaries was awarded to each of Messrs.&nbsp;DeBernardi, Fields and Guinan. The base
award for Mr.&nbsp;Guinan was increased to 40% due to his specific contributions regarding loan
originations and loan portfolio growth. The base award for Mr.&nbsp;DeBernardi was pro-rated to 26.25%
as he was not a full-time employee for the entire measurement period. The C&#038;CG Committee awarded
Mr.&nbsp;Wyks an annual cash incentive equal to 20% of his base salary, primarily due to attainment of
his individual performance goals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee approved awards totaling $503,425 to our named executive officers during
the fiscal year ended June&nbsp;30, 2009. The specific amount awarded to each named executive officer
for the fiscal year ended June&nbsp;30, 2009 is set forth in the Bonus column of the table in the
&#147;&#151;Executive Officer Compensation&#151;Summary Compensation Table.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Equity Incentives. </B>We did not have stock issued to the public prior to our initial public
offering which was consummated in 2007. In connection with the initial public offering, Oritani
Financial Corp. established an employee stock ownership plan that purchased 3.92% of the total
shares issued in the offering (including shares issued to Oritani Financial Corp., MHC and to the
OritaniBank Charitable Foundation) for the benefit of employees of Oritani Bank. The employee
stock ownership plan is a qualified retirement plan. Additionally, at a special meeting of
stockholders in April&nbsp;2008, our stockholders approved our 2007 Equity Incentive Plan (&#147;the Equity
Plan&#148;) which authorized the issuance of up to 2,781,878 shares of our common stock pursuant to
grants of incentive and non-statutory stock options, stock appreciation rights, and restricted
stock awards. The Equity Plan
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->121<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provides our officers, employees and directors with additional
incentives to promote growth and performance. The Equity Plan provides that individuals may
receive awards of common stock and grants of options to purchase common stock. The C&#038;CG Committee
believes that officer stock ownership provides a significant incentive in building stockholder
value by aligning the interests of the officers, employees and directors with those of
our shareholders. In addition, stock option grants and stock awards vest over five years,
thereby aiding retention. We granted no awards to any named executive officer under the Equity
Plan during fiscal 2009. As of June&nbsp;30, 2009, a total of 2,653,173 stock options and restricted
stock awards had been granted under the Equity Plan, representing 95.4% of the shares available.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other</B>. Additionally, we provide certain fringe benefits, including retirement plans,
termination benefits, and perquisites. The retirement plans consist of:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A multi-employer defined benefit plan (a qualified plan). The plan was frozen as of
December&nbsp;31, 2008. All employees who attained the age of 21 and completed one year of
service were eligible to participate in the plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified savings incentive plan covering employees whose salary deferrals to the
savings incentive plan are limited.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified Benefit Equalization Plan which provides benefits to employees who are
disallowed certain benefits under our qualified benefit plans.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified Post Retirement Medical Plan for directors and certain eligible
employees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified Executive Supplemental Retirement Income Agreement for our President and
Chief Executive Officer.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee considered these items when contemplating the overall compensation package
awarded to the named executive officers. The C&#038;CG Committee felt that these items were appropriate
given the level of responsibility for each named executive officer and that no changes to the
programs were warranted at the time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Corporate Income Tax Considerations. </B>Section&nbsp;162(m) of the Internal Revenue Code imposes a
$1,000,000 annual limit, per executive officer, on a company&#146;s federal tax deduction for certain
types of compensation paid to executive officers. Compensation that is &#147;performance-based&#148; under
the Internal Revenue Code&#146;s definition is exempt from this limit. Stock option grants are intended
to qualify as performance-based compensation. It has been the C&#038;CG Committee&#146;s practice to
structure the compensation and benefit programs offered to the named executive officers in order to
maximize the tax deductibility of amounts paid. However, in structuring the compensation programs
and in reaching compensation decisions, the C&#038;CG Committee considers a variety of factors,
including the Company&#146;s tax position, the materiality of the payments and tax deductions involved,
and the need for flexibility to address unforeseen circumstances. After considering these factors,
the C&#038;CG Committee may decide to authorize compensation payments, all or part of which would be
nondeductible for federal tax purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4999 of the Code imposes a 20% excise tax on certain &#147;excess parachute payments&#148; made
to &#147;disqualified individuals.&#148; Under Sections&nbsp;280G of the Code, such excess parachute payments are
also nondeductible to us. If payments that are contingent on a change of control to a disqualified
individual (which includes the named executive officers) exceed three times the individual&#146;s &#147;base
amount,&#148; they constitute &#147;excess parachute payments&#148; to the extent they exceed one time the
individual&#146;s base amount.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->122<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance payments to the named executive officers pursuant to their employment agreements
that are paid in connection with termination following a Change in Control are subject to reduction
in order to avoid an excess parachute payment under Section&nbsp;280G of the Code.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Accounting Considerations. </B>The C&#038;CG Committee is informed of the financial statement
implications of the elements of the named executive officers&#146; compensation. However, the probable
contribution of a compensation element to the objectives of our named executive officers
compensation program and its projected economic cost, which may or may not be reflected on our
financial statements, are the primary determining factors of the named executive officers&#146;
compensation decisions.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->123<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Officer Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Summary Compensation Table.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the fiscal years ended June&nbsp;30, 2009, 2008 and 2007 certain
information as to the total remuneration paid to Mr.&nbsp;Lynch, who serves as Chief Executive Officer,
Mr.&nbsp;Fields, who serves as Chief Financial Officer, and the three other most highly compensated
executive officers of Oritani Financial Corp. or Oritani Bank other than Messrs.&nbsp;Lynch and Fields,
who received total compensation in excess of $100,000. Each of the individuals listed in the table
below is referred to as a &#147;named executive officer.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Change in pension</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>value and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>non-qualified</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>deferred</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Awards ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Salary ($)(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Bonus ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock Awards ($)(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>earnings ($) (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(5)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">550,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">621,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,648,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,455,504</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">530,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">919,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,960,730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,460,043</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">864,318</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" >
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">and Chief Operating
Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">852,336</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419,952</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">and
Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,836</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">905,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" >
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,735</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">438,546</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">and Chief Lending
Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,873</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,198</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Vice President and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">389,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Secretary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,967</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes $23,058 and $2,181 of payments made in 2009 to Messrs.&nbsp;Lynch and Wyks, respectively,
for unused vacation days.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal years ended June&nbsp;30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the
Equity Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.&#146;s audited financial statements for the fiscal year ended June&nbsp;30, 2009
included herein.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes, for the fiscal years ended June&nbsp;30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity
Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.&#146;s audited financial statements for the fiscal year ended June&nbsp;30, 2009
included herein.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the actuarial increase in the present value at June&nbsp;30,
2009 compared to June&nbsp;30, 2008, of the named executive officer&#146;s benefits under the Defined
Benefit Plan and Benefit Equalization Plan and, in the case of Mr.&nbsp;Lynch, an Executive
Supplement Retirement Income Agreement and the Directors&#146; Retirement Plan maintained by
Oritani Bank, and, in the case of Mr.&nbsp;DeBernardi, the Directors&#146; Retirement Plan maintained by
Oritani Bank, determined using interest rate and mortality rate assumptions consistent with
those used in Oritani Financial Corp.&#146;s financial statements and includes amounts for which
the named executive officer may not currently be entitled to receive because such amounts are
not vested. This column also includes $69,874, $73, $7,435, $2,091, and $5,799 of
preferential or above-market earnings on non tax-qualified deferred compensation for
non-qualified defined contribution plans for Messrs.&nbsp;Lynch, DeBernardi, Fields, Guinan and
Wyks, respectively, as well as $21,025 for Mr.&nbsp;DeBernardi of preferential earnings on a
similar plan for deferred director fees.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column represent the total of all perquisites (non-cash benefits and
perquisites such as the use of employer-owned automobiles, membership dues and other personal
benefits), employee benefits (employer cost of life insurance and health insurance), and
employer contributions to defined contribution plans (the 401(k) Plan, the ESOP and the
Benefit Equalization Plan). Amounts are reported separately under the &#147;All Other
Compensation&#148; table below.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->124<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>All Other Compensation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contribution on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Medical, Dental,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contribution to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Benefit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Disability and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>ESOP and 401(k)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equalization Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Insurance Benefits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Automobile</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Plan Match</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Match Contribution</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Country Club Dues</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Contribution ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,512</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,356</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" >
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,249</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,649</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" >
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,776</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,826</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" >
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,078</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,239</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,649</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,098</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Plan-Based Awards. </B>The following table sets forth the threshold, target and maximum
award amounts that could be earned by the named executive officers during fiscal 2010 that were
established during fiscal 2009 under our Executive Officer Annual Incentive Plan. There were no
grants made to the named executive officers during fiscal 2009 under our Stock Based Incentive
Plan.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Grants of Plan-Based Awards for the Fiscal Year Ended JUNE 30, 2009</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Estimated Possible Payouts</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Under Non-Equity Incentive Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Awards (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Threshold</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="1" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,525</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes full achievement of individual component of award total.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->125<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Outstanding Equity Awards at Year End. </B>The following table sets forth information with
respect to outstanding equity awards as of June&nbsp;30, 2009 for the named executive officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" >
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="24" style="border-bottom: 1px solid #000000"><B>OUTSTANDING EQUITY AWARDS AT JUNE 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Option Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Stock Awards</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Market Value of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares or Units of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of Shares or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock That Have Not</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unexercised Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unexercised Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Units of Stock That</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Vested ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(#) Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(#) Unexercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Price ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Date </B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Have Not Vested (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">317,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,179,410</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">164,520</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Stock options expire 10&nbsp;years after the grant date.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount is based on the per share fair market value of Oritani Financial Corp.&#146;s common
stock on June&nbsp;30, 2009 of $13.71.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Option Exercises And Stock Vested. </B>None of the Company&#146;s named executive officers
exercised any stock options during the fiscal year ended June&nbsp;30, 2009. During fiscal 2009, 20% of
the total number of shares of each officers&#146; restricted shares vested.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->126<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Pension Benefits. </B>The following table sets forth information with respect to pension benefits
at and for the fiscal year ended June&nbsp;30, 2009 for the named executive officers. See &#147;Defined
Benefit Plan,&#148; &#147;Director&#146;s Retirement Plan,&#148; &#147;Benefit Equalization Plan&#148; and &#147;Executive
Supplemental Retirement Income Agreement&#148; for a discussion of the plans referenced in this table.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 0px solid #000000"><B>Pension Benefits at and for the Fiscal Year Ended June 30, 2009</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Present Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Payments During</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Credited Service</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Accumulated Benefit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Last Fiscal Year</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Plan Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Kevin J. Lynch
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">531,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors&#146; Retirement Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18.67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">407,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,473,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Supplemental Income Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,314,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael A. DeBernardi
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors&#146; Retirement Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15.67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">170,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John M. Fields, Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">128,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas Guinan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21.17</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">303,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Philip M. Wyks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">701,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">83,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The figures shown are determined as of the plan&#146;s measurement date of June&nbsp;30, 2009 for
purposes of Oritani Financial Corp.&#146;s audited financial statements. For mortality, discount rate
and other assumptions used for this purpose, please refer to note 13 in the audited financial
statements included herein.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Nonqualified Deferred Compensation.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information with respect to the portion of the Benefit
Equalization Plan that supplements the 401(k) Plan and the employee stock ownership plan at and for
the fiscal year ended June&nbsp;30, 2009 for the named executive officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 0px solid #000000"><B>Nonqualified Deferred Compensation at and for the Fiscal Year Ended June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Registrant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Executive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contributions in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate Earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate Balance</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contributions in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Last Fiscal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Last Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Withdrawals/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at Last Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Last Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year<SUP style="font-size: 85%; vertical-align: text-top"> (1)</SUP></b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><SUP style="font-size: 85%; vertical-align: text-top"><B>(2) </b></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Distributions ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>End ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,318,161</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,209</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts reported in this column were also reported as compensation under &#147;All Other
Compensation&#148; in the Summary Compensation Table.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>For Messrs.&nbsp;Lynch, DeBernardi, Fields, Guinan and Wyks, $69,874, $73, $7,436, $2,092 and
$5,800 respectively, were reported as preferential or above-market earnings for each
individual under &#147;Change in pension value and non-qualified deferred compensation earnings&#148; in
the Summary Compensation Table.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefit Plans and Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employment Agreements. </I></B>Oritani Bank entered into an employment agreement with Kevin J. Lynch
effective as of January&nbsp;1, 2003. The agreement had an initial term of three years. Unless notice
of non-renewal is provided, the agreement renews annually. Under the agreement, the current base
salary is $545,000. The base salary is reviewed at least annually and may be increased, but not
decreased. In addition to base salary, the agreement provides for, among other things,
participation in bonus programs
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->127<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and other employee pension benefit and fringe benefit plans applicable to executive employees, use
of an automobile and reimbursement of expenses associated with the use of such automobile. The
executive is also entitled to reimbursement of business expenses, including fees for membership in
a country club, a health club, and such other clubs and organizations as appropriate for business
purposes. Upon retirement at age 70 (or at an earlier age in accordance with any retirement
arrangement established with the executive&#146;s consent) the executive and his spouse would be
entitled to continuing health care insurance coverage until the death of the executive and his
spouse.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The executive is entitled to severance payments and benefits in the event of his termination
of employment under specified circumstances. In the event the executive&#146;s employment is terminated
for reasons other than just cause, disability, death, retirement or a change in control, or in the
event the executive resigns during the term of the agreement following (1)&nbsp;the failure to elect or
reelect or to appoint or reappoint executive to his executive position, (2)&nbsp;a material change in
the executive&#146;s functions, duties, or responsibilities, which change would cause executive&#146;s
position to become one of lesser responsibility, importance or scope, (3)&nbsp;a relocation of the
executive&#146;s principal place of employment by more than 30 miles from its location at the effective
date of the employment agreement or a material reduction in the benefits and perquisites from those
being provided to the executive as of the effective date of the employment agreement, (4)&nbsp;the
liquidation or dissolution of Oritani Bank, or (5)&nbsp;a breach of the employment agreement by Oritani
Bank, the executive (or, in the event of the executive&#146;s death, his beneficiary) would be entitled
to a severance payment equal to three times the sum of the executive&#146;s highest base salary and
highest rate of bonus, and the executive would be entitled to the continuation of life, medical,
and dental coverage for 36&nbsp;months or as provided in the Oritani Bank nonqualified senior officers
medical benefit plan. In the event of a termination following a change in control of Oritani
Financial Corp., the executive (or, in the event of the executive&#146;s death, his beneficiary) would
be entitled to a severance payment equal to three times the sum of the executive&#146;s highest base
salary and highest rate of bonus paid to him during the term of the employment agreement, plus
continuation of insurance coverage for 36&nbsp;months. In the event the severance payment provisions of
the employment agreement are triggered, the executive would be entitled to a cash severance benefit
in the amount of approximately $2.4&nbsp;million, which amount is subject to reduction in order to avoid
an excess parachute payment under Section&nbsp;280G of the Internal Revenue Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of the executive&#146;s employment other than in connection with a change in
control, the executive agrees not to compete with Oritani Bank for one year following termination
of employment in any city, town or county in which Oritani Bank has an office or has filed an
application for regulatory approval to establish an office. Should the executive become disabled,
Oritani Bank would continue to pay the executive his base salary, bonuses and other cash
compensation for the longer of the remaining term of the employment agreement or one year, provided
that any amount paid to the executive pursuant to any disability insurance would reduce the
compensation he would receive. In the event the executive dies while employed by Oritani Bank, the
executive&#146;s beneficiary or estate will be paid the executive&#146;s base salary for the remaining term
of the employment agreement and the executive&#146;s family will be entitled to continuation of medical
and dental benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank has entered into employment agreements with Messrs.&nbsp;DeBernardi, Fields, Guinan
and Wyks that are substantially similar to the employment agreement of Mr.&nbsp;Lynch, except that each
of these agreements has a term of two years and entitles the executive to a severance payment equal
to two times the sum of the executive&#146;s highest base salary and highest rate of bonus and to the
continuation of life, medical, and dental coverage for 24&nbsp;months or as provided in the Oritani Bank
nonqualified senior officers medical benefit plan. In the event of a termination following a
change in control of Oritani Financial Corp., the executive (or, in the event of the executive&#146;s
death, his beneficiary) would be entitled to a severance payment equal to two times the sum of the
executive&#146;s highest base salary and highest rate
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->128<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of bonus paid to him or her during the term of the employment agreement, plus continuation of
insurance coverage for 24&nbsp;months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Benefit Equalization Plan. </I></B>Oritani Bank has adopted the 2005 Benefit Equalization Plan to
provide certain executives with benefits to which they would otherwise be entitled under Oritani
Bank&#146;s Defined Benefit Pension Plan, 401(k) Plan and Employee Stock Ownership Plan, but for the
limitations imposed by the Internal Revenue Code. The 2005 Benefit Equalization Plan was adopted
to incorporate the required provisions of Code Section&nbsp;409A and was amended and restated in January
2008 in order to incorporate the final Department of Treasury regulations issued under Code Section
409A. Oritani Bank&#146;s prior Benefit Equalization Plan was frozen effective as of December&nbsp;31, 2004.
The 2005 Benefit Equalization Plan is materially similar to the frozen Benefit Equalization Plan,
except that a participant&#146;s elections regarding distributions under the tax-qualified 401(k) Plan,
the Employee Stock Ownership Plan and Defined Benefit Pension Plan control the form and timing of
distributions of a participant&#146;s account in the frozen Benefit Equalization Plan. This provision
is no longer permitted with respect to deferrals or accruals subject to Code Section&nbsp;409A and is
not included in the 2005 Benefit Equalization Plan. Employees who are president, executive vice
president, senior vice president and vice president of Oritani Bank are eligible to participate in
the plan. During fiscal 2009, eleven current employees and one retired employee participated in the
2005 Benefit Equalization Plan. A committee appointed by the Oritani Bank Board of Directors
administers the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 401(k) portion of the 2005 Benefit Equalization Plan, participants may make annual
deferrals of compensation in an amount up to the difference between the maximum amount the
participant would be permitted to contribute to Oritani Bank&#146;s 401(k) plan for the given year but
for the limitations of the Internal Revenue Code and the deferrals actually made to the 401(k) plan
by the participant for the plan year. Oritani Bank will establish a supplemental 401(k) plan
account for each participant and credit the account with such contributions. In addition, the
participant&#146;s account will be credited monthly with earnings at a rate equivalent to the greater of
(i)&nbsp;the Citibank Prime Rate, or (ii)&nbsp;nine percent (9%), plus matching contributions. For fiscal
2009, a total of $146,000 in interest was credited to the accounts of current employees under this
plan. Upon termination of service due to any reason other than death, the supplemental 401(k) plan
benefit will be payable either in a lump sum or in up to 5 annual installments, as elected by the
participant pursuant to his initial deferral election. Upon termination of service due to death,
the supplemental 401(k) plan benefit under the 2005 Benefit Equalization Plan will be payable to
the participant&#146;s beneficiary either in a lump sum or in annual installments, pursuant to the
participant&#146;s initial deferral election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of service due to any reason other than death, a participant will also be
entitled to a benefit equal to the difference between the actuarial present value of the
participant&#146;s normal retirement benefit under Oritani Bank&#146;s defined benefit plan and the actuarial
present value of his normal retirement benefit calculated pursuant to the terms of the defined
benefit plan, without the application of the limitations imposed by the Internal Revenue Code,
which amount will be reduced and offset by the corresponding benefit amount payable to the
participant under the frozen Benefit Equalization Plan. The supplemental defined benefit plan
benefit under the 2005 Benefit Equalization Plan will be payable to the participant in monthly
installments for the longer of 120&nbsp;months or the remainder of the participant&#146;s life. In the event
of the participant&#146;s death before 120 installments have been paid, the participant&#146;s beneficiary
will receive the present value of the remaining monthly installments in a lump sum. Alternatively,
the participant may also make, prior to commencement of the supplemental defined benefit plan
benefit, a one-time irrevocable election to receive his benefit under the plan in the form of a
100% joint and survivor annuity or a 50% joint and survivor annuity. Upon termination of service
due to death, the supplemental defined benefit plan benefit under the 2005 Benefit Equalization
Plan will be payable to the participant&#146;s beneficiary either in a lump sum or in annual
installments, pursuant to the participant&#146;s initial deferral election. A participant&#146;s supplemental
defined benefit plan amount payable under the 2005
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Benefit Equalization Plan will be reduced and offset by the corresponding supplemental defined
benefit plan amount payable under the frozen Benefit Equalization Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The supplemental employee stock ownership plan benefit under the 2005 Benefit Equalization
Plan is denominated in shares of phantom stock equal to the difference between the number of shares
of Oritani Financial Corp. common stock that would have been allocated to the participant under the
employee stock ownership plan, but for the limitations imposed by the Internal Revenue Code, and
the actual number of shares of Oritani Financial Corp. common stock allocated to the participant
under the Oritani Bank employee stock ownership plan for the relevant plan year, plus earnings on
the phantom shares deemed allocated to the participant&#146;s supplemental employee stock ownership plan
account, based on the fair market value of Oritani Financial Corp. stock on such date. Upon
termination of service due to any reason other than death, the supplemental employee stock
ownership plan benefit will be payable either in a lump sum or in up to five annual installments,
as elected by the participant pursuant to his initial deferral election. Upon termination of
service due to death, the supplemental employee stock ownership plan benefit under the 2005 Benefit
Equalization Plan will be payable to the participant&#146;s beneficiary either in a lump sum or in
annual installments, pursuant to the participant&#146;s initial deferral election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of a change in control of Oritani Bank or Oritani Financial Corp., the
participant&#146;s supplemental 401(k) plan benefit, supplemental employee stock ownership plan benefit,
and supplemental defined benefit plan will be paid to the participants in a lump sum at the time of
the change in control, unless a participant has selected an alternative form of distribution upon a
change in control. Such an election, if made, was required to be made by a participant not later
than December&nbsp;31, 2008, or with respect to new plan participants within thirty days after the
participant first becomes eligible to participate in the 2005 Benefit Equalization Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Executive Supplemental Retirement Income Agreement</I></B>. Oritani Bank entered into an Executive
Supplemental Retirement Income Agreement (the &#147;Agreement&#148;) for Kevin J. Lynch (the &#147;Executive&#148;)
effective as of January&nbsp;1, 2005. The Agreement was amended and restated during 2008 for the final
Department of Treasury regulations issued under Code Section&nbsp;409A.The Agreement provides for the
payment of a supplemental retirement income benefit equal to 70% of the Executive&#146;s highest average
annual base salary and bonus (over a 36-consecutive month period within the last 120 consecutive
months of employment), reduced by the sum of the Executive&#146;s annuitized value of the benefits
payable from Oritani Bank&#146;s Defined Benefit Pension Plan, the annuitized value of the benefits
payable under the defined benefit portion of Oritani Bank&#146;s frozen Benefit Equalization Plan and
2005 Benefit Equalization Plan and the annuitized value of one-half of the Executive&#146;s Social
Security benefits attributable to Social Security taxes paid by Oritani Bank on behalf of the
Executive, reduced by the Social Security offset under the Oritani Bank&#146;s Defined Benefit Pension
Plan. In the event the Executive dies prior to termination of employment or after termination of
employment but prior to the payment of any portion of the supplemental retirement income benefit,
the Executive&#146;s beneficiary will be entitled to a survivor&#146;s benefit, payable in 240&nbsp;monthly
installments, and equal to the greater of the annual amount of $327,446 reduced by the annuitized
value of the benefit payable under the Benefit Equalization Plan, or the supplemental retirement
income benefit determined as if the Executive retired on the day before his death and commenced
receiving benefits at such time. In the event the Executive dies while receiving benefits under
the Agreement, the unpaid balance of benefits will be paid to the Executive&#146;s beneficiary for the
remainder of the 240 installments. Upon the Executive&#146;s retirement, the Executive will be entitled
to a supplemental retirement income benefit payable in monthly installments over the longer of 240
months or the Executive&#146;s lifetime. In the event the Executive is a &#147;specified employee,&#148; payments
will commence the first day of the 7<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> month following the Executive&#146;s retirement, but
only to the extent necessary to comply with Code Section&nbsp;409A. Upon attainment of age 60, the
Executive may elect to retire and receive an early retirement benefit equal to the supplemental
retirement income benefit reduced by 5%
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">per year for each year prior to the Executive&#146;s 65<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> birthday, payable monthly for
the longer of 240&nbsp;months or the Executive&#146;s lifetime. In the event the Executive becomes disabled,
he will be entitled to a supplemental disability benefit equal to the supplemental retirement
income benefit calculated as if the Executive retired on the date of his termination of employment
due to disability, reduced by 5% per year for each year that such disability occurs prior to the
Executive&#146;s 65<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> birthday. In the event of the Executive&#146;s termination of employment
within 3&nbsp;years following a change in control, other than due to termination for cause, the
Executive will be entitled to a full supplemental retirement income benefit calculated as if the
Executive had retired following his normal retirement date. Payments to the Executive in the event
of a change in control generally will be made in 240&nbsp;monthly installments. During 2008 the
Agreement was amended to permit the Executive to elect a lump sum distribution on a change in
control, provided that such election was made prior to December&nbsp;31, 2008. Oritani Bank may
establish a rabbi trust to fund its obligations under the Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Senior Officers and Directors Post-Retirement Medical Coverage</I></B>. Directors who qualify for
benefits under the Directors&#146; Retirement Plan, and senior officers designated by the Board of
Directors who have attained age 52 and have at least five years of service, are eligible to
participate in the senior officers and directors post-retirement medical coverage program. If a
participant dies after becoming eligible for coverage but prior to retirement, the individual will
be deemed to have retired on the day before the individual died. Coverage will begin at the time
of retirement and continue at the same level as before retirement. Retirees who are eligible for
Medicare benefits will have benefits under the program coordinated with Medicare benefits. The
spouse of a senior officer or director covered under the program will be entitled to medical
coverage for life. Oritani Bank&#146;s contribution to the program will be limited to two times the
medical insurance premium at the time of the individual&#146;s retirement. During fiscal 2009, eight
current employees were eligible for participation in the Senior Officers and Directors
Post-Retirement Medical Coverage, and the total cost to Oritani Bank during fiscal 2009 was
$247,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Group Life Insurance Retirement Plan. </I></B>In conjunction with its investment in Bank Owned Life
Insurance, Oritani Bank implemented this plan which provides selected employees and directors with
post-retirement life insurance. Coverage under this plan is only applicable to selected employees
and directors who retire from Oritani Bank under this plan (unless their termination is due to
disability or change in control). The post-retirement coverage provided under this plan is equal
to: two times annual base salary for vice presidents and above; one time annual base salary for
assistant vice presidents and below; and $50,000 for directors. This coverage was obtained in
conjunction with Oritani Financial Corp.&#146;s purchase of Bank Owned Life Insurance. Oritani
Financial Corp. incurs no additional cost to provide the coverage, however, there is an expense
accrual associated with the benefit. This accrual totaled $99,000 during fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>4</I></B><B><I>01(k)</I></B><B><I> Plan</I></B>. Oritani Bank participates in the Pentegra Defined Contribution Plan for
Financial Institutions, a multiple-employer 401(k) plan, for the benefit of its employees.
Employees who have completed 1,000 hours of service during a 12-consecutive-month period are
eligible to participate in the plan. Participants may contribute up to 50% of their plan salary to
the plan. Oritani Bank will provide matching contributions at the rate of 50% of the participant&#146;s
contributions, up to 6% of each participant&#146;s monthly plan salary. Employee and employer
contributions are 100% vested at all times. In general, under federal tax law limits, the annual
contributions made to the plan may not exceed the lesser of 100% of the participant&#146;s total
compensation or $49,000 for calendar 2009. For this purpose, contributions include employer
contributions, participant 401(k) contributions and participant after-tax contributions.
Participants who have attained age 50 before the end of a calendar year will be eligible to make
catch-up contributions in accordance with Section 414(v) of the Internal Revenue Code. The maximum
catch-up contribution level for 2009 is $5,500. This amount is periodically adjusted for inflation.
Contributions are invested at the participant&#146;s direction in one or more of the investment funds
provided under the plan. A loan program is available to plan participants. In general,
participants may make only one withdrawal
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->131<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">from their accounts per calendar year while they are employed, subject to certain limitations;
upon termination of employment, they may make withdrawals from their accounts at any time.
Participants who become disabled may withdraw from their vested account balance as if they had
terminated employment. In the event of a participant&#146;s death, the participant&#146;s beneficiary will
be entitled to the value of the participant&#146;s account. In connection with the minority stock
offering, Oritani Bank withdrew from the Pentegra plan and established an individually designed
401(k) plan with terms substantially similar to the Pentegra plan. In addition, an employer stock
fund will be created within the 401(k) plan in order to permit participants in the 401(k) plan to
purchase shares of employer stock for their accounts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Defined Benefit Plan</I></B>. Oritani Bank participates in the Financial Institutions Retirement
Fund, a multiple-employer defined benefit plan, for the benefit of its employees. Employees of
Oritani Bank who are age 21 or older and who have completed 12&nbsp;months of employment are eligible to
participate in the plan. Participants become vested in their retirement benefit upon completion of
5&nbsp;years of employment, provided that participants who have reached age 65 automatically become 100%
vested, regardless of the number of completed years of employment. Payments of benefits under the
plan are made in the form of a life annuity with 120 payments guaranteed unless one of the optional
forms of distribution has been selected. Upon termination of employment at or after age 65, a
participant will be entitled to an annual normal retirement benefit equal to 1.25% multiplied by
the number of years of benefit service, multiplied by the participant&#146;s average annual salary, up
to the covered compensation limits, for the 5 highest paid consecutive years of benefit service.
In addition, the participant will be entitled to an annual retirement benefit equal to 1.75%
multiplied by the number of years of benefit service, multiplied by the participant&#146;s average
annual salary in excess of the covered compensation limits, for the 5 highest paid consecutive
years. The covered compensation limit is the average of the maximum wage subject to FICA taxes
(i.e., the social security wage base) for the 35-year period preceding social security retirement
age. In the event a participant has more than 35&nbsp;years of service, the benefit attributable to
benefit service completed in excess of 35&nbsp;years will be calculated by using a 1.75% accrual rate
for the portion of a participant&#146;s high-5&nbsp;year average salary below the covered compensation limit.
Participants who terminate employment prior to age 65 will be entitled to a reduced retirement
benefit calculated by applying an early retirement factor based on the participant&#146;s age when
payments begin. The earliest age at which a participant may receive retirement benefits is age 55.
Normal and early retirement benefits are payable over the longer of the lifetime of the retiree or
120&nbsp;monthly installments. In the event a retiree dies before 120&nbsp;monthly installments have been
paid, the retiree&#146;s beneficiary will be entitled to the value of such unpaid installments paid in a
lump sum. The participant or beneficiary may elect to have benefits paid in the form of
installments. In the event a participant dies while in active service, his beneficiary will be
entitled to a lump sum death benefit equal to 100% of the participant&#146;s last 12&nbsp;months&#146; salary,
plus an additional 10.0% of such salary for each year of benefit service until a maximum of 300% of
such salary is reached for 20 or more years, plus refund of the participant&#146;s contributions, if
any, with interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This plan was frozen as of January&nbsp;1, 2009. Existing participants remain eligible to receive
their accrued benefit as of that date, however, no new benefits will accrue under the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Benefit Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employee Stock Ownership Plan and Trust</I></B>. The employee stock ownership plan was adopted in
connection with our initial stock offering. Employees who are at least 21&nbsp;years old with at least
one year of employment with Oritani Bank are eligible to participate. The employee stock ownership
plan trust borrowed funds from Oritani Financial Corp. and used those funds to purchase a shares of
our common stock equal to 3.92% of the outstanding shares of common stock, including shares of
common stock issued to Oritani Financial Corp., MHC and to the OritaniBank Charitable Foundation.
Collateral for the loan is the common stock purchased by the employee stock ownership plan. The
loan will be repaid principally from Oritani Bank discretionary contributions to the employee stock
ownership plan over a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">period of not more than 20&nbsp;years. The loan documents provide that the loan may be repaid over a
shorter period, without penalty for prepayments. The interest rate for the loan is a floating rate
equal to the prime rate. Shares purchased by the employee stock ownership plan are held in a
suspense account for allocation among participants as the loan is repaid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions to the employee stock ownership plan and shares released from the suspense
account in an amount proportional to the repayment of the employee stock ownership plan loan are
allocated among employee stock ownership plan participants on the basis of compensation in the year
of allocation. Benefits under the plan become vested at the rate of 20% per year, starting upon
completion of two years of credited service, and are fully vested upon completion of six years of
credited service, with credit given to participants for up to three years of credited service with
Oritani Bank mutual predecessor prior to the adoption of the plan. A participant&#146;s interest in his
account under the plan will also fully vest in the event of termination of service due to a
participant&#146;s early or normal retirement, death, disability, or upon a change in control (as
defined in the plan). Vested benefits will be payable generally in the form of common stock, or to
the extent participants&#146; accounts contain cash, benefits will be paid in cash. Oritani Bank&#146;s
contributions to the employee stock ownership plan are discretionary, subject to the loan terms and
tax law limits. Therefore, benefits payable under the employee stock ownership plan cannot be
estimated. Pursuant to SOP 93-6, we are required to record compensation expense each year in an
amount equal to the fair market value of the shares released from the suspense account. In the
event of a change in control, the employee stock ownership plan will terminate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock-Based Incentive Plan</I></B>. We adopted the 2007 Equity Incentive Plan to provide our
officers, employees and directors with additional incentives to promote our growth and performance.
Stockholders approved the Equity Plan on April&nbsp;22, 2008. Subject to permitted adjustments for
certain corporate transactions, the Equity Plan authorizes the issuance of up to 2,781,878 shares
of our common stock pursuant to grants of incentive and non-statutory stock options, stock
appreciation rights, and restricted stock awards. No more than 794,823 shares may be issued as
restricted stock awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees and outside directors of Oritani Financial Corp. or its subsidiaries are eligible to
receive awards under the Equity Plan, except that non-employees may not be granted incentive stock
options. Awards may be granted in a combination of incentive and non-statutory stock options, stock
appreciation rights or restricted stock awards.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->133<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Potential Payments Under Termination or Change in Control Agreements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables below reflect the amount of compensation to each of the named executive officers
pursuant to such individual&#146;s employment agreement in the event of termination of such executive&#146;s
employment. No payments are required due to a voluntary termination under the employment
agreements (prior to a change in control). The amount of compensation payable to each Named
Executive Officer upon involuntary not-for-cause termination, termination following a change of
control and in the event of disability or death is shown below. The amounts shown assume that such
termination was effective as of June&nbsp;30, 2009, and thus include amounts earned through such time
and are estimates of the amounts which would be paid out to the executives upon their termination.
The actual amounts to be paid out can only be determined at the time of such executive&#146;s separation
from Oritani Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Termination Payments</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Involuntary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Involuntary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Termination after</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Termination</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change in Control</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Retirement</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Disability</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Death</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Kevin J. Lynch</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,435,537</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,037,789</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,314,719</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,303,546</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Supplemental Retirement Income Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,966,900</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,314,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,314,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,966,900</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,966,900</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005 Directors&#146; Retirement Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,179,410</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,179,410</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,179,410</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Michael A. DeBernardi</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">705,857</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">384,986</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">382,801</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005 Directors&#146; Retirement Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">170,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>John M. Fields, Jr.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">602,455</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(18)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">306,669</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(19)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(20)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">309,845</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(21)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">308,295</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(22)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Thomas G. Guinan</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">620,336</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(25)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">272,881</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(26)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(27)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">308,425</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(28)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">306,875</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(29)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Philip M. Wyks</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">487,358</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(32)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">487,358</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(33)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(34)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">275,878</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(35)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">274,427</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(36)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">164,520</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">164,520</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">164,520</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 3 times the sum of (i)&nbsp;Mr.&nbsp;Lynch&#146;s highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Oritani Bank contributions to continued life, medical, dental and
disability insurance for 36&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;Lynch under
his employment agreement without incurring an &#147;excess parachute payment&#148; under Code Section
280G. Severance payments and other benefits provided to Mr.&nbsp;Lynch as a result of the change
in control are reduced by $1,397,749 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Lynch is entitled to no payments or benefits under his employment agreement as a result
of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Lynch would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Lynch&#146;s base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Lynch&#146;s beneficiary would be entitled to receive Mr.&nbsp;Lynch&#146;s
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the present value of Mr.&nbsp;Lynch&#146;s accumulated benefit under his
Executive Supplemental Retirement Income Agreement. Under his Executive Supplemental
Retirement Income Agreement, Mr.&nbsp;Lynch is entitled to receive an annual supplemental
retirement benefit commencing at age 65 equal to 70% of his highest annual base salary and
bonus over the consecutive 36&nbsp;month period within the last 120 consecutive calendar months of
employment, reduced by the sum of (i)&nbsp;the annuitized value of his benefits under the bank&#146;s
pension plan, (ii)&nbsp;the annuitized value of his benefits under the &#147;defined benefit&#148; portion of
the Bank&#146;s Benefit Equalization Plan, and (iii)&nbsp;the annuitized value of one-half of his Social
Security benefits attributable to taxes paid by the bank on his behalf. Upon a change in
control, Mr.&nbsp;Lynch is entitled to the full supplemental retirement income benefit as if he
worked through age 65. In the event of Mr.&nbsp;Lynch&#146;s death, disability, or termination prior to
reaching age 65, Mr.&nbsp;Lynch is entitled to his early retirement benefit equal to 85% of his
supplemental retirement benefit. Mr.&nbsp;Lynch is fully vested in his early retirement benefit.</TD>
</TR>

</TABLE>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>(footnotes continued on next page)</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->134<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Lynch&#146;s separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the present value of Mr.&nbsp;Lynch&#146;s accumulated benefit under the 2005
Directors Retirement Plan. Under the 2005 Director s&#146; Retirement Plan, Mr.&nbsp;Lynch is entitled
to receive an annual retirement benefit equal to 50% of the aggregate compensation paid to him
during the year of his retirement. Mr.&nbsp;Lynch is currently 100% vested in his annual
retirement benefit under the plan, and his benefits under the plan will commence following his
date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Lynch&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Lynch&#146;s involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;DeBernardi&#146;s highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;DeBernardi
under his employment agreement without incurring an &#147;excess parachute payment&#148; under Code
Section&nbsp;280G. Severance payments and other benefits provided to Mr.&nbsp;DeBernardi as a result of
the change in control are reduced by $705,857 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;DeBernardi is entitled to no payments or benefits under his employment agreement as a
result of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;DeBernardi would receive his base salary and continued
health care coverage for the longer of the remaining term of his employment agreement, or one
year, less amounts payable under any disability programs. This amount represents Mr.
DeBernardi&#146;s base salary and continued life, medical, dental and disability insurance for the
remaining term of the agreement, without any reduction for payments under Bank sponsored
disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(14)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;DeBernardi&#146;s beneficiary would be entitled to receive Mr.
DeBernardi&#146;s base salary and medical, dental, family and other benefits for the remaining term
of the employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(15)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;DeBernardi has not accumulated any benefits under the Benefit Equalization Plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(16)</TD>
    <TD>&nbsp;</TD>
    <TD>Under the 2005 Director s&#146; Retirement Plan, Mr.&nbsp;DeBernardi is entitled to receive an annual
retirement benefit equal to 50% of the aggregate compensation paid to Mr.&nbsp;DeBernardi during
the year of his retirement. Mr.&nbsp;DeBernardi is not currently vested in his annual retirement
benefit under the plan, which will occur when Mr.&nbsp;DeBernardi attains age 65. Upon a change in
control, Mr.&nbsp;DeBernardi will be entitled to receive his annual retirement benefit regardless
of his actual age.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(17)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;DeBernardi&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;DeBernardi&#146;s involuntary termination or retirement,
his unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(18)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Fields&#146; highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(19)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;Fields under
his employment agreement without incurring an &#147;excess parachute payment&#148; under Code Section
280G. Severance payments and other benefits to Mr.&nbsp;Fields as a result of the change in
control are reduced by $295,786 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(20)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Fields is entitled to no payments or benefits under his employment agreement as a result
of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(21)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Fields would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Fields&#146; base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(22)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Fields&#146; beneficiary would be entitled to receive Mr.&nbsp;Fields&#146;
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(23)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Fields&#146; separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(24)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Fields&#146; involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Fields&#146; involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(25)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Guinan&#146;s highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(26)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;Guinan under
his employment agreement without incurring an &#147;excess parachute payment&#148; under Code Section
280G. Severance payments and other benefits to Mr.&nbsp;Guinan as a result of the change in
control are reduced by $347,455 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(27)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Guinan is entitled to no payments or benefits under his employment agreement as a result
of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(28)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Guinan would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Guinan&#146;s base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(29)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Guinan beneficiary would be entitled to receive Mr.&nbsp;Guinan&#146;s
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(30)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Guinan&#146;s separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(31)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Guinan&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Guinan&#146;s involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(32)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Wyks&#146; highest base salary plus (ii)&nbsp;highest
bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(33)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Wyks&#146; highest base salary plus (ii)&nbsp;highest
bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following his termination of employment in connection with a change in
control.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(34)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Wyks is entitled to no payments or benefits under his employment agreement as a result of
his retirement.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->135<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(35)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Wyks would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Wyks&#146;s base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(36)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Wyks beneficiary would be entitled to receive Mr.&nbsp;Wyks&#146;s base
salary and medical, dental, family and other benefits for the remaining term of the employment
agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(37)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Wyks&#146;s separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(38)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Wyks&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Wyks&#146;s involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the individuals who serves as a director of Oritani Financial Corp. also serves as a
director of Oritani Bank and earns director fees in each capacity. Each non-employee director is
currently paid a fee of $1,750 for each Oritani Financial Corp. meeting attended and a fee of
$1,750 for each Oritani Bank meeting attended. There are no separate fees paid for committee
meetings attended. Additionally, each director receives a monthly retainer of $1,750 from each of
Oritani Financial Corp. and Oritani Bank. Additional annual retainers are paid to the Lead
Director/Chairman of the Audit Committee ($21,000) and the Chairmen of the other Board of Director
committees ($11,000). The Lead Director/Chairman of the Audit Committee is Director Antonaccio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the total fees received by the non-management directors during
fiscal year 2009. The amounts reported under the Stock Awards and Option Awards columns were
granted on May&nbsp;5, 2008 pursuant to the 2007 Equity Incentive Plan approved by stockholders on April
22, 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Change in Pension</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Nonqualified</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Deferred</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fees Earned or Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Option Awards ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>in Cash ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Stock Awards ($) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Earnings ($) (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicholas Antonaccio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">513,257</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James J. Doyle</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">465,036</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert S. Hekemian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388,377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John J. Skelly, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">467,005</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal year ended June&nbsp;30, 2009, in accordance with FAS 123(R) and
its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the Equity Plan that
were made in 2008, which vest over five years. Assumptions used in the calculation of these
amounts are included in footnote 14 to Oritani Financial Corp.&#146;s audited financial statements
for the fiscal year ended June&nbsp;30, 2009 included in Oritani Financial Corp.&#146;s Annual Report on
Form 10-K.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal year ended June&nbsp;30, 2009, in accordance with FAS 123(R) and
its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity Plan that
were made in 2008. Stock options vest over five years. Assumptions used in the calculation
of these amounts are included in footnote 14 to Oritani Financial Corp.&#146;s audited financial
statements for the fiscal year ended June&nbsp;30, 2009 included in Oritani Financial Corp.&#146;s
Annual Report on Form 10-K.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the actuarial increase in the present value at June&nbsp;30,
2009 compared to June&nbsp;30, 2008, of the directors&#146; benefits under the Directors&#146; Retirement
Plan maintained by Oritani Bank, determined using interest rate and mortality rate assumptions
consistent with those used in Oritani Financial Corp.&#146;s financial statements and include
amounts for which the director may not currently be entitled to receive because such amounts
are not vested. Also includes $32,775, $31,554, $22,895 and $22,522 of preferential or
above-market earnings on non tax-qualified deferred compensation for Directors Antonaccio,
Doyle, Hekemian and Skelly, respectively, under the Directors&#146; Deferred Fee Plan.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>There were no grants of restricted stock or of stock options to non-executive directors
during fiscal 2009.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Directors Deferred Fee Plans</I></B>. Oritani Bank adopted the 2005 Directors Deferred Fee Plan,
effective as of January&nbsp;1, 2005, in order to include the provisions required by Section&nbsp;409A of the
Internal
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->136<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenue Code. Contributions to Oritani Bank&#146;s prior Directors Deferred Fee Plan were frozen,
effective as of December&nbsp;31, 2004. Each month, Oritani Bank credits a director&#146;s account under the
2005 Directors Deferred Fee Plan with the amount such director elects to defer. The director&#146;s
deferral election must generally be submitted to Oritani Bank prior to January 1 of the plan year
in which the fees to be deferred are otherwise payable to the director and is irrevocable with
respect to the fees covered by such election. Each director&#146;s account under the plans is credited
every month with interest at a rate equal to the greater of the Citibank Prime Rate or a 9%
annualized rate. A committee appointed by the Oritani Bank Board of Directors administers the
plan. The committee may in its discretion permit a director to request that his deferred fee
account(s) be invested in an alternative investment such as equity securities, fixed income
securities, money market accounts and cash. The account of a director who has selected an
alternative investment is credited with earnings or losses based on the investment selected. A
director is 100% vested at all times in his deferred fee account(s). Upon retirement, the director
will receive the value of his benefit in a lump sum or in up to 10 annual installments, as elected
by the director in his deferral election form. In the event the director becomes a &#147;specified
employee,&#148; payments under the plan will commence no earlier than the first day of the 7th month
following the director&#146;s separation from service. Following a director&#146;s cessation of service
prior to retirement or death, Oritani Bank will pay the director&#146;s benefit in a lump sum or in up
to 10 annual installments, as elected by the director in his deferral election form. A director
may elect to receive an in-service distribution, provided that such distribution will be no earlier
than the January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of the calendar year that is at least two years following the year
for which the deferral election is made. Payment will be made in a lump sum or in up to 10 annual
installments, as elected by the director at the time the election to defer was made. A director
may elect to receive amounts in his deferred account(s) upon his disability or upon a change in
control of Oritani Bank either in the form of a lump sum or in annual installments over a period of
up to 10&nbsp;years. A director may elect to delay payment of his benefits or to change the form of
payment from a lump sum to installments within the limits of Code Section&nbsp;409A requirements and
Treasury Regulations issued thereunder. In the event of a director&#146;s death prior to commencement
of benefit payments, payments will be made to the director&#146;s beneficiary, as elected by the
director in his deferral election form. In the event of a director&#146;s death after commencement of
benefit payments, the remaining balance of benefit payments will be paid to the director&#146;s
beneficiary in the manner and at the time elected by the director in his deferral election form.
In the event a director incurs a financial hardship, the director may request a financial hardship
benefit. If approved, the financial hardship payment will be made in a lump sum. During fiscal
year 2009, Oritani Bank credited $220,000 in interest to directors&#146; accounts under the Directors
Deferred Fee Plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Director&#146;s Retirement Plan</I></B>. Oritani Bank maintains the 2005 Director&#146;s Retirement Plan that
was adopted as a restatement of the Directors Retirement Plan and is intended to comply with
section 409A of the Internal Revenue Code. Oritani Bank&#146;s prior Director&#146;s Retirement Plan was
frozen, effective as of December&nbsp;31, 2004. Benefits payable under the 2005 Director&#146;s Retirement
Plan are reduced by the amount of the retirement benefits payable to the director under the frozen
director retirement plan. The 2005 Director&#146;s Retirement Plan provides retirement, medical and
death benefits to directors, including directors who are also employees, who have at least five
years of service and retire after attaining age 65, or who, after attaining age 60 retire, die or
become disabled. Upon retirement on or after attaining age 65 with at least ten years of
cumulative service, an eligible director&#146;s annual retirement benefit is equal to 50% of the
director&#146;s aggregate annual compensation with respect to his final year of service, including fees
paid to the director for attendance at regular monthly meetings and annual meetings of Oritani Bank
and Oritani Financial Corp., monthly retainers, and any additional annual retainers paid to the
director for service as a committee chair, lead director or otherwise. If, after attaining age 60,
a director retires, dies or becomes disabled, and such director has more than five years of service
the director or his beneficiary will be entitled to the following percentage of benefit: 50% if the
director has 5 to 6&nbsp;years of service, 60% if the director has 6 to 7&nbsp;years of service, 70% if the
director has 7 to 8&nbsp;years of service, 80% if the director has 8 to 9&nbsp;years of service, 90% if the
director has 9 to 10&nbsp;years of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">service and 100% if the director has more than 10&nbsp;years of service. In the event of a change
in control, each director will be deemed to have 10&nbsp;years of service and attained age 65 for the
purpose of calculating his benefit under the plan. A director who retires prior to age 60 for any
reason shall receive no benefit under the plan. Each director was entitled to elect prior to
December&nbsp;31, 2006 to receive a lump sum payment upon a change in control in an amount equal to the
present value of his plan benefits. Benefits under the plan are generally payable in monthly
installments for the director&#146;s lifetime or as a joint and survivor form of benefit depending on
the director&#146;s marital status at the time of the payment triggering event. Notwithstanding the
foregoing, a director was permitted to elect prior to December&nbsp;31, 2008, to receive his plan
benefits in the form of a lump sum payment in the event of his disability prior to termination of
service. In the event a director who has served on the Board of Directors for at least five years
dies while in service, the director&#146;s spouse will be entitled to a benefit calculated as if the
director had continued service until age 65. The amount of the survivor&#146;s benefit will be based on
the number of years the director would have served on the Board of Directors assuming the director
served on the Board of Directors until age 65. The benefit will be payable to the director&#146;s
spouse for the remainder of the spouse&#146;s life, along with medical benefits. As also described
under &#147;Senior Officers and Directors Post-Retirement Medical Coverage,&#148; medical benefits provided
to directors and their spouses prior to the date of their retirement will continue to be provided
to retired directors and their spouses, as long as the director lives, or, in the event the
director dies while in office, the medical benefits will continue to be provided to the director&#146;s
spouse for his or her lifetime. In the event the cost of medical benefits provided under the plan
exceeds 200% of the cost of such benefits to Oritani Bank immediately prior to the director&#146;s
retirement, the cost in excess of 200% will be paid by the retired director or his or her spouse.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to be Considered Following Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion. Stockholder approval of this plan will be required. If
implemented 12&nbsp;months or more following completion of the conversion, the stock-based incentive
plan will reserve a number of shares equal to 4.0% of the shares of common stock sold in the
offering, or 2,063,100 shares of common stock at the maximum as adjusted of the offering range, for
awards of restricted stock to key employees and directors, at no cost to the recipients. If the
shares of restricted stock awarded under the stock-based incentive plan come from authorized but
unissued shares of common stock, stockholders would experience dilution of up to approximately
2.89% in their ownership interest in Oritani. If implemented 12&nbsp;months or more following the
completion of the conversion, the stock-based incentive plan will also reserve a number of shares
equal to 10.0% of the shares of common stock sold in the offering, or 5,157,750 shares of common
stock at the maximum as adjusted of the offering range, for issuance pursuant to grants of stock
options to key employees and directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may fund our plans through open market purchases, as opposed to issuing common stock;
however, if any options previously granted under our existing stock option plans are exercised
during the first year following completion of the offering, they will be funded with newly-issued
shares as OTS regulations do not permit us to repurchase our shares during the first year following
the completion of this offering except to fund the grants of restricted stock under the stock-based
incentive plan or under extraordinary circumstances. The OTS has previously advised that the
exercise of outstanding options and cancellation of treasury shares in the conversion will not
constitute an extraordinary circumstance or a compelling business purpose for satisfying this test.
The stock-based incentive plan will not be established sooner than six months after the stock
offering and if adopted within one year after the stock offering would require the approval by
stockholders owning a majority of the outstanding shares of Oritani common stock eligible to be
cast. If the stock-based incentive plan is established after one year after the stock offering, it
would require the approval of our stockholders by a majority of votes cast. The following
additional restrictions would apply to our stock-based incentive plan only if the plan is adopted
within one year after the stock offering:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>non-employee directors in the aggregate may not receive more than 30% of
the options and restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any one non-employee director may not receive more than 5% of the options
and restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any officer or employee may not receive more than 25% of the options and
restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any tax-qualified employee stock benefit plans and management stock award
plans, in the aggregate, may not hold more than 10.0% of the shares sold in the
offering, unless Oritani Bank has tangible capital of 10.0% or more, in which case any
tax-qualified employee stock benefit plans and management stock award plans, may be
increased to up to 12% of the shares sold in the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stock options and restricted stock awards may not vest more rapidly than
20% per year, beginning on the first anniversary of the grant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>accelerated vesting is not permitted except for death, disability or upon
a change in control of Oritani Bank or Oritani; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our executive officers or directors must exercise or forfeit their options
in the event that Oritani Bank becomes critically undercapitalized, is subject to
enforcement action or receives a capital directive.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event either federal or state regulators change their regulations or policies regarding
stock-based incentive plans, including any regulations or policies restricting the size of awards
and vesting of benefits as described above, the restrictions described above may not be applicable.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->139<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="615"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth, for each of Oritani&#146;s directors and executive officers and for all
of the directors and executive officers as a group, the following information:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of exchange shares to be held upon consummation of the conversion,
based upon their beneficial ownership of Oritani Financial Corp. common stock as of
&#95;&#95;&#95;&#95;&#95;&#95;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the proposed purchases of subscription shares, assuming sufficient shares of
common stock are available to satisfy their subscriptions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the total amount of Oritani common stock to be held upon consummation of the
conversion.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In each case, it is assumed that subscription shares are sold at the midpoint of the offering
range. See &#147;The Conversion and Offering&#151;Additional Limitations on Common Stock Purchases.&#148;
Regulations of the OTS prohibit our directors and officers from selling the shares they purchase in
the offering for one year after the date of purchase. Subscriptions by management through our
401(k) plan will be counted as part of the maximum number of shares such individuals may subscribe
for in the stock offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Proposed Purchases of Stock in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total Common Stock to be Held</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exchange Shares to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>the Offering (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>be Held (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding (2)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Directors:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicholas Antonaccio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James J. Doyle, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert S. Hekemian, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John J. Skelly, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Executive Officers:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas G. Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total for Directors and
Executive Officers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes proposed subscriptions, if any, through the director or officer&#146;s 401(k) account and
by associates.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes an exchange ratio of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares for each share of Oritani Financial Corp. and that
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares are outstanding after the conversion. Includes shares that may be acquired
upon the exercise of stock options.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->140<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="616"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE CONVERSION AND OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani Financial Corp. and the board of trustees of Oritani
Financial Corp., MHC have approved the plan of conversion and reorganization. The plan of
conversion and reorganization must also be approved by the members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) and the stockholders of Oritani Financial Corp. A special meeting of
members and a special meeting of stockholders have been called for this purpose. The OTS has
conditionally approved the plan of conversion and reorganization; however, such approval does not
constitute a recommendation or endorsement of the plan of conversion and reorganization by that
agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the plan of conversion and reorganization, our organization will convert from the
mutual holding company form of organization to the fully stock form. Oritani Financial Corp., MHC,
the mutual holding company parent of Oritani Financial Corp., will be merged into Oritani Financial
Corp., and Oritani Financial Corp., MHC will no longer exist. Oritani Financial Corp. will merge
into a new Delaware corporation named Oritani Financial Corp. (a Delaware corporation). As part of
the conversion, the ownership interest of Oritani Financial Corp., MHC in Oritani Financial Corp.
will be offered for sale in the offering by Oritani. When the conversion is completed, all of the
outstanding common stock of Oritani Bank will be owned by Oritani, and all of the outstanding
common stock of Oritani will be owned by public stockholders. A diagram of our corporate structure
before and after the conversion is set forth in the &#147;Summary&#148; section of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion and reorganization, at the completion of the conversion, each
share of Oritani Financial Corp. common stock owned by persons other than Oritani Financial Corp.,
MHC will be canceled and converted automatically into new shares of Oritani common stock determined
pursuant to an exchange ratio. The exchange ratio will ensure that immediately after the exchange
of existing shares of Oritani Financial Corp. for new shares, the public stockholders will own the
same percentage of shares of common stock of Oritani that they owned in Oritani Financial Corp.
immediately prior to the conversion, excluding any shares they purchased in the offering and cash
paid in lieu of fractional shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani intends to contribute between $159.2&nbsp;million and $215.7&nbsp;million of net proceeds, or
$248.2&nbsp;million if the offering range is increased by 15%, to Oritani Bank and to retain between
$145.9&nbsp;million and $197.8&nbsp;million of the net proceeds, or $227.6&nbsp;million if the offering range is
increased by 15% (excluding the portion of the net proceeds loaned to our employee stock ownership
plan). The conversion will be consummated only upon the issuance of at least the minimum number of
shares of our common stock offered pursuant to the plan of conversion and reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization provides that we will offer shares of common stock
in a &#147;subscription offering&#148; in the following descending order of priority:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>First, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on December&nbsp;31, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second, to our tax-qualified employee benefit plans, including our employee
stock ownership plan and 401(k) plan, which will receive nontransferable subscription
rights to purchase in the aggregate up to 10.0% of the shares of common stock sold in
the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Third, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on &#091;supplemental record date&#093;.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->141<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fourth, to depositors of Oritani Bank at the close of business on &#091;depositor
record date&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If all shares are not subscribed for in the subscription offering, we may, at our discretion,
offer shares of common stock for sale in a community offering, with a preference given in the
following order:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank&#146;s borrowers (with an outstanding loan or line of credit) as of
December&nbsp;31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December&nbsp;31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s public stockholders as of &#091;stockholder record date&#093;,
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>members of the general public.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to accept or reject, in whole or in part, any orders to purchase shares of
the common stock received in the community offering. The community offering, if any, may begin at
the same time as, during, or after the subscription offering and must be completed within 45&nbsp;days
after the completion of the subscription offering unless otherwise extended by the OTS. See
&#147;&#151;Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock not purchased in the subscription offering or community offering
may be offered to the general public on a best efforts basis by Stifel, Nicolaus &#038; Company,
Incorporated, acting as sole book-running manager, and &#091;co-managers&#093;, as co-managers, in a
syndicated community offering through a syndicate of selected dealers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to accept or reject orders received in the syndicated community offering at
our sole discretion. The syndicated community offering may begin at any time following the
commencement of the subscription offering and must be completed within 45&nbsp;days after the completion
of the subscription offering unless otherwise extended by us, with approval of the OTS.
Alternatively, we may sell any remaining shares in an underwritten public offering, which would be
conducted on a firm commitment basis. See &#147;&#151;Syndicated Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation of the estimated pro forma market value of Oritani. All shares of common
stock to be sold in the offering will be sold at $10.00 per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. The independent valuation will be
updated and the final number of the shares of common stock to be issued in the offering will be
determined at the completion of the offering. See &#147;&#151;Stock Pricing and Number of Shares to be
Issued&#148; for more information as to the determination of the estimated pro forma market value of the
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion and reorganization. A copy of the plan of
conversion and reorganization is available for inspection at each banking office of Oritani Bank
and at the Northeast Regional and the Washington, D.C. offices of the OTS. The plan of conversion
and reorganization is also filed as an exhibit to Oritani Financial Corp., MHC&#146;s application to
convert from mutual to stock form, of which this prospectus is a part, copies of which may be
obtained from the OTS. The plan of conversion and reorganization is also an exhibit to Oritani&#146;s
Registration Statement on Form S-1, which is accessible on the Securities and Exchange Commission
website, <U>www.sec.gov</U>. See &#147;Where You Can Find Additional Information.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->142<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion and Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors decided at this time to convert to a fully public stock form of
ownership and conduct the offering in order to increase our capital position. Completing the
offering is necessary for us to continue to grow and execute our business strategy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary reasons for converting and raising additional capital through the offering are:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a fully converted stock holding company, we will have greater flexibility in structuring
mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure limits our ability to offer shares of
our common stock as consideration for a merger or acquisition since Oritani Financial Corp., MHC is
required to own a majority of our shares of common stock. Potential sellers often want stock for
at least part of the purchase price. Our new stock holding company structure will enable us to
offer stock or cash consideration, or a combination of stock and cash, and will therefore enhance
our ability to compete with other bidders when acquisition opportunities arise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Approvals Required &#150; Plan of Conversion and Reorganization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The affirmative vote of a majority of the total eligible votes of the members of Oritani
Financial Corp., MHC as of &#091;depositor record date&#093; is required to approve the plan of conversion
and reorganization. By their approval of the plan of conversion and reorganization, the members of
Oritani Financial Corp., MHC (comprised of depositors of Oritani Bank) will also be approving the
merger of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->143<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Oritani Financial Corp., MHC into Oritani Financial Corp. The affirmative vote of the holders
of at least two-thirds of the outstanding shares of common stock of Oritani Financial Corp.,
including shares held by Oritani Financial Corp., MHC, and the affirmative vote of the holders of a
majority of the outstanding shares of common stock of Oritani Financial Corp. held by the public
stockholders of Oritani Financial Corp. as of &#091;stockholder record date&#093;, are also required to
approve the plan of conversion and reorganization. The plan of conversion and reorganization also
must be approved by the OTS, which has given its conditional approval; however, such approval does
not constitute a recommendation or endorsement of the plan of conversion and reorganization by such
agency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Share Exchange Ratio for Current Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations provide that in a conversion of a mutual holding company to fully stock form,
the public stockholders will be entitled to exchange their shares for common stock of the new
holding company, provided that the mutual holding company demonstrates to the satisfaction of the
OTS that the basis for the exchange is fair and reasonable. Each publicly held share of Oritani
Financial Corp. common stock will be automatically converted into the right to receive a number of
shares of Oritani common stock. The number of shares of common stock will be determined pursuant
to the exchange ratio, which ensures that the public stockholders will own the same percentage of
common stock in Oritani after the conversion as they held in Oritani Financial Corp. immediately
prior to the conversion, exclusive of their purchase of additional shares of common stock in the
offering and their receipt of cash in lieu of fractional exchange shares. The exchange ratio is not
dependent on the market value of our currently outstanding Oritani Financial Corp. common stock.
The exchange ratio is based on the percentage of Oritani Financial Corp. common stock held by the
public, the independent valuation of Oritani prepared by RP Financial, LC. and the number of shares
of common stock issued in the offering. The exchange ratio is expected to range from approximately
11,379,252 exchange shares at the minimum of the offering range to 17,704,777 exchange shares at
the adjusted maximum of the offering range.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a stockholder of Oritani Financial Corp., at the conclusion of the conversion, your
shares will be exchanged for shares of Oritani. The number of shares you receive will be based on
the number of shares of common stock you own and the final exchange ratio determined as of the
conclusion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows how many whole shares of Oritani a hypothetical
owner of Oritani Financial Corp. common stock would receive in the exchange for 100 shares of
Oritani Financial Corp. common stock owned at the consummation of the conversion, depending on the
number of shares issued in the offering.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->144<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>New Shares to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>New Shares That</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Exchanged for Existing</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equivalent  Per</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Would be Received</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>New Shares to be Sold</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Shares of Oritani</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding After</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Share Current</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for 100 Existing</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>in This Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>the Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exchange Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Market Value (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,395,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.62640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,704,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.87040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oritani received in the conversion by a holder of one share
of Oritani Financial Corp. at the exchange ratio, assuming the market price of $10.00 per
share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio so that the aggregate exercise price
and the duration of such options remain unchanged. All such options will vest upon completion of
the conversion. We anticipate the pre-tax expense of such accelerated vesting as well as the
accelerated vesting of outstanding stock awards will be approximately $11.3&nbsp;million, which
represents the remaining amortization for such accelerated options and awards with such expense to
be incurred during the fiscal quarter in which the stock offering is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exchange of Existing Stockholders&#146; Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of existing outstanding shares of Oritani Financial Corp. common stock into the
right to receive shares of Oritani common stock will occur automatically on the effective date of
the conversion. As soon as practicable after the effective date of the conversion, our exchange
agent will send a transmittal form to each public stockholder of Oritani Financial Corp. who holds
stock certificates. The transmittal forms will contain instructions on how to exchange stock
certificates of Oritani Financial Corp. common stock for stock certificates of Oritani common
stock. We expect that stock certificates evidencing shares of Oritani common stock will be
distributed within five business days after the exchange agent receives properly executed
transmittal forms, Oritani Financial Corp. stock certificates and other required documents. <B>You
should not forward your stock certificates until you have received transmittal forms, which will
include forwarding instructions. </B>Shares held by public stockholders through a brokerage or other
account in &#147;street name&#148; will be exchanged automatically upon the conclusion of the conversion; no
transmittal forms will be mailed relating to these shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. when the conversion is completed. For each fractional share that would
otherwise be issued to a stockholder who holds a stock certificate, we will pay by check an amount
equal to the product obtained by multiplying the fractional share interest to which the holder
would otherwise be entitled by the $10.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of a
properly executed transmittal form, stock certificates and other required documents. If your
shares of common stock are held in street name (such as in a brokerage account), you will
automatically receive cash in lieu of fractional shares in your account.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the conversion, Oritani Financial Corp. stockholders who hold stock certificates will
not receive shares of Oritani common stock and will not be paid dividends on the shares of Oritani
common stock until existing certificates representing shares of Oritani Financial Corp. common
stock are surrendered for exchange in compliance with the terms of the transmittal form. When
stockholders surrender their certificates, any unpaid dividends will be paid without interest. For
all other purposes, however, each certificate that represents shares of Oritani Financial Corp.
common stock outstanding at the effective date of the conversion will be considered to evidence
ownership of shares of Oritani common stock into which those shares have been converted by virtue
of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a certificate for Oritani Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of Oritani common stock that we issue in exchange for existing shares of Oritani
Financial Corp. common stock will be considered to have been issued in full satisfaction of all
rights pertaining to such shares of common stock, subject, however, to our obligation to pay any
dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Effects of Conversion on Depositors, Borrowers and Members</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Continuity</I></B><I>. </I>While the conversion is being accomplished, the normal business of Oritani Bank of
accepting deposits and making loans will continue without interruption. Oritani Bank will continue
to be a state chartered savings bank and will continue to be regulated by the FDIC and the New
Jersey Department of Banking and Insurance. After the conversion, Oritani Bank will continue to
offer existing services to depositors, borrowers and other customers. The directors serving
Oritani Financial Corp. at the time of the conversion will be the directors of Oritani after the
conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Deposit Accounts</I></B><I>. </I>Pursuant to the plan of conversion and reorganization, each
depositor of Oritani Bank at the time of the conversion will automatically continue as a depositor
after the conversion, and the deposit balance, interest rate and other terms of such deposit
accounts will not change as a result of the conversion. Each such account will be insured by the
FDIC to the same extent as before the conversion. Depositors will continue to hold their existing
certificates, passbooks and other evidences of their accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Loans</I></B><I>. </I>No loan outstanding from Oritani Bank will be affected by the conversion, and
the amount, interest rate, maturity and security for each loan will remain as it was contractually
fixed prior to the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Voting Rights of Members</I></B><I>. </I>At present, all depositors of Oritani Bank are members of,
and have voting rights in, Oritani Financial Corp., MHC as to all matters requiring membership
action. Upon completion of the conversion, depositors will cease to be members of Oritani Financial
Corp., MHC and will no longer have voting rights, unless they purchase shares of Oritani&#146;s common
stock. Upon completion of the conversion, all voting rights in Oritani Bank will be vested in
Oritani as the sole stockholder of Oritani Bank. The stockholders of Oritani will possess
exclusive voting rights with respect to Oritani common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Tax Effects</I></B><I>. </I>We will receive an opinion of counsel or tax advisor with regard to the federal
and state income tax consequences of the conversion to the effect that the conversion will not be a
taxable
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">transaction for federal or state income tax purposes to Oritani Financial Corp., MHC, Oritani
Financial Corp., the public stockholders of Oritani Financial Corp. (except for cash paid for
fractional shares), members of Oritani Financial Corp., MHC, eligible account holders, supplemental
eligible account holders, or Oritani Bank. See &#147;&#151;Material Income Tax Consequences.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Liquidation Rights</I></B><I>. </I>Each depositor in Oritani Bank has both a deposit account in
Oritani Bank and a pro rata ownership interest in the net worth of Oritani Financial Corp., MHC
based upon the deposit balance in his or her account. This ownership interest is tied to the
depositor&#146;s account and has no tangible market value separate from the deposit account. This
interest may only be realized in the event of a complete liquidation of Oritani Financial Corp.,
MHC and Oritani Bank. Any depositor who opens a deposit account obtains a pro rata ownership
interest in Oritani Financial Corp., MHC without any additional payment beyond the amount of the
deposit. A depositor who reduces or closes his or her account receives a portion or all of the
balance in the deposit account but nothing for his or her ownership interest in the net worth of
Oritani Financial Corp., MHC, which is lost to the extent that the balance in the account is
reduced or closed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consequently, depositors in a stock subsidiary of a mutual holding company normally have no
way of realizing the value of their ownership interest, which has realizable value only in the
unlikely event that Oritani Financial Corp., MHC and Oritani Bank are liquidated. If this occurs,
the depositors of record at that time, as owners, would share pro rata in any residual surplus and
reserves of Oritani Financial Corp., MHC after other claims, including claims of depositors to the
amounts of their deposits and payments to certain depositors of Oritani Bank under liquidation
accounts that have been established for the benefit of such depositors, are paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion and reorganization, however, depositors will receive rights in a
liquidation account maintained by Oritani representing the amount of (i)&nbsp;Oritani Financial Corp.,
MHC&#146;s ownership interest in Oritani Financial Corp.&#146;s total stockholders&#146; equity as of the date of
the latest statement of financial condition used in this prospectus plus (ii)&nbsp;the value of the net
assets of Oritani Financial Corp., MHC as of the date of the latest statement of financial
condition of Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding
its ownership of Oritani Financial Corp.). Oritani shall continue to hold the liquidation account
for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders who continue
to maintain deposits in Oritani Bank. The liquidation account is also designed to provide payments
to depositors of their liquidation interests in the event of a liquidation of Oritani and Oritani
Bank or solely of Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further information, see &#147;&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Pricing and Number of Shares to be Issued</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization and federal regulations require that the aggregate
purchase price of the common stock sold in the offering must be based on the appraised pro forma
market value of the common stock, as determined by an independent valuation. Oritani Bank and
Oritani Financial Corp., MHC have retained RP Financial, LC. to prepare an independent valuation
appraisal. For its services in preparing the initial valuation, RP Financial, LC. will receive a
fee of $125,000 and $10,000 for expenses and an additional $15,000 for each valuation update, as
necessary. Oritani Bank and Oritani Financial Corp., MHC have agreed to indemnify RP Financial, LC.
and its employees and affiliates against specified losses, including any losses in connection with
claims under the federal securities laws, arising out of its services as independent appraiser,
except where such liability results from its negligence or bad faith.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the OTS appraisal guidelines, the appraisal applied three primary methodologies:
the pro forma price-to-book value approach applied to both reported book value and tangible book
value; the pro forma price-to-earnings approach applied to reported and core earnings; and the pro
forma price-to-assets approach. The market value ratios applied in the three methodologies were
based upon the current market valuations of the peer group companies, subject to valuation
adjustments applied by RP Financial, LC. to account for differences between Oritani Financial Corp.
and the peer group. RP Financial, LC. placed the greatest emphasis on the price-to-earnings and
price-to-book approaches in estimating pro forma market value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation was prepared by RP Financial, LC. in reliance upon the information
contained in this prospectus, including the consolidated financial statements of Oritani Financial
Corp. RP Financial, LC. also considered the following factors, among others:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the present results and financial condition of Oritani Financial Corp. and
the projected results and financial condition of Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic and demographic conditions in Oritani Financial Corp.&#146;s
existing market area;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain historical, financial and other information relating to Oritani
Financial Corp.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the offering on Oritani&#146;s stockholders&#146; equity and earnings
potential;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the proposed dividend policy of Oritani; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trading market for securities of comparable institutions and general
conditions in the market for such securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in RP Financial, LC.&#146;s independent valuation were certain assumptions as to the pro
forma earnings of Oritani after the conversion that were utilized in determining the appraised
value. These assumptions included estimated expenses, an assumed after-tax rate of return on the
net offering proceeds of 1.98% and purchases in the open market of the common stock issued in the
offering by the stock-based incentive plan at the $10.00 per share purchase price. See &#147;Pro Forma
Data&#148; for additional information concerning these assumptions. The use of different assumptions may
yield different results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation states that as of February&nbsp;19, 2010, the estimated pro forma market
value, or valuation range, of Oritani ranged from a minimum of $445.3&nbsp;million to a maximum of
$602.5&nbsp;million, with a midpoint of $523.8&nbsp;million and an adjusted maximum of $692.8&nbsp;million. The
Board of Directors of Oritani decided to offer the shares of common stock for a price of $10.00 per
share. The aggregate offering price of the shares of common stock will be equal to the valuation
range multiplied by the percentage of Oritani Financial Corp. common stock owned by Oritani
Financial Corp., MHC. The number of shares offered will be equal to the aggregate offering price
of the shares of common stock divided by the price per share. Based on the valuation range, the
74.4% of Oritani Financial Corp. common stock owned by Oritani Financial Corp., MHC and the $10.00
price per share, the minimum of the offering range will be 33,150,000 shares, the midpoint of the
offering range will be 39,000,000 shares and the maximum of the offering range will be 44,850,000
shares of common stock, with an adjusted maximum of 51,577,500 shares.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani reviewed the independent valuation and, in particular,
considered the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s financial condition and results of operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comparison of financial performance ratios of Oritani Financial Corp. to
those of other financial institutions of similar size;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market conditions generally and in particular for financial institutions;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the historical trading price of the publicly held shares of Oritani
Financial Corp. common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of these factors are set forth in the independent valuation. The Board of Directors also
reviewed the methodology and the assumptions used by RP Financial, LC. in preparing the independent
valuation and believes that such assumptions were reasonable. The offering range may be amended
with the approval of the OTS, if required, as a result of subsequent developments in the financial
condition of Oritani Financial Corp. or Oritani Bank or market conditions generally. In the event
the independent valuation is updated to amend the pro forma market value of Oritani to less than
$445.3&nbsp;million or more than $692.8&nbsp;million, the appraisal will be filed with the Securities and
Exchange Commission by a post-effective amendment to Oritani&#146;s registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The independent valuation is not intended, and must not be construed, as a recommendation of
any kind as to the advisability of purchasing our shares of common stock. RP Financial, LC. did not
independently verify our consolidated financial statements and other information that we provided
to them, nor did RP Financial, LC. independently value our assets or liabilities. The independent
valuation considers Oritani Bank as a going concern and should not be considered as an indication
of the liquidation value of Oritani Bank. Moreover, because the independent valuation is
necessarily based upon estimates and projections of a number of matters, all of which may change
from time to time, no assurance can be given that persons purchasing our common stock in the
offering will thereafter be able to sell their shares of common stock at prices at or above the
$10.00 price per share.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following commencement of the subscription offering, the maximum of the valuation range may be
increased by up to 15%, or up to $692.8&nbsp;million, without resoliciting purchasers, which will result
in a corresponding increase of up to 15% in the maximum of the offering range to up to 51,577,500
shares, to reflect changes in the market and financial conditions, demand for the shares of common
stock or regulatory considerations. We will not decrease the minimum of the valuation range and
the minimum of the offering range without a resolicitation of purchasers. The subscription price
of $10.00 per share of common stock will remain fixed. See &#147;&#151;Additional Limitations on Common
Stock Purchases&#148; as to the method of distribution of additional shares of common stock to be issued
in the event of an increase in the offering range of up to 51,577,500 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the update to the independent valuation at the conclusion of the offering results in an
increase in the maximum of the valuation range to more than $692.8&nbsp;million and a corresponding
increase in the offering range to more than 51,577,500 shares, or a decrease in the minimum of the
valuation range to less than $445.3&nbsp;million and a corresponding decrease in the offering range to
fewer than 33,150,000 shares, then, after consulting with the OTS, we may terminate the plan of
conversion and reorganization, cancel deposit account withdrawal authorizations and promptly return
by check all funds received, with interest at Oritani Bank&#146;s passbook savings rate. Alternatively,
we may establish a new offering range, extend the offering period and commence a resolicitation of
purchasers or take other actions as permitted
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by the OTS in order to complete the offering. In the event that we extend the offering and
conduct a resolicitation, purchasers would have the opportunity to maintain, change or cancel their
stock orders within a specified period. If a purchaser does not respond during the period, his or
her stock order will be canceled and payment will be returned promptly, with interest at Oritani
Bank&#146;s passbook savings rate, and deposit account withdrawal authorizations will be canceled. Any
single offering extension will not exceed 90&nbsp;days; aggregate extensions may not conclude beyond
&#091;final expiration date&#093;, which is two years after the special meeting of members to vote on the
conversion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An increase in the number of shares of common stock to be issued in the offering would
decrease both a purchaser&#146;s ownership interest and Oritani&#146;s pro forma earnings and stockholders&#146;
equity on a per share basis while increasing pro forma earnings and stockholders&#146; equity on an
aggregate basis. A decrease in the number of shares to be issued in the offering would increase
both a purchaser&#146;s ownership interest and Oritani&#146;s pro forma earnings and stockholders&#146; equity on
a per share basis, while decreasing pro forma earnings and stockholders&#146; equity on an aggregate
basis. For a presentation of the effects of these changes, see &#147;Pro Forma Data.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies of the independent valuation appraisal report prepared by RP Financial, LC. and the
detailed memorandum setting forth the method and assumptions used in the appraisal report are
available for inspection at the main office of Oritani Bank and as specified under &#147;Where You Can
Find Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subscription Offering and Subscription Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the plan of conversion and reorganization, rights to subscribe for shares
of common stock in the subscription offering have been granted in the following descending order of
priority. The filling of all subscriptions that we receive will depend on the availability of
common stock after satisfaction of all subscriptions of all persons having prior rights in the
subscription offering and subject to the minimum, maximum and overall purchase and ownership
limitations set forth in the plan of conversion and reorganization and as described below under
&#147;&#151;Additional Limitations on Common Stock Purchases.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 1: Eligible Account Holders</I></B><I>. </I>Each Oritani Bank depositor with aggregate deposit
account balances of $50.00 or more (a &#147;Qualifying Deposit&#148;) at the close of business on December
31, 2008 (an &#147;Eligible Account Holder&#148;) will receive, without payment therefor, nontransferable
subscription rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of our common
stock; (ii)&nbsp;one-tenth of one percent of the total number of shares of common stock issued in the
offering; or (iii)&nbsp;15 times the product, rounded down to the nearest whole number, obtained by
multiplying the total number of shares of common stock offered by a fraction, the numerator of
which is the amount of the Qualifying Deposit of the Eligible Account Holder and the denominator is
the total amount of Qualifying Deposits of all Eligible Account Holders, subject to the overall
purchase and ownership limitations. See &#147;&#151;Additional Limitations on Common Stock Purchases.&#148; If
there are not sufficient shares available to satisfy all subscriptions, shares will first be
allocated so as to permit each Eligible Account Holder to purchase a number of shares sufficient to
make his or her total allocation equal to the lesser of 100 shares or the number of shares for
which he or she subscribed. Thereafter, unallocated shares will be allocated to each Eligible
Account Holder whose subscription remains unfilled in the proportion that the amount of his or her
Qualifying Deposit bears to the total amount of Qualifying Deposits of all subscribing Eligible
Account Holders whose subscriptions remain unfilled. If an amount so allocated exceeds the amount
subscribed for by any one or more Eligible Account Holders, the excess will be reallocated among
those Eligible Account Holders whose subscriptions are not fully satisfied until all available
shares have been allocated.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure proper allocation of our shares of common stock, each Eligible Account Holder must
list on his or her stock order form all deposit accounts in which he or she had an ownership
interest on December&nbsp;31, 2008. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed. In the event of an
oversubscription, the subscription rights of Eligible Account Holders who are also directors or
executive officers of Oritani Financial Corp. or their associates will be subordinated to the
subscription rights of other Eligible Account Holders to the extent attributable to increased
deposits in the twelve months preceding December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 2: Tax-Qualified Plans</I></B><I>. </I>Our tax-qualified employee stock benefit plans, consisting
of our employee stock ownership plan and 401(k) plan, will receive, without payment therefor,
nontransferable subscription rights to purchase up to 10.0% of the shares of common stock sold in
the offering, although our employee stock ownership plan intends to purchase 4.0% of the shares of
common stock sold in the offering. If market conditions warrant, in the judgment of its trustees,
the employee stock ownership plan may instead elect to purchase shares in the open market following
the completion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 3: Supplemental Eligible Account Holders</I></B><I>. </I>To the extent that there are sufficient
shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders
and our tax-qualified employee stock benefit plans, each Oritani Bank depositor, other than
directors and executive officers of Oritani Financial Corp., with a Qualifying Deposit at the close
of business on &#091;supplemental record date&#093; who is not an Eligible Account Holder (&#147;Supplemental
Eligible Account Holder&#148;) will receive, without payment therefor, nontransferable subscription
rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of common stock; (ii)
one-tenth of one percent of the total number of shares of common stock issued in the offering; or
(iii)&nbsp;15 times the product, rounded down to the nearest whole number, obtained by multiplying the
total number of shares of common stock to be offered by a fraction, the numerator of which is the
amount of the Qualifying Deposit of the Supplemental Eligible Account Holder and the denominator is
the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders, subject to
the overall purchase and ownership limitations. See &#147;&#151;Additional Limitations on Common Stock
Purchases.&#148; If there are not sufficient shares available to satisfy all subscriptions, shares will
be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of
shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common
stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will
be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled in
the proportion that the amount of his or her Qualifying Deposit bears to the total amount of
Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain
unfilled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must
list on the stock order form all deposit accounts in which he or she had an ownership interest at
&#091;supplemental record date&#093;. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 4: Other Depositors</I></B><I>. </I>To the extent that there are shares of common stock remaining
after satisfaction of subscriptions by Eligible Account Holders, our tax-qualified employee stock
benefit plans, and Supplemental Eligible Account Holders, each depositor of Oritani Bank as of the
close of business on the voting record date of &#091;depositor record date&#093; who is not an Eligible
Account Holder or Supplemental Eligible Account Holder (&#147;Other Depositors&#148;) will receive, without
payment therefor, nontransferable subscription rights to purchase up to $500,000 (50,000 shares) of
common stock or one-tenth of one percent of the total number of shares of common stock issued in
the offering, subject to the overall purchase and ownership limitations. See &#147;&#151;Additional
Limitations on Common Stock Purchases.&#148; If there are not sufficient shares available to satisfy all
subscriptions, available shares will be allocated so as
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to permit each Other Depositor to purchase a number of shares sufficient to make his or her
total allocation equal to the lesser of 100 shares of common stock or the number of shares for
which he or she subscribed. Any remaining shares will be allocated among Other Depositors in the
proportion that the amount of the subscription of each Other Depositor whose subscription remains
unsatisfied bears to the total amount of subscriptions of all Other Depositors whose subscriptions
remain unsatisfied. To ensure proper allocation of common stock, each Other Depositor must list on
the stock order form all deposit accounts in which he or she had an ownership interest at
&#091;depositor record date&#093;. In the event of oversubscription, failure to list an account could result
in fewer shares being allocated than if all accounts had been disclosed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date</I></B>. The subscription offering will expire at 2:00 p.m., Eastern Time, on
&#091;expiration date&#093;, unless extended by us for up to 45&nbsp;days. Such extension may be made without
notice to you, except that extensions beyond &#091;extension date&#093; will require the approval of the OTS
and a resolicitation of subscribers in the offering. We may decide to extend the expiration date of
the subscription offering for any reason, whether or not subscriptions have been received for
shares at the minimum, midpoint or maximum of the offering range. Subscription rights which have
not been exercised prior to the expiration date will become void. Subscription rights will expire
whether or not each eligible depositor can be located.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that shares of common stock remain available for purchase after satisfaction of
all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans,
Supplemental Eligible Account Holders and Other Depositors, we may offer shares pursuant to the
plan of conversion and reorganization in a community offering. Shares will be offered with the
following preferences:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Persons residing in the counties of Bergen, Passaic, Sussex, Hudson, Essex,
Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank&#146;s borrowers (with an outstanding loan or line of credit) as of
December&nbsp;31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December&nbsp;31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s public stockholder as of &#091;stockholder record date&#093;;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>members of the general public.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchasers in the community offering may purchase up to $500,000 (50,000 shares) of common
stock, subject to the overall purchase and ownership limitations. See &#147;&#151;Additional Limitations on
Common Stock Purchases.&#148; The minimum purchase is 25 shares. <B>The opportunity to purchase shares of
common stock in the community offering category is subject to our right, in our sole discretion, to
accept or reject any such orders in whole or in part either at the time of receipt of an order or
as soon as practicable following the expiration date of the offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not have sufficient shares of common stock available to fill the accepted orders of
persons residing in the listed counties, we will allocate the available shares among those persons
in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares
or the number of shares subscribed for by such person. Thereafter, unallocated shares will be
allocated among such persons residing in the areas listed above whose orders remain unsatisfied on
an equal number of shares basis per order. If an oversubscription occurs due to the orders of
borrowers or public stockholders
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of Oritani Financial Corp. as of &#091;stockholder record date&#093;, the allocation procedures
described above will apply to the stock orders of such persons. In connection with the allocation
process, unless the OTS permits otherwise, orders received for Oritani common stock in the
community offering will first be filled up to a maximum of two percent of the shares sold in the
offering, and thereafter any remaining shares will be allocated on an equal number of shares basis
per order until all shares have been allocated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;residing&#148; or &#147;resident&#148; as used in this prospectus means any person who occupies a
dwelling within the New Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren,
Union, Somerset, Hunterdon, Middlesex and Mercer; has a present intent to remain within such
community for a period of time; and manifests the genuineness of that intent by establishing an
ongoing physical presence within the community, together with an indication that this presence
within the community is something other than merely transitory in nature. We may utilize deposit
or loan records or other evidence provided to us to decide whether a person is a resident. In all
cases, however, the determination shall be in our sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date. </I></B>The community offering, if any, may begin during or after the subscription
offering, and is currently expected to terminate at the same time as the subscription offering.
Oritani may decide to extend the community offering for any reason and is not required to give
purchasers notice of any such extension unless such period extends beyond &#091;extension date&#093;, in
which case we will resolicit purchasers in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Syndicated Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If feasible, our Board of Directors may decide to offer for sale shares of common stock not
subscribed for or purchased in the subscription and community offerings in a syndicated community
offering, subject to such terms, conditions and procedures as we may determine, in a manner that
will achieve a wide distribution of our shares of common stock. In the syndicated community
offering, any person may purchase up to $500,000 (50,000 shares) of common stock, subject to the
overall purchase and ownership limitations. We retain the right to accept or reject in whole or in
part any orders in the syndicated community offering. Unless the OTS permits otherwise, accepted
orders for Oritani common stock in the syndicated community offering will first be filled up to a
maximum of two percent (2%) of the shares sold in the offering, and thereafter any remaining shares
will be allocated on an equal number of shares basis per order until all shares have been
allocated. Unless the syndicated community offering begins during the community offering, the
syndicated community offering will begin as soon as possible after the completion of the
subscription and community offerings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a syndicated community offering is held, Stifel, Nicolaus &#038; Company, Incorporated will
serve as sole book running manager. &#091;co-managers&#093; will serve as co-managers, and each firm will
assist us in selling our common stock on a best efforts basis. Neither Stifel, Nicolaus &#038; Company,
Incorporated nor any registered broker-dealer will have any obligation to take or purchase any
shares of the common stock in the syndicated community offering. The syndicated community offering
will be conducted in accordance with certain Securities and Exchange Commission rules applicable to
best efforts offerings. Generally under those rules, Stifel, Nicolaus &#038; Company, Incorporated, a
broker-dealer, will deposit funds it receives prior to closing from interested investors into a
separate non-interest-bearing bank account at a bank other than Oritani Bank. The closing of the
syndicated community offering is subject to conditions set forth in an agency agreement among
Oritani, Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank on one hand and
Stifel, Nicolaus &#038; Company, Incorporated on the other hand. If and when all the conditions for the
closing are met, funds for common stock sold in the syndicated community offering, less fees and
commissions payable by us, will be delivered promptly to us. If the offering is consummated, but
some or all of an interested investor&#146;s funds are not accepted by us, those funds will be returned
to the interested investor promptly after closing, without interest. If the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">offering is not consummated, funds in the account will be returned promptly, without interest,
to the potential investor. Normal customer ticketing will be used for order placement. In the
syndicated community offering, order forms will not be used.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we sell common stock in a &#147;stand by&#148; underwritten public offering, we have
agreed that Stifel, Nicolaus &#038; Company, Incorporated will have the right to serve as sole
book-running manager. Any underwritten public offering will be conducted on a firm commitment
basis. In such case, the underwriters will purchase all shares of common stock not sold in the
subscription offering or the community offering, if any such shares are purchased. The aggregate
price paid to us by or through the underwriters for the shares of common stock will be the number
of shares sold multiplied by the $10.00 price per share, less the amount of an underwriting
discount as negotiated between us and the underwriters and approved by the OTS and the Financial
Industry Regulatory Authority. If we determine to sell stock in an underwritten public offering,
the terms of such offering, including the names of the underwriters participating in such offering,
will be described in a supplement to this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If for any reason we cannot effect a syndicated community offering or underwritten public
offering of shares of common stock not purchased in the subscription and community offerings, or in
the event that there is a significant number of shares remaining unsold after such offerings, we
will try to make other arrangements for the sale of unsubscribed shares, if possible. The OTS must
approve any such arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Limitations on Common Stock Purchases</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization includes the following limitations on the number of
shares of common stock that may be purchased in the offering:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No person may purchase fewer than 25 shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The maximum number of shares of common stock that may be purchased by a person,
or persons exercising subscription rights through a single qualifying deposit account
held jointly, is 50,000 shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our tax-qualified employee stock benefit plans, including our employee stock
ownership plan and 401(k) plan, may purchase in the aggregate up to 10.0% of the shares
of common stock sold in the offering, including shares sold in the event of an increase
in the offering range of up to 15%;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except for the tax-qualified employee stock benefit plans, including our
employee stock ownership plan and 401(k) plan, as described above, no person or entity,
together with associates or persons acting in concert with such person or entity, may
purchase more than $1.0&nbsp;million (100,000 shares) of common stock in all categories of
the offering combined;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current stockholders of Oritani Financial Corp. are subject to an ownership
limitation. As previously described, current stockholders of Oritani Financial Corp.
will receive shares of Oritani common stock in exchange for their existing shares of
Oritani Financial Corp. common stock at the conclusion of the offering. The number of
shares of common stock that a stockholder may purchase in the offering, together with
associates or persons acting in concert with such stockholder, when combined with the
shares that the stockholder and his or her associates will receive in exchange for
existing Oritani</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial Corp. common stock, may not exceed 5% of the shares of common stock of
Oritani to be issued and outstanding at the completion of the conversion; and</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The maximum number of shares of common stock that may be purchased in all
categories of the offering by executive officers and directors of Oritani Bank and
their associates, in the aggregate, when combined with shares of common stock issued in
exchange for existing shares, may not exceed 25% of the shares of Oritani common stock
outstanding upon completion of the conversion.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending upon market or financial conditions, our Board of Directors, with the approval of
the OTS and without further approval of members of Oritani Financial Corp., MHC, may decrease or
increase the purchase and ownership limitations. If a purchase limitation is increased,
subscribers in the subscription offering who ordered the maximum amount will be given, and, in our
sole discretion, some other large subscribers who through their subscriptions evidence a desire to
purchase the maximum allowable number of shares may be given, the opportunity to increase their
subscriptions up to the then applicable limit. The effect of this type of resolicitation will be
an increase in the number of shares of common stock owned by subscribers who choose to increase
their subscriptions. In the event that the maximum purchase limitation is increased to 5% of the
shares sold in the offering, such limitation may be further increased to 9.99%, <I>provided </I>that
orders for Oritani common stock exceeding 5% of the shares issued in the offering shall not exceed
in the aggregate 10.0% of the total shares sold in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of an increase in the offering range of up to 51,577,500 shares of common stock,
shares will be allocated in the following order of priority in accordance with the plan of
conversion and reorganization:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fill subscriptions by the tax-qualified employee stock benefit plans,
including the employee stock ownership plan, for up to 10.0% of the total number of
shares of common stock sold in the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the event that there is an oversubscription at the Eligible Account Holder,
Supplemental Eligible Account Holder or Other Depositor levels, to fill unfulfilled
subscriptions of these subscribers according to their respective priorities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fill subscriptions in the community offering, with preference given first
to persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer; then to
Oritani Bank&#146;s borrowers (with an outstanding loan or line of credit) as of December
31, 2009 that are meeting all of their terms and conditions of the loan agreements with
Oritani Bank (as determined solely in the discretion of Oritani Bank) as of December
31, 2009 and the date of purchase of the common stock; then to Oritani Financial
Corp.&#146;s public stockholders as of &#091;stockholder record date&#093; and then to members of the
general public.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;associate&#148; of a person means:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any corporation or organization, other than Oritani Financial Corp., MHC,
Oritani Financial Corp., Oritani Bank or a majority-owned subsidiary of Oritani
Financial Corp. or Oritani Bank, of which the person is a senior officer, partner or
beneficial owner, directly or indirectly, of 10.0% or more of any equity security;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any trust or other estate in which the person has a substantial beneficial
interest or serves as a trustee or in a similar fiduciary capacity; provided, however,
that for the purposes of</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->155<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subscriptions in the offering and restrictions on the sale of stock after the
conversion, the term &#147;associate&#148; does not include a person who has a substantial
beneficial interest in an employee stock benefit plan of Oritani Bank, or who is a
trustee or fiduciary of such plan, and for purposes of aggregating total shares that
may be held by officers, trustees and directors of Oritani Financial Corp., MHC,
Oritani Financial Corp. or Oritani Bank, (the term &#147;associate&#148; does not include any
tax-qualified employee stock benefit plan of Oritani Bank); and</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any blood or marriage relative of the person, who either has the same home as
the person or who is a director, trustee or officer of Oritani Financial Corp., MHC,
Oritani Financial Corp. or Oritani Bank.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;acting in concert&#148; means:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>knowing participation in a joint activity or interdependent conscious parallel
action towards a common goal whether or not pursuant to an express agreement; or</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a combination or pooling of voting or other interests in the securities of an
issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person or company that acts in concert with another person or company shall also be deemed
to be acting in concert with any person or company who is also acting in concert with that other
party, except that any tax-qualified employee stock benefit plan will not be deemed to be acting in
concert with its trustee or a person who serves in a similar capacity solely for the purpose of
determining whether common stock held by the trustee and common stock held by the employee stock
benefit plan will be aggregated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the sole discretion to determine whether prospective purchasers are &#147;associates&#148; or
&#147;acting in concert.&#148; Persons exercising subscription rights through a single qualifying deposit
account held jointly, whether or not related, will be deemed to be acting in concert unless we
determine otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our directors are not treated as associates of each other solely because of their membership
on the Board of Directors. Common stock purchased in the offering will be freely transferable
except for shares purchased by executive officers and directors of Oritani or Oritani Bank and
except as described below. Any purchases made by any associate of Oritani or Oritani Bank for the
explicit purpose of meeting the minimum number of shares of common stock required to be sold in
order to complete the offering shall be made for investment purposes only and not with a view
toward redistribution. In addition, under Financial Industry Regulatory Authority guidelines,
members of the Financial Industry Regulatory Authority and their associates are subject to certain
restrictions on transfer of securities purchased in accordance with subscription rights and to
certain reporting requirements upon purchase of these securities. For a further discussion of
limitations on purchases of our shares of common stock at the time of conversion and thereafter,
see &#147;&#151;Certain Restrictions on Purchase or Transfer of Our Shares after Conversion&#148; and
&#147;Restrictions on Acquisition of Oritani.&#148;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->156<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Marketing Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assist in the marketing of our common stock, we have retained Stifel, Nicolaus &#038; Company,
Incorporated, which is a broker-dealer registered with the Financial Industry Regulatory Authority.
Stifel, Nicolaus &#038; Company, Incorporated will assist us on a best efforts basis in the offering by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acting as our financial advisor for the conversion and offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>providing administrative services and managing the Stock Information Center;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>educating our employees regarding the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>targeting our sales efforts, including assisting in the preparation of
marketing materials; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>soliciting orders for common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For these services, Stifel, Nicolaus &#038; Company, Incorporated will receive an advisory and
administrative fee of $50,000 and 1% of the dollar amount of all shares of common stock sold in the
subscription and community offering. The sales fee will be reduced by the advisory and
administrative fee. No sales fee will be payable to Stifel, Nicolaus &#038; Company, Incorporated with
respect to shares purchased by officers, directors and employees or their immediate families and
shares purchased by our tax-qualified and non-qualified employee benefit plans. In the event that
Stifel, Nicolaus &#038; Company, Incorporated sells common stock through a group of broker-dealers in a
syndicated community offering, it will be paid a fee equal to 1% of the dollar amount of total
shares sold in the syndicated community offering, which fee along with the fee payable to selected
dealers (which may include Stifel, Nicolaus &#038; Company, Incorporated) shall not exceed 5% in the
aggregate. Stifel, Nicolaus &#038; Company, Incorporated will serve as sole book running manager.
&#091;co-managers&#093; will serve as co-managers. Alternatively, in the event that Stifel, Nicolaus &#038;
Company, Incorporated sells common stock through a group of broker-dealers in a &#147;stand-by&#148; firm
commitment underwritten public offering (for which Stifel, Nicolaus &#038; Company, Incorporated will
serve as sole book running manager), the underwriters will be paid a fee which shall not exceed 6%
of the dollar amount of total shares sold in such offering. Stifel, Nicolaus &#038; Company,
Incorporated also will be reimbursed for allocable expenses in amount not to exceed $20,000 for the
subscription offering and community offering and $75,000 for the syndicated community offering, and
for attorney&#146;s fees in an amount not to exceed $150,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we are required to resolicit subscribers for shares of our common stock in
the subscription and community offerings, Stifel, Nicolaus &#038; Company, Incorporated will be required
to provide significant additional services in connection with the resolicitation (including
repeating the services described above), and we may pay Stifel, Nicolaus &#038; Company, Incorporated an
additional fee for those services that will not exceed $50,000. In the event of a material delay
in the offering which would require an update of the financial information in tabular form to
reflect a period later than that set forth in the original filing of this document, Stifel Nicolaus
will not incur any additional accountable reimbursable out-of-pocket expenses in excess of $10,000
or additional reimbursable legal fees in excess of $25,000, and in the aggregate, reimbursable
expenses and legal fees shall not exceed $280,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will indemnify Stifel, Nicolaus &#038; Company, Incorporated against liabilities and expenses,
including legal fees, incurred in connection with certain claims or litigation arising out of or
based upon untrue statements or omissions contained in the offering materials for the common stock,
including liabilities under the Securities Act of 1933, as amended.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of our directors and executive officers may participate in the solicitation of offers to
purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses
incurred in connection with the solicitation. Other regular employees of Oritani Bank may assist in
the offering, but only in ministerial capacities, and may provide clerical work in effecting a
sales transaction. No offers or sales may be made by tellers or at the teller counters. No sales
activity will be conducted in a Oritani Bank banking office. Investment-related questions of
prospective purchasers will be directed to executive officers or registered representatives of
Stifel, Nicolaus &#038; Company, Incorporated. Our other employees have been instructed not to solicit
offers to purchase shares of common stock or provide advice regarding the purchase of common stock.
We will rely on Rule&nbsp;3a4-1 under the Securities Exchange Act of 1934, as amended, and sales of
common stock will be conducted within the requirements of Rule&nbsp;3a4-1, so as to permit officers,
directors and employees to participate in the sale of common stock. None of our officers, directors
or employees will be compensated in connection with their participation in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we have engaged Stifel, Nicolaus &#038; Company, Incorporated to act as our records
management agent in connection with the conversion and offering. In its role as records management
agent, Stifel, Nicolaus &#038; Company, Incorporated will coordinate with our data processing contacts
and interface with the Stock Information Center to provide the records processing and the proxy and
stock order services, including but not limited to: (1)&nbsp;consolidation of deposit accounts and vote
calculation; (2)&nbsp;preparation of information for order forms and proxy cards; (3)&nbsp;interface with our
financial printer; (4)&nbsp;record stock order information; and (5)&nbsp;tabulate proxy votes. For these
services, Stifel, Nicolaus &#038; Company, Incorporated will receive no additional fee. We will also
reimburse Stifel, Nicolaus &#038; Company, Incorporated for its reasonable out-of-pocket expenses
associated with its acting as records management agent in an amount not to exceed $5,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lock-up Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our directors and executive officers have agreed not to, directly or indirectly, offer,
sell, transfer, pledge, assign, hypothecate or otherwise encumber any shares of our common stock or
options, warrants or other securities exercisable, convertible or exchangeable for our common stock
during the period commencing with the filing of the registration statement for the offering and
conversion and ending 90&nbsp;days after completion of the offering and conversion without the prior
written consent of Stifel, Nicolaus &#038; Company, Incorporated. In addition, except for securities
issued pursuant to existing employee benefit plans in accordance with past practices or securities
issued in connection with a merger or acquisition by us, we have agreed not to issue, offer to sell
or sell any shares of our common stock or options, warrants or other securities exercisable,
convertible or exchangeable for our common stock without the prior written consent of Stifel,
Nicolaus &#038; Company, Incorporated for a period of 90&nbsp;days after completion of the offering and
conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Offering Deadline</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The subscription and community offerings will expire at 2:00 p.m., Eastern Time, on
&#091;expiration date&#093;, unless extended, without notice to you, for up to 45&nbsp;days. Any extension of the
subscription and/or community offering beyond &#091;extension date&#093; would require the OTS&#146;s approval.
In such event, we would conduct a resolicitation. Purchasers would have the opportunity to
maintain, change or cancel their stock orders within a specified period. If a purchaser does not
respond during the resolicitation period, his or her stock order will be canceled and payment will
be returned promptly, with interest calculated at Oritani Bank&#146;s passbook savings rate, and deposit
account withdrawal authorizations will be canceled. We will not execute orders until at least the
minimum number of shares offered has been sold. If we have not sold the minimum by the expiration
date or any extension thereof, we will terminate the offering and cancel all orders, as described
above. Any single offering extension will not exceed 90&nbsp;days; aggregate extensions
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may not conclude beyond &#091;final expiration date&#093;, which is two years after the special meeting
of members to vote on the conversion. We reserve the right in our sole discretion to terminate the
offering at any time and for any reason, in which case we will cancel any deposit account
withdrawal orders and promptly return all funds submitted, with interest calculated at Oritani
Bank&#146;s passbook savings rate from the date of receipt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Prospectus Delivery</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure that each purchaser receives a prospectus at least 48 hours before the expiration
date of the offering in accordance with Rule&nbsp;15c2-8 of the Securities Exchange Act of 1934, we may
not mail a prospectus any later than five days prior to the expiration date or hand deliver any
later than two days prior to the expiration date. Execution of an order form will confirm receipt
of delivery in accordance with Rule&nbsp;15c2-8. Order forms will only be distributed with or preceded
by a prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the syndicated community offering or any &#147;stand by&#148; underwritten public offering, a
prospectus in electronic format may be made available on the Internet sites or through other online
services maintained by Stifel, Nicolaus &#038; Company, Incorporated or one or more other members of the
syndicate, or by their respective affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the syndicate member, prospective investors may be
allowed to place orders online. The members of the syndicate may agree with us to allocate a
specific number of shares for sale to online brokerage account holders. Any such allocation for
online distributions will be made on the same basis as other allocations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than the prospectus in electronic format, the information on the Internet sites
referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration
statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by
Stifel, Nicolaus &#038; Company, Incorporated or any other member of the syndicate in its capacity as
selling agent or syndicate member and should not be relied upon by investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Procedure for Purchasing Shares in the Subscription and Community Offerings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Use of Stock Order Forms</I></B><I>. </I>In order to purchase shares of common stock in the subscription
offering and community offering, you must submit a properly completed original stock order form and
remit full payment. Incomplete stock order forms or stock order forms that are not signed are not
required to be accepted. We are not required to accept stock orders submitted on photocopied or
facsimiled stock order forms. All stock order forms must be received (not postmarked) prior to 2:00
p.m. Eastern Time, on &#091;expiration date&#093;. We are not required to accept stock order forms that are
not received by that time, are executed defectively or are received without full payment or without
appropriate withdrawal instructions. We are not required to notify purchasers of incomplete or
improperly executed stock order forms. We have the right to waive or permit the correction of
incomplete or improperly executed stock order forms, but we do not represent that we will do so.
You may submit your stock order form and payment by mail using the stock order reply envelope
provided, by bringing your stock order form to our Stock Information Center, or by overnight
delivery to the indicated address on the order form. Our Stock Information Center is located at
Oritani Bank&#146;s main office, 370 Pascack Road, Township of Washington, New Jersey 07676. Stock
order forms may not be delivered to other Oritani Bank offices. Once tendered, a stock order form
cannot be modified or revoked without our consent. We reserve the absolute right, in our sole
discretion, to reject orders received in the community offering, in whole or in part, at the time
of receipt or at any time prior to completion of the offering.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are ordering shares in the subscription offering, by signing the stock order form you
are representing that you are purchasing shares for your own account and that you have no agreement
or understanding with any person for the sale or transfer of the shares. Our interpretation of the
terms and conditions of the plan of conversion and reorganization and of the acceptability of the
stock order forms will be final.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By signing the stock order form, you will be acknowledging that the common stock is not a
deposit or savings account and is not federally insured or otherwise guaranteed by Oritani Bank or
any federal or state government, and that you received a copy of this prospectus. However, signing
the stock order form will not cause you to waive your rights under the Securities Act of 1933 or
the Securities Exchange Act of 1934. We have the right to reject any order submitted in the
offering by a person who we believe is making false representations or who we otherwise believe,
either alone or acting in concert with others, is violating, evading, circumventing, or intends to
violate, evade or circumvent the terms and conditions of the plan of conversion and reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment for Shares</I></B><I>. </I>Payment for all shares of common stock will be required to accompany all
completed order forms for the purchase to be valid. You may not submit cash or wire transfers.
Payment for shares may be made by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal check, bank check or money order, made payable to Oritani Bank; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>authorization of withdrawal from the types of Oritani Bank deposit accounts
designated on the stock order form.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appropriate means for designating withdrawals from deposit accounts at Oritani Bank are
provided on the order forms. The funds designated must be available in the account(s) at the time
the stock order form is received. A hold will be placed on these funds, making them unavailable to
the depositor. Funds authorized for withdrawal will continue to earn interest within the account at
the contract rate until the offering is completed, at which time the designated withdrawal will be
made. Interest penalties for early withdrawal applicable to certificate of deposit accounts will
not apply to withdrawals authorized for the purchase of shares of common stock; however, if a
withdrawal results in a certificate of deposit account with a balance less than the applicable
minimum balance requirement, the certificate of deposit will be canceled at the time of withdrawal
without penalty and the remaining balance will earn interest calculated at the current passbook
savings rate subsequent to the withdrawal. In the case of payments made by personal check, these
funds must be available in the account(s) wire transfers or check and money orders will be
immediately cashed and placed in a segregated account at Oritani Bank or another depository
institution and will earn interest calculated at Oritani Bank&#146;s passbook savings rate from the date
payment is processed until the offering is completed, at which time a subscriber will be issued a
check for interest earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may not remit Oritani Bank line of credit checks, and we will not accept wire transfers or
third-party checks, including those payable to you and endorsed over to Oritani. You may not
designate on your stock order form a direct withdrawal from an Oritani Bank retirement account.
See &#147;&#151;Using Retirement Account Funds to Purchase Shares&#148; for information on using such funds.
Additionally, you may not designate on your stock order form a direct withdrawal from Oritani Bank
deposit accounts with check-writing privileges. Please provide a check instead. If you request
direct withdrawal, we reserve the right to interpret that as your authorization to treat those
funds as if we had received a check for the designated amount, and we will immediately withdraw the
amount from your checking account(s). Once we receive your executed stock order form, it may not
be modified, amended or rescinded without our consent, unless the offering is not completed by
&#091;extension date&#093;, in which event purchasers may be given the opportunity to increase, decrease or
rescind their orders for a specified period of time.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations prohibit Oritani Bank from lending funds or extending credit to any persons to
purchase shares of common stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right, in our sole discretion, to permit institutional investors to submit
irrevocable orders together with a legally binding commitment for payment and to thereafter pay for
the shares of common stock for which they subscribe in the community offering at any time prior to
48 hours before the completion of the conversion. This payment may be made by wire transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our employee stock ownership plan purchases shares in the offering, it will not be required
to pay for such shares until consummation of the offering, provided that there is a loan commitment
from an unrelated financial institution or Oritani to lend to the employee stock ownership plan the
necessary amount to fund the purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Using Retirement Account Funds to Purchase Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons interested in purchasing common stock using funds currently in an individual
retirement account (&#147;IRA&#148;) or any other retirement account, whether held through Oritani Bank or
elsewhere, should contact our Stock Information Center for guidance. Please contact the Stock
Information Center as soon as possible, preferably at least two weeks prior to the &#091;expiration
date&#093; offering deadline, because processing such transactions takes additional time, and whether
such funds can be used may depend on limitations imposed by the institution where the funds are
currently held. Additionally, if such funds are not currently held in a self-directed retirement
account, then before placing your stock order, you will need to establish one with an independent
trustee or custodian, such as a brokerage firm. The new trustee or custodian will hold the shares
of common stock in a self-directed account in the same manner as we now hold retirement account
funds. An annual administrative fee may be payable to the new trustee or custodian. Assistance on
how to transfer such retirement accounts can be obtained from the Stock Information Center.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank cannot offer self-directed retirement accounts. If you wish to use some or all
of your funds that are currently held in an Oritani Bank IRA or other retirement account, you may
not designate on the stock order form that you wish funds to be withdrawn from the account(s) for
the purchase of common stock. Before you place your stock order, the funds you wish to use must be
transferred from those accounts to a self-directed retirement account at an independent trustee or
custodian, as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Delivery of Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates representing shares of common stock issued in the subscription and community
offering will be mailed by regular mail to the persons entitled thereto at the certificate
registration address noted by them on the stock order form, as soon as practicable following
consummation of the conversion. Any certificates returned as undeliverable will be held by our
transfer agent until claimed by persons legally entitled thereto or otherwise disposed of in
accordance with applicable law. <B>Until certificates for the shares of common stock are available and
delivered to purchasers, purchasers may not be able to sell the shares of common stock which they
ordered, even though the common stock will have begun trading. Your ability to sell shares of
common stock before you receive stock certificates will depend upon the arrangements you may make
with your brokerage firm.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are currently a stockholder of Oritani Financial Corp., see &#147;&#151;Exchange of Existing
Stockholders&#146; Stock Certificates.&#148;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Other Restrictions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of the plan of conversion and reorganization, no person is
entitled to purchase any shares of common stock to the extent the purchase would be illegal under
any federal or state law or regulation, including state &#147;blue sky&#148; regulations, or would violate
regulations or policies of the Financial Industry Regulatory Authority. We may ask for an
acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may
refuse to honor any purchase order if an opinion is not timely furnished. In addition, we are not
required to offer shares of common stock to any person who resides in a foreign country, or in a
State of the United States with respect to which any of the following apply: (a)&nbsp;a small number of
persons otherwise eligible to subscribe for shares under the plan of conversion and reorganization
reside in such state; (b)&nbsp;the issuance of subscription rights or the offer or sale of shares of
common stock to such persons would require us, under the securities laws of such state, to register
as a broker, dealer, salesman or agent or to register or otherwise qualify our securities for sale
in such state; or (c)&nbsp;such registration or qualification would be impracticable for reasons of cost
or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Restrictions on Transfer of Subscription Rights and Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit any person with subscription rights, including the Eligible Account
Holders, Supplemental Eligible Account Holders and Other Depositors, from transferring or entering
into any agreement or understanding to transfer the legal or beneficial ownership of the
subscription rights issued under the plan of conversion and reorganization or the shares of common
stock to be issued upon their exercise. These rights may be exercised only by the person to whom
they are granted and only for his or her account. When registering your stock purchase on the
stock order form, you should not add the name(s) of persons who do not have subscription rights or
who qualify only in a lower purchase priority than you do. Doing so may jeopardize your
subscription rights. Each person exercising subscription rights will be required to certify that
he or she is purchasing shares solely for his or her own account and that he or she has no
agreement or understanding regarding the sale or transfer of such shares. The regulations also
prohibit any person from offering or making an announcement of an offer or intent to make an offer
to purchase subscription rights or shares of common stock to be issued upon their exercise prior to
completion of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pursue any and all legal and equitable remedies in the event we become aware of the
transfer of subscription rights, and we will not honor orders that we believe involve the transfer
of subscription rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Information Center</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call or visit
our Stock Information Center, located at Oritani Bank&#146;s main office, 370 Pascack Road, Township of
Washington, New Jersey 07676. The toll-free telephone number is 1-877-&#95;&#95;&#95;. The Stock
Information Center is open Monday through Friday between 10:00&nbsp;a.m. and 4:00 p.m., Eastern Time.
The Stock Information Center will be closed weekends and bank holidays. Other Oritani Bank offices
will not have offering materials and will not accept stock order forms or proxy cards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Liquidation Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation prior to the conversion</I></B><B>. </B>In the unlikely event of a complete liquidation of
Oritani Bank and Oritani Financial Corp., MHC prior to the conversion, all claims of creditors of
Oritani Financial Corp., MHC would be paid first. Thereafter, if there were any assets of Oritani
Financial Corp.,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MHC remaining, these assets would be distributed to depositors of Oritani Bank. The amount
received by such depositors would be equal to their pro rata interest in the remaining value of
Oritani Financial Corp., MHC, after claims of creditors, based on the relative size of their
deposit. Any assets of Oritani Financial Corp., MHC remaining after distributions under the
liquidation accounts would be distributed to the depositors of Oritani Bank pro rata, based upon
the relative size of their deposit accounts,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation following the conversion</I></B><B>. </B>In the unlikely event that Oritani Bank were to
liquidate after the conversion, all claims of creditors, including those of depositors, would be
paid first. However, except with respect to the liquidation account to be established in Oritani
as further described below, a depositor&#146;s claim would be solely for the principal amount of his or
her deposit accounts plus accrued interest. Depositors would not have an interest in the value of
the assets of Oritani Bank or Oritani above that amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion provides for the establishment, upon the completion of the conversion,
of a &#147;liquidation account&#148; by Oritani for the benefit of Eligible Account Holders and Supplemental
Eligible Account Holders in an amount equal to (i)&nbsp;Oritani Financial Corp., MHC&#146;s ownership
interest in Oritani Financial Corp.&#146;s total stockholders equity as of the date of its latest
statement of financial condition contained in this prospectus plus (ii)&nbsp;the value of the net assets
of Oritani Financial Corp., MHC as of the date of the latest statement of financial condition of
Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding its ownership
of Oritani). The plan of conversion also provides for the
establishment of a parallel
liquidation account in Oritani Bank to support the liquidation account
in Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The liquidation account established by Oritani is designed to provide payments to depositors
of their liquidation interests (exchanged for the liquidation rights such persons had in Oritani
Financial Corp., MHC) in the event of a liquidation of Oritani and Oritani Bank or a liquidation
solely of Oritani Bank. Specifically, in the unlikely event that either (i)&nbsp;Oritani Bank or (ii)
Oritani and Oritani Bank were to liquidate after the conversion, all claims of creditors, including
those of depositors, would be paid first, followed by distribution to depositors as of December&nbsp;31,
2008 and March&nbsp;31, 2010 of their interests in the liquidation account maintained by Oritani. Also, in a complete
liquidation of both entities, or of Oritani Bank, when Oritani has insufficient assets (other than
the stock of Oritani Bank), to fund the liquidation account distribution due to Eligible Account
Holders and Supplemental Eligible Account Holders and Oritani Bank has positive net worth, Oritani
Bank shall immediately make a distribution to fund Oritani&#146;s remaining obligations under the
liquidation account. If Oritani is completely
liquidated or sold apart from a sale or liquidation of Oritani Bank,
then the Oritani liquidation account will cease to exist and Eligible
Account Holders and Supplemental Eligible Account Holders will
receive an equivalent interest in the Oritani Bank liquidation
account, subject to the same rights and terms as the liquidation account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the plan of conversion, after two years from the date of conversion and upon the
written request of the OTS, Oritani will transfer the liquidation account and the depositors&#146;
interests in such account to Oritani Bank and the liquidation account shall thereupon become the
liquidation account of Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rules and regulations of the OTS, a post-conversion merger, consolidation, or
similar combination or transaction with another depository institution in which Oritani or Oritani
Bank is not the surviving institution would not be considered a liquidation. In such a
transaction, the liquidation account would be assumed by the surviving institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Eligible Account Holder or Supplemental Eligible Account Holder would have an initial
interest in the liquidation account for each deposit account, including savings accounts,
transaction
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">accounts such as negotiable order of withdrawal accounts, money market deposit accounts, and
certificates of deposit, with a balance of $50.00 or more held in Oritani Bank on December&nbsp;31, 2008
or March&nbsp;31, 2010, equal to  the proportion that the balance of
each   Eligible Account Holder and Supplemental Eligible Account
Holder&#146;s
deposit account on December&nbsp;31, 2008 and March&nbsp;31, 2010
respectively, bears to the balance of all deposit
accounts of Eligible Account Holders and Supplemental Eligible Account
Holders in Oritani Bank on such dates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, however, on any June&nbsp;30 annual closing date commencing after the effective date of the
conversion, the amount in any such deposit account is less than the amount in the deposit account
on December&nbsp;31, 2008 or March&nbsp;31, 2010, or any other annual closing date, then the interest in the
liquidation account relating to such deposit account would be reduced from time to time by the
proportion of any such reduction, and such interest will cease to exist if such deposit account is
closed. In addition, no interest in the liquidation account would ever be increased despite any
subsequent increase in the related deposit account. Payment pursuant to liquidation rights of
Eligible Account Holders and Supplemental Eligible Account Holder would be separate and apart from
the payment of any insured deposit accounts to such depositor. Any assets remaining after the above
liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holder are
satisfied would be available for distribution to stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completion of the conversion is subject to the prior receipt of an opinion of counsel or tax
advisor with respect to federal and state income tax consequences of the conversion to Oritani
Financial MHC, Oritani Financial Corp., Oritani Bank or Oritani, Eligible Account Holders and
Supplemental Eligible Account Holders of Oritani. Unlike private letter rulings, the opinions of
counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing
authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that Oritani or Oritani Bank would prevail in a judicial
proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have received an opinion of counsel Luse Gorman Pomerenk &#038; Schick as to the federal tax
consequences of the conversion. We have received an opinion of KPMG LLP to the effect that, more
likely than not, the income tax consequences under New Jersey law of the offering are not
materially different than for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luse Gorman Pomerenk &#038; Schick, has issued an opinion to Oritani Financial Corp., MHC, Oritani
Financial Corp., Oritani Bank and Oritani that for federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The merger of Oritani Financial Corp., MHC with and into Oritani Financial
Corp. will qualify as a tax-free reorganization within the meaning of Section
368(a)(1)(A) of the Internal Revenue Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The constructive exchange of Eligible Account Holders&#146; and Supplemental
Eligible Account Holders&#146; liquidation interests in Oritani Financial Corp., MHC for
liquidation interests in Oritani Financial Corp. will satisfy the continuity of
interest requirement of Section&nbsp;1.368-1(b) of the Federal Income Tax Regulations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of Oritani Financial Corp., MHC, Oritani Financial Corp., Eligible Account
Holders nor Supplemental Eligible Account Holders, will recognize any gain or loss on
the transfer of the assets of Oritani Financial Corp., MHC to Oritani Financial Corp.
in constructive exchange for a liquidation interest established in Oritani Financial
Corp. for the benefit of such persons who remain depositors of Oritani Bank.</TD>
</TR>


</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The basis of the assets of Oritani Financial Corp., MHC and the holding period
of such assets to be received by Oritani Financial Corp. will be the same as the basis
and holding period in such assets in the hands of Oritani Financial Corp., MHC
immediately before the exchange. (Sections&nbsp;362(b) and 1223(2) of the Internal Revenue
Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The merger of Oritani Financial Corp. with and into Oritani will constitute a
mere change in identity, form or place of organization within the meaning of Section
368(a)(1)(F) of the Code and therefore will qualify as a tax-free reorganization within
the meaning of Section&nbsp;368(a)(1)(F) of the Code. Neither Oritani Financial Corp. nor
Oritani will recognize gain or loss as a result of such merger. (Sections&nbsp;361(a) and
1032(a) of the Internal Revenue Code).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The basis of the assets of Oritani Financial Corp. and the holding period of
such assets to be received by Oritani will be the same as the basis and holding period
in such assets in the hands of Oritani Financial Corp. immediately before the exchange.
(Sections&nbsp;362(b) and 1223(2) of the Internal Revenue Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current stockholders of Oritani Financial Corp. will not recognize any gain or
loss upon their constructive exchange of Oritani Financial Corp. common stock for
Oritani common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eligible Account Holders and Supplemental Eligible Account Holders will not
recognize any gain or loss upon their constructive exchange of their liquidation
interests in Oritani Financial Corp. for the liquidation accounts in Oritani.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The constructive exchange of the Eligible Account Holders and Supplemental
Eligible Account Holders liquidation interests in Oritani Financial Corp. for interests
in a liquidation account established in Oritani will satisfy the continuity of interest
requirement of Section&nbsp;1.368-1(b) of the Federal Income Tax Regulations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stockholder&#146;s aggregate basis in shares of Oritani common stock (including
fractional share interests) received in the exchange will be the same as the aggregate
basis of Oritani Financial Corp. common stock surrendered in the exchange.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stockholder&#146;s holding period in his or her Oritani common stock received
in the exchange will include the period during which the Oritani Financial Corp. common
stock surrendered was held, provided that the Oritani Financial Corp. common stock
surrendered is a capital asset in the hands of the stockholder on the date of the
exchange.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash received by any current stockholder of Oritani Financial Corp. in lieu of
a fractional share interest in shares of Oritani common stock will be treated as having
been received as a distribution in full payment in exchange for a fractional share
interest of Oritani common stock, which such stockholder would otherwise be entitled to
receive. Accordingly, a stockholder will recognize gain or loss equal to the difference
between the cash received and the basis of the fractional share. If the common stock is
held by the stockholder as a capital asset, the gain or loss will be capital gain or
loss.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the fair market value of the nontransferable
subscription rights to purchase Oritani common stock is zero. Accordingly, no gain or
loss will be recognized by Eligible Account Holders, Supplemental Eligible Account
Holders or Other Members upon distribution to them of nontransferable subscription
rights to purchase shares of Oritani</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>common stock. Eligible Account Holders, Supplemental Eligible Account Holders and Other
Members will not realize any taxable income as the result of the exercise by them of
the nontransferable subscriptions rights.</TD>
</TR><TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the fair market value of the benefit provided
by the liquidation account of Oritani Bank supporting the payment of the Oritani
liquidation account in the event Oritani lacks sufficient net assets is zero.
Accordingly, it is more likely than not that no gain or loss will be recognized by
Eligible Account Holders and Supplemental Eligible Account Holders upon the
constructive distribution to them of such rights in the Oritani Bank liquidation
account as of the effective date of the merger of Oritani Financial Corp. with and into
Oritani. (Section&nbsp;356(a) of the Internal Revenue Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the basis of the shares of Oritani common stock
purchased in the offering by the exercise of nontransferable subscription rights will
be the purchase price. The holding period of the Oritani common stock purchased
pursuant to the exercise of nontransferable subscription rights will commence on the
date on which the right to acquire such stock was exercised.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No gain or loss will be recognized by Oritani on the receipt of money in
exchange for Oritani common stock sold in the offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the tax opinions summarized above address all material federal income tax
consequences that are generally applicable to Oritani Financial Corp., MHC, Oritani Financial
Corp., Oritani Bank, Oritani and persons receiving subscription rights and shareholders of Oritani
Financial Corp. The tax opinion as to items 8 and 13 above is based on the position that
subscription rights to be received by Eligible Account Holders, Supplemental Eligible Account
Holders and Other Members do not have any economic value at the time of distribution or the time
the subscription rights are exercised. In this regard, Luse Gorman Pomerenk &#038; Schick noted that the
subscription rights will be granted at no cost to the recipients, are legally non-transferable and
of short duration, and will provide the recipient with the right only to purchase shares of common
stock at the same price to be paid by members of the general public in any community offering. The
firm also noted that the Internal Revenue Service has not in the past concluded that subscription
rights have value. Based on the foregoing, Luse Gorman Pomerenk &#038; Schick believes that it is more
likely than not that the nontransferable subscription rights to purchase shares of common stock
have no value. However, the issue of whether or not the nontransferable subscription rights have
value is based on all the facts and circumstances. If the subscription rights granted to Eligible
Account Holders, Supplemental Eligible Account Holders and Other Members are deemed to have an
ascertainable value, receipt of these rights could result in taxable gain to those Eligible Account
Holders, Supplemental Eligible Account Holders and Other Members who exercise the subscription
rights in an amount equal to the ascertainable value, and we could recognize gain on a
distribution. Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are
encouraged to consult with their own tax advisors as to the tax consequences in the event that
subscription rights are deemed to have an ascertainable value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also have received a letter from RP Financial stating its belief that the subscription
rights do not have any ascertainable fair market value and that the price at which the subscription
rights are exercisable will not be more or less than the fair market value of the shares on the
date of the exercise. This position is based on the fact that these rights are acquired by the
recipients without cost, are nontransferable and of short duration, and afford the recipients the
right only to purchase the common stock at the same price as will be paid by members of the general
public in any community offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion as to item 14 above is based on the position that Oritani: (i)&nbsp;there is no history
of any holder of a liquidation account receiving any payment attributable to a liquidation account;
(ii)&nbsp;the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">interests in the liquidation accounts are not transferable; (iii)&nbsp;the amounts due under the
liquidation account with respect to each Eligible Account Holder and Supplemental Eligible Account
Holder will be reduced as their deposits in Oritani Bank are reduced; and (iv)&nbsp;the Oritani Bank
liquidation account payment obligation arises only if Oritani lacks sufficient net assets to fund
the liquidation account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we have received a letter from RP Financial stating its belief that the benefit
provided by the Oritani Bank liquidation account supporting the payment of the liquidation account
in the event Oritani lacks sufficient net assets does not have any economic value at the time of
the merger of Oritani Financial Corp. and Oritani. Based on the foregoing, Luse Gorman Pomerenk &#038;
Schick believes it is more likely than not that such rights in the Oritani Bank liquidation account
have no value. If such rights are subsequently found to have an economic value, income may be
recognized by each Eligible Account Holder or Supplemental Eligible Account Holder in the amount of
such fair market value as of the date of the merger of Oritani Financial Corp. and Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not plan to apply for a private letter ruling from the Internal Revenue Service
concerning the transactions described herein. Unlike private letter rulings issued by the Internal
Revenue Service, opinions of counsel are not binding on the Internal Revenue Service or any state
tax authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that the conclusions reached in an opinion of counsel would
be sustained by a court if contested by the Internal Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The federal tax opinion has been filed with the Securities and Exchange Commission as an
exhibit to Oritani&#146;s registration statement. Advice regarding the New Jersey income tax
consequences consistent with the federal tax opinion is expected to be issued by KPMG LLP, tax
advisors to Oritani Financial Corp., MHC and Oritani Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Restrictions on Purchase or Transfer of Our Shares after the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of common stock purchased in the offering by a director or an executive officer of
Oritani Bank generally may not be sold for a period of one year following the closing of the
conversion, except in the event of the death of the director or executive officer. Each certificate
for restricted shares will bear a legend giving notice of this restriction on transfer, and
instructions will be issued to the effect that any transfer within this time period of any
certificate or record ownership of the shares other than as provided above is a violation of the
restriction. Any shares of common stock issued at a later date as a stock dividend, stock split, or
otherwise, with respect to the restricted stock will be similarly restricted. The directors and
executive officers of Oritani also will be restricted by the insider trading rules promulgated
pursuant to the Securities Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of shares of our common stock by any of our directors, executive officers and their
associates, during the three-year period following the closing of the conversion may be made only
through a broker or dealer registered with the Securities and Exchange Commission, except with the
prior written approval of the OTS. This restriction does not apply, however, to negotiated
transactions involving more than 1% of our outstanding common stock or to purchases of our common
stock by our stock-based incentive plan or any of our tax-qualified employee stock benefit plans or
non-tax-qualified employee stock benefit plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit Oritani from repurchasing its shares of common stock during the first
year following the conversion unless compelling business reasons exist for such repurchases. After
one year, the OTS does not impose any repurchase restrictions.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="617"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING<BR>
STOCKHOLDERS OF ORITANI FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>As a result of the conversion, existing stockholders of Oritani Financial Corp. will
become stockholders of Oritani. There are differences in the rights of stockholders of Oritani
Financial Corp. and stockholders of Oritani caused by differences between federal and Delaware law
and regulations and differences in Oritani Financial Corp.&#146;s federal stock charter and bylaws and
Oritani Financial Corp.&#146;s Delaware certificate of incorporation and bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion is not intended to be a complete statement of the differences affecting the
rights of stockholders, but rather summarizes the material differences and similarities affecting
the rights of stockholders. See &#147;Where You Can Find Additional Information&#148; for procedures for
obtaining a copy of Oritani&#146;s certificate of incorporation and bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Authorized Capital Stock. </I></B>The authorized capital stock of Oritani Financial Corp. consists of
80,000,000 shares of common stock, $0.01 par value per share, and 10,000,000 shares of preferred
stock, par value $0.01 per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The authorized capital stock of Oritani consists of 150,000,000 shares of common stock, $0.01
par value per share, and 25,000,000 shares of preferred stock, $0.01par value per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Delaware General Corporation Law and Oritani&#146;s certificate of incorporation, the
Board of Directors may increase or decrease the number of authorized shares without stockholder
approval. Stockholder approval is required to increase or decrease the number of authorized shares
of Oritani Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s charter and Oritani Financial Corp.&#146;s certificate of incorporation
both authorize the Board of Directors to establish one or more series of preferred stock and, for
any series of preferred stock, to determine the terms and rights of the series, including voting
rights, dividend rights, conversion and redemption rates and liquidation preferences. As a result
of the ability to fix voting rights for a series of preferred stock, our Board of Directors has the
power, to the extent consistent with its fiduciary duty, to issue a series of preferred stock to
persons friendly to management in order to attempt to block a hostile tender offer, merger or other
transaction by which a third party seeks control. We currently have no plans for the issuance of
additional shares for such purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Issuance of Capital Stock. </I></B>Pursuant to applicable laws and regulations, Oritani Financial
Corp., MHC is required to own not less than a majority of the outstanding shares of Oritani
Financial Corp. common stock. Oritani Financial Corp., MHC will no longer exist following
consummation of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. Inc.&#146;s certificate of incorporation does not contain restrictions on
the issuance of shares of capital stock to directors, officers or controlling persons, whereas
Oritani Financial Corp.&#146;s stock charter restricts such issuances to general public offerings, or to
directors for qualifying shares, unless the share issuance or the plan under which they would
generally be issued has been approved by a majority of the total votes eligible to be cast at a
legal stockholders&#146; meeting. However, stock-based compensation plans, such as stock option plans
and restricted stock plans, would have to be submitted for approval by Oritani stockholders due to
requirements of the Nasdaq Stock Market and in order to qualify stock options for favorable federal
income tax treatment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Rights. </I></B>Neither Oritani Financial Corp.&#146;s stock charter or bylaws nor Oritani&#146;s
certificate of incorporation or bylaws provide for cumulative voting for the election of directors.
For additional
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">information regarding voting rights, see &#147;&#151;Limitations on Voting Rights of Greater-than-10%
Stockholders&#148; below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment of Dividends. </I></B>Oritani Financial Corp.&#146;s ability to pay dividends depends, to a large
extent, upon Oritani Bank&#146;s ability to pay dividends to Oritani Financial Corp. The New Jersey
Banking Code states, in part, that dividends may be declared and paid by Oritani Bank only out of
accumulated net earnings. A dividend may not be declared or paid unless the surplus, prior to the
transfer of net earnings, would not be reduced by the payment of such dividend. Dividends may also
not be declared or paid if Oritani Bank is in default in payment of any assessment due to the FDIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The same restrictions will apply to Oritani Bank&#146;s payment of dividends to Oritani. In
addition, Delaware law generally provides that Oritani is limited to paying dividends in an amount
equal to its capital surplus over payments that would be owed upon dissolution to stockholders
whose preferential rights upon dissolution are superior to those receiving the dividend, and to an
amount that would not make it insolvent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Board of Directors</I></B><B>. </B>Oritani Financial Corp.&#146;s bylaws and Oritani Financial Corp.&#146;s certificate
of incorporation and bylaws require the Board of Directors to be divided into three classes and
that the members of each class shall be elected for a term of three years and until their
successors are elected and qualified, with one class being elected annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Oritani Financial Corp.&#146;s bylaws, any vacancies on the Board of Directors of Oritani
Financial Corp. may be filled by the affirmative vote of a majority of the remaining directors
although less than a quorum of the Board of Directors. Persons elected by the Board of Directors of
Oritani Financial Corp. to fill vacancies may only serve until the next annual meeting of
stockholders. Under Oritani&#146;s bylaws, any vacancy occurring on the Board of Directors, including
any vacancy created by reason of an increase in the number of directors, may be filled only by a
majority of the remaining directors, and any director so chosen shall hold office for the remainder
of the term to which the director has been elected and until his or her successor is elected and
qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Oritani Financial Corp.&#146;s bylaws, any director may be removed for cause by the holders
of a majority of the outstanding voting shares. Oritani Financial Corp.&#146;s certificate of
incorporation provide that any director may be removed for cause by the holders of at least a
majority of the outstanding voting shares of Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitations on Liability. </I></B>The charter and bylaws of Oritani Financial Corp. does not limit the
personal liability of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s certificate of incorporation provides that directors will not be personally liable
for monetary damages to Oritani for certain actions as directors, except for (i)&nbsp;receipt of an
improper personal benefit from their positions as directors, (ii)&nbsp;actions or omissions that are
determined to have involved active and deliberate dishonesty, or (iii)&nbsp;to the extent allowed by
Delaware law. These provisions might, in certain instances, discourage or deter stockholders or
management from bringing a lawsuit against directors for a breach of their duties even though such
an action, if successful, might benefit Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Indemnification of Directors, Officers, Employees and Agents. </I></B>Under current OTS regulations,
Oritani Financial Corp. shall indemnify its directors, officers and employees for any costs
incurred in connection with any litigation involving such person&#146;s activities as a director,
officer or employee if such person obtains a final judgment on the merits in his or her favor. In
addition, indemnification is permitted in the case of a settlement, a final judgment against such
person, or final judgment other than on the merits, if a majority of disinterested directors
determines that such person was acting in good faith within
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the scope of his or her employment as he or she could reasonably have perceived it under the
circumstances and for a purpose he or she could reasonably have believed under the circumstances
was in the best interests of Oritani Financial Corp. or its stockholders. Oritani Financial Corp.
also is permitted to pay ongoing expenses incurred by a director, officer or employee if a majority
of disinterested directors concludes that such person may ultimately be entitled to
indemnification. Before making any indemnification payment, Oritani Financial Corp. is required to
notify the OTS of its intention, and such payment cannot be made if the OTS objects to such
payment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate of incorporation of Oritani provides that it shall indemnify its current and
former directors and officers to the fullest extent required or permitted by Delaware law,
including the advancement of expenses. Delaware law allows Oritani to indemnify any person for
expenses, liabilities, settlements, judgments and fines in suits in which such person has been made
a party by reason of the fact that he or she is or was a director, officer or employee of Oritani.
No such indemnification may be given if the acts or omissions of the person are adjudged to be in
bad faith and material to the matter giving rise to the proceeding, if such person is liable to the
corporation for an unlawful distribution, or if such person personally received a benefit to which
he or she was not entitled. The right to indemnification includes the right to be paid the
expenses incurred in advance of final disposition of a proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Special Meetings of Stockholders. </I></B>Oritani Financial Corp.&#146;s bylaws provide that special
meetings of Oritani Financial Corp.&#146;s stockholders may be called by the Chairman, the president, a
majority of the members of the Board of Directors or the holders of not less than one-tenth of the
outstanding capital stock of Oritani Financial Corp. entitled to vote at the meeting. Oritani&#146;s
bylaws provide that special meetings of the stockholders of Oritani may be called by the president,
by a majority vote of the total authorized directors, or upon the written request of stockholders
entitled to cast at least a majority of all votes entitled to vote at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder Nominations and Proposals. </I></B>Oritani Financial Corp.&#146;s bylaws generally provide that
stockholders may submit nominations for election of directors at an annual meeting of stockholders
and may propose any new business to be taken up at such a meeting by filing the proposal in writing
with Oritani Financial Corp. at least five days before the date of any such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s bylaws generally provide that any stockholder desiring to make a nomination for the
election of directors or a proposal for new business at a meeting of stockholders must submit
written notice to Oritani at least 80&nbsp;days prior and not earlier than 90&nbsp;days prior to such
meeting. However, if less than 90&nbsp;days&#146; notice or prior public disclosure of the date of the
meeting is given to stockholders, such written notice must be submitted by a stockholder not later
than the tenth day following the day on which notice of the meeting was mailed to stockholders or
such public disclosure was made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that it is in the best interests of Oritani and its stockholders to
provide sufficient time to enable management to disclose to stockholders information about a
dissident slate of nominations for directors. This advance notice requirement may also give
management time to solicit its own proxies in an attempt to defeat any dissident slate of
nominations, should management determine that doing so is in the best interests of stockholders
generally. Similarly, adequate advance notice of stockholder proposals will give management time to
study such proposals and to determine whether to recommend to the stockholders that such proposals
be adopted. In certain instances, such provisions could make it more difficult to oppose
management&#146;s nominees or proposals, even if stockholders believe such nominees or proposals are in
their best interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder Action Without a Meeting. </I></B>The bylaws of Oritani Financial Corp. provide that any
action to be taken or which may be taken at any annual or special meeting of stockholders may be
taken if a consent in writing, setting forth the actions so taken, is given by the holders of all
outstanding shares
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">entitled to vote. The bylaws of Oritani do not provide for action to be taken by stockholders
without a meeting. Under Delaware law, action may be taken by stockholders without a meeting if all
stockholders entitled to vote on the action consent to taking such action without a meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder&#146;s Right to Examine Books and Records. </I></B>A federal regulation, which is applicable to
Oritani Financial Corp., provides that stockholders may inspect and copy specified books and
records after proper written notice for a proper purpose. Delaware law provides that a stockholder
may inspect a company&#146;s bylaws, stockholder minutes, annual statement of affairs and any voting
trust agreements. However, only a stockholder or group of stockholders who together, for at least
six months, hold at least 5% of the company&#146;s total shares, have the right to inspect a company&#146;s
stock ledger, list of stockholders and books of accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitations on Voting Rights of Greater-than-10% Stockholders. </I></B>Oritani&#146;s certificate of
incorporation provides that no beneficial owner, directly or indirectly, of more than 10.0% of the
outstanding shares of common stock will be permitted to vote any shares in excess of such 10.0%
limit. Oritani Financial Corp.&#146;s charter does not provide such a limit on voting common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, OTS regulations provide that for a period of three years following the date of
the completion of the offering, no person, acting singly or together with associates in a group of
persons acting in concert, may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10.0% of a class of Oritani&#146;s equity securities without the prior written
approval of the OTS. Where any person acquires beneficial ownership of more than 10.0% of a class
of Oritani&#146;s equity securities without the prior written approval of the OTS, the securities
beneficially owned by such person in excess of 10.0% may not be voted by any person or counted as
voting shares in connection with any matter submitted to the stockholders for a vote, and will not
be counted as outstanding for purposes of determining the affirmative vote necessary to approve any
matter submitted to the stockholders for a vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mergers, Consolidations and Sales of Assets. </I></B>A federal regulation applicable to Oritani
Financial Corp. generally requires the approval of two-thirds of the Board of Directors of Oritani
Financial Corp. and the holders of two-thirds of the outstanding stock of Oritani Financial Corp.
entitled to vote thereon for mergers, consolidations and sales of all or substantially all of
Oritani Financial Corp.&#146;s assets. Such regulation permits Oritani Financial Corp. to merge with
another corporation without obtaining the approval of its stockholders if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it does not involve an interim savings institution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s federal stock charter is not changed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each share of Oritani Financial Corp.&#146;s stock outstanding immediately prior to
the effective date of the transaction will be an identical outstanding share or a
treasury share of Oritani Financial Corp. after such effective date; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no shares of voting stock of Oritani Financial Corp. and no
securities convertible into such stock are to be issued or delivered under the
plan of combination; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the authorized but unissued shares or the treasury shares of
voting stock of Oritani Financial Corp. to be issued or delivered under the
plan of combination, plus those initially issuable upon conversion of any
securities to be issued or delivered under such plan, do not exceed 15% of the
total shares of voting stock of Oritani Financial Corp. outstanding immediately
prior to the effective date of the transaction.</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, &#147;business combinations&#148; between Oritani and an interested stockholder or
an affiliate of an interested stockholder are prohibited for five years after the most recent date
on which the interested stockholder becomes an interested stockholder. These business combinations
include a merger, consolidation, statutory share exchange or, in circumstances specified in the
statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and
reclassifications involving interested stockholders and their affiliates or issuance or
reclassification of equity securities. Delaware law defines an interested stockholder as: (i)&nbsp;any
person who beneficially owns 10.0% or more of the voting power of Oritani&#146;s voting stock after the
date on which Oritani had 100 or more beneficial owners of its stock; or (ii)&nbsp;an affiliate or
associate of Oritani at any time after the date on which Oritani had 100 or more beneficial owners
of its stock who, within the two-year period prior to the date in question, was the beneficial
owner of 10.0% or more of the voting power of the then-outstanding voting stock of Oritani. A
person is not an interested stockholder under the statute if the Board of Directors approved in
advance the transaction by which the person otherwise would have become an interested stockholder.
However, in approving a transaction, the Board of Directors may provide that its approval is
subject to compliance, at or after the time of approval, with any terms and conditions determined
by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i)&nbsp;80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani, and (ii)&nbsp;two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani&#146;s common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Evaluation of Offers. </I></B>The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic effect, both immediate and long-term, upon Oritani&#146;s stockholders,
including stockholders, if any, who do not participate in the transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether a more favorable price could be obtained for Oritani&#146;s stock or other
securities in the future;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->172<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any antitrust or other legal and regulatory issues that are raised by the proposal;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s charter and bylaws do not contain a similar provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dissenters&#146; Rights of Appraisal</I></B><B>. </B>OTS regulations generally provide that a stockholder of a
federally chartered corporation that engages in a merger, consolidation or sale of all or
substantially all of its assets shall have the right to demand from such institution payment of the
fair or appraised value of his or her stock in the corporation, subject to specified procedural
requirements. The regulations also provide, however, that a stockholder of a federally chartered
corporation whose shares are listed on a national securities exchange or quoted on the Nasdaq stock
market are not entitled to dissenters&#146; rights in connection with a merger if the stockholder is
required to accept only &#147;qualified consideration&#148; for his or her stock, which is defined to include
cash, shares of stock of any institution or corporation that at the effective date of the merger
will be listed on a national securities exchange or quoted on the Nasdaq stock market, or any
combination of such shares of stock and cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, stockholders of Oritani will not have dissenters&#146; appraisal rights in
connection with a plan of merger or consolidation to which Oritani is a party as long as the common
stock of Oritani trades on the Nasdaq Global Market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Amendment of Governing Instruments</I></B><B>. </B>No amendment of Oritani Financial Corp.&#146;s stock charter
may be made unless it is first proposed by the Board of Directors of Oritani Financial Corp., then
preliminarily approved by the OTS, and thereafter approved by the holders of a majority of the
total votes eligible to be cast at a legal meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s certificate of incorporation may be amended, upon the submission of an amendment by
the Board of Directors to a vote of the stockholders, by the affirmative vote of at least
two-thirds of the outstanding shares of common stock, or by the affirmative vote of a majority of
the outstanding shares of common stock if at least two-thirds of the members of the whole Board of
Directors approves such amendment; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend the following provisions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The limitation on voting rights of persons who directly or indirectly
beneficially own more than 10.0% of the outstanding shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The division of the Board of Directors into three staggered classes;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the Board of Directors to fill vacancies on the board;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The requirement that at least a majority of the votes eligible to be cast by
stockholders must vote to remove directors, and can only remove directors for cause;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the Board of Directors to amend and repeal the bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the Board of Directors to evaluate a variety of factors in
evaluating offers to purchase or otherwise acquire Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The authority of the Board of Directors to provide for the issuance of
preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The validity and effectiveness of any action lawfully authorized by the affirmative
vote of the holders of a majority of the total number of outstanding shares of common
stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of stockholders constituting a quorum or required for stockholder
consent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The indemnification of current and former directors and officers, as well as
employees and other agents, by Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The limitation of liability of officers and directors to
Oritani for money damages;</td>
</tr>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The inability of stockholders to cumulate their votes in the election of directors;
</td>
</tr>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xiii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The advance notice requirements for stockholder proposals and nominations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xiv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provision of the certificate of incorporation requiring approval of at
least 80% of the outstanding voting stock to amend the provisions of the certificate of
incorporation provided in (i)&nbsp;through (xiii)&nbsp;of this list.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate of incorporation also provides that the bylaws may be amended by the
affirmative vote of a majority of our directors or by the stockholders by the affirmative vote of
at least 80% of the total votes eligible to be voted at a duly constituted meeting of stockholders.
Any amendment of this super-majority requirement for amendment of the bylaws would also require
the approval of 80% of the outstanding voting stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->174<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="618"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RESTRICTIONS ON ACQUISITION OF ORITANI</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Board of Directors of Oritani is not aware of any effort that might be made to
obtain control of Oritani after the conversion, the Board of Directors believes that it is
appropriate to include certain provisions as part of Oritani&#146;s certificate of incorporation to
protect the interests of Oritani and its stockholders from takeovers which our Board of Directors
might conclude are not in the best interests of Oritani Bank, Oritani or Oritani&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a general summary of the material provisions of Oritani&#146;s
certificate of incorporation and bylaws, Oritani Bank&#146;s charter and bylaws and certain other
regulatory provisions that may be deemed to have an &#147;anti-takeover&#148; effect. The following
description of certain of these provisions is necessarily general and is not intended to be a
complete description of the document or regulatory provision in question. Oritani&#146;s certificate of
incorporation and bylaws are included as part of Oritani Financial Corp., MHC&#146;s application for
conversion filed with the OTS and Oritani&#146;s registration statement filed with the Securities and
Exchange Commission. See &#147;Where You Can Find Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certificate of Incorporation and Bylaws of Oritani</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s certificate of incorporation and bylaws contain a number of provisions relating to
corporate governance and rights of stockholders that may discourage future takeover attempts. As a
result, stockholders who might desire to participate in such transactions may not have an
opportunity to do so. In addition, these provisions will also render the removal of the Board of
Directors or management of Oritani more difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Directors</I></B><I>. </I>The Board of Directors will be divided into three classes. The members of each
class will be elected for a term of three years and only one class of directors will be elected
annually. Thus, it would take at least two annual elections to replace a majority of our Board of
Directors. Further, the bylaws impose notice and information requirements in connection with the
nomination by stockholders of candidates for election to the Board of Directors or the proposal by
stockholders of business to be acted upon at an annual meeting of stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Call of Special Meetings</I></B><I>. </I>The certificate of incorporation and bylaws provide
that special meetings of stockholders can be called by the President, by a majority of the whole
Board of Directors or upon the written request of stockholders entitled to cast at least a majority
of all votes entitled to vote at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prohibition of Cumulative Voting</I></B><I>. </I>The certificate of incorporation prohibits cumulative
voting for the election of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitation of Voting Rights</I></B><I>. </I>The certificate of incorporation provides that in no event will
any person who beneficially owns more than 10.0% of the then-outstanding shares of common stock, be
entitled or permitted to vote any of the shares of common stock held in excess of the 10.0% limit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Removing Directors from Office</I></B><I>. </I>The certificate of incorporation provides
that directors may be removed only for cause, and only by the affirmative vote of the holders of at
least a majority of the voting power of all of our then-outstanding common stock entitled to vote
(after giving effect to the limitation on voting rights discussed above in &#147;&#151;Limitation of Voting
Rights.&#148;)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Authorized but Unissued Shares</I></B>. After the conversion, Oritani will have authorized but
unissued shares of common and preferred stock. See &#147;Description of Capital Stock of Oritani
Following
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->175<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Conversion.&#148; The certificate of incorporation authorizes 25,000,000 shares of serial
preferred stock. Oritani is authorized to issue preferred stock from time to time in one or more
series subject to applicable provisions of law, and the Board of Directors is authorized to fix the
designations, and relative preferences, limitations, voting rights, if any, including without
limitation, offering rights of such shares (which could be multiple or as a separate class). In
the event of a proposed merger, tender offer or other attempt to gain control of Oritani that the
Board of Directors does not approve, it might be possible for the Board of Directors to authorize
the issuance of a series of preferred stock with rights and preferences that would impede the
completion of the transaction. An effect of the possible issuance of preferred stock therefore may
be to deter a future attempt to gain control of Oritani. The Board of Directors has no present
plan or understanding to issue any preferred stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Amendments to Certificate of Incorporation and Bylaws. </I></B>Amendments to the certificate of
incorporation must be approved by our Board of Directors and also by at least a majority of the
outstanding shares of our voting stock; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend certain provisions. A list of these
provisions is provided under &#147;Comparison of Stockholders&#146; Rights For Existing Stockholders of
Oritani Financial Corp.&#151;Amendment of Governing Instruments&#148; above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate of incorporation also provide that the bylaws may be amended by the
affirmative vote of a majority of Oritani&#146;s directors or by the stockholders by the affirmative
vote of at least 80% of the total votes eligible to be voted at a duly constituted meeting of
stockholders. Any amendment of this super-majority requirement for amendment of the bylaws would
also require the approval of 80% of the outstanding voting stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Business Combinations with Interested Stockholders</I></B><I>. </I>Under Delaware law, &#147;business
combinations&#148; between Oritani and an interested stockholder or an affiliate of an interested
stockholder are prohibited for five years after the most recent date on which the interested
stockholder becomes an interested stockholder. These business combinations include a merger,
consolidation, statutory share exchange or, in circumstances specified in the statute, certain
transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications
involving interested stockholders and their affiliates or issuance or reclassification of equity
securities. Delaware law defines an interested stockholder as: (i)&nbsp;any person who beneficially owns
10.0% or more of the voting power of Oritani&#146;s voting stock after the date on which Oritani had 100
or more beneficial owners of its stock; or (ii)&nbsp;an affiliate or associate of Oritani at any time
after the date on which Oritani had 100 or more beneficial owners of its stock who, within the
two-year period prior to the date in question, was the beneficial owner of 10.0% or more of the
voting power of the then-outstanding voting stock of Oritani. A person is not an interested
stockholder under the statute if the Board of Directors approved in advance the transaction by
which the person otherwise would have become an interested stockholder. However, in approving a
transaction, the Board of Directors may provide that its approval is subject to compliance, at or
after the time of approval, with any terms and conditions determined by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i)&nbsp;80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani and (ii)&nbsp;two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani&#146;s common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Evaluation of Offers. </I></B>The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic effect, both immediate and long-term, upon Oritani&#146;s stockholders,
including stockholders, if any, who do not participate in the transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether a more favorable price could be obtained for Oritani&#146;s stock or other
securities in the future;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any antitrust or other legal and regulatory issues that are raised by the proposal;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Purpose and Anti-Takeover Effects of Oritani&#146;s Certificate of Incorporation and Bylaws</I></B><B>. </B>Our
Board of Directors believes that the provisions described above are prudent and will reduce our
vulnerability to takeover attempts and certain other transactions that have not been negotiated
with and approved by our Board of Directors. These provisions also will assist us in the orderly
deployment of the offering proceeds into productive assets during the initial period after the
conversion. Our Board of Directors believes these provisions are in the best interests of Oritani
and its stockholders. Our Board of Directors believes that it will be in the best position to
determine the true value of Oritani and to negotiate more effectively for what may be in the best
interests of its stockholders. Accordingly, our Board of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Directors believes that it is in the best interests of Oritani and its stockholders to
encourage potential acquirers to negotiate directly with the Board of Directors and that these
provisions will encourage such negotiations and discourage hostile takeover attempts. It is also
the view of our Board of Directors that these provisions should not discourage persons from
proposing a merger or other transaction at a price reflective of the true value of Oritani and that
is in the best interests of all stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Takeover attempts that have not been negotiated with and approved by our Board of Directors
present the risk of a takeover on terms that may be less favorable than might otherwise be
available. A transaction that is negotiated and approved by our Board of Directors, on the other
hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value
of Oritani for our stockholders, with due consideration given to matters such as the management and
business of the acquiring corporation and maximum strategic development of Oritani&#146;s assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although a tender offer or other takeover attempt may be made at a price substantially above
the current market price, such offers are sometimes made for less than all of the outstanding
shares of a target company. As a result, stockholders may be presented with the alternative of
partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be
similar to those of the remaining stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite our belief as to the benefits to stockholders of these provisions of Oritani&#146;s
certificate of incorporation and bylaws, these provisions may also have the effect of discouraging
a future takeover attempt that would not be approved by our Board of Directors, but pursuant to
which stockholders may receive a substantial premium for their shares over then current market
prices. As a result, stockholders who might desire to participate in such a transaction may not
have any opportunity to do so. Such provisions will also make it more difficult to remove our Board
of Directors and management. Our Board of Directors, however, has concluded that the potential
benefits outweigh the possible disadvantages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the conversion, pursuant to applicable law and, if required, following the approval
by stockholders, we may adopt additional anti-takeover provisions in our certificate of
incorporation or other devices regarding the acquisition of our equity securities that would be
permitted for a Delaware business corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cumulative effect of the restrictions on acquisition of Oritani contained in our
certificate of incorporation and bylaws and in Delaware law may be to discourage potential takeover
attempts and perpetuate incumbent management, even though certain stockholders of Oritani may deem
a potential acquisition to be in their best interests, or deem existing management not to be acting
in their best interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conversion Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit any person from making an offer, announcing an intent to make an
offer or participating in any other arrangement to purchase stock or acquiring stock or
subscription rights in a converting institution or its holding company from another person prior to
completion of its conversion. Further, without the prior written approval of the OTS, no person may
make an offer or announcement of an offer to purchase shares or actually acquire shares of an OTS
regulated holding company of a converted institution for a period of three years from the date of
the completion of the conversion if, upon the completion of such offer, announcement or
acquisition, the person would become the beneficial owner of more than 10.0% of the outstanding
stock of the holding company. The OTS has defined &#147;person&#148; to include any individual, group acting
in concert, corporation, partnership, association, joint stock company, trust, unincorporated
organization or similar company, a syndicate or any other group formed
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for the purpose of acquiring, holding or disposing of securities of an insured institution.
However, offers made exclusively to a bank or its holding company, or an underwriter or member of a
selling group acting on the converting institution&#146;s or its holding company&#146;s behalf for resale to
the general public are excepted. The regulation also provides civil penalties for willful violation
or assistance in any such violation of the regulation by any person connected with the management
of the converting institution or its holding company or who controls more than 10.0% of the
outstanding shares or voting rights of a converted institution or its holding company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Change in Control Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Change in Bank Control Act, no person may acquire control of an insured federal
savings bank or its parent holding company unless the OTS has been given 60&nbsp;days&#146; prior written
notice and has not issued a notice disapproving the proposed acquisition. In addition, OTS
regulations provide that no company may acquire control of a savings bank without the prior
approval of the OTS. Any company that acquires such control becomes a &#147;savings and loan holding
company&#148; subject to registration, examination and regulation by the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control, as defined under federal law, means ownership, control of or holding irrevocable
proxies representing more than 25% of any class of voting stock, control in any manner of the
election of a majority of the institution&#146;s directors, or a determination by the OTS that the
acquiror has the power to direct, or directly or indirectly to exercise a controlling influence
over, the management or policies of the institution. Acquisition of more than 10.0% of any class of
a savings bank&#146;s voting stock, if the acquiror is also subject to any one of eight &#147;control
factors,&#148; constitutes a rebuttable determination of control under the regulations. Such control
factors include the acquiror being one of the two largest stockholders. The determination of
control may be rebutted by submission to the OTS, prior to the acquisition of stock or the
occurrence of any other circumstances giving rise to such determination, of a statement setting
forth facts and circumstances which would support a finding that no control relationship will exist
and containing certain undertakings. The regulations provide that persons or companies which
acquire beneficial ownership exceeding 10.0% or more of any class of a savings bank&#146;s stock who do
not intend to participate in or seek to exercise control over a savings bank&#146;s management or
policies may qualify for a safe harbor by filing with the OTS a certification form that states,
among other things, that the holder is not in control of such institution, is not subject to a
rebuttable determination of control and will take no action which would result in a determination
or rebuttable determination of control without prior notice to or approval of the OTS, as
applicable. There are also rebuttable presumptions in the regulations concerning whether a group
&#147;acting in concert&#148; exists, including presumed action in concert among members of an &#147;immediate
family.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OTS may prohibit an acquisition of control if it finds, among other things, that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the acquisition would result in a monopoly or substantially lessen competition;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the financial condition of the acquiring person might jeopardize the financial
stability of the institution; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the competence, experience or integrity of the acquiring person indicates that
it would not be in the interest of the depositors or the public to permit the
acquisition of control by such person.</TD>
</TR>



</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="619"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani is authorized to issue 150,000,000 shares of common stock, par value of $0.01 per
share, and 25,000,000 shares of preferred stock, par value $0.01 per share. Oritani currently
expects to issue in the offering up to 44,850,000 shares of common stock, subject to adjustment,
and up to 51,577,500 shares, subject to adjustment, in exchange for the publicly held shares of
Oritani Financial Corp. Oritani will not issue shares of preferred stock in the conversion. Each
share of common stock will have the same relative rights as, and will be identical in all respects
to, each other share of common stock. Upon payment of the subscription price for the common stock,
in accordance with the plan of conversion and reorganization, all of the shares of common stock
will be duly authorized, fully paid and nonassessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock of Oritani will represent nonwithdrawable capital, will not be an
account of an insurable type, and will not be insured by the FDIC or any other government agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dividends</I></B><I>. </I>Oritani may pay dividends to an amount equal to the excess of our capital surplus
over payments that would be owed upon dissolution to stockholders whose preferential rights upon
dissolution are superior to those receiving the dividend, and to an amount that would not make us
insolvent, as and when declared by our Board of Directors. The payment of dividends by Oritani is
subject to limitations that are imposed by law and applicable regulation. The holders of common
stock of Oritani will be entitled to receive and share equally in dividends as may be declared by
our Board of Directors out of funds legally available therefor. If Oritani issues shares of
preferred stock, the holders thereof may have a priority over the holders of the common stock with
respect to dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Rights</I></B><I>. </I>Upon consummation of the conversion, the holders of common stock of Oritani
will have exclusive voting rights in Oritani. They will elect Oritani&#146;s Board of Directors and act
on other matters as are required to be presented to them under Delaware law or as are otherwise
presented to them by the Board of Directors. Generally, each holder of common stock will be
entitled to one vote per share and will not have any right to cumulate votes in the election of
directors. Any person who beneficially owns more than 10.0% of the then-outstanding shares of
Oritani&#146;s common stock, however, will not be entitled or permitted to vote any shares of common
stock held in excess of the 10.0% limit. If Oritani issues shares of preferred stock, holders of
the preferred stock may also possess voting rights. Certain matters require an 80% stockholder
vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a Delaware stock savings bank, corporate powers and control of Oritani Bank are vested in
its Board of Directors, who elect the officers of Oritani Bank and who fill any vacancies on the
Board of Directors. Voting rights of Oritani Bank are vested exclusively in the owners of the
shares of capital stock of Oritani Bank, which will be Oritani, and voted at the direction of
Oritani&#146;s Board of Directors. Consequently, the holders of the common stock of Oritani will not
have direct control of Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation</I></B><I>. </I>In the event of any liquidation, dissolution or winding up of Oritani Bank,
Oritani, as the holder of 100% of Oritani Bank&#146;s capital stock, would be entitled to receive all
assets of Oritani Bank available for distribution, after payment or provision for payment of all
debts and liabilities of Oritani Bank, including all deposit accounts and accrued interest thereon,
and after distribution of the balance in the liquidation account to Eligible Account Holders and
Supplemental Eligible Account Holders. In the event of liquidation, dissolution or winding up of
Oritani, the holders of its common stock would be entitled to receive, after payment or provision
for payment of all its debts and liabilities, all of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the assets of Oritani available for distribution. If preferred stock is issued, the holders
thereof may have a priority over the holders of the common stock in the event of liquidation or
dissolution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Preemptive Rights</I></B><I>. </I>Holders of the common stock of Oritani will not be entitled to preemptive
rights with respect to any shares that may be issued. The common stock is not subject to
redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the shares of Oritani&#146;s authorized preferred stock will be issued as part of the
offering or the conversion. Preferred stock may be issued with preferences and designations as our
Board of Directors may from time to time determine. Our Board of Directors may, without stockholder
approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights
that could dilute the voting strength of the holders of the common stock and may assist management
in impeding an unfriendly takeover or attempted change in control.
</DIV>
<DIV align="left">
<A name="620"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TRANSFER AGENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer agent and registrar for Oritani&#146;s common stock is Registrar and Transfer Company,
Cranford, New Jersey.
</DIV>
<DIV align="left">
<A name="621"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD>The consolidated financial statements of Oritani Financial Corp. and subsidiaries as of
June&nbsp;30, 2009 and 2008, and for each of the years in the three-year period ended June&nbsp;30, 2009,
have been included herein in reliance upon the report of KPMG LLP, independent registered public
accounting firm, which is included herein and upon the authority of said firm as experts in
accounting and auditing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussions related to state income taxes included under &#147;The Conversion and
Offering&#151;Material Income Tax Consequences&#148; were prepared for us by KPMG LLP, independent registered
public accounting firm, and have been included herein upon the authority of said firm as experts in
tax matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RP Financial, LC. has consented to the publication herein of the summary of its report to
Oritani setting forth its opinion as to the estimated pro forma market value of the shares of
common stock upon completion of the offering and its letter with respect to subscription rights.
</DIV>
<DIV align="left">
<A name="622"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luse Gorman Pomerenk &#038; Schick, P.C., Washington, D.C., counsel to Oritani, Oritani Financial
Corp., MHC, Oritani Financial Corp. and Oritani Bank, will issue to Oritani its opinion regarding
the legality of the common stock and the federal income tax consequences of the conversion.
Certain legal matters will be passed upon for Stifel, Nicolaus &#038; Company, Incorporated by
Sonnenschein Nath &#038; Rosenthal LLP, Washington, D.C.
</DIV>
<DIV align="left">
<A name="623"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani has filed with the Securities and Exchange Commission a registration statement under
the Securities Act of 1933 with respect to the shares of common stock offered hereby. As permitted
by the rules and regulations of the Securities and Exchange Commission, this prospectus does not
contain all the information set forth in the registration statement. Such information, including
the appraisal report which is an exhibit to the registration statement, can be examined without
charge at the public reference
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">facilities of the Securities and Exchange Commission located at 100 F Street, N.E.,
Washington, D.C. 20549, and copies of such material can be obtained from the Securities and
Exchange Commission at prescribed rates. The Securities and Exchange Commission telephone number
is 1-800-SEC-0330. In addition, the Securities and Exchange Commission maintains a web site
(<U>http://www.sec.gov</U>) that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the Securities and Exchange
Commission, including Oritani. The statements contained in this prospectus as to the contents of
any contract or other document filed as an exhibit to the registration statement are, of necessity,
brief descriptions of the material terms of, and should be read in conjunction with, such contract
or document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC has filed with the OTS an Application on Form&nbsp;AC with respect to
the conversion. This prospectus omits certain information contained in the application. The
application may be examined at the principal office of the OTS, 1700 G Street, N.W., Washington,
D.C. 20552, and at the Northeast Regional Office of the OTS, Harborside Financial Center Plaza
Five, Suite&nbsp;1600, Jersey City, New Jersey 07311. Our plan of conversion and reorganization is
available, upon request, at each of our banking offices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>In connection with the offering, Oritani will register its common stock under </B><B>Section 12(b)</B><B> of
the Securities Exchange Act of 1934 and, upon such registration, Oritani and the holders of its
common stock will become subject to the proxy solicitation rules, reporting requirements and
restrictions on common stock purchases and sales by directors, officers and greater than 10%
stockholders, the annual and periodic reporting and certain other requirements of the Securities
Exchange Act of 1934. Under the plan of conversion and reorganization, Oritani has undertaken that
it will not terminate such registration for a period of at least three years following the
offering.</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->182<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="624"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS OF</B></DIV>

<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt">

<B>ORITANI FINANCIAL CORP. AND ITS SUBSIDIARIES</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#300">Report of Independent Registered Public Accounting Firm </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#301">Consolidated Statement of Financial Condition at December&nbsp;31, 2009 (unaudited)&nbsp;and
June&nbsp;30, 2009 and 2008 </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#302">Consolidated Statements of Income for the six months ended December&nbsp;31, 2009 and 2008
(unaudited)&nbsp;and for the years ended June&nbsp;30, 2009, 2008 and 2007 </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#303">Consolidated Statements of Changes in Shareholders&#146; Equity for the six months ended
December&nbsp;31, 2009 (unaudited)&nbsp;and for the years ended June&nbsp;30, 2009, 2008 and 2007 </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#304">Consolidated Statements of Cash Flows for the six months ended December&nbsp;31, 2009 and 2008
(unaudited)&nbsp;and for the years ended June&nbsp;30, 2009, 2008 and 2007 </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#305">Notes to Consolidated Financial Statements </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-8</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">***
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All financial statement schedules have been omitted as the required information either is not
applicable or is included in the financial statements or related notes.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->F-1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>

<DIV align="left">
<A name="300"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Report of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors and Stockholders<BR>
Oritani Financial Corp.<BR>
Township of Washington, New Jersey:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the accompanying consolidated balance sheets of Oritani Financial Corp. and
subsidiaries (the Company) as of June&nbsp;30, 2009 and 2008, and the related consolidated statements of
income, stockholders&#146; equity, and cash flows for each of the years in the three-year period ended
June&nbsp;30, 2009. These consolidated financial statements are the responsibility of the Company&#146;s
management. Our responsibility is to express an opinion on these consolidated financial statements
based on our audits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Oritani Financial Corp. and subsidiaries as of June
30, 2009 and 2008, and the results of their operations and their cash flows for each of the years
in the three-year period ended June&nbsp;30, 2009 in conformity with U.S. generally accepted accounting
principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the Company&#146;s internal control over financial reporting as of June&nbsp;30, 2009,
based on criteria established in Internal Control &#150; Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO), and our report dated September&nbsp;11, 2009
expressed an unqualified opinion on the effectiveness of the Company&#146;s internal control over
financial reporting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ KPMG LLP<BR>
Short Hills, New Jersey<BR>
September&nbsp;11, 2009

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-2<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="left">
<A name="301"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Consolidated Balance Sheets
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><I>(Dollars in thousands)</I></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash on hand and in banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,332</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,558</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Cash and cash equivalents (note 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,890</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net (notes 4 and 5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale, at market value (notes 7 and 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity,
estimated market value of $88,223, $120,381 and $162,671 at
December&nbsp;31, 2009, June&nbsp;30, 2009 and 2008, respectively (notes 6 and 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale,
at market value (notes 7 and 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Owned Life Insurance (at cash surrender value)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,425</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank of New York stock, at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable (note 8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,967</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,646</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments in real estate joint ventures, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,564</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,681</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate owned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Office properties and equipment, net (note 9)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,287</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,733</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,913,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,443,294</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><B>Liabilities and Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deposits (note 10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings (note 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Advance payments by borrowers for taxes and insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Official checks outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other liabilities (note 13)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,758,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,673,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,164,319</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; Equity (notes 2 and 16):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred stock, $0.01 par value; 10,000,000 shares
authorized-none issued or outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.01 par value; 80,000,000 shares authorized;
40,552,162 issued at December&nbsp;31, 2009 , June&nbsp;30, 2009
and 2008
37,041,184, outstanding at December&nbsp;31, 2009,
37,133,684 and 40,187,062 outstanding at
June&nbsp;30, 2009 and 2008, respectively.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unallocated common stock held by the employee stock
ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,512</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,909</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,704</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock, at cost; 3,510,978 shares at December&nbsp;31, 2009,
3,418,478 and 365,100 shares at June&nbsp;30, 2009 and 2008.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53,418</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained income (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171,160</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive loss, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(341</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,975</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments and contingencies (notes 4 and 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,913,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,443,294</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="left">
<A name="302"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Consolidated Statements of Income<BR>
(in thousands, except per share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,278</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on securities held to maturity and dividends on FHLB stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,073</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">813</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest on federal funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,842</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,349</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deposits and stock subscription proceeds (note 10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,682</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings (note 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,829</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net interest income before provision for
losses on loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses (note 5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,119</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate operations, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,205</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income from investments in real estate joint ventures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,084</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">BOLI income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">984</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loss on sale and write down of securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(190</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,045</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(998</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gain on sale of real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gain on sale of fixed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">514</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">403</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,309</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensation, payroll taxes and fringe benefits (notes 13 and 14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,213</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Advertising</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Office occupancy and equipment expense (notes 9 and 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,575</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Data processing service fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,031</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal insurance premiums</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contribution to charitable foundation (note 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,249</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,370</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,664</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income available to common stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings per share-basic and diluted (fiscal 2007 represents
the period from January&nbsp;23,2007 to June&nbsp;30, 2007)(note 21)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->F-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>



<DIV align="left">
<A name="303"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Consoldiated Statements of Stockholders&#146; Equity<BR>
For the six months ended December&nbsp;31, 2009 (Unaudited) and the years ended June&nbsp;30, 2009, 2008 and
2007<BR>
(in thousands, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unallocated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>stock-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>paid-in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>stock held</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>holders'</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>by</B> <B>ESOP</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>net of tax</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>equity</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at June&nbsp;30, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(130</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,136</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized holding gain on securities available
for sale arising during year, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in minimum pension liability,
net of tax of $55</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sale of 12,976,686 shares of common stock in the
initial public offering and issuance of 27,575,476
shares to the mutual holding company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of common stock by the ESOP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,896</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,896</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cumulative adjustment for accounting change-
adoption of postretirement plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,076</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,076</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP shares allocated or committed to be released</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>

    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at June&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">127,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(15,499</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">161,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">272,570</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized holding gain on securities available
for sale arising during year, net of tax $177</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification adjustment for losses included in
net income, net of tax of $264</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in funded status of retirement
obligations, net of tax of $61</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,690</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cumulative adjustment for accounting change-
adoption of accounting for uncertainty in
income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock (365,100 shares)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensation cost for stock options
and restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">610</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP shares allocated or committed
to be released</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,131</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">128,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(14,704</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(341</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">278,975</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES<BR>

Township of Washington, New Jersey</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
Consoldiated Statements of Stockholders&#146; Equity
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">For the six months ended December&nbsp;31, 2009 (Unaudited) and the years ended June&nbsp;30, 2009, 2008 and 2007<BR>
(in thousands, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unallocated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>stock-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>paid-in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Treasury</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>stock held</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>holders&#146;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>by ESOP</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>net of tax</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>equity</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized holding gain on securities available
for sale arising during year, net of tax $200</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification adjustment for losses included in
net income, net of tax of $815</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,231</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in funded status of retirement
obligations, net of tax of $249</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(372</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(372</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,614</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash dividends declared</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(437</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(437</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cumulative adjustment for accounting change -
Split-dollar life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock (3,212,337 shares)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,989</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,989</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock allocated to restricted
stock plan (158,959 shares)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,497</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensation cost for stock options
and restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,804</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP shares allocated or committed
to be released</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,207</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(53,418</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,909</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized holding gain on securities available
for sale arising during year, net of tax of $177</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification adjustment for losses included in
net income, net of tax of $25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization related to post-retirement
obligations, net of tax of $46</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,805</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash dividends declared</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,083</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,083</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock (92,500 shares)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,231</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensation cost for stock options
and restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,782</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP shares allocated or committed
to be released</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">537</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax benefit from stock-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">132,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,512</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to unaudited consolidated financial statements. </div>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="left">
<A name="304"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Consolidated Statements of Cash Flows<BR>
(in thousands)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net income to net cash provided by operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Contribution of stock to charitable foundation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">ESOP and stock-based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation of premises and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">718</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Amortization and accretion (premiums and discounts), net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">463</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Provision for losses on loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Amortization and accretion (deferred loan fees), net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(457</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(379</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(797</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(779</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(702</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase in deferred taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,135</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,144</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,487</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,482</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,159</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Impairment charge on securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">(Gain) loss on sale of securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gain on sale of real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,043</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gain on sale of fixed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(514</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Write down of real estate owned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase in cash surrender value of bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(588</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(544</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,060</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(984</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income from real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(440</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(504</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(818</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(660</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(708</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income from real estate joint ventures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(608</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(543</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,124</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,192</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,084</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase in accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(819</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,211</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,321</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(673</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,063</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">(Increase) decrease in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,712</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,076</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,292</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(331</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase in other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,575</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,172</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net increase in loans receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84,245</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(169,080</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(243,561</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(241,106</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(109,026</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,694</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37,068</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,960</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeeds from sales of mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(251,027</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(163,679</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,718</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,886</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,116</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,257</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(124,033</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27,023</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Redemption (purchase)&nbsp;of Federal Home Loan Bank of New York stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,603</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,002</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,928</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,252</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal payments on mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,735</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal payments on mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,692</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from calls and maturities of securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from calls and maturities of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sales of mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sales of mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,087</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sales of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of Bank Owned Life Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,120</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,833</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional investment in real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,290</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,352</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,378</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(238</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributions received from real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">585</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale of real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional investment in real estate joint ventures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(387</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributions received from real estate joint ventures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,182</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of fixed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,348</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(891</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,466</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(409</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale of fixed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash (used in) provided by investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(196,071</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(199,690</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(343,884</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(301,169</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(95,657</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net increase in deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,111</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">322,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">341,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayment of borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,552</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(264,402</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(265,906</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,874</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(85,975</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in advance payments by borrowers for taxes and insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">577</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net proceeds from sale of common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of common stock for ESOP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,896</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividends paid to shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,521</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38,217</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,989</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax benefit from stock-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash provided by (used in) financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,737</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net (decrease)&nbsp;increase in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(109,037</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,636</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,252</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,274</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">135,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,526</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Supplemental cash flow information:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash paid during the year for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,589</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,647</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Noncash transfers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Loans receivable transferred to Eeal etsate owned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">RE Held for Investment transferred to Office, Property and Equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Non cash borrowing activity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(544</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-7<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>

<DIV align="left">
<A name="305"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(1)&nbsp;Summary of Significant Accounting Policies</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Principles of Consolidation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The consolidated financial statements are comprised of the accounts of Oritani Financial Corp.
(the Company), and its wholly owned subsidiaries, Oritani Bank (the Bank); Hampshire
Financial, LLC, and Oritani, LLC, and the wholly owned subsidiaries of Oritani Bank, Oritani
Financial Services, Inc. (inactive), Ormon LLC (Ormon), and Oritani Holding Company
(liquidated), as well as its wholly owned subsidiary, Oritani Asset Corporation (a real estate
investment trust), collectively, the Company. All significant intercompany balances and
transactions have been eliminated in consolidation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Business</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company provides a wide range of banking services to individual and corporate customers in
New Jersey. The Company is subject to competition from other financial institutions and to
the regulations of certain federal and state agencies and undergoes periodic examinations by
those regulatory authorities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following are the significant accounting policies which were followed in preparing and
presenting these consolidated financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Basis of Financial Statement Presentation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The consolidated financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America (&#147;GAAP&#148;). In June&nbsp;2009, the
Financial Accounting Standards Board (&#147;FASB&#148;) issued an update to Accounting Standard
Codification 105-10, &#147;Generally Accepted Accounting Principles&#148;. This standard establishes
the FASB Accounting Standard Codification (&#147;Codification&#148; or &#147;ASC&#148;) as the source of
authoritative U.S. GAAP recognized by the FASB for nongovernmental entities. The Codification
is effective for interim and annual periods ending after September&nbsp;15, 2009. The Codification
is a reorganization of existing U.S. GAAP and does not change existing U.S. GAAP. The Company
adopted this standard for our financial statements for periods ending after September&nbsp;15,
2009. As a result, the Company&#146;s disclosures in its consolidated financial statements and all
future references to authoritative accounting literature will be referenced in accordance with
FASB ASC 105-10. The adoption had no impact on the Company&#146;s financial position, results of
operations, and earnings per share. 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 December&nbsp;31, 2009 and
June&nbsp;30, 2009 and 2008, and in the Consolidated Statements of Income for the six months ended
December&nbsp;31, 2009 and 2008 and the twelve months ended June&nbsp;30, 2009, 2008 and 2007. Actual
results could differ significantly from those estimates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In the opinion of management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of the unaudited interim consolidated financial statements
have been made. No adjustments were made other than normal recurring entries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Material estimates that are particularly susceptible to significant change in the near term
relate to the determination of the allowance for loan losses and the valuation of real estate
acquired in connection with foreclosures or in satisfaction of loans. In connection with the
determination of the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">allowance for loan losses, management generally obtains independent appraisals for significant
properties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A substantial portion of the Company&#146;s loans are secured by real estate in the New Jersey
market. In addition, a substantial portion of real estate joint ventures and real estate owned
are located in that same market. Accordingly, as with most financial institutions in the
market area, the ultimate collectibility of a substantial portion of the Company&#146;s loan
portfolio and the recovery of the carrying amount of real estate joint ventures and real
estate owned are susceptible to changes in market conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>Securities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Securities include debt, mortgage-backed and marketable equity securities. Management
determines the appropriate classification of securities as either available for sale or held
to maturity at the purchase date. Securities that may be sold in response to changing market
and interest rate conditions or as part of an overall asset/liability strategy are classified
as available for sale. Gains or losses on sales of securities available for sale are based
upon the specific-identification method. Securities classified as available for sale are
carried at fair value with unrealized gains and losses net of applicable taxes, included in
accumulated other comprehensive income (loss), a component of equity. If management has the
intent and the ability at the time of purchase to hold securities until maturity, they are
classified as held to maturity. Securities held to maturity are carried at cost, adjusted for
unamortized purchase premiums and discounts. Premiums and discounts on securities are
accreted or amortized using the level-yield method over the estimated lives of the securities,
including the effect of prepayments. Any portion of unrealized loss on an individual equity
security deemed to be other than temporary is recognized as a loss in operations in the period
in which such determination is made. For debt investment securities deemed other than
temporarily impaired, the investment is written down through current earnings by the
impairment related to the estimated credit loss and the non-credit related impairment is
recognized in other comprehensive income. In the ordinary course of business, securities are
pledged as collateral in conjunction with the Company&#146;s borrowings and lines of credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Loans</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Mortgages on real estate and other loans are stated at the outstanding principal amount of the
loans, net of deferred loan fees/costs and the allowance for loan losses. Loan origination and
commitment fees, net of related costs, are deferred and amortized as an adjustment to the
loan&#146;s yield, utilizing the level yield method, over the actual lives of the related loans.
Interest income on loans is accrued and credited to interest income as earned. Loans are
generally placed on nonaccrual status when they become delinquent 90&nbsp;days or more as to
principal or interest, or when it appears that principal or interest is uncollectible.
Interest accrued prior to a loan being placed on nonaccrual status is subsequently reversed.
Interest income on nonaccrual loans is recognized only in the period it is ultimately
collected. Loans are returned to an accrual status when factors indicating doubtful
collectability no longer exist. Loans are generally charged off after an analysis is completed
which indicates collectability of principal and interest is in doubt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 individually classified as impaired include multifamily, commercial
mortgage and construction loans. Impaired loans are individually assessed to determine that
each loan&#146;s carrying value is not in excess of the fair value of the related collateral or the
present value of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">the expected future cash flows. Residential mortgage and consumer loans are
deemed smaller balance homogeneous loans which are evaluated collectively for impairment and
are therefore excluded from the population of impaired loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Consumer loans and any portion of residential real estate mortgage loans not adequately
secured are generally charged off when deemed to be uncollectible unless it can be clearly
demonstrated that repayment will occur regardless of the delinquency status. Examples that would demonstrate
repayment include; a loan that is secured by collateral and is in the process of collection; a
loan supported by a valid guarantee or insurance; or a loan supported by a valid claim against
a solvent estate. Charge-offs of commercial real estate mortgage loans are made on the basis
of management&#146;s ongoing evaluation of nonperforming loans. In the ordinary course of
business, loans are pledged as collateral in conjunction with the Company&#146;s borrowings and
lines of credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Allowance for Loan Losses</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">An allowance for loan losses is charged to operations based on management&#146;s evaluation of the
probable losses inherent in its portfolio. Such evaluation includes a review of all loans for
which full collectability may not be reasonably assured and considers, among other matters,
the estimated net realizable value of the underlying collateral, economic conditions and other
matters which warrant consideration. Subsequent recoveries, if any, are credited to the
allowance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Management believes that the allowance for loan losses is adequate. While management uses
available information to recognize losses on loans, future additions to the allowance may be
necessary based on changes in economic conditions in the Company&#146;s market area. In addition,
various regulatory agencies, as an integral part of their examination process, periodically
review the Company&#146;s allowance for loan losses. Such agencies may require the Company to
recognize additions to the allowance based on their judgments about information available to
them at the time of their examination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Real Estate Owned</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Real estate owned acquired through foreclosure is carried at fair value, less estimated
selling costs at the time of acquisition. Fair value is derived from independent appraisals.
When a property is acquired, the excess of the loan balance over fair value is charged to the
allowance for loan losses. During the holding period, the property is periodically reviewed
and the recorded value is adjusted through operations, if necessary, if the carrying value of
the property exceeds the fair value, less estimated costs to sell.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Bank Owned Life Insurance</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Bank-owned life insurance is accounted for using the cash surrender value method and is
recorded at its realizable value. The change in the cash surrender value is included in other
noninterest income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Federal Home Loan Bank of New York Stock</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Bank, as a member of the FHLB of New York , is required to hold shares of capital stock in
the FHLB in an amount based on the Bank&#146;s total investment in mortgage related assets and
advances. The requirement pertaining to mortgage related assets is a range from 0.10% to
0.25% of mortgage related assets, and is currently equal to 0.20%. The requirement pertaining
to advances is a range from 4.0% to 5.0% of total advances, and is currently equal to 4.5%.
The stock is carried at cost.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Investments in Real Estate Joint Ventures, Net</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company accounts for investments in joint ventures under the equity method. The balance
reflects the cost basis of investments, plus the Company&#146;s share of income earned on the joint
venture operations, less cash distributions, including excess cash distributions, and the
Company&#146;s share of losses on joint venture operations. Cash received in excess of the
Company&#146;s recorded investment in a joint venture is recorded as unearned revenue in other
liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Real Estate Held for Investment</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Real estate held for investment includes the Company&#146;s undivided interest in real estate
properties accounted for under the equity method and properties held for investment purposes.
Cash received in excess of the Company&#146;s recorded investment for an undivided interest in real
estate property is recorded as unearned revenue in other liabilities. The operations of the
properties held for investment purposes are reflected in the financial results of the Company
and included in the Other Income caption in the Income Statement. Properties held for
investment purposes are carried at cost less accumulated depreciation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Office Properties and Equipment</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Office properties and equipment are carried at cost, less accumulated depreciation.
Depreciation of office properties and equipment is computed on a straight-line basis over the
estimated useful lives of the related assets. The Company uses the following estimated useful
lives for its office properties and equipment categories: land improvements &#150; 15&nbsp;years;
building and major building improvements &#150; 40&nbsp;years; minor building improvements &#150; 10&nbsp;years
and furniture and fixtures &#150; 3 to 7&nbsp;years. Leasehold improvements are amortized over the
lesser of the remaining life of the lease or the useful life of the improvement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Employee Benefit Plans</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Bank has a defined benefit pension plan which covers all employees who satisfy the
eligibility requirements. The Bank participates in a multi-employer plan. Costs of the pension
plan are based on the contribution required to be made to the program. The Bank&#146;s policy is to
fund at least the minimum contribution required by the Employee Retirement Income Security Act
of 1974, as amended. The Plan was frozen as of December&nbsp;31, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Bank has a 401(k) savings incentive plan covering substantially all employees of the Bank.
The Bank may match a percentage of the first 6% of employee contributions. The contribution
percentage is determined annually by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The employee stock ownership plan (&#147;ESOP&#148;) is accounted for in accordance with the provisions
of ASC 718, &#147;<I>Compensation-Stock Compensation</I>"<I>. </I>The funds borrowed by the ESOP from the
Company to purchase the Company&#146;s common stock will be repaid from the Bank&#146;s contributions
over a period of up to 20&nbsp;years. The Company&#146;s common stock not yet allocated to participants
is recorded as a reduction of stockholders&#146; equity at cost. Compensation expense for the ESOP
is based on the market price of the Company&#146;s stock and is recognized as shares committed to
be released to participants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Bank provides several nonqualified, defined benefit plans which provides benefits to
executive officers and directors of the Company. These plans are unfunded and the costs of the
plans are recognized over the period that services are provided.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company provides several post-retirement benefit plans to directors and certain retired
employees and will provide such benefits to certain active officers that are accounted for in
accordance with ASC 715, &#147;<I>Compensation-Retirement Benefits</I>&#148;. This guidance requires an
employer to: (a)&nbsp;recognize in its statement of financial condition the overfunded or
underfunded status of a defined benefit postretirement plan measured as the difference between
the fair value of plan assets and the benefit obligation; (b)&nbsp;measure a plan&#146;s assets and its
obligations that determine its funded status as of the date of its year-end balance sheet and
(c)&nbsp;recognize as a component of other comprehensive income, net of tax, the actuarial gains
and losses and the prior service costs and credits that arise during the period. The Company
accrues the cost of post-retirement benefit plans during the employee&#146;s period of active
service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company&#146;s equity incentive plan is accounted for in accordance with ASC 718,
&#147;<I>Compensation-Stock Compensation</I>&#148;. This guidance requires companies to recognize in the
statement of earnings the grant-date fair value of stock based awards issued to employees.
Compensation cost related to stock based awards is recognized on a straight-line basis over
the requisite service periods.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Income Taxes</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company records income taxes in accordance with ASC 740, &#147;<I>Income Taxes</I>,&#148; using the asset
and liability method. Accordingly, deferred tax assets and liabilities: (i)&nbsp;are recognized
for the expected future tax consequences of events that have been recognized in the financial
statements or tax returns; (ii)&nbsp;are attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases;
and (iii)&nbsp;are measured using enacted tax rates expected to apply in the years when those
temporary differences are expected to be recovered or settled. Where applicable, deferred tax
assets are reduced by a valuation allowance for any portions determined not likely to be
realized. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income tax expense in the period of enactment. The valuation allowance is
adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances
warrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Comprehensive Income</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Comprehensive income is divided into net income and other comprehensive income. Other
comprehensive income includes items recorded directly to equity, such as unrealized gains and
losses on securities available for sale, change in actuarial gains and losses on other post
retirement benefits, and change in service cost on other postretirement benefits, net of
taxes. Comprehensive income is presented in the consolidated statements of changes in equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Earnings Per Share</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Basic earnings per share, or EPS, is computed by dividing net income by the weighted average
number of shares outstanding for the period. ASC 260, &#147;<I>Earnings Per Share</I>&#148;, provides that
unvested share-based payment awards that contain non-forfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating securities and shall be
included in the computation of earnings per share pursuant to the two-class method. We
determined that our outstanding non-vested restricted stock awards are participating
securities. Accordingly, earnings per common share is computed using the two-class method.
The weighted average common shares outstanding includes the average number of shares of common
stock outstanding, including shares
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">held by Oritani Financial Corp., MHC and allocated or
committed to be released Employee Stock Ownership Plan shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 and unvested shares of
restricted stock 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: (1)
the assumed proceeds from option exercises; (2)&nbsp;the tax benefit that would have been credited
to additional paid-in capital assuming exercise of non-qualified stock options and vesting of
shares of restricted stock; and (3)&nbsp;the average unamortized compensation costs related to
unvested shares of restricted stock and stock options. We then divide this sum by our average
stock price to calculate shares 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Reclassifications</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Certain items previously reported have been reclassified to conform with the current period&#146;s
reporting format.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(2)&nbsp;Stock Transactions</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>Stock Offering</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company completed its initial public stock offering on January&nbsp;23, 2007. The Company sold
12,165,649 shares, or 30.0% of its outstanding common stock, to subscribers in the offering,
including 1,589,644 shares purchased by the Oritani Bank Employee Stock Ownership Plan
(&#147;ESOP&#148;). Oritani Financial Corp., MHC, the Company&#146;s federally chartered mutual holding
company parent holds 27,575,476 shares, or 68.0% of the Company&#146;s outstanding common stock.
Additionally, the Bank contributed $1.0&nbsp;million in cash, and the Company issued 811,037 shares
of common stock, or 2.0% of the Company&#146;s outstanding common stock, to the OritaniBank
Charitable Foundation. This action resulted in a $9.1&nbsp;million pre-tax expense recorded in the
quarter ended March&nbsp;31, 2007. Proceeds from the offering, including the value of shares
issued to the charitable foundation but net of expenses, were $127.6&nbsp;million. Net deployable
funds, after deducting for the ESOP shares and the total contribution to the charitable
foundation, were $102.6&nbsp;million. The Company contributed $59.7&nbsp;million of the proceeds to
Oritani Bank. Stock oversubscription proceeds of $323.4&nbsp;million were returned to subscribers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>Stock Repurchase Program</I></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">On June&nbsp;2, 2008, the Company announced a stock repurchase plan to acquire up to 10% of its
publicly-held outstanding shares of common stock, or 1,297,668 shares. Additional stock
repurchase plans were announced on: September&nbsp;18, 2008, for 10% of the publicly-held
outstanding shares, or 1,173,008 shares, on November&nbsp;21, 2008 for 10% of the publicly-held
outstanding shares, or 1,061,098 shares, and on March&nbsp;18, 2009, for 10% of the publicly-held
outstanding shares, or 967,828 shares. Under the stock repurchase program, shares of the
Company&#146;s common stock may be purchased in the open market and through privately negotiated
transactions, from time to time, depending on market conditions and prices, the Company&#146;s
liquidity requirements and alternative uses of capital. At December&nbsp;31, 2009, a total of
3,669,937
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">shares were acquired under these repurchase plans at a weighted average cost of
$15.57 per share. No additional shares have been purchased through February&nbsp;27, 2010. The
March&nbsp;18, 2009 program has no expiration date and 596,291 shares remain eligible to be
purchased under this program. All repurchased shares are held as treasury stock. All
treasury shares will effectively be reissued in conjunction with our proposed &#147;second step&#148;
transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(3)&nbsp;Cash and Cash Equivalents</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">For purposes of the consolidated statements of cash flows, cash and cash equivalents include
cash on hand and in banks and federal funds sold and short term investments which are
generally sold for one-day periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(4)&nbsp;Loans</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A comparative summary of loans at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional one to four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265,962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223,087</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multifamily</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,490</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">562,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">359,681</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total first mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,184,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,105,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">820,258</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,886</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,195</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,880</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,382,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,302,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,023,219</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred fees, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,610</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">At December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, the Company had fixed-rate mortgage
commitments of $28.8&nbsp;million,$42.8&nbsp;million and $44.3&nbsp;million, respectively, and variable-rate
mortgage commitments of $18.8, $34.9&nbsp;million and $48.7&nbsp;million, respectively, which are not
included in the accompanying consolidated financial statements. The rate range of the fixed
rate commitments at December&nbsp;31, 2009 was 4.99% to 6.50%. Commitments generally have fixed
expiration dates or other termination clauses and may require payment of a fee. There is no
exposure to credit loss in the event the other party does not exercise its right to borrow
under the commitment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company grants residential real estate loans on single- and multifamily dwellings
principally throughout the state of New Jersey and has previously purchased out-of-state
residential mortgage pools. Multifamily and commercial real estate loan originations extend
into Eastern Pennsylvania,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements</div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Southern New York, New York City and parts of Connecticut.
Borrowers&#146; abilities to repay their obligations are dependent upon various factors, including
the borrowers&#146; income and net worth, cash flows generated by the underlying collateral, value
of the underlying collateral and priority of the Company&#146;s lien on the property. Such factors
are dependent upon various economic conditions and individual circumstances beyond the
Company&#146;s control; the Company is therefore subject to risk of loss. The Company believes
that its lending policies and procedures adequately minimize the potential exposure to such
risks and that adequate provisions for losses are provided for all known and inherent risks.
Collateral and/or guarantees are required for all loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(5)&nbsp;Allowance for Loan Losses</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Activity in the allowance for loan losses is summarized as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">(In thousands)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,882 </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">     7,672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provisions charged to
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650 </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">     1,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">         &#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans charged off</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">      &#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">      13,532   </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">   8,882</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Included in loans are loans for which the accrual of interest income has been discontinued due
to deterioration in the financial condition of the borrowers. The principal amount of
nonaccrual loans at December&nbsp;31, 2009 and 2008 and June&nbsp;30, 2009 and 2008 were $51.9&nbsp;million,
$44.1&nbsp;million, $52.5&nbsp;million and $14.2&nbsp;million, respectively. There were no nonaccrual loans
at June&nbsp;30, 2007. If the nonaccrual loans had performed in accordance with their original
terms, interest income would have increased by $2.1&nbsp;million, $1.4&nbsp;million, $3.7&nbsp;million and
$521,000 for the six months ended December31, 2009 and 2008 and the years ended June&nbsp;30, 2009,
and 2008, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">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 individually classified as impaired include multifamily, commercial
mortgage and construction loans. Impaired loans at December&nbsp;31, 2009 and 2008 and June&nbsp;30,
2009 and 2008 were $46.7&nbsp;million, $43.6&nbsp;million, $50.2&nbsp;million and $13.8&nbsp;million,
respectively. There were no impaired loans at June&nbsp;30, 2007. The allocation in the allowance
for loan losses for impaired loans at December&nbsp;31, 2009 and 2008 and June&nbsp;30, 2009 and 2008
were $3.2&nbsp;million on balances of $24.1&nbsp;million, $4.3&nbsp;million on balances of $11.8&nbsp;million,
$3.3&nbsp;million on balances of $20.0&nbsp;million and $1.4&nbsp;million on balances of $13.8&nbsp;million,
respectively. Interest income recognized on these loans for the six months ended December&nbsp;31,
2009 and 2008 and the years ended June&nbsp;30, 2009 and 2008 was $373,000, $300,000, $696,000 and
$184,000, respectively. The average balance of impaired loans was $48.8&nbsp;million, $19.7
million, $34.8&nbsp;million and $3.5&nbsp;million during the six months ended December&nbsp;31, 2009 and 2008
and the years ended June&nbsp;30, 2009 and 2008, respectively.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Notes to Consolidated Financial Statements<BR>
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(6)&nbsp;Mortgage-backed Securities Held to Maturity</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following is a comparative summary of mortgage-backed securities held to maturity as of
December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>December 31, 2009 (unaudited)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,301</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,426</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,361</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>market</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,063</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,943</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,381</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>market</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,082</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,902</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,093</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,636</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,671</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Proceeds from the sale of mortgage-backed securities held to maturity for the six months
ended December&nbsp;31, 2009 were $9.4&nbsp;million, resulting in gross gains and gross losses of
$41,000 and $148,000, respectively. These mortgage-backed securities had an amortized cost of
$9.5&nbsp;million. The held to maturity securities sold were mortgage backed securities with 15%
or less of their
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Notes to Consolidated Financial Statements<BR>
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">original purchased balances remaining. The Company did not sell any
mortgage-backed securities held to maturity during the six months ended December&nbsp;31, 2008 or
during years ended June&nbsp;30, 2009, 2008 or 2007. Mortgage-backed securities with fair values
of $88.2&nbsp;million, $120.4&nbsp;million and $162.7&nbsp;million at December&nbsp;31, 2009, June&nbsp;30, 2009 and
2008, respectively, were pledged to FHLB of New York (FHLBNY)&nbsp;as collateral for advances (see
note 12). The Company did not record other than temporary impairment charges on
mortgage-backed securities held to maturity during the six months ended December&nbsp;31, 2009 or
the years ended June&nbsp;30, 2009, 2008 and 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The contractual maturities of mortgage-backed securities held-to-maturity generally exceed 20
years; however, the effective lives are expected to be shorter due to anticipated prepayments.
Expected maturities will differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without penalties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Gross unrealized losses on mortgage-backed securities held to maturity and the estimated
market value of the related securities, aggregated by security category and length of time
that individual securities have been in a continuous unrealized loss position at December&nbsp;31,
2009 and June&nbsp;30, 2009 and 2008 are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>December 31, 2009 (unaudited)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Less than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Greater than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 0px solid #000000"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>fair value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>fair value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>fair value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Less than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Greater than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 0px solid #000000"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Notes to Consolidated Financial Statements<BR>
December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Less than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Greater than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 0px solid #000000"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">336</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,257</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,812</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The unrealized losses on investments in mortgage-backed securities were caused by
interest rate changes. The contractual cash flows of these securities are guaranteed by
Fannie Mae, Ginnie Mae and Freddie Mac. The majority of the contractual cash flows of the
CMO&#146;s are guaranteed by these agencies as well. Because the decline in fair value is
attributable to changes in interest rates and not credit quality, and because the Company has
no intent to sell and believes it is not more likely than not that it will be required to sell
these investments until a market price recovery or maturity, these investments are not
considered other than temporarily impaired as of December&nbsp;31, 2009. The Company had one AAA
rated private label CMO investment with an amortized cost of $946,000 and a fair value of
$809,000. This security was sold during the six months ended December&nbsp;31, 2009 resulting in a
loss of $137,000.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-18<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(7)&nbsp;Securities and Mortgage-Backed Securities Available for Sale</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following is a comparative summary of securities and mortgage-backed securities available
for sale as of December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>December 31, 2009 (unaudited)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>market</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:30px; text-indent:-15px">U.S. Government and
federal agency obligations
Due in one year to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311,194</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate bonds
Due in one year to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,083</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,361</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">319,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,245</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,968</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>market</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>gains</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:30px; text-indent:-15px">U.S. Government and
federal agency obligations
Due in one year to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">109,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Due in five to ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,763</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate bonds
Due in one year to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,156</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,676</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,875</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,911</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,557</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,260</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Estimated</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Amortized</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">unrealized</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">unrealized</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">market</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">gains</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">losses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">value</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:30px; text-indent:-15px">U.S. Government and
federal agency obligations
Due in one year to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,865</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate bonds
Due in one year to five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,454</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,837</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,895</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,334</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">148,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Expected maturities of securities available for sale other than mutual funds, equity
securities and mortgage-backed securities will differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or without penalties.
Proceeds from the sale of mortgage-backed securities available for sale for the six months
ended December&nbsp;31, 2009 were $6.1&nbsp;million, resulting in gross gains and gross losses of
$112,000 and $5,000, respectively. The mortgage-backed securities had an amortized cost of
$6.0&nbsp;million. The Company did not sell any mortgage-backed securities available for sale
during the six months ended December&nbsp;31, 2008 or during the years ended June&nbsp;30, 2009, 2008 or
2007. Mortgage-backed securities available for sale with fair values of $266.4&nbsp;million,
$127.5&nbsp;million and $159.1&nbsp;million at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008,
respectively, were pledged to FHLB of New York (FHLBNY)&nbsp;as collateral for advances (see
note 12).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Mutual Fund caption relates to holdings of shares in an Asset Management Fund with
underlying investments in adjustable rate mortgages. During the six months ended December&nbsp;31,
2008 and the years ended June&nbsp;30, 2009 and 2008, the mutual fund was deemed
other-than-temporarily impaired resulting in noncash impairment charges to earnings of $1.4
million, $1.7&nbsp;million and $646,000, respectively. There were no impairment charges on the
mutual fund for the six months ended December&nbsp;31, 2009 or the year ended June&nbsp;30, 2007.
Proceeds from the sale of the mutual fund were $500,000 resulting in a gain of $12,000,
$250,000 resulting in a loss of $49,000, and $500,000 resulting in a loss of $61,000 for the
six months ended December&nbsp;31, 2009 and 2008, and the year ended June&nbsp;30, 2009, respectively.
The Company did not sell any mutual fund during the years ended June&nbsp;30, 2008 or 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Equity securities caption relates to holdings of shares in financial institutions common
stock. During the six months ended December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30,
2009 and 2008, several of these holdings were deemed other-than-temporarily impaired resulting
in noncash
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">impairment charges to earnings of $202,000, $399,000, $399,000 and $352,000, respectively.
There were no impairment charges on the equity securities for the year ended June&nbsp;30, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Gross unrealized losses on securities and mortgage-backed securities available for sale and
the estimated market value of the related securities, aggregated by security category and
length of time that individual securities have been in a continuous unrealized loss position
at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008 are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>Decemeber 31, 2009 (unaudited)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Less than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Greater than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">U.S. Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">591</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Less than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Greater than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">U.S. Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">449</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Less than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Greater than 12 months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>unrealized</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>market value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>losses</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">U.S. Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">337</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FHLMC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">GNMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">CMO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009, management has evaluated the securities in the above table and has
concluded that none of the securities with losses has impairments that are
other-than-temporary. The unrealized losses on debt securities were caused by interest rate
changes. The contractual terms of these investments do not permit the issuer to settle the
securities at a price less than the amortized cost of the investment. Because the declines in
market value are attributable to changes in interest rates and not credit quality, and because
the Company has no intent to sell and believes it is not more likely than not that it will be
required to sell these investments until a market price recovery or maturity, these
investments are not considered other than temporarily impaired.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The unrealized losses on investments in mortgage-backed securities were caused by interest
rate changes. It is expected that the securities would not be settled at a price less than
the amortized cost of the investment. Because the decline in fair value is attributable to
changes in interest rates and not credit quality, and because the Company has no intent to
sell and believes it is not more than likely than not that it will be required to sell these
investments until a market price recovery or maturity, these investments are not considered
other than temporarily impaired.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009, management evaluated its portfolio of equity securities and, based on
its evaluation of the financial condition and near-term prospects of the issuer, management
believes that it could recover its investment in the security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(8)&nbsp;Accrued Interest Receivable</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">A summary of accrued interest receivable at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008 is as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,269</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,967</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,646</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(9)&nbsp;Office Properties and Equipment</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, office properties and equipment, less
accumulated depreciation and amortization, consist of the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,431</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land and building improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Leasehold improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">633</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Furniture and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,651</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,387</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less accumulated depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,287</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Depreciation and amortization expense for the six months ended December&nbsp;31, 2009 and 2008
and the years ended June&nbsp;30, 2009, 2008 and 2007 amounted to $395,000, $321,000, $701,000<B>,</B>
$540,000 and $718,000, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">During fiscal 2008, the Company purchased land in Bergenfield, NJ to construct a de novo
branch location which opened in February&nbsp;2010 and entered into a contract to lease premises in
Jersey City, NJ, for the purpose of a de novo branch location which opened in October&nbsp;2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">During fiscal year 2006, the Company sold its branch location and former Corporate
Headquarters in Hackensack, NJ to a private investor. The asset was transferred to the
private investor in December&nbsp;2005 and the Company initially accounted for the transaction as a
finance obligation due to the Company&#146;s continuing involvement with the transferred property.
The Company leased back a portion of the premises and provided the buyer with non recourse
financing. In accordance with finance obligation accounting, the asset was not removed from
the Company&#146;s books at that time. During fiscal year 2007, the non recourse note was sold to
another financial institution which permitted the Company to utilize sale/leaseback accounting
(as prescribed by ASC 840-40, &#147;<I>Sale-Leaseback Transactions</I>&#148;) for the transaction. As a
result, the former headquarters was removed from the books of the Company and office
properties and equipment, net decreased by $1.5&nbsp;million. In accordance with this guidance, a
$514,000 gain on the sale was recognized.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(10)&nbsp;Deposits</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Deposit balances at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008 are summarized as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>December31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>cost</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(Dollars in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Demand accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.89</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">271,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">685,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">691,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Interest expense on deposits for the six months ended December&nbsp;31, 2009 and 2008 and the
years ended June&nbsp;30, 2009, 2008 and 2007 is summarized as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Demand accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,195</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,575</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,526</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock subscriptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,682</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Time deposits at December&nbsp;31, 2009 and June&nbsp;30, 2009 mature as follows (in thousands):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due within 12&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">583,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">601,316</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between 12 and 24&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between 24 and 36&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between 36 and 48&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,586</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between 48 and 60&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">685,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">691,237</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Included in time deposits at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008 is $240.3&nbsp;million,
$234.9&nbsp;million and $100.8&nbsp;million, respectively, of deposits of $100,000 and over.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(11)&nbsp;Income Taxes</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Income tax expense (benefit)&nbsp;for the six months ended December&nbsp;31, 2009 and 2008 and the years
ended June&nbsp;30, 2009, 2008 and 2007 consists of the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,833</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,921</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,495</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(833</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,492</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,749</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,724</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,312</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(302</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,242</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,847</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,135</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,144</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,487</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,482</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,159</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total income tax
expense (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,664</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">A reconciliation between the provision for income taxes and the expected amount (computed by
multiplying income before provision for income taxes times the applicable statutory federal
income tax rate) for the six months ended December&nbsp;31, 2009 and 2008 and the years ended
June&nbsp;30, 2009, 2008 and 2007 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Yeasrs ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">(In thousands)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before provision for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,370</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Applicable statutory federal income tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computed &#147;expected&#148; federal income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,280</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in federal income tax expense
resulting from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State income taxes, net of federal benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,370</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(206</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(190</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(395</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(371</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(344</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contribution to charitable foundation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,533</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP fair market value adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-deductible stock based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other items, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,664</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The effective tax rates for the six months ended December&nbsp;31, 2009 and 2008 and the years
ended June&nbsp;30, 2009, 2008 and 2007 were 39.24%, 41.35%, 42.00%, 40.97% and (17.76)%,
respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The tax effects of temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at December&nbsp;31, 2009 and June&nbsp;30, 2009 and
2008 are as follows:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan and real estate owned losses per books</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reserve for uncollected interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,456</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Premises and equipment &#150; differences in depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Pension</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued/deferred compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,701</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP shares allocated or committed to be released</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">487</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">219</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital loss carry forward</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other than temporary loss on securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Charitable contribution carry forward</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net operating loss carry forward</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid AMA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total gross deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,332</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less valuation reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">611</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deferred tax asset</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,721</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized gain on securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred loan fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,078</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">752</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net deferred tax asset</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,969</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Sources of deferred taxes for the six months ended December&nbsp;31, 2009 and the years ended
June&nbsp;30, 2009 and 2008 were due primarily to the difference in recognizing income and expenses
for book purposes and tax purposes for various deferred loan fees, uncollected interest on
loans, accrued benefit costs, book and tax depreciation, non-allowable reserves and charitable
contribution carryforwards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At June&nbsp;30, 2008, the Company had state net operating loss carryforwards of approximately
$17.5&nbsp;million having expiration dates ranging from December&nbsp;2010 through 2013. During the
fiscal year ended June&nbsp;30, 2009, the deferred tax asset was realized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, the valuation allowance was $697,000,
$655,000 and $611,000, respectively. The valuation allowance relates to the stock
contribution to the charitable foundation and impairment charges on equity securities for
which tax benefits are not
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">more likely than not to be realized. During the 2007 fiscal year the Company liquidated one
of its subsidiaries. The liquidation of this subsidiary resulted in New Jersey State taxable
income at its Bank subsidiary. The Company had previously established a valuation allowance
for New Jersey net operating loss carryforwards and other deferred tax assets incurred at its
Bank subsidiary. Due to the expected utilization of the loss carryforwards the related
valuation allowance of $3.2&nbsp;million was reversed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009 and June&nbsp;30, 2009, retained earnings includes approximately $15.1&nbsp;million
for which no provision for income tax has been made. This amount represents an allocation of
income to bad debt deductions for tax purposes only. Under Statement of Financial Accounting
Standards No.&nbsp;109, this amount is treated as a permanent difference and deferred taxes are not
recognized unless it appears that it will be reduced and result in taxable income in the
foreseeable future. Events that would result in taxation of these reserves include failure to
qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock
redemptions and excess distributions to shareholders. At December&nbsp;31, 2009 and June&nbsp;30, 2009,
the Company had an unrecognized tax liability of $6.3&nbsp;million with respect to this reserve.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Effective July&nbsp;1, 2007, the Company adopted FASB Interpretation No.&nbsp;48, &#147;Accounting for
Uncertainty in Income Taxes &#151; an interpretation of FASB Statement No.&nbsp;109,&#148; and its successor,
ASC 740, <I>&#147;Income Taxes&#148;, </I>or FIN 48, which clarified the accounting for uncertainty in income
taxes recognized in an enterprise&#146;s financial statements in accordance SFAS No.&nbsp;109. As a
result of the adoption of FIN 48, the Company recognized a $900,000 decrease in the liability
for unrecognized tax benefits, which was accounted for as an addition to the July&nbsp;1, 2007,
balance of retained earnings. The Company recognizes accrued interest and penalties related
to unrecognized tax benefits, where applicable, in income tax expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company files income tax returns in the United States federal jurisdiction and in New
Jersey and Pennsylvania state jurisdictions. The Company is no longer subject to federal and
state income tax examinations by tax authorities for years prior to 2005. Currently, the
Company is not under examination by any taxing authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(12)&nbsp;Borrowings</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Borrowed funds are summarized as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Average Rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Average Rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Average Rate</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(Dollars in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FHLB of NY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">433,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-28<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"> Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Borrowings represent advances and repurchase agreements and mature as follows (in thousands):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,372</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between one and two years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,434</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between two and three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between three and four years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between four and five years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,685</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due between five and ten years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">330,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The majority of the borrowings listed above have various put options held by the issuer,
FHLB. These put options can be exercised by the FHLB after either a certain passage of time
or certain levels of the 3&nbsp;month Libor interest rate. The Company expects that some of these
advances will be put by the FHLB prior to their maturity date. At December&nbsp;31, 2009, the
Company had a commitment for an overnight line of credit with the FHLB totaling $200.0
million, of which there were no balances. The line of credit is priced at federal funds rate
plus a spread (generally between 20 and 40 basis points) and re-prices daily.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, borrowings are secured by mortgage-backed
securities and investment securities with a book value of $352.6&nbsp;million, $302.8&nbsp;million and
$323.0&nbsp;million and performing mortgage loans with an outstanding balance of $881.7&nbsp;million,
$841.4&nbsp;million and $185.6&nbsp;million, respectively. The fair value of mortgage-backed securities
and investment securities pledged as collateral for borrowings were $354.6&nbsp;million, $308.5
million and $321.8&nbsp;million at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, respectively.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-29<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(13)&nbsp;Employee Benefit Plans</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is a participant in the Financial Institutions Retirement Fund, a multi-employer
defined benefit plan. All employees who attain age 21 and complete one year of service are
eligible to participate in this plan. Retirement benefits are based upon a formula utilizing
years of service and average compensation, as defined. Participants are vested 100% upon the
completion of five years of service. Pension administrative expenses of $31,445, $21,000 and
$10,000 were incurred for the years ended June&nbsp;30, 2009, 2008 and 2007, respectively. There
were no net contributions made for the years ended June&nbsp;30, 2009, 2008 and 2007. The Plan
was frozen as of December&nbsp;31, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Financial Institutions Retirement Fund does not segregate its assets, liabilities or
costs by participating employer. Therefore, disclosure of the accumulated benefit
obligations, plan assets and the components of annual pension expense attributable to the
Company cannot be ascertained.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has a savings incentive plan covering substantially all employees of the Company.
Contributions are currently made by the Company in an amount equal to 50% of the first 6% of
employee contributions. The contribution percentage is determined annually by the Board of
Directors. Company contributions for the six months ended December&nbsp;31, 2009 and 2008 and the
years ended June&nbsp;30, 2009, 2008 and 2007 were $63,000, $59,000, $133,000, $120,000 and
$123,000, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has a nonqualified savings incentive plan covering employees whose salary
deferrals to the savings incentive plan are limited. Contributions to the nonqualified
savings incentive plan are currently made by the Company in an amount equal to 50% of the
first 6% of employee contributions to this plan. The contribution percentage is determined
annually by the Board of Directors. The deferrals and contributions are payable, with
interest, at a future date. Until these payments are made, the obligations to the employees
are a general liability of the Company. Company contributions for the six months ended
December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30, 2009, 2008 and 2007 were $61,000,
$38,000, $62,000, $42,000 and $21,000, respectively. The total obligation under the
nonqualified savings incentive plan that existed as of June&nbsp;30, 2009 and 2008 was $1.9
million and $1.4&nbsp;million, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has a nonqualified Benefit Equalization Plan (BEP Plan) which provides benefits
to employees who are disallowed certain benefits under the Company&#146;s qualified benefit plans.
The Company recorded expenses associated with the BEP Plan of $90,000, $109,000, $201,000,
$180,000 and $143,000 for the six months ended December&nbsp;31, 2009 and 2008 and the years ended
June&nbsp;30, 2009, 2008 and 2007, respectively. The Plan was frozen as of December&nbsp;31, 2008
resulting in a curtailment of benefits of $454,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has a nonqualified Directors&#146; Retirement Plan (the Retirement Plan). The
Retirement Plan provides eligible directors an annual retirement benefit based on the
monthly meeting fee at the time of the director&#146;s retirement. The Company recorded expenses
of $264,000, $196,000, $445,000, $420,000 and $391,000 for the six months ended December&nbsp;31,
2009 and 2008 and the years ended June&nbsp;30, 2009, 2008 and 2007, respectively, related to the
Retirement Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 1999, the Company adopted a Post Retirement Medical Plan (the Medical Plan) for
directors and certain eligible employees. The Medical Plan provides a medical retirement
benefit at</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a cost to the Company limited to two times the premium at the time of the participant&#146;s
retirement. Participants are required to contribute to the plan for excess premiums above the
limitation. The Company recorded expenses of $147,000, $145,000, $247,000, $300,000 and
$337,000 for the six months ended December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30,
2009, 2008 and 2007, respectively, related to the Medical Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2000, the Company adopted a Deferred Director&#146;s Fee Plan (the Deferred Fee Plan) for
outside directors of the Company. Under the Deferred Fee Plan, directors may elect to defer
the receipt of their monthly and board committee fees. The fees are payable, with interest,
at a predetermined future date. Interest is calculated at the greater of 9.00% or the Wall
Street prime rate of interest. For the years ended June&nbsp;30, 2009 and 2008, interest was
calculated at 9.00%. Until these payments are made, the obligations to the directors are a
general liability of the Company. The total obligation under the Deferred Fee Plan that
existed as of December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008 was $3.1&nbsp;million, $2.8&nbsp;million and
$2.2&nbsp;million, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2005, the Company adopted an Executive Supplemental Retirement Income Agreement (the
SERP) for the President/CEO of the Company. The SERP provides a retirement benefit to the
executive with a minimum payment period of 20&nbsp;years. The SERP benefit is equal to 70% of the
executive&#146;s average annual pre-retirement income, reduced by the benefits due to the
executive through certain other benefit plans. The Company recorded expenses of $424,000,
$361,000, $806,000, $689,000 and $648,000 for the six months ended December&nbsp;31, 2009 and 2008
and the years ended June&nbsp;30, 2009, 2008 and 2007, respectively, related to the SERP. The
SERP is unfunded, and an accrued liability of $3.3&nbsp;million, $2.8&nbsp;million and $2.0&nbsp;million was
recorded for this plan as of December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, respectively.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth information regarding the BEP Plan and the Retirement Plan,
and the Medical Plan at June&nbsp;30, 2009 and 2008 (in thousands). As detailed above, similar
disclosures for the multi-employer defined benefit plan cannot be ascertained.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>BEP Plan and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Retirement Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Medical Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in benefit obligation:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Projected benefit obligation at
beginning of the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,694</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amendments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial (gain)&nbsp;loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Curtailment &#151; BEP plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(454</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Discount rate change</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(233</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(202</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Projected benefit
obligation
at end of the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reconciliation of plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fair value of plan assets at
beginning of the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Employer contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
</TR>


<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fair value of plan assets
at end of the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Funded status at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(4,769</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,748</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,432</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,600</TD>
    <TD nowrap>)</TD>
</TR>


<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The unfunded BEP and retirement benefits of $4.8&nbsp;million and $3.7&nbsp;million and medical
benefits of $3.4&nbsp;million and $2.6&nbsp;million at June&nbsp;30, 2009 and 2008, respectively, are
included in other liabilities in our consolidated balance sheet. The components of
accumulated other comprehensive loss related to pension and other postretirement benefits,
on a pre-tax basis, at June&nbsp;30, 2009 and 2008 are summarized in the following table (in
thousands).
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Medical Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prior service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net actuarial loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total amounts
recognized in
accumulated
other comprehensive
loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-32<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net periodic benefit costs for the six months ended December&nbsp;31, 2009 and 2008 and the years
ended June&nbsp;30, 2009, 2008 and 2007, as well as costs that are expected to be amortized into
expense in fiscal 2010, are presented in the following table (in thousands):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>BEP Plan and Retirement Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended Jun 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">234</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of
unrecognized:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prior service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">534</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Medical Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years ended Jun 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of
unrecognized:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prior service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>


<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">337</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The weighted average actuarial assumptions used in the plan determinations at June&nbsp;30,
2009, 2008 and 2007 were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>BEP Plan and Retirement Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Medical Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount Rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rate of compensation
increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Medical benefits cost
rate of increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-33<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Estimated future benefit payments, which reflect expected future service, are as follows (in
thousands):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>BEP Plan and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Retirement</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Medical</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Plan</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2015-2018</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,071</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assumed health care cost trend rates have a significant effect on the amounts reported
for health care plans. A 1% change in the assumed health care cost trend rate would have the
following effects on post-retirement benefits (in thousands):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1% increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1% decrease</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect on total service cost and interest
cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(42</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect on post retirement benefits
obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(507</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company invests in bank owned life insurance (&#147;BOLI&#148;) to help offset the cost of
employee benefits. BOLI involves the purchasing of life insurance by the Company on a chosen
group of employees with the Company as owner and beneficiary of the policies. BOLI is
recorded at its cash surrender value and is classified as a non-interest earning asset.
Increases in the carrying value, other than purchases, are recorded as non-interest income.
At December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, the Company had $30.0&nbsp;million, $29.4&nbsp;million
and $26.4&nbsp;million, respectively, in BOLI. Income earned on BOLI was $588,000, $544,000, $1.1
million, $1.1&nbsp;million and $984,000 for the six months ended December&nbsp;31, 2009 and 2008 and
the years ended June&nbsp;30, 2009, 2008 and 2007, respectively and is exempt from federal and
state income taxes as long as the policies are held until the death of the insured
individuals.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted ASC 715-60, &#147;<I>Compensation: Defined Benefit Plans-Other Postretirement</I>&#148;,
effective July&nbsp;1, 2008. ASC 715-60 requires that, for split-dollar life insurance
arrangements that provide a benefit to an employee that extends to postretirement periods, an
employer should recognize a liability for future benefits. ASC 715-60 required that
recognition of the effects of adoption should be either by (a)&nbsp;a change in accounting
principle through a cumulative-effect adjustment to retained earnings as of the beginning of
the year of adoption or (b)&nbsp;a change in accounting principle through retrospective
application to all prior periods. Upon adoption, the Company recorded a charge to retained
earnings of $76,000.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(14)&nbsp;Stock Based Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Employee Stock Ownership Plan</I>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2006, the Company adopted an Employee Stock Ownership Plan (the ESOP). The ESOP is a
tax-qualified plan designed to invest primarily in the Company&#146;s common stock. The ESOP</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provides employees with the opportunity to receive a funded retirement benefit from the Bank,
based primarily on the value of the Company&#146;s common stock. The ESOP purchased 1,589,644
shares of the Company&#146;s common stock in the Company&#146;s initial public offering at a price of
$10.00 per share. This purchase was funded with a loan from the Company to the ESOP. The
outstanding loan balance at December&nbsp;31, 2009 and June&nbsp;30, 2009 was $14.5&nbsp;million and $15.1
million, respectively. The shares of Company&#146;s common stock purchased in the initial public
offering are pledged as collateral for the loan. Shares will be released from the pledge for
allocation to participants as loan payments are made. At December&nbsp;31, 2009, shares allocated
to participants were 238,446 since the plan inception. ESOP shares that were unallocated or
not yet committed to be released totaled 1,351,198 at December&nbsp;31, 2009 and had a fair value
of $18.5&nbsp;million. ESOP compensation expense for the six months ended December&nbsp;31, 2009 and
2008 and the years ended June&nbsp;30, 2009 and 2008 was $537,000, $654,000, $1.3&nbsp;million and $1.1
million, respectively, representing the fair market value of shares allocated or committed to
be released during the year.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company also has established an ESOP restoration plan, which is a non-qualified plan that
provides supplemental benefits to certain executives who are prevented from receiving the
full benefits contemplated by the employee stock ownership plan&#146;s benefit formula. The
supplemental benefits consist of payments representing shares that cannot be allocated to
participants under the ESOP due to legal limitations imposed on tax-qualified plans.
Compensation expense related to this plan amounts to $57,000, $60,000, $111,000 and $200,000,
for the six months ended December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30, 2009 and
2008, respectively. There was expense related to this plan for the year ended June&nbsp;30, 2007.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Equity Incentive Plan</I>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the Special Meeting of Stockholders of the Company (the &#147;Meeting&#148;) held on April&nbsp;22, 2008,
the stockholders of the Company approved the Oritani Financial Corp. 2007 Equity Incentive
Plan. On May&nbsp;7, 2008, certain officers and employees of the Company were granted in
aggregate 1,311,457 stock options and 588,171 shares of restricted stock, and non-employee
directors received in aggregate 476,892 stock options and 206,652 shares of restricted stock.
On November&nbsp;11, 2008, an additional 70,000 stock options were issued. The Company adopted
ASC 718, &#147;<I>Compensation: Stock Compensation</I>&#148; upon approval of the Plan, and began to expense
the fair value of all share-based compensation granted over the requisite service periods.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ASC 718- requires the Company to report as a financing cash flow the benefits of realized tax
deductions in excess of the deferred tax benefits previously recognized for compensation
expense. There were no such excess tax benefits in fiscal 2009, 2008 and 2007. The Company
classified share-based compensation for employees and outside directors within &#147;compensation
and fringe benefits&#148; in the consolidated statements of income to correspond with the same
line item as the cash compensation paid.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock options vest over a five-year service period and expire ten years from issuance. The
Company recognizes compensation expense for all option grants over the awards&#146;
respective requisite service periods. Management estimated the fair values of all option
grants using the Black-Scholes option-pricing model. Since there is limited historical
information on the volatility of the Company&#146;s stock, management considered the average
volatilities of similar entities for an appropriate period in determining the assumed
volatility rate used in the estimation of fair value. Management estimated the expected life
of the options using the simplified method. The Treasury</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>yield in effect at the time of the grant provides the risk-free rate for periods within the
contractual life of the option. The fair values of all options grants were estimated using
the following assumptions: an expected life of 6.5&nbsp;years, risk-free rate of 3.37%, volatility
of 28.22% and a dividend yield of 3.55%. The Company recognizes compensation expense for the
fair values of these awards, which have graded vesting, on a straight-line basis over the
requisite service period of the awards.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following is a summary of the Company&#146;s stock option activity and related information for
its option plan for the six months ended December&nbsp;31, 2009 (unaudited)&nbsp;and the year ended
June&nbsp;30, 2009:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Remaining</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Grant Date Fair</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Contractual</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Exercise Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Life (years)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,848,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,841,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercisable at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Grant Date Fair</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Remaining</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Exercise Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Contractual Life</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,788,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,848,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercisable at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">355,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The weighted average grant date fair value of options granted during the year ended June
30, 2009 was $3.44 per share. The Company recorded $572,000, $539,000, $1.2&nbsp;million and
$205,000 of share based compensation expense related to the options granted for the six
months ended December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30, 2009 and 2008,
respectively. There was no share based compensation expense related to the options for the
year ended June&nbsp;30, 2007. Expected future expense related to the non-vested options
outstanding at December&nbsp;31, 2009 is $3.8&nbsp;million over a weighted average period of 3.4&nbsp;years.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restricted shares vest over a five-year service period on the anniversary date of the grant.
The product of the number of shares granted and the grant date market price of the Company&#146;s
common stock determines the fair value of restricted shares under the Company&#146;s restricted
stock plan. The Company recognizes compensation expense for the fair value of restricted
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares on a straight-line basis over the requisite service period.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following is a summary of the Company&#146;s restricted shares and related information for its
restricted shares for the six months ended December&nbsp;31, 2009 (unaudited)&nbsp;and the year ended
June&nbsp;30, 2009:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Grant Date Fair</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Shares Awarded</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Vesting</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Grant Date Fair</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Awarded</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Vesting</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">794,823</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

  <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recorded $1.2&nbsp;million, $1.2&nbsp;million, $2.6&nbsp;million and $405,000 of
share-based compensation expense related to restricted shares for the six months ended
December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30, 2009 and 2008, respectively. There
was no share based compensation expense related to the restricted shares for the year ended
June&nbsp;30, 2007. Expected future compensation expense relating to the non-vested restricted
shares at December&nbsp;31, 2009 is $8.1&nbsp;million over a weighted average period of 3.3&nbsp;years.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(15)&nbsp;Commitments and Contingencies</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the ordinary course of our operations, we enter into certain contractual obligations.
Such obligations include operating leases for premises and equipment. Certain facilities are
occupied under long-term operating leases which expire on various dates. Certain leases also
provide for renewal options. Total rent expense was $214,000, $180,000, $388,000<B>, </B>$302,000
and $304,000 for the six months ended December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30,
2009, 2008 and 2007, respectively. At December&nbsp;31, 2009, aggregate minimum lease payments
for the remainder of the leases are as follows (in thousands):</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Year ended December&nbsp;31: (unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2009 and June&nbsp;30, 2009, the Company had outstanding commitments to purchase
when issued securities of $15.0&nbsp;million and $20.0&nbsp;million, respectively. At June&nbsp;30, 2008,
there were no outstanding commitments to purchase securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the normal course of business, the Company may be a party to various outstanding legal
proceedings and claims. In the opinion of management, the financial position of the Company
will not be materially affected by the outcome of such legal proceedings and claims.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(16)&nbsp;Regulatory Capital Requirements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deposits at the Bank are insured up to standard limits of coverage provided by the Deposit
Insurance Fund (DIF)&nbsp;of the FDIC. The Bank is a New Jersey state chartered savings bank and
is subject to comprehensive regulation, supervision and periodic examinations by the FDIC and
by the New Jersey State Department of Banking. The Company is regulated by the Office of
Thrift Supervision (&#147;OTS&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FDIC regulations require banks to maintain minimum levels of regulatory capital. Under the
regulations in effect at December&nbsp;31, 2009, the Bank and the Company are required to maintain
(a)&nbsp;a minimum leverage ratio of Tier 1 capital to total adjusted assets of 4.0%, and (b)
minimum ratios of Tier 1 and total capital to risk-weighted assets of 4.0% and 8.0%,
respectively.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under its prompt corrective action regulations, the FDIC is required to take certain
supervisory actions (and may take additional discretionary actions) with respect to an
undercapitalized institution. Such actions could have a direct material effect on the
institution&#146;s financial statements. The regulations establish a framework for the
classification of savings institutions into five categories: well capitalized, adequately
capitalized, undercapitalized, significantly undercapitalized, and critically
undercapitalized. Generally, an institution is considered well capitalized if it has a
leverage (Tier 1) capital ratio of at least 5%; a Tier 1 risk-based capital ratio of at least
6%; and a total risk-based capital ratio of at least 10%.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The foregoing capital ratios are based in part on specific quantitative measures of assets,
liabilities and certain off-balance-sheet items as calculated under regulatory accounting
practices. Capital amounts and classifications are also subject to qualitative judgments by
the FDIC about capital components, risk weightings and other factors.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Management believes that, as of December&nbsp;31, 2009, the Bank meets all capital adequacy
requirements to which it is subject. Further, the most recent FDIC notification categorized
the Bank as a well-capitalized institution under the prompt corrective action regulations.
There have been no conditions or events since that notification that management believes have
changed the Bank&#146;s capital classification.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following is a summary of the Company&#146;s and the Bank&#146;s actual capital amounts and ratios
as of December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, compared to the FDIC minimum capital
adequacy requirements and the FDIC requirements for classification as a well-capitalized
institution.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>FDIC &#151; for</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>FDIC &#151; to be well capitalized</B></TD>
    <TD nowrap align="center" colspan="3"><B></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>capital adequacy</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>under prompt</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>purposes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>corrective action</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 0px solid #000000">(Dollars in thousands)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">Company:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>As of December&nbsp;31, 2009: (unaudited)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Total capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">264,865</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18.42</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">115,053</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.00</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">143,817</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.00</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">246,836</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17.16</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">57,527</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">86,290</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to average assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">246,836</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">79,912</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99,890</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>As of June&nbsp;30, 2009:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Total capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">255,997</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.15</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">106,945</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.00</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">133,681</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.00</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">239,238</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17.90</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53,472</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">80,208</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to average assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">239,238</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14.31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">66,862</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">83,578</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>As of June&nbsp;30, 2008:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Total capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">292,483</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.78</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">84,239</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.00</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">105,299</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.00</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">279,316</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.53</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42,120</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63,179</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to average assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">279,316</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.71</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56,680</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">70,851</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-40<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>FDIC &#151; for</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>FDIC &#151; to be well capitalized</B></TD>
    <TD nowrap align="center" colspan="3"><B></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>capital adequacy</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>under prompt</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>purposes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>corrective action</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11">(Dollars in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left">Bank:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>As of December&nbsp;31, 2009: (unaudited)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Total capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">209,882</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15.83</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">106,101</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.00</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">132,626</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.00</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">193,248</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14.57</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53,050</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">79,575</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to average assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">193,248</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">72,963</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">91,204</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>As of June&nbsp;30, 2009:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Total capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">209,882</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15.83</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">106,101</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.00</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">132,626</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.00</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">193,248</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14.57</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53,050</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">79,575</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to average assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">193,248</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">72,963</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">91,204</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>As of June&nbsp;30, 2008:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Total capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">202,862</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.76</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">82,121</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.00</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">102,651</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.00</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to risk-weighted <BR>
assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">190,022</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18.51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41,060</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">61,591</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Tier 1 capital (to average assets)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">190,022</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13.67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55,609</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69,512</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(17)&nbsp;Fair Value Measurements</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted ASC 820, &#147;<I>Fair Value Measurements and Disclosures"</I>, on July&nbsp;1, 2008. ASC
820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (level 1 measurements) and the
lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair
value hierarchy under ASC 820 are described below:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Basis of Fair Value Measurement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 1: Unadjusted quoted prices in active markets that are accessible at the
measurement date for identical unrestricted assets or liabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 2: Quoted prices in markets that are not active, or inputs that are
observable either directly or indirectly, for substantially the full term of the
asset or liability;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 3: Price or valuation techniques that require inputs that are both
significant to the fair value measurement and unobservable (i.e. supported with
little or no market activity).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A financial instrument&#146;s level within the fair value hierarchy is based on the lowest level
of input that is significant to the fair value measurement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s cash instruments are generally classified within Level 1 or Level 2 of the fair
value hierarchy because they are valued using quoted market prices, broker or dealer
quotations, or alternative pricing sources with reasonable levels of price transparency.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-41<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The types of instruments whose values are based on quoted market prices in active markets
include most U.S. government and agency securities, mortgage-backed securities, many other
sovereign government obligations, and active listed securities. Such instruments are generally
classified within Level 1 or Level 2 of the fair value hierarchy. As required by ASC 820, the
Company does not adjust the quoted price for such instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table sets forth the Company&#146;s financial assets that were accounted for at fair
values on a recurring basis as of December&nbsp;31, 2009 and June&nbsp;30, 2009 by level within the fair
value hierarchy. As required by ASC 820, financial assets are classified in their entirety
based on the lowest level of input that is significant to the fair value measurements (in
thousands):</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Quoted Prices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">in Active</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Significant</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(Unaudited)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Markets for</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Other</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Fair Value as</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Identical</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Observable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Unobservable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">of December 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Inputs</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Inputs</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(Level 1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(Level 2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(Level 3)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">263,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">362,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Quoted Prices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">in Active</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Significant</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Markets for</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Other</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Fair Value as</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Identical</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Observable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Unobservable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">of June 30,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Inputs</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Inputs</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(Level 1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(Level 2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(Level 3)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">273,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">244,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Also, the Company may be required, from time to time, to measure the fair value of
certain other financial assets on a nonrecurring basis in accordance with U.S. generally
accepted accounting principles. The adjustments to fair value usually result from the
application of lower-of-cost-or-market accounting or write downs of individual assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company had impaired loans with outstanding principal balances of $24.1&nbsp;million, $20.0
million and $13.8&nbsp;million at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, respectively, that
were recorded at their estimated fair value (less cost to sell) of $21.0&nbsp;million, $16.7
million and $12.4&nbsp;million at December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, respectively.
Specific reserves for impaired loans totaled $3.1&nbsp;million, $3.3&nbsp;million and $1.4&nbsp;million at
December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008, respectively. The Company recorded impairment
charges of $2.7&nbsp;million, $740,000, $4.4&nbsp;million and $1.4&nbsp;million for the six months ended
December&nbsp;31, 2009 and 2008 and the years ended June&nbsp;30, 2009 and 2008, respectively, utilizing
Level 3 inputs. There were no impairment charges for the year ended June&nbsp;30, 2007. Impaired
loans are valued utilizing current</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>appraisals adjusted downward by management, as necessary,
for changes in relevant valuation factors subsequent to the appraisal date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>(18)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fair Value of Financial Instruments</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ASC 825, <I>&#148;Financial Instruments&#148;</I>, requires that the Company disclose estimated fair values for
its financial instruments. Fair value estimates, methods and assumptions are set forth below
for the Company&#146;s financial instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Cash and Cash Equivalents</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For cash on hand and due from banks and federal funds sold and short-term investments, the
carrying amount approximates fair value.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Securities</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of securities is estimated based on bid quotations received from securities
dealers, if available. If a quoted market price is not available, fair value is estimated
using quoted market prices of similar instruments, adjusted for differences between the quoted
instruments and the instruments being valued.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>FHLB of New York Stock</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value for FHLB stock is its carrying value, since this is the amount for which it
could be redeemed. There is no active market for this stock and the Bank is required to
maintain a minimum balance based upon the unpaid principal of home mortgage loans.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Loans</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair values are estimated for portfolios of loans with similar financial characteristics.
Loans are segregated by type such as residential mortgage, construction, land and consumer.
Each loan category is further segmented into fixed and adjustable rate interest terms and by
performing and nonperforming categories.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair value of performing loans is estimated by discounting cash flows using estimated market
discount rates at which similar loans would be made to borrowers and reflect similar credit
ratings and interest rate risk for the same remaining maturities. This method of estimating fair
value does not incorporate the exit-price concept of fair value prescribed by ASC 820, <I>&#147;Fair
Value Measurements and Disclosures.&#148;</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair value for significant nonperforming loans is based on recent external appraisals of
collateral securing such loans, adjusted for the timing of anticipated cash flows.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Deposit Liabilities</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of deposits with no stated maturity, such as noninterest-bearing demand
deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand
as of December&nbsp;31, 2009 and June&nbsp;30, 2009 and 2008. The fair value of certificates of deposit
is based on the discounted value of contractual cash flows. The discount rate is estimated
using the rates currently offered for deposits of similar remaining maturities.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Borrowings</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of borrowings due in six months or less is equal to the amount payable. The
fair value of all other borrowings is calculated based on the discounted cash flow of
contractual amounts due, using market rates currently available for borrowings of similar
amount and remaining maturity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Commitments to Extend Credit and to Purchase or Sell Securities</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The fair value of commitments to extend credit is estimated using the fees currently charged
to enter into similar agreements, taking into account the remaining terms of the agreements
and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair
value also considers the difference between current levels of interest rates and the committed
rates. The fair value of commitments to purchase or sell securities is estimated based on bid
quotations received from securities dealers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The estimated fair values of the Company&#146;s financial instruments are presented in the
following table. Since the fair value of off-balance-sheet commitments approximates book
value, these disclosures are not included.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">135,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,890</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities held
to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,671</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Home Loan Bank of New
York stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,374,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,292,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">999,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financial liabilities &#151; deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,212,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,106,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700,582</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financial liabilities &#151; borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">543,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">547,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">445,162</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Limitations</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair value estimates are made at a specific point in time, based on relevant market
information and information about the financial instrument. These estimates do not reflect any
premium or discount that could result from offering for sale at one time the Company&#146;s entire
holdings of a particular financial instrument. Because no market exists for a significant
portion of the Company&#146;s financial instruments, fair value estimates are based on judgments
regarding future expected loss experience, current economic conditions, risk characteristics
of various financial instruments, and other factors. These estimates are subjective in nature
and involve uncertainties and matters of significant judgment and, therefore, cannot be
determined with precision. Changes in assumptions could significantly affect the estimates.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair value estimates are based on existing on- and off-balance-sheet financial instruments
without attempting to estimate the value of anticipated future business and the value of
assets and liabilities that are not considered financial instruments. Significant assets and
liabilities that are not considered financial assets or liabilities include the mortgage
banking operation, deferred tax assets, and premises and equipment. In addition, the tax
ramifications related to the realization of the unrealized gains and losses can have a
significant effect on fair value estimates and have not been considered in the estimates.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>(19)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Parent Company Only Financial Statements</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following condensed financial information for Oritani Financial Corp. (parent company only)
reflect the investment in its wholly-owned subsidiaries, Oritani Bank, Oritani, LLC and
Hampshire Financial, LLC, using the equity method of accounting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Balance Sheets</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash in Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,913</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ESOP loan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,082</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued Interest Receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment in Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,777</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Due from Oritani Financial Corp., MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279,027</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 6pt">    <TD>&nbsp;</TD></tr>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities and Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,975</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total Liabilities and Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279,027</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Statements of Income</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Six months ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan="2" nowrap>(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on ESOP loan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income on fed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,378</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss on write down of securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(398</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(398</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in undistributed earnings of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,664</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,878</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,851</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Contribution to charitable foundation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">219</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax (benefit)&nbsp;expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,512</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,817</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-46<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Statements of Cash Flows</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Six months ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(In thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net income to net cash
provided by operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Contribution of stock to charitable foundation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Impairment charge on securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Dividends/distributions from subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Equity in undistributed earnings of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,322</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,758</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,953</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,664</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Decrease (increase)&nbsp;in accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(706</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Decrease (increase)&nbsp;in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(113</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">(Decrease) increase in other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(73</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,055</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional investments in subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(387</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,226</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,759</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,410</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59,958</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,715</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loan to ESOP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,896</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal collected on ESOP loan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">(Increase) decrease in mortgage loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(424</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,639</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">287</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash used in provided by investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(181</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(676</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,997</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,392</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(75,567</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38,217</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,989</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from stock offering, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividends paid to shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,521</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Cash (used)&nbsp;provided by financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,752</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38,217</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(47,492</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,926</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net change in cash in bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,386</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37,525</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45,471</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,438</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash in bank at beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,343</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash in bank at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,351</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-47<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>(20)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Selected Quarterly Financial Data (Unaudited)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following tables are a summary of certain quarterly financial data for the six months
ended December&nbsp;31, 2009 and the years ended June&nbsp;30, 2009 and 2008.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Fiscal 2010 Quarter Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">September 30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(Dollars in thousands)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selected Operating Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,467</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,057</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,410</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after
provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,910</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,811</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,929</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic earnings per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted earnings per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-48<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000">Fiscal 2009 Quarter Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">September 30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">March 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(Dollars in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selected Operating Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,302</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,646</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after
provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,551</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,179</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,158</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,504</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic earnings per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted earnings per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000">Fiscal 2008 Quarter Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">September 30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">March 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(Dollars in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selected Operating Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,508</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,594</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,531</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,977</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after
provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,642</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,419</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">992</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,427</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic earnings per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the fourth quarter of fiscal year 2008, the Company changed the method of
recording FHLB of New York capital stock dividends to a cash basis from an accrual basis.
This change in methodology decreased the fourth quarter interest income by $312,000.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>(21)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Earnings Per Share</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following is a summary of the Company&#146;s earnings per share calculations and reconciliation
of basic to diluted earnings per share.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-49<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">(Unaudited)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Six months ended December 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Years Ended June 30,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">(in thousands, except earnings per share data)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed earnings allocated to unvested
restricted awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(206</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(50</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(93</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(170</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income available to common shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,459</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,790</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average common shares outstanding &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,028</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of dilutive non-vested shares and stock
options outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average common shares outstanding &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,028</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings per share-basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company completed its initial public offering on January&nbsp;24, 2007. Basic and diluted
earnings per common share for the period of January&nbsp;24, 2007 to June&nbsp;30, 2007 was $0.15,
calculated using net income of $5.2&nbsp;million and weighted average common shares of 34,028,313
outstanding for the period. The number of shares outstanding for this purpose includes shares
held by Oritani Financial Corp., MHC, but excludes unallocated ESOP shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>(22)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Recent Accounting Pronouncements</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In September&nbsp;2009, the FASB issued Accounting Standards Update (&#147;ASU&#148;) 2009-12, &#147;Investments
in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent).&#148; The update
provides guidance on estimating the fair value of a company&#146;s investments in investment
companies when the investment does not have a readily determinable fair value. It amends
topic 820 to permit the use of the investment&#146;s net asset value as a practical expedient to
determine fair value. This guidance also requires additional disclosure of the attributes of
these investments such as; (i)&nbsp;the nature of any restrictions on the reporting entity&#146;s
ability to redeem its investment; (ii)&nbsp;unfunded commitments; and (iii)&nbsp;investment strategies
of the investees. This ASU is effective for the first reporting period ending after December
15, 2009, with earlier application permitted. The adoption of the ASU did not have a
material impact on its consolidated financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In August&nbsp;2009, the FASB issued ASU 2009-05, &#147;Measuring Liabilities at Fair Value&#148;, which
updates topic 820, &#147;Fair Value Measurements and Disclosures&#148;. The updated guidance clarifies
that the fair value of a liability can be measured in relation to the quoted price of the
liability when it trades as an asset in an active market, without adjusting the price for
restrictions that prevent the sale of the liability. This guidance is effective for the first
interim or annual reporting period after issuance. The adoption of this guidance did not have
a material impact on its consolidated financial statements.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-50<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP. AND SUBSIDIARIES</B><BR>
Township of Washington, New Jersey
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2009 and 2008 (Unaudited) and June&nbsp;30, 2009, 2008 and 2007
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2009, the FASB issued guidance which amends the derecognition guidance in ASC 860,
<I>&#147;Transfer and Servicing&#148;, </I>to enhance reporting about transfers of financial assets, including
securitizations, and where companies having continuing exposure to the risks related to
transferred financial assets. The guidance eliminates the concept of &#147;qualifying
special-purpose entity&#148;, changes the requirements for derecognizing financial assets and
requires additional disclosures about all continuing involvements with transferred financial
assets including information about gains and losses resulting from transfers during the
period. This guidance is effective for financial asset transfers occurring in fiscal years
beginning after November&nbsp;15, 2009. The Company does not expect the adoption of this guidance
to have a material impact on its consolidated financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In 2008, the FASB issued Staff Position No.&nbsp;FAS 132(R)-1, &#147;Employers&#146; Disclosures about
Postretirement Benefit Plan Assets&#148; (ASC Topic 715-20-65). This guidance will expand
disclosure by requiring the following new disclosures: 1) how investment allocation decisions
are made by management; 2) major categories of plan assets; and 3) significant concentrations
of risk. Additionally, ASC 715-20-65 will require an employer to disclose information about
the valuation of plan assets similar to that required in ASC topic 820 <I>&#147;Fair Value
Measurements and Disclosures&#148;</I>. This guidance is effective for fiscal years beginning after
December&nbsp;15, 2009. The Company does not expect the adoption to have a material effect on its
consolidated financial statements.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-51<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>No person has been authorized to give any information or to make any representation other than
as contained in this prospectus and, if given or made, such other information or representation
must not be relied upon as having been authorized by Oritani or Oritani Bank. This prospectus does
not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered
hereby to any person in any jurisdiction in which such offer or solicitation is not authorized or
in which the person making such offer or solicitation is not qualified to do so, or to any person
to whom it is unlawful to make such offer or solicitation in such jurisdiction. Neither the
delivery of this prospectus nor any sale hereunder shall under any circumstances create any
implication that there has been no change in the affairs of Oritani or Oritani Bank since any of
the dates as of which information is furnished herein or since the date hereof.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Up to 44,850,000Shares</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(Subject to Increase to up to 51,577,500 Shares)</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Financial Corp.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(Proposed Holding Company for<BR>
Oritani Bank)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMMON STOCK<BR>
par value $0.01 per share</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STIFEL NICOLAUS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Prospectus Date&#093;</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>These securities are not deposits or savings accounts and are not federally insured or<BR>
guaranteed.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Until &#091;expiration date&#093;, or 25&nbsp;days after commencement of the syndicated community offering, if
any, whichever is later, all dealers effecting transaction in the registered securities, whether or
not participating in this offering, may be required to deliver a prospectus. This is in addition
to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect
to their unsold allotments or subscriptions.</B>
</DIV>






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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS OF ORITANI FINANCIAL CORP., A DELAWARE CORPORATION<BR>
PROXY STATEMENT OF ORITANI FINANCIAL CORP., A FEDERAL CORPORATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is converting from a mutual holding company structure to a fully-public stock
holding company structure. Currently, Oritani Bank is a wholly-owned subsidiary of Oritani
Financial Corp., and Oritani Financial Corp., MHC owns approximately 74.4% of Oritani Financial
Corp.&#146;s common stock. The remaining 25.6% of Oritani Financial Corp.&#146;s common stock is owned by
public stockholders. As a result of the conversion, a newly formed company, Oritani, will become
the parent of Oritani Bank. Each share of Oritani Financial Corp. common stock owned by the public
will be exchanged for between 1.2022 and 1.6264 shares of common stock of Oritani, so that current
public stockholders will own the same percentage of Oritani common stock as they owned of Oritani
Financial Corp.&#146;s common stock immediately prior to the conversion, excluding any new shares
purchased by them in the offering and their receipt of cash in lieu of fractional exchange shares,
as further discussed below. The actual number of shares that you will receive will depend on the
percentage of Oritani Financial Corp. common stock held by the public at the completion of the
conversion, the final independent appraisal of Oritani and the number of shares of Oritani common
stock sold in the offering described in the following paragraph. It will not depend on the market
price of Oritani Financial Corp. common stock. See &#147;Proposal 1&#151;Approval of the Plan of Conversion
and Reorganization&#151;Share Exchange Ratio for Current Stockholders&#148; for a discussion of the exchange
ratio. Based on the $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share closing price of Oritani Financial Corp. common stock as of
the last trading day prior to the date of this proxy statement/prospectus, unless at least <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares of Oritani common stock are sold in the offering (which is between the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of the offering range), the initial value of the Oritani common stock you receive in
the share exchange would be less than the market value of the Oritani Financial Corp. common stock
you currently own. See &#147;Risk Factors&#151;The market value of Oritani common stock received in the
share exchange may be less than the market value of Oritani Financial Corp. common stock
exchanged.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the exchange offer, we are offering up to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares of common stock
of Oritani, representing the 74.4% ownership interest of Oritani Financial Corp., MHC in Oritani
Financial Corp., for sale to eligible depositors of Oritani Bank and to the public, including
Oritani Financial Corp. stockholders, at a price of $10.00 per share. The conversion of Oritani
Financial Corp., MHC and the offering and exchange of common stock by Oritani is referred to herein
as the &#147;conversion and offering.&#148; After the conversion and offering are completed, Oritani Bank
will be a wholly-owned subsidiary of Oritani, and 100% of the common stock of Oritani will be owned
by public stockholders. As a result of the conversion and offering, Oritani Financial Corp. and
Oritani Financial Corp., MHC will cease to exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s common stock is currently traded on the Nasdaq Global Market under
the trading symbol &#147;ORIT.&#148; We expect that Oritani&#146;s shares of common stock will trade on the
Nasdaq Global Market under the trading symbol &#147;ORITD&#148; for a period of 20 trading days after the
completion of this stock offering. Thereafter, Oritani&#146;s trading symbol will revert to &#147;ORIT.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion and offering cannot be completed unless the stockholders of Oritani Financial
Corp. approve the Plan of Conversion and Reorganization of Oritani Financial Corp., MHC, referred
to herein as the &#147;plan of conversion.&#148; Oritani Financial Corp. is holding a special meeting of
stockholders at &#091;place/address for meeting&#093;, on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, at &#95;&#95;&#95; a.m., local time, to
consider and vote upon the plan of conversion. <B>Oritani Financial Corp.&#146;s Board of Directors
unanimously recommends that stockholders vote &#147;FOR&#148; the plan of conversion.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document serves as the proxy statement for the special meeting of stockholders of Oritani
Financial Corp. and the prospectus for the shares of Oritani common stock to be issued in exchange
for
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Oritani Financial Corp. common stock. We urge you to read this entire document
carefully. You can also obtain information about us from documents that we have filed with the
Securities and Exchange Commission and the Office of Thrift Supervision. This document does not
serve as the prospectus relating to the offering by Oritani of its shares of common stock in the
offering, which will be made pursuant to a separate prospectus. Stockholders of Oritani Financial
Corp. are not required to participate in the stock offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement/prospectus contains information that you should consider in evaluating
the plan of conversion. <B>In particular, you should carefully read the section captioned &#147;Risk
Factors&#148; beginning on page 22 for a discussion of certain risk factors relating to the conversion
and offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will refer to Oritani Financial Corp., a Delaware corporation formed for this stock
offering, as &#147;Oritani&#148; and Oritani Financial Corp., the existing federal corporation, as &#147;Oritani
Financial Corp.&#148; in this document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>These securities are not deposits or savings accounts and are not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>None of the Securities and Exchange Commission, the Office of Thrift Supervision or any state
securities regulator has approved or disapproved of these securities or determined if this proxy
statement/prospectus is accurate or complete. Any representation to the contrary is a criminal
offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>For answers to your questions, please read this proxy statement/prospectus including the
Questions and Answers section, beginning on page 1. Questions about voting on the plan of
conversion may be directed to our proxy information agent, </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, at
1-888-</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, Monday through Friday from 9:00 a.m. to 5:00 p.m., Eastern Time.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of this proxy statement/prospectus is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, and it is first being mailed
to stockholders of Oritani Financial Corp. on or about <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORITANI FINANCIAL CORP.<BR>
370 Pascack Road<BR>
P.O. Box 128<BR>
Township of Washington, New Jersey 07676<BR>
(201)&nbsp;664-5400</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE OF SPECIAL MEETING OF STOCKHOLDERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, Oritani Financial Corp. will hold a special meeting of stockholders at
&#091;place/address for meeting&#093;. The meeting will begin at &#95;&#95;&#95;a.m., local time. At the meeting,
stockholders will consider and act on the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of a plan of conversion and reorganization pursuant to which: (a)
Oritani Financial Corp., MHC, a federal corporation will merge with and into Oritani
Financial Corp., with Oritani Financial Corp. being the surviving entity; (b)&nbsp;Oritani
Financial Corp., will merge with and into Oritani with, with Oritani being the
surviving entity; (c)&nbsp;the outstanding shares of Oritani Financial Corp., other than
those held by Oritani Financial Corp., MHC, will be converted into shares of common
stock of Oritani; and (e)&nbsp;Oritani will offer shares of its common stock for sale in a
subscription offering, and, if necessary, a community offering or syndicated community
offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion and reorganization;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following informational proposals:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation
to limit the ability of stockholders to remove directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation
requiring a super-majority vote to approve certain amendments to Oritani&#146;s
certificate of incorporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s bylaws requiring a
super-majority vote of stockholders to approve stockholder-proposed amendments to
Oritani&#146;s bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation
to limit the voting rights of shares beneficially owned in excess of 10% of
Oritani&#146;s outstanding voting stock; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such other business that may properly come before the meeting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTE: The Board of Directors is not aware of any other business to come before the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Oritani&#146;s certificate of incorporation and bylaws which are summarized as
informational proposals 3a through 3d were approved as part of the process in which our Board of
Directors approved the plan of conversion and reorganization (referred to herein as the &#147;plan of
conversion&#148;). These proposals are informational in nature only, because the Office of Thrift
Supervision&#146;s regulations governing mutual-to-stock conversions do not provide for votes on matters
other than the plan of conversion. While we are asking you to vote with respect to each of the
informational proposals listed above, the proposed provisions for which an informational vote is
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">requested will become effective if stockholders approve the plan of conversion, regardless of
whether stockholders vote to approve any or all of the informational proposals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed &#091;stockholder record date&#093;, as the record date for the
determination of stockholders entitled to notice of and to vote at the special meeting and at an
adjournment or postponement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Upon written request addressed to the Corporate Secretary of Oritani Financial Corp. at the
address given above, stockholders may obtain an additional copy of this proxy statement/prospectus
and/or a copy of the plan of conversion. In order to assure timely receipt of the additional copy
of the proxy statement/prospectus and/or the plan of conversion, the written request should be
received by Oritani Financial Corp., by </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, 2010.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please complete and sign the enclosed proxy, which is solicited by the Board of Directors, and
mail it promptly in the enclosed envelope. If you prefer, you may vote by using the telephone or
Internet. For information on submitting your proxy or voting by telephone or Internet, please
refer to instructions on the enclosed proxy card. The proxy will not be used if you attend the
meeting and vote in person.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BY ORDER OF THE BOARD OF DIRECTORS
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Philip M. Wyks<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Corporate Secretary</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Township of Washington, New Jersey<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101"><B>QUESTIONS AND ANSWERS FOR STOCKHOLDERS OF ORITANI FINANCIAL CORP. REGARDING THE PLAN OF CONVERSION AND REORGANIZATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102"><B>SUMMARY</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>6</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103"><B>RISK FACTORS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>22</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104"><B>PROPOSAL 1 &#151; APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>36</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105"><B>PROPOSAL 2 &#151; ADJOURNMENT OF THE SPECIAL MEETING</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>64</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106"><B>PROPOSALS 3a THROUGH 3d &#151; INFORMATIONAL PROPOSALS RELATED TO THE CERTIFICATE OF INCORPORATION AND BYLAWS OF ORITANI</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>65</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>69</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108"><B>FORWARD-LOOKING STATEMENTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>71</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>73</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110"><B>OUR POLICY REGARDING DIVIDENDS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>74</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111"><B>MARKET FOR THE COMMON STOCK</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>75</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>77</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113"><B>CAPITALIZATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>78</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114"><B>PRO FORMA DATA</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>80</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>86</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116"><B>BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>108</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117"><B>SUPERVISION AND REGULATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>134</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#118"><B>FEDERAL AND STATE TAXATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>146</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#119"><B>MANAGEMENT</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>148</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>173</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>174</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#122"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING STOCKHOLDERS OF ORITANI FINANCIAL CORP.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>175</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#123"><B>RESTRICTIONS ON ACQUISITION OF ORITANI</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>182</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#124"><B>DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>187</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#125"><B>TRANSFER AGENT</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>188</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126"><B>EXPERTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>188</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127"><B>LEGAL MATTERS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>189</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>189</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129"><B>OTHER MATTERS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>189</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130"><B>ORITANI FINANCIAL CORP. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top"><B>F-1</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>








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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>QUESTIONS AND ANSWERS<BR>
FOR STOCKHOLDERS OF ORITANI FINANCIAL CORP.<BR>
REGARDING THE PLAN OF CONVERSION AND REORGANIZATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You should read this document for more information about the conversion and reorganization. The
plan of conversion and reorganization described herein, including the merger described therein,
(referred to as the &#147;plan of conversion&#148;) have been conditionally approved by Oritani Financial
Corp.&#146;s primary federal regulator, the Office of Thrift Supervision. However, such approvals by
the agency does not constitute recommendations or endorsements of the plan of conversion.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT ARE STOCKHOLDERS BEING ASKED TO APPROVE?</B></TD>
</TR>

</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp. stockholders as of &#091;stockholder record date&#093; are being asked to vote
on the plan of conversion pursuant to which Oritani Financial Corp., MHC will convert from the
mutual to the stock form of organization. As part of the conversion, a newly formed Delaware
corporation, Oritani is offering its common stock to eligible depositors of Oritani Bank, to
stockholders of Oritani Financial Corp. as of &#091;stockholder record date&#093; and to the public. The
 shares offered represent Oritani Financial Corp., MHC&#146;s current 74.4% ownership interest in
Oritani Financial Corp. Voting for approval of the plan of conversion will also include
approval of the exchange ratio and the certificate of incorporation and bylaws of Oritani
(including the anti-takeover provisions and provisions limiting stockholder rights). <B>Your
vote is important. Without sufficient votes &#147;FOR&#148; its adoption, we cannot implement the plan
of conversion.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, Oritani Financial Corp. stockholders are being asked to approve the adjournment
of the special meeting, if necessary, to solicit additional proxies in the event that there
are not sufficient votes at the time of the special meeting to approve the plan of
conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stockholders also are asked to vote on the following informational proposals with respect to
the certificate of incorporation and bylaws of Oritani:</TD>
</TR>

</TABLE>
</DIV>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation to limit
the ability of stockholders to remove directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation requiring
a super-majority vote to approve certain amendments to Oritani&#146;s certificate of
incorporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s bylaws requiring a super-majority vote
of stockholders to approve stockholder-proposed amendments to Oritani&#146;s bylaws;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation to limit
the voting rights of shares beneficially owned in excess of 10% of Oritani&#146;s
outstanding voting stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of Oritani&#146;s certificate of incorporation and bylaws that are included as
informational proposals were approved as part of the process in which our Board of Directors
approved the plan of conversion. These proposals are informational in nature only, because
the Office of Thrift Supervision&#146;s regulations governing mutual-to-stock conversions do not
provide for votes on matters other than the plan of conversion. While we are asking you to
vote with respect to each of the informational proposals listed above, the proposed
provisions for which an</TD>
</TR>

</TABLE>
</DIV>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>informational vote is requested will become effective if stockholders approve the plan of
conversion, regardless of whether stockholders vote to approve any or all of the
informational proposals. The provisions of Oritani&#146;s certificate of incorporation and
bylaws which are summarized above as informational proposals may have the effect of
deterring, or rendering more difficult, attempts by third parties to obtain control of
Oritani if such attempts are not approved by the Board of Directors, or may make the removal
of the Board of Directors or management, or the appointment of new directors, more
difficult.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Your vote is important. Without sufficient votes &#147;FOR&#148; adoption of the plan of conversion,
we cannot implement the plan of conversion and the related stock offering.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT ARE THE REASONS FOR THE CONVERSION AND RELATED OFFERING?</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our primary reasons for converting and raising additional capital through the offering are:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the Federal Deposit Insurance
Corporation (the &#147;FDIC&#148;) or the New Jersey Department of Banking and Insurance to raise
capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As a fully converted stock holding company, we will have greater flexibility in structuring
mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure limits our ability to offer
shares of our common stock as consideration for a merger or acquisition since Oritani
Financial Corp., MHC is required to own a majority of our shares of common stock. Potential
sellers often want stock for at least part of the purchase price. Our new stock holding
company structure will enable us to offer stock or cash consideration, or a combination of
stock and cash, and will therefore enhance our ability to compete with other bidders when
acquisition opportunities arise.</TD>
</TR>




</TABLE>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT WILL STOCKHOLDERS RECEIVE FOR THEIR EXISTING ORITANI FINANCIAL CORP. SHARES?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As more fully described in &#147;Proposal 1 &#151; Approval of the Plan of Conversion and
Reorganization &#151; Share Exchange Ratio,&#148; depending on the number of shares sold in the
offering, each share of common stock that you own at the time of the completion of the
conversion will be exchanged for between 1.2022 shares at the minimum and 1.6264 shares at the
maximum of the offering range (or 1.8704 at the adjusted maximum of the offering range) of
Oritani common stock (cash will be paid in lieu of any fractional shares). For example, if
you own 100 shares of Oritani Financial Corp. common stock, and the exchange ratio is 1.4143
(at the midpoint of the offering range), after the conversion you will receive 141 shares of
Oritani Financial Corp. common stock and $4.30 in cash, the value of the fractional share,
based on the $10.00 per share purchase price of stock in the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After completion of the conversion, stockholders who hold shares in street-name at a
brokerage firm or other nominee do not need to take any action to exchange their shares
of common stock. Your shares will be automatically exchanged within your account.
Stockholders with Oritani Financial Corp. stock certificates will receive a transmittal
form from our exchange agent with instructions on how to surrender stock certificates
to receive new stock certificates representing shares of Oritani You should not submit
a stock certificate until you receive a transmittal form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHY WILL THE SHARES THAT I RECEIVE BE BASED ON A PRICE OF $10.00 PER SHARE RATHER THAN THE
TRADING PRICE OF THE COMMON STOCK PRIOR TO COMPLETION OF THE CONVERSION?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The $10.00 per share price was selected primarily because it is a commonly selected per share
price for mutual-to-stock conversion offerings. The amount of common stock Oritani will issue
at $10.00 per share in the offering and the exchange is based on an independent appraisal of
the estimated market value of Oritani, assuming the conversion and offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisal of financial institutions, has
estimated that, as of February&nbsp;19, 2010, this market value ranged from $445.3&nbsp;million to
$602.5&nbsp;million, with a midpoint of $523.8&nbsp;million. Based on this valuation, the number of
 shares of common stock of Oritani that existing public stockholders of Oritani Financial Corp.
will receive in exchange for their shares of Oritani Financial Corp. common stock will range
from approximately 33.15&nbsp;million to 44.85&nbsp;million, with a midpoint of 39.0&nbsp;million (with a
value of approximately $331.5&nbsp;million to $448.5&nbsp;million, with a midpoint of $390.0&nbsp;million, at
$10.00 per share). The number of shares received by the existing public stockholders of
Oritani Financial Corp. is intended to maintain their existing 25.6% ownership in our
organization (excluding any new shares purchased by them in the offering and their receipt of
cash in lieu of fractional exchange shares). The independent appraisal is based in part on
Oritani Financial Corp.&#146;s financial condition and results of operations, the pro forma impact
of the additional capital raised by the sale of shares of common stock in the offering, and an
analysis of a peer group of ten publicly traded savings bank and thrift holding companies that
RP Financial, LC. considered comparable to Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DOES THE EXCHANGE RATIO DEPEND ON THE TRADING PRICE OF ORITANI FINANCIAL CORP. COMMON STOCK?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No, the exchange ratio will not be based on the market price of Oritani Financial Corp.
common stock. Therefore, changes in the price of Oritani Financial Corp. common stock between
now and the completion of the conversion and offering will not affect the calculation of the
exchange ratio.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHY DOESN&#146;T ORITANI FINANCIAL CORP. WAIT TO CONDUCT THE CONVERSION AND OFFERING UNTIL THE
STOCK MARKET IMPROVES SO THAT CURRENT STOCKHOLDERS CAN RECEIVE A HIGHER EXCHANGE RATIO?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board of Directors believes that because the stock holding company form of organization
offers important advantages and that it is in the best interest of our stockholders to
complete the conversion and offering sooner rather than later. There is no way to know when
market conditions will change, when regulations governing conversion to stock form will
change, or how they might change, or how changes in market conditions might affect stock
prices for financial institutions. The Board of Directors concluded that it would be better to
complete the conversion and offering now, under existing Office of Thrift Supervision
conversion regulations and under a valuation that offers a fair exchange ratio to existing
stockholders and an attractive price to new investors, rather than wait an indefinite amount
of time for market conditions that would result in a higher exchange ratio but a less
attractive valuation for new investors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SHOULD I SUBMIT MY STOCK CERTIFICATES NOW?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No.&nbsp;If you hold stock certificate(s), instructions for exchanging the certificates will be
sent to you by our exchange agent <I>after </I>completion of the conversion. If your shares are held
in &#147;street name&#148; (<I>e.g., </I>in a brokerage account) rather than in certificate form, the share
exchange will be reflected automatically in your account upon completion of the conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>HOW DO I VOTE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mark your vote, sign each proxy card enclosed and return the card(s) to us, in the enclosed
proxy reply envelope. If you prefer, you may vote by using the telephone or Internet. For
information on submitting your proxy or voting by telephone or Internet, please refer to
instructions on the enclosed proxy card. <B>YOUR VOTE IS IMPORTANT. PLEASE VOTE PROMPTLY.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>IF MY SHARES ARE HELD IN STREET NAME, WILL MY BROKER, BANK OR OTHER NOMINEE AUTOMATICALLY
VOTE ON THE PLAN ON MY BEHALF?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No.&nbsp;Your broker, bank or other nominee will not be able to vote your shares without
instructions from you. You should instruct your broker, bank or other nominee to vote your
 shares, using the directions that they provide to you.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT HAPPENS IF I DON&#146;T VOTE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Your vote is very important. Not voting all the proxy card(s) you receive will have the same
effect as voting </B><B><I>&#147;against&#148; </I></B><B>the plan of conversion. </B>Without sufficient favorable votes <I>&#147;for&#148;</I>
the plan of conversion, we will not proceed with the conversion and offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WHAT IF I DO NOT GIVE VOTING INSTRUCTIONS TO MY BROKER, BANK OR OTHER NOMINEE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your vote is important. If you do not instruct your broker, bank or other nominee to vote
your shares, the unvoted proxy will have the same effect as a vote <I>&#147;against&#148; </I>the plan of
conversion.</TD>
</TR>




</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MAY I PLACE AN ORDER TO PURCHASE SHARES IN THE OFFERING, IN ADDITION TO THE SHARES THAT I
WILL RECEIVE IN THE EXCHANGE?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Yes. If you would like to receive a prospectus and stock order form, you must call our Stock
Information Center at 1-877-&#95;&#95;&#95;, Monday through Friday between 10:00&nbsp;a.m. and 4:00 p.m.,
Eastern Time. The Stock Information Center is closed weekends and bank holidays.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eligible depositors of Oritani Bank have priority subscription rights allowing them to
purchase common stock in a subscription offering. Shares of common stock not purchased in
the subscription offering are expected to be offered for sale in a &#147;community offering,&#148;
which will be limited to persons residing in New Jersey counties of Bergen, Passaic, Sussex,
Hudson, Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer, certain
borrowers as of December&nbsp;31, 2009 and the stockholders of Oritani Financial Corp as of
&#091;voting record date&#093;. We also may offer for sale shares of common stock not purchased in
the subscription offering or community offering through a &#147;syndicated community offering&#148;
managed by Stifel, Nicolaus &#038; Company, Incorporated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shares of common stock purchased in the offering by a stockholder and his or her
associates or individuals acting in concert with the stockholder, <I>plus </I>any shares a
stockholder and these individuals receive in the exchange for existing shares of Oritani
Financial Corp. common stock, may not exceed 5% of the total shares of common stock of
Oritani to be issued and outstanding after the completion of the conversion.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>Q.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WILL THE CONVERSION HAVE ANY EFFECT ON DEPOSIT AND LOAN ACCOUNTS AT ORITANI BANK?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No.&nbsp;The account number, amount, interest rate and withdrawal rights of deposit accounts will
remain unchanged. Deposits will continue to be federally insured by the Federal Deposit
Insurance Corporation up to the legal limit. Loans and rights of borrowers will not be
affected. Depositors will no longer have voting rights in the mutual holding company, which
will cease to exist, after the conversion and offering. Only stockholders of Oritani will
have voting rights after the conversion and offering.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Please note that properly completed and signed stock order forms, with full payment, must be
received (not postmarked) by the Stock Information Center no later than 2:00 p.m., Eastern Time on</B>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, 2010.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER QUESTIONS?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>For answers to other questions, please read this proxy statement/prospectus. Questions about
voting on the plan of conversion may be directed to our proxy information agent,</B>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, at 1-877&#95;&#95;&#95;, Monday through Friday from 9:00 a.m. to 5:00 p.m., Eastern
Time. Questions about the stock offering may be directed to our Stock Information Center at
1-877-&#95;&#95;&#95;, Monday through Friday between 10:00&nbsp;a.m. and 4:00 p.m., Eastern Time. The Stock
Information Center is closed weekends and bank holidays.</B>
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This summary highlights material information from this proxy statement/prospectus and may not
contain all the information that is important to you. To understand the conversion and other
proposals fully, you should read this entire document carefully, including the sections entitled
&#147;Risk Factors,&#148; &#147;Proposal 1 &#151; Approval of The Plan of Conversion and Reorganization,&#148; &#147;Proposal 2&#151;
Adjournment of the Special Meeting,&#148; &#147;Proposals 3a through 3d &#151; Informational Proposals Related to
the Certificate of incorporation and Bylaws of Oritani&#148; and the consolidated financial statements
and the notes to the consolidated financial statements.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Oritani Financial Corp. Special Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Date, Time and Place. </B>Oritani Financial Corp. will hold its special meeting of stockholders
at &#091;place/address for meeting&#093;, on &#95;&#95;&#95;, 2010, at &#95;&#95;&#95;a.m., Eastern Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Proposals. </B>Stockholders will be voting on the following proposals at the special meeting:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of a plan of conversion and reorganization pursuant to which: (a)
Oritani Financial Corp., MHC, a federal corporation will merge with and into Oritani
Financial Corp., with Oritani Financial Corp. being the surviving entity; (b)&nbsp;Oritani
Financial Corp., will merge with and into Oritani with, with Oritani being the
surviving entity; (c)&nbsp;the outstanding shares of Oritani Financial Corp., other than
those held by Oritani Financial Corp., MHC, will be converted into shares of common
stock of Oritani; and (e)&nbsp;Oritani will offer shares of its common stock for sale in a
subscription offering, and, if necessary, a community offering or syndicated community
offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion and reorganization;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following informational proposals:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation
to limit the ability of stockholders to remove directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation
requiring a super-majority vote to approve certain amendments to Oritani&#146;s
certificate of incorporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s bylaws requiring a
super-majority vote of stockholders to approve stockholder-proposed amendments to
Oritani&#146;s bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approval of a provision in Oritani&#146;s certificate of incorporation
to limit the voting rights of shares beneficially owned in excess of 10% of
Oritani&#146;s outstanding voting stock; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such other business that may properly come before the meeting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Vote Required for Approval of Proposals by the Stockholders of Oritani Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 1: Approval of the Plan of Conversion and Reorganization. </B>We must obtain the
affirmative vote of the holders of (i)&nbsp;two-thirds of the total number of votes entitled to be cast
at the special meeting by Oritani Financial Corp. stockholders, including shares held by Oritani
Financial Corp.,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MHC, and (ii)&nbsp;a majority of the total number of votes entitled to be cast at the special meeting by
Oritani Financial Corp. stockholders other than Oritani Financial Corp., MHC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 2 Approval of the adjournment of the special meeting. </B>We must obtain the
affirmative vote of at least a majority of the votes cast by Oritani Financial Corp. stockholders
at the special meeting to adjourn the special meeting, if necessary, to solicit additional proxies
in the event that there are not sufficient votes at the time of the special meeting to approve the
proposal to approve the plan of conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposals 3a through 3d. </B>The provisions of Oritani&#146;s certificate of
incorporation and bylaws which are summarized as informational proposals were approved as part of
the process in which the Board of Directors of Oritani Financial Corp. approved the plan of
conversion. These proposals are informational in nature only, because the Office of Thrift
Supervision&#146;s regulations governing mutual-to-stock conversions do not provide for votes on matters
other than the plan of conversion. While we are asking you to vote with respect to each of the
informational proposals listed above, the proposed provisions for which an informational vote is
requested will become effective if stockholders approve the plan of conversion, regardless of
whether stockholders vote to approve any or all of the informational proposals. The provisions of
Oritani&#146;s certificate of incorporation and bylaws which are summarized as informational proposals
may have the effect of deterring or rendering more difficult attempts by third parties to obtain
control of Oritani, if such attempts are not approved by the Board of Directors, or may make the
removal of the Board of Directors or management, or the appointment of new directors, more
difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Matters. </B>We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oritani Financial Corp.. At this time, we know of
no other matters that may be presented at the special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposals 1 and 2 must also be approved by the members of Oritani Financial Corp., MHC at a
special meeting of members called for that purpose. Members will receive separate informational
materials for Oritani Financial Corp., MHC regarding the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revocability of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oritani Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Vote by Oritani Financial Corp., MHC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management anticipates that Oritani Financial Corp., MHC, our majority stockholder, will vote
all of its shares of common stock in favor of all the matters set forth above. If Oritani
Financial Corp., MHC votes all of its shares in favor of each proposal, the approval of the
adjournment of the special meeting if necessary, would be assured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of &#95;&#95;&#95;, 2010 the directors and executive officers of Oritani Financial Corp.
beneficially owned &#95;&#95;&#95; shares, or approximately &#95;&#95;&#95;% of the outstanding shares of Oritani
Financial Corp. common stock, and Oritani Financial Corp., MHC owned 27,575,476 shares, or
approximately 74.4% of the outstanding shares of Oritani Financial Corp. common stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your Board of Directors unanimously recommends that you vote &#147;FOR&#148; the plan of conversion,
&#147;FOR&#148; the adjournment of the special meeting and &#147;FOR&#148; the Informational Proposals 3a through 3d.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oritani</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., is a newly-formed Delaware corporation that was incorporated in
February&nbsp;2010 to be the successor corporation to Oritani Financial Corp. upon completion of the
conversion. Oritani (&#147;Oritani&#148;) will own all of the outstanding shares of common stock of Oritani
Bank upon completion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s executive offices are located at 370 Pascack Road, Township of Washington, New
Jersey 07676. Our telephone number at this address is (201)&nbsp;664-5400.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC is the federally chartered mutual holding company of Oritani
Financial Corp. Oritani Financial Corp., MHC&#146;s principal business activity is the ownership of
27,575,476 shares of common stock of Oritani Financial Corp., or 74.4% of the issued and
outstanding shares as of the date of this prospectus. The remaining 9,465,710 shares of Oritani
Financial Corp. common stock outstanding as of the date of this prospectus were held by the public.
After the completion of the conversion, Oritani Financial Corp., MHC will cease to exist.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oritani Financial Corp.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is a federally chartered stock holding company that owns all of the
outstanding common stock of Oritani Bank. At December&nbsp;31, 2009, Oritani Financial Corp. had
consolidated assets of $2.01&nbsp;billion, deposits of $1.21&nbsp;billion and stockholders&#146; equity of $248.0
million. After the completion of the conversion, Oritani Financial Corp. will cease to exist, and
will be succeeded by Oritani, a new Delaware corporation. As of the date of this prospectus,
Oritani Financial Corp. had 40,552,162 shares of common stock issued and 37,041,184 shares
outstanding, of which 27,575,476 shares were owned by Oritani Financial Corp., MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oritani Bank</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is a New Jersey-chartered stock savings bank headquartered in Township of
Washington, New Jersey, and the wholly-owned subsidiary of Oritani Financial Corp. Oritani Bank
was originally founded in 1911 as a mutual (meaning no stockholders) organization and converted to
stock form in 1997 as part of Oritani Bank&#146;s mutual holding company reorganization. Oritani Bank
became a wholly-owned subsidiary of Oritani Financial Corp. in 2007.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Plan of Conversion and Reorganization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Boards of Directors of Oritani Financial Corp., Oritani Financial Corp., MHC, Oritani Bank
and Oritani have adopted a plan of conversion pursuant to which Oritani Bank will reorganize from a
mutual holding company structure to a stock holding company structure. Public stockholders of
Oritani Financial Corp. will receive shares in Oritani in exchange for their shares of Oritani
Financial Corp. common stock based on an exchange ratio. This conversion to a stock holding
company structure also includes the offering by Oritani of shares of its common stock to eligible
depositors of Oritani Bank in a subscription offering and, if necessary, to the public in a
community offering and/or syndicated community offering. Following the conversion and offering,
Oritani Financial Corp., MHC and Oritani Financial Corp. will no longer exist, and Oritani will be
the parent company of Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion and offering cannot be completed unless the stockholders of Oritani Financial
Corp. approve the plan of conversion. Oritani Financial Corp.&#146;s stockholders will vote on the plan
of conversion at Oritani Financial Corp.&#146;s special meeting. This document is the proxy statement
used by Oritani Financial Corp.&#146;s Board of Directors to solicit proxies for the special meeting.
It is also the prospectus of Oritani regarding the shares of Oritani common stock to be issued to
Oritani Financial Corp.&#146;s stockholders in the share exchange. This document does not serve as the
prospectus relating to the offering by Oritani of its shares of common stock in the subscription
offering and any community offering, syndicated community offering or firm commitment offering,
which will be made pursuant to a separate prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Current Organizational Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. completed its initial public stock offering on January&nbsp;23, 2007.
Oritani Financial Corp. sold 12,165,649 shares, or 30.0% of its outstanding common stock, to
subscribers in the offering, including 1,589,644 shares purchased by the Oritani Bank Employee
Stock Ownership Plan. Proceeds from the offering, including the value of shares issued to the
charitable foundation but net of expenses, were $127.6&nbsp;million. Oritani Financial Corp.
contributed $59.7&nbsp;million of the proceeds to Oritani Bank. At December&nbsp;31, 2009, Oritani Financial
Corp., MHC owned 74.4% of the Oritani Financial Corp.&#146;s outstanding common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of Oritani Financial Corp., MHC&#146;s plan of conversion and reorganization,
Oritani Financial Corp., MHC will convert from the mutual holding company to the stock holding
company corporate structure. As part of the conversion, we are offering for sale in a subscription
offering, a community offering and possibly a syndicated community offering, the ownership interest
of Oritani Financial Corp. that is currently owned by Oritani Financial Corp., MHC. Upon the
completion of the conversion, Oritani Financial Corp., MHC will cease to exist, and we will
complete the transition from partial to full public stock ownership. In addition, as part of the
conversion existing public stockholders of Oritani Financial Corp. will receive shares of common
stock of Oritani in exchange for their shares of Oritani Financial Corp. common stock pursuant to
an exchange ratio that maintains the same percentage ownership in Oritani (excluding any new shares
purchased by them in the offering and their receipt of cash in lieu of fractional exchange shares)
that existing stockholders had in Oritani Financial Corp. immediately prior to the completion of
the conversion and offering.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following diagram shows our current organizational structure:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g22184g2218405.gif" alt="(GRAPHICS)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Organizational Structure Following the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the conversion and offering are completed, we will be organized as a fully public stock
holding company, as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g22184g2218406.gif" alt="(GRAPHICS)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion and the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary reasons for converting and raising additional capital through the offering are:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the Federal Deposit Insurance
Corporation (the &#147;FDIC&#148;) or the New Jersey Department of Banking and Insurance to raise
capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OTS has conditionally approved the plan of conversion and reorganization; however, such
approval does not constitute recommendations or endorsements of the plan of conversion and
reorganization by that agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot complete the conversion unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by at least <I>a
majority of votes eligible </I>to be cast by members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) as of &#091;depositor record date&#093;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by a vote of at
least <I>two-thirds of the outstanding shares </I>of common stock of Oritani Financial Corp.
as of &#091;stockholder record date&#093;, including shares held by Oritani Financial Corp., MHC
(because Oritani Financial Corp., MHC owns 74.4% of the outstanding shares of Oritani
Financial Corp. common stock, we expect that Oritani Financial Corp., MHC and our
directors and executive officers will control the outcome of this vote);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by a vote of at
least <I>a majority of the outstanding shares </I>of common stock of Oritani Financial Corp.
as of &#091;stockholder record date&#093;, excluding those shares held by Oritani Financial
Corp., MHC;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We sell at least the minimum number of shares of common stock offered; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We receive the final approval of the OTS to complete the conversion;
however, such approval does not constitute a recommendation or endorsement of the plan
of conversion and reorganization by that agency.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At &#091;stockholder record date&#093;, Oritani Financial Corp., MHC owned
74.4% of the outstanding shares of common stock of Oritani Financial Corp. The directors and
executive officers of Oritani Financial Corp. and their affiliates
owned &#95;&#95;&#95; shares of Oritani
Financial Corp., or &#95;&#95;&#95;%
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the outstanding shares of common stock as of &#091;stockholder record date&#093;. They have indicated
their intention to vote those shares in favor of the plan of conversion and reorganization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Exchange of Existing Shares of Oritani Financial Corp. Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the conclusion of the conversion, shares held by existing stockholders of Oritani Financial
Corp. will be canceled and exchanged for shares of common stock of Oritani. The number of shares
of common stock received will be based on an exchange ratio determined as of the conclusion of the
conversion and offering, which will depend upon our final appraised value. The number of shares
received will not be based on the market price of our currently outstanding shares. Instead, the
exchange ratio will ensure that existing public stockholders of Oritani Financial Corp. will retain
the same percentage ownership of our organization after the offering, exclusive of their purchase
of any additional shares of common stock in the offering or their receipt of cash in lieu of
fractional exchange shares. In addition, if options to purchase shares of Oritani Financial Corp.
common stock are exercised before consummation of the conversion, there will be an increase in the
percentage of shares of Oritani Financial Corp. held by public stockholders, an increase in the
number of shares of common stock issued to public stockholders in the share exchange and a decrease
in the exchange ratio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows the number of whole shares of Oritani common stock a
hypothetical owner of Oritani Financial Corp. common stock would receive in exchange for 100 shares
of Oritani Financial Corp. common stock owned at the completion of the conversion, depending on the
number of shares of common stock sold in the offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>New Shares to be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Exchanged for Existing</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>New Shares That</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>New Shares to be Sold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares of Oritani</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Equivalent  Per</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Would be Received</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>in This Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding After</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Share Current</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>for 100 Existing</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>the Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exchange Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Market Value (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,395,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,704,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oritani common stock received in the conversion by a
holder of one share of Oritani Financial Corp. at the exchange ratio, assuming the market
price of $10.00 per share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. For each fractional share that would otherwise be issued, Oritani will pay
in cash an amount equal to the product obtained by multiplying the fractional share interest to
which the holder would otherwise be entitled by the $10.00 per share purchase price of the common
stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outstanding options to purchase shares of Oritani Financial Corp. common stock also will
convert into and become options to purchase new shares of Oritani common stock. The number of
shares of common stock to be received upon exercise of these options and the exercise price per
share to be adjusted based upon the exchange ratio so that the aggregate exercise price and the
duration of such options remain unchanged. All such options will vest upon completion of the
conversion. Oritani Financial Corp. anticipates the pre-tax expense of such accelerated vesting as
well as the accelerated vesting for outstanding stock awards will be approximately $11.3&nbsp;million,
with such expense to be
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incurred during the fiscal quarter in which the stock offering is completed. At December&nbsp;31,
2009, there were 1,841,725 outstanding options to purchase shares of Oritani Financial Corp. common
stock, 368,345 of which have vested. Such options will be converted into options to purchase
2,214,122 shares of common stock at the minimum of the offering range and 3,444,762 shares of
common stock at the maximum of the offering range.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Determined the Offering Range, the Exchange Ratio and the $10.00 Per Share Stock Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offering range and exchange ratio are based on an independent appraisal of the estimated
market value of Oritani, assuming the conversion, the exchange and the offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisals of financial institutions, has
estimated that, as of February&nbsp;19, 2010, this estimated pro forma market value ranged from $445.3
million to a maximum of $602.5&nbsp;million, with a midpoint of $523.8&nbsp;million and an adjusted maximum
of $692.8&nbsp;million. Based on this valuation, the 74.4% ownership interest held by Oritani Financial
Corp., MHC being sold in the offering and the $10.00 per share price, the number of shares of
common stock being offered for sale by us will range from 33,150,000 shares to 44,850,000 shares.
The $10.00 per share price was selected primarily because it is the price most commonly used in
mutual-to-stock conversions of financial institutions. The exchange ratio will range from 1.2022
shares at the minimum of the offering range to 1.6264 shares at the maximum of the offering range
in order to approximately preserve the existing percentage ownership of public stockholders of
Oritani Financial Corp. (excluding any new shares purchased by them in the offering and their
receipt of cash in lieu of fractional exchange shares). If demand for shares or market conditions
warrant, the appraisal can be increased by 15%. At this adjusted maximum of the offering range,
the estimated pro forma market value is $692.8&nbsp;million, the number of shares of common stock
offered for sale will be 69,282,277 and the exchange ratio will be 1.8704 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent appraisal is based in part on Oritani Financial Corp.&#146;s financial condition
and results of operations, the pro forma impact of the additional capital raised by the sale of
shares of common stock in the offering, and an analysis of a peer group of 10 publicly traded
savings bank and thrift holding companies that RP Financial, LC. considered comparable to Oritani
Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The appraisal peer group consists of the following companies. Total assets are as of December
31, 2009, unless otherwise indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Company Name and Ticker Symbol</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Headquarters</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Assets</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beacon Federal Bancorp (BFED)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">East Syracuse, NY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,070</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brookline Bancorp, Inc. (BRKL)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brookline, MA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,616</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Danvers Bancorp, Inc. (DNBK)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Danvers, MA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ESB Financial Corp. (ESBF)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ellwood City, PA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,979</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ESSA Bancorp, Inc. (ESSA)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stroudsburg, PA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OceanFirst Financial Corp. (OCFC)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Toms River, NJ</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,989</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parkvale Financial Corp. (PVSA)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Monroeville, PA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provident NY Bancorp (PBNY)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Montebello, NY</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United Financial Bancorp, Inc. (UBNK)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NASDAQ</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">West Springfield, MA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,247</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Westfield Financial, Inc. (WFD)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AMEX</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Westfield, MA</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,191</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of September&nbsp;30, 2009.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The independent appraisal does not indicate actual market value. Do not assume or expect
that the estimated pro forma market value as indicated above means that, after the offering, the
shares of our common stock will trade at or above the $10.00 purchase price.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents a summary of selected pricing ratios for the peer group companies
and Oritani (on a pro forma basis). The pricing ratios are based on earnings and other information
as of and for the six months ended December&nbsp;31, 2009, stock price information as of February&nbsp;19,
2010, as reflected in RP Financial, LC.&#146;s appraisal report, dated February&nbsp;19, 2010, and the number
of shares outstanding as described in &#147;Pro Forma Data.&#148; Compared to the average pricing of the
peer group, our pro forma pricing ratios at the maximum of the offering range indicated a premium
of 6.5% on a price-to-book value basis, a discount of 6.4% on a price-to-tangible book value basis,
and a premium of 183.1% on a price-to-earnings basis.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price-to-earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price-to-book</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price-to-tangible</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>multiple</B>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>value ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>book value ratio</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Oritani (on a pro
forma basis,
assuming completion
of the conversion)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.21x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.45x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.50x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.25x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Valuation of peer
group companies, as
of </B>February&nbsp;19,
2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Averages</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.19x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">87.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Medians</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.00x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">95.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">103.58</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Information is derived from the RP Financial appraisal report and are based upon
estimated earnings for the twelve months ended December&nbsp;31, 2009. These ratios are
different from the ratios in &#147;Pro Forma Data.&#148;</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors, in reviewing and approving the independent appraisal, considered
the range of price-to- earnings multiples, the range of price-to-book value and price-to-tangible
book value ratios at the different ranges of shares of common stock to be sold in the offering, and
did not consider one valuation approach to be more important than the other. Instead, in approving
the independent appraisal, the Board of Directors concluded that these ranges represented the
appropriate balance of the three approaches to establishing our estimated valuation range, and the
number of shares of common stock to be sold, in comparison to the peer group institutions.
Specifically, in approving the independent appraisal, the Board of Directors believed that we would
not be able to sell our shares at a price-to-book value and price-to-tangible book value that was
in line with the peer group without unreasonably exceeding the peer group on a price-to-earnings
basis. The estimated appraised value and the resulting discounts took into consideration the
potential financial impact of the offering as well as the trading price of Oritani Financial Corp.
common stock, which closed at $13.80 per share on February&nbsp;19, 2010, the date of the independent
appraisal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RP Financial, LC. will update the independent appraisal prior to the completion of the
conversion. If the estimated appraised value, including offering shares and exchange shares,
changes to either below $445.3&nbsp;million or above $692.8&nbsp;million, we will resolicit persons who
submitted stock orders. See &#147;The Conversion and Offering&#151;Stock Pricing and Number of Shares to be
Issued.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How We Intend to Use the Proceeds From the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming we sell 44,850,000 shares of common stock in the stock offering, and we have net
proceeds of $431.4&nbsp;million, we intend to distribute the net proceeds as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$215.7&nbsp;million (50.0% of the net proceeds) will be invested in Oritani Bank;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$17.9&nbsp;million (4.2% of the net proceeds) will be loaned by Oritani to the employee
stock ownership plan to fund its purchase of our shares of common stock; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$197.8&nbsp;million (45.8% of the net proceeds) will be retained by Oritani.</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may use the remaining funds we receive for investments, to pay cash dividends, to
repurchase shares of common stock and for other general corporate purposes. Oritani Bank may use
the proceeds it receives to support increased lending and other products and services. The net
proceeds retained also may be used for future business expansion through opening or acquiring
branch offices and the acquisition of banks, thrifts and other financial services companies. We
have no current arrangements or agreements with respect to any such acquisitions. Initially, a
substantial portion of the net proceeds be invested in short-term investments and mortgage-backed
securities consistent with our investment policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see &#147;How We Intend to Use the Proceeds from the Offering&#148; for more information on the
proposed use of the proceeds from the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employee Stock Ownership Plan</I></B>. Our tax-qualified employee stock ownership plan may purchase
up to 4.0% of the shares of common stock we sell in the offering, or 2,063,100 shares of common
stock, assuming we sell the maximum, as adjusted, number of shares proposed to be sold which, when
combined with the existing employee stock ownership plan, will be less than 8% of the shares
outstanding following the conversion. If we receive orders for more shares of common stock than
the maximum of the offering range, the employee stock ownership plan will have first priority to
purchase shares over this maximum, up to a total of 4.0% of the shares of common stock sold in the
offering. We reserve the right to purchase shares of common stock in the open market following the
offering in order to fund all or a portion of the employee stock ownership plan. Assuming the
employee stock ownership plan purchases 1,560,000 shares in the offering, the midpoint of the
offering range, we will recognize additional compensation expense of approximately $780,000
annually (or approximately $476,000 after tax) over a 20-year period, assuming the loan to the
employee stock ownership plan has a 20-year term and an interest rate equal to the prime rate as
published in <I>The Wall Street Journal</I>, and the shares of common stock have a fair market value of
$10.00 per share for the full 20-year period. If, in the future, the shares of common stock have a
fair market value greater or less than $10.00, the compensation expense will increase or decrease
accordingly. We also reserve the right to have the employee stock ownership plan purchase more
than 4.0% of the shares of common stock sold in the offering if necessary to complete the offering
at the minimum of the offering range.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock-Based Incentive Plan</I></B>. Our current intention is to implement a new stock-based incentive
plan no earlier than twelve months after completion of the conversion. Stockholder approval of
this plan will be required. If implemented 12&nbsp;months or more following completion of the
conversion, the stock-based incentive plan will reserve a number of shares equal to 4.0% of the
shares of common stock sold in the offering, or 2,063,100 shares of common stock at the maximum as
adjusted of the offering range, for awards of restricted stock to key employees and directors, at
no cost to the recipients. If the shares of restricted stock awarded under the stock-based
incentive plan come from authorized but unissued shares of common stock, stockholders would
experience dilution of up to approximately 2.89% in their ownership interest in Oritani. If
implemented 12&nbsp;months or more following the completion of the conversion, the stock-based incentive
plan will also reserve a number of shares equal to 10.0% of the shares of common stock sold in the
offering, or 5,157,750 shares of common stock at the maximum as adjusted of the offering range, for
issuance pursuant to grants of stock options to key employees and directors. For a description of
our current stock-based incentive plans, see &#147;Management&#151;Compensation Discussion and Analysis.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the number of shares of common stock and the aggregate dollar
value of grants that are expected under the new stock-based incentive plan as a result of the
conversion. The table also shows the dilution to stockholders if all such shares are issued from
authorized but
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">unissued shares, instead of shares purchased in the open market. A portion of the stock
grants shown in the table below may be made to non-management employees.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Number of Shares to be Granted or Purchased (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dilution Resulting</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Value of Grants (2)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>As a Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>From Issuance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Maximum as</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common Stock to be</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares for</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Maximum as</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Minimum of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>adjusted of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Sold in the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock-Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At Minimum of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>adjusted of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Incentive Plans (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering Range</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,326,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,063,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted stock awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,326,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,063,100</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,315,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5,157,750</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,691</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,967,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,283,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,953</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12&nbsp;months of
the completion of the conversion, the number of shares that may be reserved for grants of
restricted stock cannot exceed 4% of the total number of shares to be outstanding upon
completion of the conversion, less the number of shares of restricted stock (adjusted for the
exchange ratio) reserved under previously adopted benefit plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12&nbsp;months of
the completion of the conversion, the number of shares that may be reserved for grants of
stock options cannot exceed 10% of the total number of shares to be outstanding upon
completion of the conversion, less the number of option shares (adjusted for the exchange
ratio) reserved under previously adopted benefit plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value for stock awards is
assumed to be the same as the offering price of $10.00 per share. The fair value of stock
options has been estimated at $3.43 per option using the Black-Scholes option pricing model
with the following assumptions: a grant-date share price and option exercise price of $10.00;
an expected option life of ten years; a dividend yield of 3.0%; an interest rate of 3.85%; and
a volatility rate of 36.45% based on an index of publicly traded thrift institutions. The
actual value of option grants will be determined by the grant-date fair value of the options,
which will depend on a number of factors, including the valuation assumptions used in the
option pricing model ultimately adopted.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the dilution of stock ownership interest. No dilution is reflected for the
employee stock ownership plan because such shares are assumed to be purchased in the offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may fund our plans through open market purchases, as opposed to new issuances of
common stock; however, if any options previously granted under our existing stock option plans are
exercised during the first year following completion of the offering, they will be funded with
newly-issued shares as Office of Thrift Supervision (the &#147;OTS&#148;) regulations do not permit us to
repurchase our shares during the first year following the completion of this offering except to
fund the grants of restricted stock under the stock-based incentive plan or, with prior regulatory
approval, under extraordinary circumstances. The OTS has previously advised that the exercise of
outstanding options and cancellation of treasury shares in the conversion will not constitute an
extraordinary circumstance or a compelling business purpose for satisfying this test.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents information as of December&nbsp;31, 2009 regarding our existing
employee stock ownership plan, our existing stock option plans, our existing recognition and
retention plan, our proposed employee stock ownership plan purchases and our proposed stock-based
incentive plan, all assuming an exchange ratio of 1.6264. The table below assumes that 60,245,458
shares are outstanding after the offering, which includes the sale of 44,850,000 shares in the
offering at the maximum of the offering range, and the issuance of 15,395,458 shares in exchange
for shares of Oritani Financial Corp. using an exchange ratio of 1.6264. It also assumes that the
value of the stock is $10.00 per share.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares Outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Existing and New Stock-Based</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After the</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Incentive Plans</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Participants</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Conversion</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existing employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,585,397</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.29</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,794,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,379,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.27</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors, Officers and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existing shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,292,700</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12,927</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors, Officers and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,794,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors, Officers and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total shares of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,086,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors, Officers and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existing stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3,231,746</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors, Officers and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,485,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15,384</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.44</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors, Officers and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,716,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total of stock-based incentive plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,182,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">101,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of December&nbsp;31, 2009, Oritani Financial Corp.&#146;s existing employee stock ownership plan
held 1,588,649 shares, 237,451 of which have been allocated.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares of restricted stock authorized for grant under our existing recognition and
retention plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value is assumed to be the same
as the offering price of $10.00 per share.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares authorized for grant under our existing stock option plans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The fair value of stock options to be granted under the new stock-based incentive plan has
been estimated based on an index of publicly traded thrift institutions at $3.43 per option
using the Black-Scholes option pricing model with the following assumptions; exercise price,
$10.00; trading price on date of grant, $10.00; dividend yield, 3.0%; expected life, ten
years; expected volatility, 36.45%; and interest rate, 3.85%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares of restricted stock and stock options set forth in the table would
exceed regulatory limits if a stock-based incentive plan was adopted within one year of the
completion of the conversion and offering. Accordingly, the number of new shares of
restricted stock and stock options set forth in the table would have to be reduced such that
the aggregate amount of outstanding stock awards would be 4.0% or less and outstanding stock
options would be 10.0% or less, unless we obtain a waiver from the OTS, or we implement the
incentive plan after twelve months following the completion of the conversion and offering.
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion and offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of the restricted shares awarded under the stock-based incentive plan will be
based on the market value of our common stock at the time the shares are awarded. The stock-based
incentive plan is subject to stockholder approval, and cannot be implemented until at least six
months after completion of the offering. The following table presents the total value of all
shares of restricted stock that would be available for award and issuance under the new stock-based
incentive plan, assuming the new stock-based incentive plan is adopted more than one year after
completion of the conversion, the shares are awarded when the market price of our common stock
ranges from $8.00 per share to $14.00 per share.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>2,063,100 Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1,362,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1,560,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1,794,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awarded at Maximum</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awarded at Minimum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awarded at Midpoint</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awarded at Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Range, As</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Share Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Adjusted</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(Dollars in thousands, except per share data))</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"> $8.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,505</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,757</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,883</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The grant-date fair value of the options granted under the new stock-based incentive plan
will be based in part on the price of shares of common stock of Oritani at the time the options are
granted. The value will also depend on the various assumptions used in the option pricing model
ultimately adopted. The following table presents the total estimated value of the options to be
available for grant under the stock-based incentive plan, assuming the new stock-based incentive
plan is adopted more than one year
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">after completion of the conversion, the market price and exercise price for the stock options
are equal and the range of market prices for the shares is $8.00 per share to $14.00 per share.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>3,900,000 Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>5,157,750 Options</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Grant-Date Fair</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>3,315,000 Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>at Midpoint of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>4,485,000 Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>at Maximum of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value Per Option</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>at Minimum of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>at Maximum of Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Range, As Adjusted</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>(Dollars in thousands, except per share data)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$8.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,691</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,757</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The tables presented above are provided for informational purposes only. Our shares of
common stock may trade below $10.00 per share. Before you make an investment decision, we urge you
to read this entire prospectus carefully, including, but not limited to, the section entitled &#147;Risk
Factors&#148; beginning on page &#95;&#95;&#95;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Dividend Policy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. Oritani expects the annual dividends to equal
$0.30 per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering
range, respectively, which represents an annual dividend yield of 3.0%, at each of the minimum,
midpoint, maximum and adjusted maximum of the offering range, respectively, based upon a price of
$10.00 per share. The amount of dividends that we intend to pay after the conversion will preserve
the dividend rate that Oritani Financial Corp. stockholders currently receive, however, total
dividends received will be positively adjusted to reflect the exchange ratio. The dividend rate and
the continued payment of dividends will depend on a number of factors, including our capital
requirements, our financial condition and results of operations, tax considerations, statutory and
regulatory limitations, and general economic conditions. No assurance can be given that we will
continue to pay dividends or that they will not be reduced or eliminated in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Consolidated Financial and Other Data&#148; and &#147;Market for the Common Stock&#148; for
information regarding our historical dividend payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchases and Ownership by our Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect our directors, executive officers and their associates, to purchase 150,000 shares
of common stock in the offering. The purchase price paid by them will be the same $10.00 per share
price paid by all other persons who purchase shares of common stock in the offering. After the
conversion, as a result of purchases in the offering and the shares they will receive in exchange
for shares of Oritani Financial Corp. that they currently own, our directors and executive
officers, together with their associates, are expected to beneficially own approximately &#95;&#95;&#95;
and &#95;&#95;&#95; shares of common stock, or &#95;&#95;&#95;% and &#95;&#95;&#95;% of our total outstanding shares of common
stock, at the minimum and the maximum of the offering range, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market for the Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Oritani Financial Corp.&#146;s common stock currently trade on the Nasdaq Global Market
under the symbol &#147;ORIT.&#148; Upon completion of the conversion, the shares of common stock of Oritani
will replace Oritani Financial Corp.&#146;s existing shares. We expect that Oritani&#146;s shares
of common stock will trade on the Nasdaq Global Market under the trading symbol &#147;ORITD&#148; for a
period of 20 trading
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">days after the completion of the offering. Thereafter, Oritani&#146;s trading symbol will revert to
&#147;ORIT.&#148; In order to list our common stock on the Nasdaq Global Market, we are required to have at
least three broker-dealers who will make a market in our common stock. Oritani Financial Corp.
currently has &#95;&#95;&#95;registered market makers. Persons purchasing shares of common stock in the
offering may not be able to sell their shares at or above the $10.00 price per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a general matter, the conversion will not be a taxable transaction for federal or state
income tax purposes to Oritani Financial Corp., MHC, Oritani Financial Corp., Oritani Bank,
Oritani, persons eligible to subscribe in the subscription offering, or existing stockholders of
Oritani Financial Corp. Existing stockholders of Oritani Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oritani common stock will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in Stockholders&#146; Rights for Existing Stockholders of Oritani Financial Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, existing stockholders of Oritani Financial Corp. will become
stockholders of Oritani. Some rights of stockholders of Oritani will be reduced compared to the
rights stockholders currently have in Oritani Financial Corp. The reduction in stockholder rights
results from differences between the federal and Delaware charters and bylaws, and from
distinctions between federal and Delaware law. Many of the differences in stockholder rights under
the certificate of incorporation and bylaws of Oritani are not mandated by Delaware law but have
been chosen by management as being in the best interests of Oritani and all of its stockholders.
The differences in stockholder rights in the certificate of incorporation and bylaws of Oritani
include the following: (i)&nbsp;approval by at least a majority of outstanding shares required to
remove a director for cause; (ii)&nbsp;greater lead time required for stockholders to submit proposals
for certain provisions of new business or to nominate directors; and (iii)&nbsp;approval by at least 80%
of outstanding shares required to amend the bylaws and certain provisions of the certificate of
incorporation. See &#147;Comparison of Stockholders&#146; Rights For Existing Stockholders of Oritani
Financial Corp.&#148; for a discussion of these differences.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Dissenters&#146; Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders of Oritani Financial Corp. do not have dissenters&#146; rights in connection with the
conversion and offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Important Risks in Owning Oritani&#146;s Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before you decide to purchase stock, you should read the &#147;Risk Factors&#148; section beginning on
page 22 of this proxy statement/prospectus.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should consider carefully the following risk factors in evaluating an investment in the
shares of common stock.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Our Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Continued Emphasis On Multi-Family and Commercial Real Estate Lending Could Expose Us To
Increased Lending Risks.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business strategy centers on continuing our emphasis on multi-family and commercial real
estate lending. We have grown our loan portfolio in recent years with respect to these types of
loans and intend to continue to emphasize these types of lending. At December&nbsp;31, 2009, $296.3
million, or 21.4%, of our total loan portfolio consisted of multi-family loans and $628.5&nbsp;million,
or 45.5%, of our total loan portfolio consisted of commercial real estate loans. As a result, our
credit risk profile will be higher than traditional thrift institutions that have higher
concentrations of one- to four-family residential loans. Loans secured by multi-family and
commercial real estate generally expose a lender to greater risk of non-payment and loss than one-
to four-family residential mortgage loans because repayment of the loans often depends on the
successful operation of the property and the income stream of the underlying property.
Additionally, such loans typically involve larger loan balances to single borrowers or groups of
related borrowers compared to one- to four-family residential mortgage loans. Accordingly, an
adverse development with respect to one loan or one credit relationship can expose us to greater
risk of loss compared to an adverse development with respect to a one- to four-family residential
mortgage loan. We seek to minimize these risks through our underwriting policies, which require
such loans to be qualified on the basis of the property&#146;s collateral value, net income and debt
service ratio; however, there is no assurance that our underwriting policies will protect us from
credit-related losses. Finally, if we foreclose on multi-family and commercial real estate loans,
our holding period for the collateral typically is longer than one-to four- family residential
mortgage loans because there are fewer potential purchasers of the collateral. As discussed in
&#147;Business of Oritani Financial Corp., MHC, Oritani Financial Corp. and Oritani Bank&#151;Lending
Activities,&#148; we have recently been utilizing stricter underwriting standards for these types of
loans, and have curtailed our construction lending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The largest commercial real estate loan in our portfolio at December&nbsp;31, 2009 was a $21.0
million loan secured by a shopping mall located in Ocean County, New Jersey. Our largest
commercial real estate relationship consisted of properties located mainly in our primary market
area with a real estate investor. The aggregate outstanding loan balance for this relationship is
$47.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>If Our Allowance for Loan Losses is Not Sufficient to Cover Actual Loan Losses, Our Earnings Will
Decrease.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make various assumptions and judgments about the collectability of our loan portfolio,
including the creditworthiness of our borrowers and the value of the real estate and other assets
serving as collateral for the repayment of many of our loans. In determining the amount of the
allowance for loan losses, we review our loans and our loss and delinquency experience, and we
evaluate economic conditions. If our assumptions are incorrect, our allowance for loan losses may
not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to our
allowance. Our delinquent and nonaccrual loans have risen significantly over the past 24&nbsp;months,
and this growth increases the possibility that our allowance for loan losses may be insufficient in
the future. In addition, the majority of our loan growth since June&nbsp;30, 2005 has been in
commercial real estate loans. According to Real Estate Econometrics, a property research firm,
default rates on commercial loans climbed to a 16&nbsp;year high during the quarter ended September&nbsp;30,
2009. Real Estate Econometrics projects that the default rate will
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">peak in 2011, before falling back. While our allowance for loan losses was 1.60% of total
loans at December&nbsp;31, 2009, material additions to our allowance could materially decrease our net
income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, bank regulators periodically review our allowance for loan losses and may require
us to increase our provision for loan losses or recognize further loan charge-offs. Any increase
in our allowance for loan losses or loan charge-offs as required by these regulatory authorities
might have a material adverse effect on our financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Future Changes in Interest Rates Could Reduce Our Profits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to make a profit largely depends on our net interest income, which could be
negatively affected by changes in interest rates. Net interest income is the difference between:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest income we earn on our interest-earning assets, such as loans and
securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest expense we pay on our interest-bearing liabilities, such as
deposits and borrowings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, changes in interest rates can affect the average life of loans and
mortgage-backed and related securities. A reduction in interest rates usually results in increased
prepayments of loans and mortgage-backed and related securities, as borrowers refinance their debt
in order to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we
may not be able to reinvest prepayments at rates that are comparable to the rates we earned on the
original loans or securities. Increases in interest rates may decrease loan demand and/or make it
more difficult for borrowers to repay adjustable rate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest rates also affect the current market value of our interest-earning
securities portfolio. Generally, the value of securities moves inversely with changes in interest
rates. At December&nbsp;31, 2009, the fair value of our securities and mortgage-backed securities
available for sale totaled $419.0&nbsp;million. Unrealized net gains on these available for sale
securities totaled approximately $2.4&nbsp;million, net of taxes, at December&nbsp;31, 2009 and are reported
as a separate component of stockholders&#146; equity. Decreases in the fair value of securities
available for sale in future periods would have an adverse effect on stockholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, many of our FHLB-NY advances are callable, often five years from the date of
issuance. To the extent the FHLB-NY calls all or a portion of these advances, we would need to
find another funding source, which might be more expensive to us than these advances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We evaluate interest rate sensitivity by estimating the change in Oritani Bank&#146;s net portfolio
value over a range of interest rate scenarios. Net portfolio value is the discounted present value
of expected cash flows from assets, liabilities and off-balance sheet contracts. At December&nbsp;31,
2009, in the event of an immediate 200 basis point increase in interest rates, the model projects
that we would experience a $53.6&nbsp;million, or 20.9%, decrease in net portfolio value. See
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#151;Management
of Market Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Direct Investments in Real Estate May Be Riskier than More Traditional Real Estate Loans.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. and Oritani Bank each have formed companies that have invested
directly in real estate. While these investments have provided us net income during the course of
these investments, they are direct investments and represent a greater risk than loans. With
loans, the borrower
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">has an investment interest in the property that partially insulates the loan from the negative
consequences of decreases in the property&#146;s value. There is no such protection with a direct real
estate investment. Any decline in performance of these investments may have an adverse effect on
our net income. As detailed in &#147;Business of Oritani Financial Corp., MHC, Oritani Financial Corp.
and Oritani Bank-Subsidiary Activities and Joint Venture Information,&#148; we have increased our
investments in these types of assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Current Market and Economics Conditions May Significantly Affect Our Operations and Financial
Condition.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent negative developments in the national and global credit markets have resulted in
uncertainty in the financial markets and downturn in general economic conditions, including
increased levels of unemployment. The resulting economic pressure on consumers and businesses may
adversely affect our business, financial condition, and results of operations. A worsening of
these conditions would likely exacerbate the adverse effects of these difficult market conditions
on us and others in the financial services industry. In general, loan and investment securities
credit quality has deteriorated at many institutions and the values of real estate collateral
supporting many commercial loans and home mortgages have declined and may continue to decline.
Indications of the deterioration of the value of real estate collateral have been evidenced on a
national level as well as in our market area. These developments could have a significant negative
effect on our borrowers and the values of underlying collateral securing loans, which could
negatively affect our financial performance. Housing market conditions in the New York metro area,
where most of our lending activity occurs, have deteriorated as evidenced by reduced levels of
sales, increasing inventories of houses on the market, declining house prices and an increase in
the length of time houses remain on the market. The S&#038;P/Case-Shiller Home Price Indices, the
leading measure of U.S. home prices, showed that the price of existing single family homes in the
New York metro area at June&nbsp;30, 2009, suffered a 12.0% decline versus the prior year. RealtyTrac,
a leading online marketplace for foreclosure properties, noted in its 2008 U.S. Foreclosure Market
Report, that New Jersey foreclosures in 2008 had increased 101.2% from 2007, and that the overall
foreclosure rate in New Jersey for 2008 was 1.80%. Foreclosure filings in New Jersey in the first
six months of 2009, increased 31.6% compared to the first half of 2008. Weakening economic
conditions in the residential and commercial real estate sector have adversely affected, and may
continue to adversely affect, our loan portfolio. Total non-performing assets increased from $44.1
million at December&nbsp;31, 2008 to $52.5&nbsp;million at December&nbsp;31, 2009. Total non-performing loans as
a percentage of total assets decreased to 2.59% at December&nbsp;31, 2009 as compared to 2.66% at
December&nbsp;31, 2008. If loans that are currently non-performing further deteriorate or loans that
are currently performing become non-performing loans, we may need to increase our allowance for
loan losses, which would have an adverse impact on our financial condition and results of
operations. We would have recognized an additional $1.3&nbsp;million and $3.7&nbsp;million in interest
income during the six months ended December&nbsp;31, 2009 and year ended June&nbsp;30, 2009, respectively,
had non-performing loans performed in accordance with the original terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Deposit Growth Has Been a Primary Funding Source. If Deposit Growth Slows, It May Be More
Expensive For Us to Fund Loan Originations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recently experienced a period of unprecedented deposit growth, with a 61.3% increase
in deposit balances from June&nbsp;30, 2008 to June&nbsp;30, 2009, and annualized growth for the six month
period ended December&nbsp;31, 2009 of 14.7%. We will continue to focus on deposit growth, which we use
to fund loan originations and purchase investment securities. If we are unable to continue to
increase our deposit balances, we may be required to utilize alternative sources of funding,
including Federal Home Loan Bank (&#147;FHLB&#148;) advances, or increase our deposit rates, each of which
will increase our cost of funds.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Any future Federal Deposit Insurance Corporation insurance premiums or special assessments will
adversely impact our earnings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;22, 2009, the FDIC adopted a final rule levying a five basis point special assessment
on each insured depository institution&#146;s assets minus Tier 1 capital as of June&nbsp;30, 2009. We
recorded an expense of $846,000 during the quarter ended June&nbsp;30, 2009, to reflect the special
assessment. Any further special assessments that the FDIC levies will be recorded as an expense
during the appropriate period. In addition, the FDIC increased the general assessment rate and,
therefore, our FDIC general insurance premium expense will increase compared to prior periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC also issued a final rule pursuant to which all insured depository institutions were
required to prepay on December&nbsp;30, 2009 their estimated assessments for the fourth quarter of 2009,
and for all of 2010, 2011 and 2012. The assessment rate for the fourth quarter of 2009 and for
2010 was based on each institution&#146;s total base assessment rate for the third quarter of 2009,
modified to assume that the assessment rate in effect on September&nbsp;30, 2009 had been in effect for
the entire third quarter, and the assessment rate for 2011 and 2012 would be equal to the modified
third quarter assessment rate plus an additional three basis points. In addition, each
institution&#146;s base assessment rate for each period was calculated using its third quarter
assessment base, adjusted quarterly for an estimated 5% annual growth rate in the assessment base
through the end of 2012. We made a payment of $7.6&nbsp;million to the FDIC on December&nbsp;30, 2009, and
recorded the payment as a prepaid expense, which will be amortized to expense over three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>If Our Investment in the Federal Home Loan Bank of New York is Classified as Other-Than-Temporarily
Impaired or as Permanently Impaired, Our Earnings Could Decrease.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We own common stock of the Federal Home Loan Bank of New York (the &#147;FHLB-NY&#148;). We hold the
FHLB-NY common stock to qualify for membership in the Federal Home Loan Bank System and to be
eligible to borrow funds under the FHLB-NY&#146;s advance program. The aggregate cost and fair value of
our FHLB-NY common stock as of December&nbsp;31, 2009 was $25.5&nbsp;million based on its par value. There
is no market for our FHLB-NY common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent published reports indicate that certain member banks of the Federal Home Loan Bank
System may be subject to asset quality-related risks that could result in materially lower
regulatory capital levels. In an extreme situation, it is possible that the capitalization of a
FHLB, including the FHLB-NY, could be substantially diminished or reduced to zero. Consequently,
we believe that there is a risk that our investment in FHLB-NY common stock could be deemed
other-than-temporarily impaired at some time in the future, and if this occurs, it would cause our
earnings to decrease by the after-tax amount of the impairment charge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Inability to Achieve Profitability on New Branches May Negatively Affect Our Earnings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have expanded our presence throughout our market area and we intend to pursue further
expansion through de novo branching. The profitability of our expansion strategy will depend on
whether the income that we generate from the new branches will offset the increased expenses
resulting from operating these branches. We expect that it may take a period of time before these
branches can become profitable, especially in areas in which we do not have an established
presence. During this period, the expense of operating these branches may negatively affect our
net income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Strong Competition Within Our Market Area May Limit Our Growth and Profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the banking and financial services industry is intense. In our market area, we
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">compete with numerous commercial banks, savings institutions, mortgage brokerage firms, credit
unions, finance companies, mutual funds, insurance companies, and brokerage and investment banking
firms operating locally and elsewhere. Some of our competitors have substantially greater resources
and lending limits than we have, have greater name recognition and market presence that benefit
them in attracting business, and offer certain services that we do not or cannot provide. In
addition, larger competitors may be able to price loans and deposits more aggressively than we do.
Our profitability depends upon our continued ability to successfully compete in our market area.
The greater resources and deposit and loan products offered by some of our competitors may limit
our ability to increase our interest-earning assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>We Operate in a Highly Regulated Industry, Which Limits the Manner and Scope of Our Business
Activities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to extensive supervision, regulation and examination by the New Jersey
Department of Banking and Insurance and by the FDIC. As a result, we are limited in the manner in
which we conduct our business, undertake new investments and activities and obtain financing. This
regulatory structure is designed primarily for the protection of the FDIC&#146;s Deposit Insurance Fund
(&#147;DIF&#148;) and our depositors, and not to benefit our stockholders. This regulatory structure also
gives the regulatory authorities extensive discretion in connection with their supervisory and
enforcement activities and examination policies, including policies with respect to capital levels,
the timing and amount of dividend payments, the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes. In addition, we must comply with significant
anti-money laundering and anti-terrorism laws. Government agencies have substantial discretion to
impose significant monetary penalties on institutions which fail to comply with these laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A Legislative Proposal Has Been Introduced That Would Require Oritani to Become a Bank Holding
Company.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislation has been proposed that would implement sweeping changes to the current bank
regulatory structure. The proposal would, among other things, merge the OTS into the Office of the
Comptroller of the Currency. As discussed further under &#147;Supervision and Regulation&#151;Holding
Company Regulation,&#148; federal law allows a state savings bank that qualifies as a Qualified Thrift
Lender, such as Oritani Bank, to elect to be treated as a savings association for purposes of the
savings and loan holding company provisions of the Home Owners&#146; Loan Act of 1933, as amended. Such
election results in the state savings bank&#146;s holding company being regulated as a savings and loan
holding company by the OTS rather than as a bank holding company regulated by the Board of
Governors of the Federal Reserve System. If the OTS is eliminated, Oritani would become a bank
holding company subject to regulation and supervision under the Bank Holding Company Act of 1956,
as amended, and the supervision and regulation of the Board of Governors of the Federal Reserve
System, including holding company regulatory capital requirements to which Oritani Financial Corp.
is not currently subject. Such regulatory changes could impact our ability to continue our real
estate investments and joint ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The future price of the shares of common stock may be less than the $10.00 purchase price per share
in the offering.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you purchase shares of common stock in the offering, you may not be able to sell them later
at or above the $10.00 purchase price in the offering. In several cases, shares of common stock
issued by newly converted savings institutions or mutual holding companies have traded below the
initial offering price. The aggregate purchase price of the shares of common stock sold in the
offering will be based on an independent appraisal. The independent appraisal is not intended, and
should not be construed, as a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">recommendation of any kind as to the advisability of purchasing shares of common stock. The
independent appraisal is based on certain estimates, assumptions and projections, all of which are
subject to change from time to time. After our shares begin trading, the trading price of our
common stock will be determined by the marketplace, and may be influenced by many factors,
including prevailing interest rates, the overall performance of the economy, investor perceptions
of Oritani and the outlook for the financial services industry in general. Price fluctuations may
be unrelated to the operating performance of particular companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>We have broad discretion to deploy our net proceeds. Our failure to timely or effectively deploy
the net proceeds may have an adverse impact on our financial performance and the value of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani intends to contribute between $159.4&nbsp;million and $215.9&nbsp;million of the net proceeds of
the offering (or $248.4&nbsp;million at the adjusted maximum of the offering range) to Oritani Bank.
Oritani may use the remaining net proceeds to invest in short-term investments (which generally
have low interest rates), to repurchase shares of common stock, to pay dividends or for other
general corporate purposes. Oritani also expects to use a portion of the net proceeds it retains
to fund a loan for the purchase of shares of common stock in the offering by the employee stock
ownership plan. Oritani Bank may use the net proceeds it receives to fund new loans, to purchase
investment securities, to acquire financial institutions or financial services companies, build or
acquire new branches, or for other general corporate purposes. With the exception of the loan to
the employee stock ownership plan and some of our branching initiatives, we have not allocated
specific amounts of the net proceeds for any of these purposes, and we will have significant
flexibility in determining the amount of the net proceeds we apply to different uses and the timing
of such applications. We have not established a timetable for reinvesting of the net proceeds, and
we cannot predict how long we will require to reinvest the net proceeds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our return on equity initially will be low compared to our historical performance. A lower return
on equity may negatively impact the trading price of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income divided by average stockholders&#146; equity, known as &#147;return on average equity&#148; is a
ratio many investors use to compare the performance of a financial institution to its peers. Our
return on average equity ratio of 6.08% for the six months ended December&nbsp;31, 2009, compared to an
average negative return on equity of 0.57% based on trailing twelve-month earnings for all publicly
traded fully converted savings institutions as of February&nbsp;19, 2010. Although we expect that our
net income will increase following the offering, we expect that our return on average equity will
decrease as a result of the additional capital that we will raise in the offering. For example,
our pro forma return on equity for the six months ended December&nbsp;31, 2009 is 2.5%, assuming the
sale of shares at the maximum of the offering range. Over time, we intend to use the net proceeds
from the offering to increase earnings per share and book value per share, without assuming undue
risk, with the goal of achieving a return on equity that is comparable to our historical
performance. This goal may take a number of years to achieve, and we cannot assure you that we
will be able to achieve it. Consequently, you should not expect a return on equity similar to our
current return on equity in the near future. Failure to achieve a competitive return on equity may
make an investment in our common stock unattractive to some investors and may cause our common
stock to trade at lower prices than comparable companies with higher returns on equity. See &#147;Pro
Forma Data&#148; for an illustration of the financial impact of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The ownership interest of management and employees could enable insiders to prevent a merger that
may provide stockholders a premium for their shares.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock that our directors and officers intend to purchase in the offering,
when combined with the shares that they will receive in the exchange for their existing shares of
Oritani
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financial Corp. common stock are expected to result in management and the Board of Directors
controlling approximately &#95;&#95;&#95;% of our outstanding shares of common stock at the midpoint of the
offering range. In addition, our employee stock ownership plan is expected to purchase 4.0% of the
shares of common stock sold in the stock offering, and additional stock options and shares of
common stock would be granted to our directors and employees if a stock-based incentive plan is
adopted in the future. This would result in management and employees controlling a significant
percentage of our shares of common stock. If these individuals were to act together, they could
have significant influence over the outcome of any stockholder vote. This voting power may
discourage a potential sale of Oritani that our stockholders may desire.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The implementation of the stock-based incentive plan may dilute your ownership interest.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to adopt a new stock-based incentive plan following the offering, subject to receipt
of stockholder approval. This stock-based incentive plan may be funded either through open market
purchases or from the issuance of authorized but unissued shares of common stock of Oritani. While
our intention is to fund this plan through open market purchases, stockholders would experience an
8.15% reduction in ownership interest at the adjusted maximum of the offering range in the event
newly issued shares of our common stock are used to fund stock options or shares of restricted
common stock under the plan in an amount equal to up to 10.0% and 4.0%, respectively, of the shares
sold in the offering. In the event we adopt the plan within twelve months following the
conversion, shares of common stock reserved for issuance pursuant to awards of restricted stock and
grants of options under the stock-based incentive plan would be limited to 4.0% and 10.0%,
respectively, of the total shares to be outstanding upon completion of the conversion, less the
number of shares of common stock reserved for stock awards and stock options (adjusted by the
exchange ratio) received under previously adopted benefit plans. In the event we adopt the plan
more than one year following the conversion, the plan will not be subject to these limitations.
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion and offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, historically, the overwhelming majority of stock-based benefit plans adopted by savings
institutions and their holding companies following mutual-to-stock conversions have been approved
by stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional expenses following the conversion from the compensation and benefit expenses associated
with the implementation of the new stock-based incentive benefit plan will adversely affect our
profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to adopt a new stock-based incentive plan after the offering, subject to stockholder
approval, pursuant to which plan participants would be awarded restricted shares of our common
stock (at no cost to them) and options to purchase shares of our common stock. If the stock-based
incentive plan is implemented within twelve months of the completion of the offering, the number of
shares of common stock reserved for issuance for awards of restricted stock or grants of options
under such stock-based incentive plan may not exceed 4.0% and 10.0%, respectively, of the total
shares to be outstanding upon completion of the conversion, less the number of shares of common
stock reserved for stock awards and stock option (adjusted by the exchange ratio) received under
previously adopted benefit plans. If we award restricted shares of common stock or grant options
in excess of these amounts under a stock-based incentive plan adopted more than one year after the
completion of the offering, our costs would increase further. Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after completion of the
offering.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the offering, our non-interest expenses are likely to increase as we will recognize
additional annual employee compensation and benefit expenses related to the shares granted to
employees and executives under our stock-based incentive plan. We cannot predict the actual amount
of these new stock-related compensation and benefit expenses because applicable accounting
practices require that expenses be based on the fair market value of the shares of common stock at
specific points in the future; however, we expect them to be material. In addition, we would
recognize expense for our employee stock ownership plan when shares are committed to be released to
participants&#146; accounts (i.e., as the loan used to acquire these shares is repaid), and we would
recognize expense for restricted stock awards and stock options over the vesting period of awards
made to recipients. The expense in the first year following the offering has been estimated to be
approximately $8.7&nbsp;million ($6.0&nbsp;million after tax) at the adjusted maximum of the offering range
as set forth in the pro forma financial information under &#147;Pro Forma Data,&#148; assuming the $10.00 per
share purchase price as fair market value. Actual expenses, however, may be higher or lower,
depending on the price of our common stock. In addition, all stock options and stock awards
currently outstanding will vest upon completion of the conversion. We anticipate the pre-tax
expense of such accelerated vesting as well as the accelerated vesting for outstanding stock awards
will be approximately $11.3&nbsp;million, with such expense to be incurred during the fiscal quarter in
which the stock offering is completed. For further discussion of our proposed stock-based plans,
see &#147;Management&#151;Compensation Discussion and Analysis.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock-based incentive plans implemented twelve months following the stock offering may exceed
regulatory restrictions on the size of stock-based incentive plans.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we implement stock-based incentive plans within twelve months following the completion of
the stock offering, then we may reserve shares of common stock for awards of restricted stock or
grants of stock options under our stock-based incentive plans for up to 4.0% and 10.0%,
respectively, of the shares of stock to be outstanding upon completion of the stock offering, less
the number of shares of restricted stock and option shares (adjusted for the exchange ratio)
reserved under previously adopted benefit plans. The amount of stock awards and stock options
available for grant under the stock-based incentive plans may exceed these amounts, provided the
stock-based incentive plans are implemented twelve months or more following the stock offering.
Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, the determination as to the timing of the implementation of such a plan will be at the
discretion of our board of Directors. Stock-based incentive plans that provide for awards in excess
of these amounts would increase our costs beyond the amounts estimated in &#147;&#151;Additional expenses
following the conversion from the compensation and benefit expenses associated with the
implementation of the new stock-based incentive benefit plan will adversely affect our
profitability.&#148; Stock-based incentive plans that provide for awards in excess of these amounts
could also result in dilution to stockholders in excess of that described in &#147;&#151;The implementation
of the stock-based incentive plan may dilute your ownership interest.&#148; Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after the completion of
the conversion. Pro forma data is presented herein assumes the reservation of 4% and 10% of the
outstanding shares of common stock upon completion of the stock offering for awards of estimated
stock or grants of stock options, respectively, and the expenses associated with such amounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Various factors may make takeover attempts more difficult to achieve.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has no current intention to sell control of Oritani. Provisions of our
certificate of incorporation and bylaws, federal regulations, Delaware law and various other
factors may make it more difficult for companies or persons to acquire control of Oritani without
the consent of our Board of Directors. You may want a takeover attempt to succeed because, for
example, a potential acquirer could offer a premium over the then prevailing price of our common
stock. The factors that may discourage takeover attempts or make them more difficult include:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Office of Thrift Supervision Regulations</I></B><B>. </B>OTS regulations prohibit, for
three years following the completion of a conversion, the direct or indirect
acquisition of more than 10.0% of any class of equity security of a savings institution
or holding company regulated by the OTS regulated holding company of a converted
institution without the prior approval of the OTS.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Certificate of incorporation and statutory provisions. </I></B>Provisions of the
certificate of incorporation and bylaws of Oritani and Delaware law may make it more
difficult and expensive to pursue a takeover attempt that management opposes, even if
the takeover is favored by a majority of our stockholders. These provisions also would
make it more difficult to remove our current Board of Directors or management, or to
elect new directors. Additional provisions include limitations on voting rights of
beneficial owners of more than 10.0% of our common stock, the election of directors to
staggered terms of three years and not permitting cumulative voting in the election of
directors. Our bylaws also contain provisions regarding the timing and content of
stockholder proposals and nominations and qualification for service on the Board of
Directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Issuance of stock options and restricted stock</I></B><B>. </B>We also intend to issue
stock options and shares of restricted stock to key employees and directors that will
require payments to these persons in the event of a change in control of Oritani.
These payments may have the effect of increasing the costs of acquiring Oritani,
thereby discouraging future takeover attempts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Employment agreements</I></B><B>. </B>Oritani Financial Corp. has employment agreements
with each of its executive officers which will remain in effect following the stock
offering. These agreements may have the effect of increasing the costs of acquiring
Oritani, thereby discouraging future takeover attempts.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>There may be a decrease in stockholders&#146; rights for existing stockholders of Oritani Financial
Corp.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, existing stockholders of Oritani Financial Corp. will become
stockholders of Oritani. Some rights of stockholders of Oritani will be reduced compared to the
rights stockholders currently have in Oritani Financial Corp. The reduction in stockholder rights
results from differences between the federal and Delaware charters and bylaws, and from
distinctions between federal and Delaware law. Many of the differences in stockholder rights under
the certificate of incorporation and bylaws of Oritani are not mandated by Delaware law but have
been chosen by management as being in the best interests of Oritani and its stockholders. The
certificate of incorporation and bylaws of Oritani include the following provisions: (i)&nbsp;approval
by at least a majority of outstanding shares required to remove a director for cause; (ii)&nbsp;greater
lead time required for stockholders to submit proposals for new business or to nominate directors;
and (iii)&nbsp;approval by at least 80% of outstanding shares of capital stock entitled to vote
generally is required to amend the bylaws and certain provisions of the certificate of
incorporation. See &#147;Comparison of Stockholders&#146; Rights For Existing Stockholders of Oritani
Financial Corp.&#148; for a discussion of these differences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>You may not revoke your decision to purchase Oritani common stock in the subscription offering
after you send us your subscription.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds submitted or automatic withdrawals authorized in the connection with a purchase of
shares of common stock in the subscription offering will be held by us until the completion or
termination of the conversion and offering, including any extension of the expiration date.
Because completion of the conversion and offering will be subject to regulatory approvals and an
update of the independent appraisal
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prepared by RP Financial, LC., among other factors, there may be one or more delays in the
completion of the conversion and offering. Orders submitted in the subscription offering are
irrevocable, and subscribers will have no access to subscription funds unless the offering is
terminated, or extended beyond &#091;extension date&#093;, or the number of shares to be sold in the offering
is increased to more than 51,577,500 shares or decreased to less than 33,150,000 shares.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INFORMATION ABOUT THE SPECIAL MEETING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement/prospectus is being furnished to you in connection with the solicitation
by the Board of Directors of Oritani Financial Corp. of proxies to be voted at the special meeting
of stockholders to be held at &#091;place/address for meeting&#093;,
on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, at &#95;&#95;&#95; a.m.,
Eastern Time, and any adjournment or postponement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the special meeting is to consider and vote upon the Plan of Conversion and
Reorganization of Oritani Financial Corp., MHC (referred to herein as the &#147;plan of conversion&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, stockholders will vote on a proposal to approve the adjournment of the special
meeting, if necessary, to solicit additional proxies in the event that there are not sufficient
votes at the time of the special meeting to approve the proposals. Stockholders also will vote on
informational proposals with respect to the certificate of incorporation and bylaws of Oritani
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Voting in favor of or against the plan of conversion includes a vote for or against the
conversion of Oritani Financial Corp., MHC to a stock holding company as contemplated by the plan
of conversion. Voting in favor of the plan of conversion will not obligate you to purchase any
shares of common stock in the offering and will not affect the balance, interest rate or federal
deposit insurance of any deposits at Oritani Bank.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Who Can Vote at the Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are entitled to vote your Oritani Financial Corp. common stock if our records show that
you held your shares as of the close of business on &#091;stockholder record date&#093;. If your shares are
held in a stock brokerage account or by a bank or other nominee, you are considered the beneficial
owner of shares held in street name and these proxy materials are being forwarded to you by your
broker or nominee. As the beneficial owner, you have the right to direct your broker or nominee
how to vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the close of business on &#091;stockholder record date&#093;, there were <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of
Oritani Financial Corp. common stock outstanding. Each share of common stock has one vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Attending the Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a stockholder as of the close of business on &#091;stockholder record date&#093;, you may
attend the meeting. However, if you hold your shares in street name, you will need proof of
ownership to be admitted to the meeting. A recent brokerage statement or a letter from a bank or
broker are examples of proof of ownership. If you want to vote your shares of Oritani Financial
Corp. common stock held in street name in person at the meeting, you will have to get a written
proxy in your name from the broker, bank or other nominee who holds your shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Quorum; Vote Required</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The special meeting will be held only if there is a quorum. A quorum exists if a majority of
the outstanding shares of common stock entitled to vote, represented in person or by proxy, is
present at the meeting. If you return valid proxy instructions or attend the meeting in person,
your shares will be counted for purposes of determining whether there is a quorum, even if you
abstain from voting. Broker non-votes also will be counted for purposes of determining the
existence of a quorum. A broker non-vote occurs when a broker, bank or other nominee holding
shares for a beneficial owner does not vote on a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">particular proposal because the nominee does not have discretionary voting power with respect to
that item and has not received voting instructions from the beneficial owner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 1: Approval of the Plan of Conversion and Reorganization. </B>We must obtain the
affirmative vote of the holders of (i)&nbsp;two-thirds of the outstanding common stock of Oritani
Financial Corp. entitled to be cast at the special meeting, including shares held by Oritani
Financial Corp., MHC, and (ii)&nbsp;a majority of the outstanding shares of common stock of Oritani
Financial Corp. entitled to be cast at the special meeting, other than shares held by Oritani
Financial Corp., MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proposal 2: Approval of the adjournment of the special meeting. </B>We must obtain the
affirmative vote of at least a majority of the votes cast by Oritani Financial Corp. stockholders
entitled to vote at the special meeting to adjourn the special meeting, if necessary, to solicit
additional proxies in the event that there are not sufficient votes at the time of the special
meeting to approve the proposal to approve the plan of conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposals 3a through 3d: Approval of certain provisions in Oritani&#146;s
certificate of incorporation. </B>The provisions of Oritani&#146;s certificate of incorporation and bylaws
which are summarized as informational proposals were approved as part of the process in which the
Board of Directors of Oritani Financial Corp. approved the plan of conversion. These proposals are
informational in nature only, because the Office of Thrift Supervision&#146;s regulations governing
mutual-to-stock conversions do not provide for votes on matters other than the plan of conversion.
While we are asking you to vote with respect to each of the informational proposals, the proposed
provisions for which an informational vote is requested will become effective if stockholders
approve the plan of conversion, regardless of whether stockholders vote to approve any or all of
the informational proposals. The provisions of Oritani&#146;s certificate of incorporation and bylaws
which are summarized as informational proposals may have the effect of deterring or rendering more
difficult attempts by third parties to obtain control of Oritani, if such attempts are not approved
by the Board of Directors, or may make the removal of the Board of Directors or management, or the
appointment of new directors, more difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Matters. </B>We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oritani Financial Corp. At this time, we know of
no other matters that may be presented at the special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shares Held by Oritani Financial Corp., MHC and Our Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of &#091;stockholder record date&#093;, Oritani Financial Corp., MHC beneficially owned 27,575,476
shares of Oritani Financial Corp. common stock. This equals approximately 74.4% of our outstanding
shares. Oritani Financial Corp., MHC intends to vote all of its shares in favor of Proposal
1&#151;Approval of the plan of conversion, Proposal 2&#151;Approval of the adjournment of the special
meeting, and Informational Proposals 3a through 3d.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of &#091;stockholder record date&#093;, our officers and directors beneficially owned <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares
of Oritani Financial Corp. common stock, not including shares that they may acquire upon the
exercise of outstanding stock options. This equals &#95;&#95;&#95;% of our outstanding shares and &#95;&#95;&#95;% of
shares held by persons other than Oritani Financial Corp., MHC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Voting by Proxy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors is sending you this proxy statement/prospectus to request that you
allow your shares of Oritani Financial Corp. common stock to be represented at the special meeting
by the persons named in the enclosed proxy card. All shares of Oritani Financial Corp. common
stock
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">represented at the meeting by properly executed and dated proxies will be voted according to the
instructions indicated on the proxy card. If you sign, date and return a proxy card without giving
voting instructions, your shares will be voted as recommended by our Board of Directors. Our Board
of Directors recommends that you vote <B>&#147;FOR&#148; </B>approval of the plan of conversion, <B>&#147;FOR&#148; </B>approval of
the adjournment of the special meeting, and <B>&#147;FOR&#148; </B>each of the Informational Proposals 3a through
3d.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any matters not described in this proxy statement/prospectus are properly presented at the
special meeting, the Board of Directors will use their judgment to determine how to vote your
shares. We do not know of any other matters to be presented at the special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your Oritani Financial Corp. common stock is held in street name, you will receive
instructions from your broker, bank or other nominee that you must follow to have your shares
voted. Your broker, bank or other nominee may allow you to deliver your voting instructions via
the telephone or the Internet. Please see the instruction form provided by your broker, bank or
other nominee that accompanies this proxy statement/prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revocability of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oritani Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Solicitation of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement/prospectus and the accompanying proxy card are being furnished to you in
connection with the solicitation of proxies for the special meeting by the Board of Directors.
Oritani Financial Corp. will pay the costs of soliciting proxies from its stockholders. To the
extent necessary to permit approval of the plan of conversion and the other proposals being
considered, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, our proxy solicitor, directors, officers or employees of
Oritani Financial Corp. and Oritani Bank may solicit proxies by mail, telephone and other forms of
communication. We will reimburse such persons for their reasonable out-of-pocket expenses incurred
in connection with such solicitation. For its services as information agent and stockholder proxy
solicitor, we will pay <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> plus out-of-pocket expenses and charges for
telephone calls in connection with the solicitation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will also reimburse banks, brokers, nominees and other fiduciaries for the expenses they
incur in forwarding the proxy materials to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Participants in the Employee Stock Ownership Plan and 401(k) Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you participate in Oritani Bank Employee Stock Ownership Plan (the &#147;ESOP&#148;) or if you hold
shares through the Oritani Bank 401(k) Plan (&#147;401(k) Plan&#148;), you will receive a voting instruction
form for each plan that reflects all shares you may direct the trustees to vote on your behalf
under the plans. Under the terms of the ESOP, the ESOP trustee votes all shares held by the ESOP,
but each ESOP participant may direct the trustee how to vote the shares of common stock allocated
to his or her account. The ESOP trustee, subject to the exercise of its fiduciary duties, will vote
all unallocated shares of Oritani Financial Corp. common stock held by the ESOP and allocated
shares for which no voting instructions are received in the same proportion as shares for which it
has received timely voting instructions. Under the terms of the 401(k) Plan, a participant is
entitled to direct the trustee as to the shares in the Oritani
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financial Corp. Stock Fund credited to his or her account. The trustee will vote all shares for
which no directions are given or for which instructions were not timely received in the same
proportion as shares for which the trustee received voting instructions. The deadline for returning
your voting instructions to each plan&#146;s trustee is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recommendation of the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you promptly sign and mark the enclosed proxy in favor
of the above described proposals, including, the adoption of the plan of conversion and promptly
return it in the enclosed envelope. Voting the proxy card will not prevent you from voting in
person at the special meeting. If you prefer, you may vote by using the telephone or Internet.
For information on submitting your proxy or voting by telephone or Internet, please refer to the
instructions on the enclosed proxy.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your prompt vote is very important. Failure to vote will have the same effect as voting
against the plan of conversion.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 1 &#151; APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani Financial Corp. and the Board of Trustees of Oritani
Financial Corp., MHC, have approved the plan of conversion and reorganization, referred to herein
as the &#147;plan of conversion.&#148; The plan of conversion must also be approved by the members of
Oritani Financial Corp., MHC (depositors of Oritani Bank) and the stockholders of Oritani Financial
Corp.. A special meeting of members and a special meeting of stockholders have been called for
this purpose. The Office of Thrift Supervision has conditionally approved the plan of conversion;
however, such approval does not constitute a recommendation or endorsement of the plan of
conversion by that agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the plan of conversion and reorganization, our organization will convert from the
mutual holding company form of organization to the fully stock form. Oritani Financial Corp., MHC,
the mutual holding company parent of Oritani Financial Corp., will be merged into Oritani Financial
Corp., and Oritani Financial Corp., MHC will no longer exist. Oritani Financial Corp. will merge
into a new Delaware corporation named Oritani Financial Corp. (a Delaware corporation). As part of
the conversion, the ownership interest of Oritani Financial Corp., MHC in Oritani Financial Corp.
will be offered for sale in the offering by Oritani. When the conversion is completed, all of the
outstanding common stock of Oritani Bank will be owned by Oritani, and all of the outstanding
common stock of Oritani will be owned by public stockholders. A diagram of our corporate structure
before and after the conversion is set forth in the &#147;Summary&#148; section of this document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion and reorganization, at the completion of the conversion, each
share of Oritani Financial Corp. common stock owned by persons other than Oritani Financial Corp.,
MHC will be canceled and converted automatically into new shares of Oritani common stock determined
pursuant to an exchange ratio. The exchange ratio will ensure that immediately after the exchange
of existing shares of Oritani Financial Corp. for new shares, the public stockholders will own the
same percentage of shares of common stock of Oritani that they owned in Oritani Financial Corp.
immediately prior to the conversion, excluding any shares they purchased in the offering and cash
paid in lieu of fractional shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani intends to contribute between $159.2&nbsp;million and $215.7&nbsp;million of net proceeds, or
$248.2&nbsp;million if the offering range is increased by 15%, to Oritani Bank and to retain between
$145.9&nbsp;million and $197.8&nbsp;million of the net proceeds, or $227.6&nbsp;million if the offering range is
increased by 15% (excluding the portion of the net proceeds loaned to our employee stock ownership
plan). The conversion will be consummated only upon the issuance of at least the minimum number of
shares of our common stock offered pursuant to the plan of conversion and reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization provides that we will offer shares of common stock
in a &#147;subscription offering&#148; in the following descending order of priority:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>First, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on December&nbsp;31, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second, to our tax-qualified employee benefit plans, including our employee
stock ownership plan and 401(k) plan, which will receive nontransferable subscription
rights to purchase in the aggregate up to 10.0% of the shares of common stock sold in
the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Third, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on &#091;supplemental record date&#093;.</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fourth, to depositors of Oritani Bank at the close of business on &#091;depositor
record date&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If all shares are not subscribed for in the subscription offering, we may, at our discretion,
offer shares of common stock for sale in a community offering, with a preference given in the
following order:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank&#146;s borrowers (with an outstanding loan or line of credit) as of
December&nbsp;31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December&nbsp;31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s public stockholders as of &#091;stockholder record date&#093;.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to accept or reject, in whole or in part, any orders to purchase shares of
the common stock received in the community offering. The community offering, if any, may begin at
the same time as, during, or after the subscription offering and must be completed within 45&nbsp;days
after the completion of the subscription offering unless otherwise extended by the OTS. See
&#147;&#151;Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock not purchased in the subscription offering or community offering
may be offered to the general public on a best efforts basis by Stifel, Nicolaus &#038; Company,
Incorporated, acting as sole book-running manager, and &#091;co-managers&#093;, as co-managers, in a
syndicated community offering through a syndicate of selected dealers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to accept or reject orders received in the syndicated community offering at
our sole discretion. The syndicated community offering may begin at any time following the
commencement of the subscription offering and must be completed within 45&nbsp;days after the completion
of the subscription offering unless otherwise extended by us, with approval of the OTS.
Alternatively, we may sell any remaining shares in an underwritten public offering, which would be
conducted on a firm commitment basis. See &#147;&#151;Syndicated Community Offering.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation of the estimated pro forma market value of Oritani. All shares of common
stock to be sold in the offering will be sold at $10.00 per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. The independent valuation will be
updated and the final number of the shares of common stock to be issued in the offering will be
determined at the completion of the offering. See &#147;&#151;Stock Pricing and Number of Shares to be
Issued&#148; for more information as to the determination of the estimated pro forma market value of the
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion and reorganization. A copy of the plan of
conversion and reorganization is available for inspection at each banking office of Oritani Bank
and at the Northeast Regional and the Washington, D.C. offices of the OTS. The plan of conversion
and reorganization is also filed as an exhibit to Oritani Financial Corp., MHC&#146;s application to
convert from mutual to stock form, of which this prospectus is a part, copies of which may be
obtained from the OTS. The plan of conversion and reorganization is also an exhibit to Oritani&#146;s
Registration Statement on Form S-1, which is accessible on the Securities and Exchange Commission
website, <u>www.sec.gov</u>. See &#147;Where You Can Find Additional Information.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the Plan of Conversion and
Reorganization of Oritani Financial Corp., MHC.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Conversion and Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors decided at this time to convert to a fully public stock form of
ownership and conduct the offering in order to increase our capital position. Completing the
offering is necessary for us to continue to grow and execute our business strategy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary reasons for converting and raising additional capital through the offering are:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a fully converted stock holding company, we will have greater flexibility in structuring
mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure limits our ability to offer shares of
our common stock as consideration for a merger or acquisition since Oritani Financial Corp., MHC is
required to own a majority of our shares of common stock. Potential sellers often want stock for
at least part of the purchase price. Our new stock holding company structure will enable us to
offer stock or cash consideration, or a combination of stock and cash, and will therefore enhance
our ability to compete with other bidders when acquisition opportunities arise.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Office of Thrift Supervision has conditionally approved the plan of conversion and
reorganization; however, such approval does not constitute a recommendation or endorsement of the
plan of conversion and reorganization by that agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot complete the conversion unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by at least <I>a
majority of votes eligible </I>to be cast by members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) as of &#091;depositor record date&#093;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by a vote of at
least <I>two-thirds of the outstanding shares </I>of common stock of Oritani Financial Corp.
as of &#091;stockholder record date&#093;, including shares held by Oritani Financial Corp., MHC.
(Because Oritani Financial Corp., MHC owns 74.4% of the outstanding shares of Oritani
Financial Corp. common stock, we expect that Oritani Financial Corp., MHC and our
directors and executive officers will control the outcome of this vote.);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan of conversion and reorganization is approved by a vote of at
least <I>a majority of the outstanding shares </I>of common stock of Oritani Financial Corp.
as of &#091;stockholder record date&#093;, excluding those shares held by Oritani Financial
Corp., MHC;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We sell at least the minimum number of shares of common stock offered; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We receive the final approval of the Office of Thrift Supervision to
complete the conversion; (including the merger of Oritani Financial Corp., MHC into
Oritani Financial Corp. and the merger of Oritani Financial Corp. into Oritani)
however, such approval does not constitute a recommendation or endorsement of the plan
of conversion and reorganization by that agency.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At &#091;stockholder record date&#093;, Oritani Financial Corp., MHC owned
74.4% of the outstanding shares of common stock of Oritani Financial Corp. The directors and
executive officers of Oritani Financial Corp. and their affiliates owned <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares of Oritani
Financial Corp., or &#95;&#95;&#95;% of the outstanding shares of common stock as of &#091;stockholder record date&#093;.
They have indicated their intention to vote those shares in favor of the plan of conversion and
reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Share Exchange Ratio for Current Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations provide that in a conversion of a mutual holding company to fully stock form,
the public stockholders will be entitled to exchange their shares for common stock of the new
holding company, provided that the mutual holding company demonstrates to the satisfaction of the
OTS that the basis for the exchange is fair and reasonable. Each publicly held share of Oritani
Financial Corp. common stock will be automatically converted into the right to receive a number of
shares of Oritani common stock. The number of shares of common stock will be determined pursuant
to the exchange ratio, which ensures that the public stockholders will own the same percentage of
common stock in Oritani after the conversion as they held in Oritani Financial Corp. immediately
prior to the conversion, exclusive of their purchase of additional shares of common stock in the
offering and their receipt of cash in lieu of fractional exchange shares. The exchange ratio is not
dependent on the market value of our currently outstanding Oritani Financial Corp. common stock.
The exchange ratio is based on the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">percentage of Oritani Financial Corp. common stock held by the public, the independent
valuation of Oritani prepared by RP Financial, LC. and the number of shares of common stock issued
in the offering. The exchange ratio is expected to range from approximately 11,379,252 exchange
shares at the minimum of the offering range to 17,704,777 exchange shares at the adjusted maximum
of the offering range.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a stockholder of Oritani Financial Corp., at the conclusion of the conversion, your
shares will be exchanged for shares of Oritani. The number of shares you receive will be based on
the number of shares of common stock you own and the final exchange ratio determined as of the
conclusion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows how many whole shares of Oritani a hypothetical
owner of Oritani Financial Corp. common stock would receive in the exchange for 100 shares of
Oritani Financial Corp. common stock owned at the consummation of the conversion, depending on the
number of shares issued in the offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">New Shares to be</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Total Shares of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Per</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">New Shares That</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Exchanged for Existing</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Common Stock to be</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Equivalent</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Would be Received</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000">New Shares to be Sold</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000">Shares of Oritani</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Outstanding After</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Share Current</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">for 100 Existing</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">in This Offering</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Financial Corp.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">the Offering</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exchange Ratio</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Market Value (1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Percent</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Percent</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Midpoint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,395,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.62640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted Maximum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">74.4454</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,704,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25.5546</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.87040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the value of shares of Oritani received in the conversion by a holder of one share
of Oritani Financial Corp. at the exchange ratio, assuming the market price of $10.00 per
share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio so that the aggregate exercise price
and the duration of such options remain unchanged. All such options will vest upon completion of
the conversion. We anticipate the pre-tax expense of such accelerated vesting as well as the
accelerated vesting of outstanding stock awards will be approximately $11.3&nbsp;million, which
represents the remaining amortization for such accelerated options and awards with such expense to
be incurred during the fiscal quarter in which the stock offering is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exchange of Existing Stockholders&#146; Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of existing outstanding shares of Oritani Financial Corp. common stock into the
right to receive shares of Oritani common stock will occur automatically on the effective date of
the conversion. As soon as practicable after the effective date of the conversion, our exchange
agent will send a transmittal form to each public stockholder of Oritani Financial Corp. who holds
stock certificates. The transmittal forms will contain instructions on how to exchange stock
certificates of Oritani Financial Corp. common stock for stock certificates of Oritani common
stock. We expect that stock certificates evidencing shares of Oritani common stock will be
distributed within five business days after the exchange agent receives properly executed
transmittal forms, Oritani Financial Corp. stock certificates
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and other required documents. <B>You should not forward your stock certificates until you have
received transmittal forms, which will include forwarding instructions. </B>Shares held by public
stockholders through a brokerage or other account in &#147;street name&#148; will be exchanged automatically
upon the conclusion of the conversion; no transmittal forms will be mailed relating to these
shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. when the conversion is completed. For each fractional share that would
otherwise be issued to a stockholder who holds a stock certificate, we will pay by check an amount
equal to the product obtained by multiplying the fractional share interest to which the holder
would otherwise be entitled by the $10.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of a
properly executed transmittal form, stock certificates and other required documents. If your
shares of common stock are held in street name (such as in a brokerage account), you will
automatically receive cash in lieu of fractional shares in your account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the conversion, Oritani Financial Corp. stockholders who hold stock certificates will
not receive shares of Oritani common stock and will not be paid dividends on the shares of Oritani
common stock until existing certificates representing shares of Oritani Financial Corp. common
stock are surrendered for exchange in compliance with the terms of the transmittal form. When
stockholders surrender their certificates, any unpaid dividends will be paid without interest. For
all other purposes, however, each certificate that represents shares of Oritani Financial Corp.
common stock outstanding at the effective date of the conversion will be considered to evidence
ownership of shares of Oritani common stock into which those shares have been converted by virtue
of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a certificate for Oritani Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of Oritani common stock that we issue in exchange for existing shares of Oritani
Financial Corp. common stock will be considered to have been issued in full satisfaction of all
rights pertaining to such shares of common stock, subject, however, to our obligation to pay any
dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Effects of Conversion on Depositors, Borrowers and Members</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Continuity</I></B><I>. </I>While the conversion is being accomplished, the normal business of Oritani Bank of
accepting deposits and making loans will continue without interruption. Oritani Bank will continue
to be a state chartered savings bank and will continue to be regulated by the FDIC and the New
Jersey Department of Banking and Insurance. After the conversion, Oritani Bank will continue to
offer existing services to depositors, borrowers and other customers. The directors serving
Oritani Financial Corp. at the time of the conversion will be the directors of Oritani after the
conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Deposit Accounts</I></B><I>. </I>Pursuant to the plan of conversion and reorganization, each
depositor of Oritani Bank at the time of the conversion will automatically continue as a depositor
after the conversion, and the deposit balance, interest rate and other terms of such deposit
accounts will not change as a result of the conversion. Each such account will be insured by the
FDIC to the same extent as before the conversion. Depositors will continue to hold their existing
certificates, passbooks and other evidences of their accounts.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Loans</I></B><I>. </I>No loan outstanding from Oritani Bank will be affected by the conversion, and
the amount, interest rate, maturity and security for each loan will remain as it was contractually
fixed prior to the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Voting Rights of Members</I></B><I>. </I>At present, all depositors of Oritani Bank are members of,
and have voting rights in, Oritani Financial Corp., MHC as to all matters requiring membership
action. Upon completion of the conversion, depositors will cease to be members of Oritani Financial
Corp., MHC and will no longer have voting rights, unless they purchase shares of Oritani&#146;s common
stock. Upon completion of the conversion, all voting rights in Oritani Bank will be vested in
Oritani as the sole stockholder of Oritani Bank. The stockholders of Oritani will possess
exclusive voting rights with respect to Oritani common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Tax Effects</I></B><I>. </I>We will receive an opinion of counsel or tax advisor with regard to the federal
and state income tax consequences of the conversion to the effect that the conversion will not be a
taxable transaction for federal or state income tax purposes to Oritani Financial Corp., MHC,
Oritani Financial Corp., the public stockholders of Oritani Financial Corp. (except for cash paid
for fractional shares), members of Oritani Financial Corp., MHC, eligible account holders,
supplemental eligible account holders, or Oritani Bank. See &#147;&#151;Material Income Tax Consequences.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Liquidation Rights</I></B><I>. </I>Each depositor in Oritani Bank has both a deposit account in
Oritani Bank and a pro rata ownership interest in the net worth of Oritani Financial Corp., MHC
based upon the deposit balance in his or her account. This ownership interest is tied to the
depositor&#146;s account and has no tangible market value separate from the deposit account. This
interest may only be realized in the event of a complete liquidation of Oritani Financial Corp.,
MHC and Oritani Bank. Any depositor who opens a deposit account obtains a pro rata ownership
interest in Oritani Financial Corp., MHC without any additional payment beyond the amount of the
deposit. A depositor who reduces or closes his or her account receives a portion or all of the
balance in the deposit account but nothing for his or her ownership interest in the net worth of
Oritani Financial Corp., MHC, which is lost to the extent that the balance in the account is
reduced or closed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consequently, depositors in a stock subsidiary of a mutual holding company normally have no
way of realizing the value of their ownership interest, which has realizable value only in the
unlikely event that Oritani Financial Corp., MHC and Oritani Bank are liquidated. If this occurs,
the depositors of record at that time, as owners, would share pro rata in any residual surplus and
reserves of Oritani Financial Corp., MHC after other claims, including claims of depositors to the
amounts of their deposits and payments to certain depositors of Oritani Bank under liquidation
accounts that have been established for the benefit of such depositors, are paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the plan of conversion and reorganization, however, depositors will receive rights in a
liquidation account maintained by Oritani representing the amount of (i)&nbsp;Oritani Financial Corp.,
MHC&#146;s ownership interest in Oritani Financial Corp.&#146;s total stockholders&#146; equity as of the date of
the latest statement of financial condition used in this prospectus plus (ii)&nbsp;the value of the net
assets of Oritani Financial Corp., MHC as of the date of the latest statement of financial
condition of Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding
its ownership of Oritani Financial Corp.). Oritani shall continue to hold the liquidation account
for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders who continue
to maintain deposits in Oritani Bank. The liquidation account is also designed to provide payments
to depositors of their liquidation interests in the event of a liquidation of Oritani and Oritani
Bank or solely of Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further information, see &#147;&#151;Liquidation Rights.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Pricing and Number of Shares to be Issued</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization and federal regulations require that the aggregate
purchase price of the common stock sold in the offering must be based on the appraised pro forma
market value of the common stock, as determined by an independent valuation. Oritani Bank and
Oritani Financial Corp., MHC have retained RP Financial, LC. to prepare an independent valuation
appraisal. For its services in preparing the initial valuation, RP Financial, LC. will receive a
fee of $125,000 and $10,000 for expenses and an additional $15,000 for each valuation update, as
necessary. Oritani Bank and Oritani Financial Corp., MHC have agreed to indemnify RP Financial, LC.
and its employees and affiliates against specified losses, including any losses in connection with
claims under the federal securities laws, arising out of its services as independent appraiser,
except where such liability results from its negligence or bad faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the OTS appraisal guidelines, the appraisal applied three primary methodologies:
the pro forma price-to-book value approach applied to both reported book value and tangible book
value; the pro forma price-to-earnings approach applied to reported and core earnings; and the pro
forma price-to-assets approach. The market value ratios applied in the three methodologies were
based upon the current market valuations of the peer group companies, subject to valuation
adjustments applied by RP Financial, LC. to account for differences between Oritani Financial Corp.
and the peer group. RP Financial, LC. placed the greatest emphasis on the price-to-earnings and
price-to-book approaches in estimating pro forma market value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation was prepared by RP Financial, LC. in reliance upon the information
contained in this prospectus, including the consolidated financial statements of Oritani Financial
Corp. RP Financial, LC. also considered the following factors, among others:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the present results and financial condition of Oritani Financial Corp. and
the projected results and financial condition of Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic and demographic conditions in Oritani Financial Corp.&#146;s
existing market area;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain historical, financial and other information relating to Oritani
Financial Corp.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the offering on Oritani&#146;s stockholders&#146; equity and earnings
potential;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the proposed dividend policy of Oritani; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trading market for securities of comparable institutions and general
conditions in the market for such securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in RP Financial, LC.&#146;s independent valuation were certain assumptions as to the pro
forma earnings of Oritani after the conversion that were utilized in determining the appraised
value. These assumptions included estimated expenses, an assumed after-tax rate of return on the
net offering proceeds of 1.98% and purchases in the open market of the common stock issued in the
offering by the stock-based incentive plan at the $10.00 per share purchase price. See &#147;Pro Forma
Data&#148; for additional information concerning these assumptions. The use of different assumptions may
yield different results.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent valuation states that as of February&nbsp;19, 2010, the estimated pro forma market
value, or valuation range, of Oritani ranged from a minimum of $445.3&nbsp;million to a maximum of
$602.5&nbsp;million, with a midpoint of $523.8&nbsp;million and an adjusted maximum of $692.8&nbsp;million. The
Board of Directors of Oritani decided to offer the shares of common stock for a price of $10.00 per
share. The aggregate offering price of the shares of common stock will be equal to the valuation
range multiplied by the percentage of Oritani Financial Corp. common stock owned by Oritani
Financial Corp., MHC. The number of shares offered will be equal to the aggregate offering price
of the shares of common stock divided by the price per share. Based on the valuation range, the
74.4% of Oritani Financial Corp. common stock owned by Oritani Financial Corp., MHC and the $10.00
price per share, the minimum of the offering range will be 33,150,000 shares, the midpoint of the
offering range will be 39,000,000 shares and the maximum of the offering range will be 44,850,000
shares of common stock, with an adjusted maximum of 51,577,500 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani reviewed the independent valuation and, in particular,
considered the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s financial condition and results of operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comparison of financial performance ratios of Oritani Financial Corp. to
those of other financial institutions of similar size;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market conditions generally and in particular for financial institutions;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the historical trading price of the publicly held shares of Oritani
Financial Corp. common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of these factors are set forth in the independent valuation. The Board of Directors also
reviewed the methodology and the assumptions used by RP Financial, LC. in preparing the independent
valuation and believes that such assumptions were reasonable. The offering range may be amended
with the approval of the OTS, if required, as a result of subsequent developments in the financial
condition of Oritani Financial Corp. or Oritani Bank or market conditions generally. In the event
the independent valuation is updated to amend the pro forma market value of Oritani to less than
$445.3&nbsp;million or more than $692.8&nbsp;million, the appraisal will be filed with the Securities and
Exchange Commission by a post-effective amendment to Oritani&#146;s registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The independent valuation is not intended, and must not be construed, as a recommendation of
any kind as to the advisability of purchasing our shares of common stock. RP Financial, LC. did not
independently verify our consolidated financial statements and other information that we provided
to them, nor did RP Financial, LC. independently value our assets or liabilities. The independent
valuation considers Oritani Bank as a going concern and should not be considered as an indication
of the liquidation value of Oritani Bank. Moreover, because the independent valuation is
necessarily based upon estimates and projections of a number of matters, all of which may change
from time to time, no assurance can be given that persons purchasing our common stock in the
offering will thereafter be able to sell their shares of common stock at prices at or above the
$10.00 price per share.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following commencement of the subscription offering, the maximum of the valuation range may be
increased by up to 15%, or up to $692.8&nbsp;million, without resoliciting purchasers, which will result
in a corresponding increase of up to 15% in the maximum of the offering range to up to 51,577,500
shares, to reflect changes in the market and financial conditions, demand for the shares of common
stock or regulatory considerations. We will not decrease the minimum of the valuation range and
the minimum of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the offering range without a resolicitation of purchasers. The subscription price of $10.00
per share of common stock will remain fixed. See &#147;&#151;Additional Limitations on Common Stock
Purchases&#148; as to the method of distribution of additional shares of common stock to be issued in
the event of an increase in the offering range of up to 51,577,500 shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the update to the independent valuation at the conclusion of the offering results in an
increase in the maximum of the valuation range to more than $692.8&nbsp;million and a corresponding
increase in the offering range to more than 51,577,500 shares, or a decrease in the minimum of the
valuation range to less than $445.3&nbsp;million and a corresponding decrease in the offering range to
fewer than 33,150,000 shares, then, after consulting with the OTS, we may terminate the plan of
conversion and reorganization, cancel deposit account withdrawal authorizations and promptly return
by check all funds received, with interest at Oritani Bank&#146;s passbook savings rate. Alternatively,
we may establish a new offering range, extend the offering period and commence a resolicitation of
purchasers or take other actions as permitted by the OTS in order to complete the offering. In the
event that we extend the offering and conduct a resolicitation, purchasers would have the
opportunity to maintain, change or cancel their stock orders within a specified period. If a
purchaser does not respond during the period, his or her stock order will be canceled and payment
will be returned promptly, with interest at Oritani Bank&#146;s passbook savings rate, and deposit
account withdrawal authorizations will be canceled. Any single offering extension will not exceed
90&nbsp;days; aggregate extensions may not conclude beyond &#091;final expiration date&#093;, which is two years
after the special meeting of members to vote on the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An increase in the number of shares of common stock to be issued in the offering would
decrease both a purchaser&#146;s ownership interest and Oritani&#146;s pro forma earnings and stockholders&#146;
equity on a per share basis while increasing pro forma earnings and stockholders&#146; equity on an
aggregate basis. A decrease in the number of shares to be issued in the offering would increase
both a purchaser&#146;s ownership interest and Oritani&#146;s pro forma earnings and stockholders&#146; equity on
a per share basis, while decreasing pro forma earnings and stockholders&#146; equity on an aggregate
basis. For a presentation of the effects of these changes, see &#147;Pro Forma Data.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies of the independent valuation appraisal report prepared by RP Financial, LC. and the
detailed memorandum setting forth the method and assumptions used in the appraisal report are
available for inspection at the main office of Oritani Bank and as specified under &#147;Where You Can
Find Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subscription Offering and Subscription Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the plan of conversion and reorganization, rights to subscribe for shares
of common stock in the subscription offering have been granted in the following descending order of
priority. The filling of all subscriptions that we receive will depend on the availability of
common stock after satisfaction of all subscriptions of all persons having prior rights in the
subscription offering and subject to the minimum, maximum and overall purchase and ownership
limitations set forth in the plan of conversion and reorganization and as described below under
&#147;&#151;Additional Limitations on Common Stock Purchases.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 1: Eligible Account Holders</I></B><I>. </I>Each Oritani Bank depositor with aggregate deposit
account balances of $50.00 or more (a &#147;Qualifying Deposit&#148;) at the close of business on December
31, 2008 (an &#147;Eligible Account Holder&#148;) will receive, without payment therefor, nontransferable
subscription rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of our common
stock; (ii)&nbsp;one-tenth of one percent of the total number of shares of common stock issued in the
offering; or (iii)&nbsp;15 times the product, rounded down to the nearest whole number, obtained by
multiplying the total number of shares of common stock offered by a fraction, the numerator of
which is the amount of the Qualifying Deposit of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of
all Eligible Account Holders, subject to the overall purchase and ownership limitations. See
&#147;&#151;Additional Limitations on Common Stock Purchases.&#148; If there are not sufficient shares available
to satisfy all subscriptions, shares will first be allocated so as to permit each Eligible Account
Holder to purchase a number of shares sufficient to make his or her total allocation equal to the
lesser of 100 shares or the number of shares for which he or she subscribed. Thereafter,
unallocated shares will be allocated to each Eligible Account Holder whose subscription remains
unfilled in the proportion that the amount of his or her Qualifying Deposit bears to the total
amount of Qualifying Deposits of all subscribing Eligible Account Holders whose subscriptions
remain unfilled. If an amount so allocated exceeds the amount subscribed for by any one or more
Eligible Account Holders, the excess will be reallocated among those Eligible Account Holders whose
subscriptions are not fully satisfied until all available shares have been allocated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure proper allocation of our shares of common stock, each Eligible Account Holder must
list on his or her stock order form all deposit accounts in which he or she had an ownership
interest on December&nbsp;31, 2008. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed. In the event of an
oversubscription, the subscription rights of Eligible Account Holders who are also directors or
executive officers of Oritani Financial Corp. or their associates will be subordinated to the
subscription rights of other Eligible Account Holders to the extent attributable to increased
deposits in the twelve months preceding December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 2: Tax-Qualified Plans</I></B><I>. </I>Our tax-qualified employee stock benefit plans, consisting
of our employee stock ownership plan and 401(k) plan, will receive, without payment therefor,
nontransferable subscription rights to purchase up to 10.0% of the shares of common stock sold in
the offering, although our employee stock ownership plan intends to purchase 4.0% of the shares of
common stock sold in the offering. If market conditions warrant, in the judgment of its trustees,
the employee stock ownership plan may instead elect to purchase shares in the open market following
the completion of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 3: Supplemental Eligible Account Holders</I></B><I>. </I>To the extent that there are sufficient
shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders
and our tax-qualified employee stock benefit plans, each Oritani Bank depositor, other than
directors and executive officers of Oritani Financial Corp., with a Qualifying Deposit at the close
of business on &#091;supplemental record date&#093; who is not an Eligible Account Holder (&#147;Supplemental
Eligible Account Holder&#148;) will receive, without payment therefor, nontransferable subscription
rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of common stock; (ii)
one-tenth of one percent of the total number of shares of common stock issued in the offering; or
(iii)&nbsp;15 times the product, rounded down to the nearest whole number, obtained by multiplying the
total number of shares of common stock to be offered by a fraction, the numerator of which is the
amount of the Qualifying Deposit of the Supplemental Eligible Account Holder and the denominator is
the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders, subject to
the overall purchase and ownership limitations. See &#147;&#151;Additional Limitations on Common Stock
Purchases.&#148; If there are not sufficient shares available to satisfy all subscriptions, shares will
be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of
shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common
stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will
be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled in
the proportion that the amount of his or her Qualifying Deposit bears to the total amount of
Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain
unfilled.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must
list on the stock order form all deposit accounts in which he or she had an ownership interest at
&#091;supplemental record date&#093;. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Priority 4: Other Depositors</I></B><I>. </I>To the extent that there are shares of common stock remaining
after satisfaction of subscriptions by Eligible Account Holders, our tax-qualified employee stock
benefit plans, and Supplemental Eligible Account Holders, each depositor of Oritani Bank as of the
close of business on the voting record date of &#091;depositor record date&#093; who is not an Eligible
Account Holder or Supplemental Eligible Account Holder (&#147;Other Depositors&#148;) will receive, without
payment therefor, nontransferable subscription rights to purchase up to $500,000 (50,000 shares) of
common stock or one-tenth of one percent of the total number of shares of common stock issued in
the offering, subject to the overall purchase and ownership limitations. See &#147;&#151;Additional
Limitations on Common Stock Purchases.&#148; If there are not sufficient shares available to satisfy all
subscriptions, available shares will be allocated so as to permit each Other Depositor to purchase
a number of shares sufficient to make his or her total allocation equal to the lesser of 100 shares
of common stock or the number of shares for which he or she subscribed. Any remaining shares will
be allocated among Other Depositors in the proportion that the amount of the subscription of each
Other Depositor whose subscription remains unsatisfied bears to the total amount of subscriptions
of all Other Depositors whose subscriptions remain unsatisfied. To ensure proper allocation of
common stock, each Other Depositor must list on the stock order form all deposit accounts in which
he or she had an ownership interest at &#091;depositor record date&#093;. In the event of oversubscription,
failure to list an account could result in fewer shares being allocated than if all accounts had
been disclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date</I></B>. The subscription offering will expire at 2:00 p.m., Eastern Time, on
&#091;expiration date&#093;, unless extended by us for up to 45&nbsp;days. Such extension may be made without
notice to you, except that extensions beyond &#091;extension date&#093; will require the approval of the OTS
and a resolicitation of subscribers in the offering. We may decide to extend the expiration date of
the subscription offering for any reason, whether or not subscriptions have been received for
shares at the minimum, midpoint or maximum of the offering range. Subscription rights which have
not been exercised prior to the expiration date will become void. Subscription rights will expire
whether or not each eligible depositor can be located.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that shares of common stock remain available for purchase after satisfaction of
all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans,
Supplemental Eligible Account Holders and Other Depositors, we may offer shares pursuant to the
plan of conversion and reorganization in a community offering. Shares will be offered with the
following preferences:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Persons residing in the counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris,
Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank&#146;s borrowers (with an outstanding loan or line of credit) as of
December&nbsp;31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December&nbsp;31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s public stockholder as of &#091;stockholder record date&#093;;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>members of the general public.</TD>
</TR>




</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchasers in the community offering may purchase up to $500,000 (50,000 shares) of common
stock, subject to the overall purchase and ownership limitations. See &#147;&#151;Additional Limitations on
Common Stock Purchases.&#148; The minimum purchase is 25 shares. <B>The opportunity to purchase shares of
common stock in the community offering category is subject to our right, in our sole discretion, to
accept or reject any such orders in whole or in part either at the time of receipt of an order or
as soon as practicable following the expiration date of the offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not have sufficient shares of common stock available to fill the accepted orders of
persons residing in the listed counties, we will allocate the available shares among those persons
in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares
or the number of shares subscribed for by such person. Thereafter, unallocated shares will be
allocated among such persons residing in the areas listed above whose orders remain unsatisfied on
an equal number of shares basis per order. If an oversubscription occurs due to the orders of
borrowers or public stockholders of Oritani Financial Corp. as of &#091;stockholder record date&#093;, the
allocation procedures described above will apply to the stock orders of such persons. In
connection with the allocation process, unless the OTS permits otherwise, orders received for
Oritani common stock in the community offering will first be filled up to a maximum of two percent
of the shares sold in the offering, and thereafter any remaining shares will be allocated on an
equal number of shares basis per order until all shares have been allocated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;residing&#148; or &#147;resident&#148; as used in this prospectus means any person who occupies a
dwelling within the New Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren,
Union, Somerset, Hunterdon, Middlesex and Mercer; has a present intent to remain within such
community for a period of time; and manifests the genuineness of that intent by establishing an
ongoing physical presence within the community, together with an indication that this presence
within the community is something other than merely transitory in nature. We may utilize deposit
or loan records or other evidence provided to us to decide whether a person is a resident. In all
cases, however, the determination shall be in our sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Expiration Date. </I></B>The community offering, if any, may begin during or after the subscription
offering, and is currently expected to terminate at the same time as the subscription offering.
Oritani may decide to extend the community offering for any reason and is not required to give
purchasers notice of any such extension unless such period extends beyond &#091;extension date&#093;, in
which case we will resolicit purchasers in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Syndicated Community Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If feasible, our Board of Directors may decide to offer for sale shares of common stock not
subscribed for or purchased in the subscription and community offerings in a syndicated community
offering, subject to such terms, conditions and procedures as we may determine, in a manner that
will achieve a wide distribution of our shares of common stock. In the syndicated community
offering, any person may purchase up to $500,000 (50,000 shares) of common stock, subject to the
overall purchase and ownership limitations. We retain the right to accept or reject in whole or in
part any orders in the syndicated community offering. Unless the OTS permits otherwise, accepted
orders for Oritani common stock in the syndicated community offering will first be filled up to a
maximum of two percent (2%) of the shares sold in the offering, and thereafter any remaining shares
will be allocated on an equal number of shares basis per order until all shares have been
allocated. Unless the syndicated community offering begins during the community offering, the
syndicated community offering will begin as soon as possible after the completion of the
subscription and community offerings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a syndicated community offering is held, Stifel, Nicolaus &#038; Company, Incorporated will
serve as sole book running manager. &#091;co-managers&#093; will serve as co-managers, and each firm will
assist us in
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">selling our common stock on a best efforts basis. Neither Stifel, Nicolaus &#038; Company,
Incorporated nor any registered broker-dealer will have any obligation to take or purchase any
shares of the common stock in the syndicated community offering. The syndicated community offering
will be conducted in accordance with certain Securities and Exchange Commission rules applicable to
best efforts offerings. Generally under those rules, Stifel, Nicolaus &#038; Company, Incorporated, a
broker-dealer, will deposit funds it receives prior to closing from interested investors into a
separate non-interest-bearing bank account at a bank other than Oritani Bank. The closing of the
syndicated community offering is subject to conditions set forth in an agency agreement among
Oritani, Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank on one hand and
Stifel, Nicolaus &#038; Company, Incorporated on the other hand. If and when all the conditions for the
closing are met, funds for common stock sold in the syndicated community offering, less fees and
commissions payable by us, will be delivered promptly to us. If the offering is consummated, but
some or all of an interested investor&#146;s funds are not accepted by us, those funds will be returned
to the interested investor promptly after closing, without interest. If the offering is not
consummated, funds in the account will be returned promptly, without interest, to the potential
investor. Normal customer ticketing will be used for order placement. In the syndicated community
offering, order forms will not be used.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we sell common stock in a &#147;stand by&#148; underwritten public offering, we have
agreed that Stifel, Nicolaus &#038; Company, Incorporated will have the right to serve as sole
book-running manager. Any underwritten public offering will be conducted on a firm commitment
basis. In such case, the underwriters will purchase all shares of common stock not sold in the
subscription offering or the community offering, if any such shares are purchased. The aggregate
price paid to us by or through the underwriters for the shares of common stock will be the number
of shares sold multiplied by the $10.00 price per share, less the amount of an underwriting
discount as negotiated between us and the underwriters and approved by the OTS and the Financial
Industry Regulatory Authority. If we determine to sell stock in an underwritten public offering,
the terms of such offering, including the names of the underwriters participating in such offering,
will be described in a supplement to this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If for any reason we cannot effect a syndicated community offering or underwritten public
offering of shares of common stock not purchased in the subscription and community offerings, or in
the event that there is a significant number of shares remaining unsold after such offerings, we
will try to make other arrangements for the sale of unsubscribed shares, if possible. The OTS must
approve any such arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Limitations on Common Stock Purchases</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion and reorganization includes the following limitations on the number of
shares of common stock that may be purchased in the offering:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No person may purchase fewer than 25 shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The maximum number of shares of common stock that may be purchased by a person,
or persons exercising subscription rights through a single qualifying deposit account
held jointly, is 50,000 shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our tax-qualified employee stock benefit plans, including our employee stock
ownership plan and 401(k) plan, may purchase in the aggregate up to 10.0% of the shares
of common stock sold in the offering, including shares sold in the event of an increase
in the offering range of up to 15%;</TD>
</TR>




</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except for the tax-qualified employee stock benefit plans, including our
employee stock ownership plan and 401(k) plan, as described above, no person or entity,
together with associates or persons acting in concert with such person or entity, may
purchase more than $1.0&nbsp;million (100,000 shares) of common stock in all categories of
the offering combined;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current stockholders of Oritani Financial Corp. are subject to an ownership
limitation. As previously described, current stockholders of Oritani Financial Corp.
will receive shares of Oritani common stock in exchange for their existing shares of
Oritani Financial Corp. common stock at the conclusion of the offering. The number of
 shares of common stock that a stockholder may purchase in the offering, together with
associates or persons acting in concert with such stockholder, when combined with the
 shares that the stockholder and his or her associates will receive in exchange for
existing Oritani Financial Corp. common stock, may not exceed 5% of the shares of
common stock of Oritani to be issued and outstanding at the completion of the
conversion; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The maximum number of shares of common stock that may be purchased in all
categories of the offering by executive officers and directors of Oritani Bank and
their associates, in the aggregate, when combined with shares of common stock issued in
exchange for existing shares, may not exceed 25% of the shares of Oritani common stock
outstanding upon completion of the conversion.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending upon market or financial conditions, our Board of Directors, with the approval of
the OTS and without further approval of members of Oritani Financial Corp., MHC, may decrease or
increase the purchase and ownership limitations. If a purchase limitation is increased,
subscribers in the subscription offering who ordered the maximum amount will be given, and, in our
sole discretion, some other large subscribers who through their subscriptions evidence a desire to
purchase the maximum allowable number of shares may be given, the opportunity to increase their
subscriptions up to the then applicable limit. The effect of this type of resolicitation will be
an increase in the number of shares of common stock owned by subscribers who choose to increase
their subscriptions. In the event that the maximum purchase limitation is increased to 5% of the
shares sold in the offering, such limitation may be further increased to 9.99%, <I>provided </I>that
orders for Oritani common stock exceeding 5% of the shares issued in the offering shall not exceed
in the aggregate 10.0% of the total shares sold in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of an increase in the offering range of up to 51,577,500 shares of common stock,
shares will be allocated in the following order of priority in accordance with the plan of
conversion and reorganization:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fill subscriptions by the tax-qualified employee stock benefit plans,
including the employee stock ownership plan, for up to 10.0% of the total number of
 shares of common stock sold in the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the event that there is an oversubscription at the Eligible Account Holder,
Supplemental Eligible Account Holder or Other Depositor levels, to fill unfulfilled
subscriptions of these subscribers according to their respective priorities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to fill subscriptions in the community offering, with preference given first
to persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer; then to
Oritani Bank&#146;s borrowers (with an outstanding loan or line of credit) as of December
31, 2009 that are meeting all of their terms and conditions of the loan agreements with
Oritani Bank (as</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>determined solely in the discretion of Oritani Bank) as of December&nbsp;31, 2009 and the
date of purchase of the common stock; then to Oritani Financial Corp.&#146;s public
stockholders as of &#091;stockholder record date&#093; and then to members of the general
public.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;associate&#148; of a person means:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any corporation or organization, other than Oritani Financial Corp., MHC,
Oritani Financial Corp., Oritani Bank or a majority-owned subsidiary of Oritani
Financial Corp. or Oritani Bank, of which the person is a senior officer, partner or
beneficial owner, directly or indirectly, of 10.0% or more of any equity security;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any trust or other estate in which the person has a substantial beneficial
interest or serves as a trustee or in a similar fiduciary capacity; provided, however,
that for the purposes of subscriptions in the offering and restrictions on the sale of
stock after the conversion, the term &#147;associate&#148; does not include a person who has a
substantial beneficial interest in an employee stock benefit plan of Oritani Bank, or
who is a trustee or fiduciary of such plan, and for purposes of aggregating total
 shares that may be held by officers, trustees and directors of Oritani Financial Corp.,
MHC, Oritani Financial Corp. or Oritani Bank, (the term &#147;associate&#148; does not include
any tax-qualified employee stock benefit plan of Oritani Bank); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any blood or marriage relative of the person, who either has the same home as
the person or who is a director, trustee or officer of Oritani Financial Corp., MHC,
Oritani Financial Corp. or Oritani Bank.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;acting in concert&#148; means:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>knowing participation in a joint activity or interdependent conscious parallel
action towards a common goal whether or not pursuant to an express agreement; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a combination or pooling of voting or other interests in the securities of an
issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person or company that acts in concert with another person or company shall also be deemed
to be acting in concert with any person or company who is also acting in concert with that other
party, except that any tax-qualified employee stock benefit plan will not be deemed to be acting in
concert with its trustee or a person who serves in a similar capacity solely for the purpose of
determining whether common stock held by the trustee and common stock held by the employee stock
benefit plan will be aggregated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the sole discretion to determine whether prospective purchasers are &#147;associates&#148; or
&#147;acting in concert.&#148; Persons exercising subscription rights through a single qualifying deposit
account held jointly, whether or not related, will be deemed to be acting in concert unless we
determine otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our directors are not treated as associates of each other solely because of their membership
on the Board of Directors. Common stock purchased in the offering will be freely transferable
except for shares purchased by executive officers and directors of Oritani or Oritani Bank and
except as described below. Any purchases made by any associate of Oritani or Oritani Bank for the
explicit purpose of meeting the minimum number of shares of common stock required to be sold in
order to complete the offering shall be made for investment purposes only and not with a view
toward redistribution. In addition, under
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financial Industry Regulatory Authority guidelines, members of the Financial Industry
Regulatory Authority and their associates are subject to certain restrictions on transfer of
securities purchased in accordance with subscription rights and to certain reporting requirements
upon purchase of these securities. For a further discussion of limitations on purchases of our
shares of common stock at the time of conversion and thereafter, see &#147;&#151;Certain Restrictions on
Purchase or Transfer of Our Shares after Conversion&#148; and &#147;Restrictions on Acquisition of Oritani.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Marketing Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assist in the marketing of our common stock, we have retained Stifel, Nicolaus &#038; Company,
Incorporated, which is a broker-dealer registered with the Financial Industry Regulatory Authority.
Stifel, Nicolaus &#038; Company, Incorporated will assist us on a best efforts basis in the offering by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acting as our financial advisor for the conversion and offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>providing administrative services and managing the Stock Information Center;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>educating our employees regarding the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>targeting our sales efforts, including assisting in the preparation of
marketing materials; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>soliciting orders for common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For these services, Stifel, Nicolaus &#038; Company, Incorporated will receive an advisory and
administrative fee of $50,000 and 1% of the dollar amount of all shares of common stock sold in the
subscription and community offering. The sales fee will be reduced by the advisory and
administrative fee. No sales fee will be payable to Stifel, Nicolaus &#038; Company, Incorporated with
respect to shares purchased by officers, directors and employees or their immediate families and
shares purchased by our tax-qualified and non-qualified employee benefit plans. In the event that
Stifel, Nicolaus &#038; Company, Incorporated sells common stock through a group of broker-dealers in a
syndicated community offering, it will be paid a fee equal to 1% of the dollar amount of total
shares sold in the syndicated community offering, which fee along with the fee payable to selected
dealers (which may include Stifel, Nicolaus &#038; Company, Incorporated) shall not exceed 5% in the
aggregate. Stifel, Nicolaus &#038; Company, Incorporated will serve as sole book running manager.
&#091;co-managers&#093; will serve as co-managers. Alternatively, in the event that Stifel, Nicolaus &#038;
Company, Incorporated sells common stock through a group of broker-dealers in a &#147;stand-by&#148; firm
commitment underwritten public offering (for which Stifel, Nicolaus &#038; Company, Incorporated will
serve as sole book running manager), the underwriters will be paid a fee which shall not exceed 6%
of the dollar amount of total shares sold in such offering. Stifel, Nicolaus &#038; Company,
Incorporated also will be reimbursed for allocable expenses in amount not to exceed $20,000 for the
subscription offering and community offering and $75,000 for the syndicated community offering, and
for attorney&#146;s fees in an amount not to exceed $150,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we are required to resolicit subscribers for shares of our common stock in
the subscription and community offerings, Stifel, Nicolaus &#038; Company, Incorporated will be required
to provide significant additional services in connection with the resolicitation (including
repeating the services described above), and we may pay Stifel, Nicolaus &#038; Company, Incorporated an
additional fee for those services that will not exceed $50,000. In the event of a material delay
in the offering which would require an update of the financial information in tabular form to
reflect a period later than that set forth in the original filing of this document, Stifel Nicolaus
will not incur any additional accountable
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">reimbursable out-of-pocket expenses in excess of $10,000 or additional reimbursable legal fees
in excess of $25,000, and in the aggregate, reimbursable expenses and legal fees shall not exceed
$280,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will indemnify Stifel, Nicolaus &#038; Company, Incorporated against liabilities and expenses,
including legal fees, incurred in connection with certain claims or litigation arising out of or
based upon untrue statements or omissions contained in the offering materials for the common stock,
including liabilities under the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of our directors and executive officers may participate in the solicitation of offers to
purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses
incurred in connection with the solicitation. Other regular employees of Oritani Bank may assist in
the offering, but only in ministerial capacities, and may provide clerical work in effecting a
sales transaction. No offers or sales may be made by tellers or at the teller counters. No sales
activity will be conducted in a Oritani Bank banking office. Investment-related questions of
prospective purchasers will be directed to executive officers or registered representatives of
Stifel, Nicolaus &#038; Company, Incorporated. Our other employees have been instructed not to solicit
offers to purchase shares of common stock or provide advice regarding the purchase of common stock.
We will rely on Rule&nbsp;3a4-1 under the Securities Exchange Act of 1934, as amended, and sales of
common stock will be conducted within the requirements of Rule&nbsp;3a4-1, so as to permit officers,
directors and employees to participate in the sale of common stock. None of our officers, directors
or employees will be compensated in connection with their participation in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we have engaged Stifel, Nicolaus &#038; Company, Incorporated to act as our records
management agent in connection with the conversion and offering. In its role as records management
agent, Stifel, Nicolaus &#038; Company, Incorporated will coordinate with our data processing contacts
and interface with the Stock Information Center to provide the records processing and the proxy and
stock order services, including but not limited to: (1)&nbsp;consolidation of deposit accounts and vote
calculation; (2)&nbsp;preparation of information for order forms and proxy cards; (3)&nbsp;interface with our
financial printer; (4)&nbsp;record stock order information; and (5)&nbsp;tabulate proxy votes. For these
services, Stifel, Nicolaus &#038; Company, Incorporated will receive no additional fee. We will also
reimburse Stifel, Nicolaus &#038; Company, Incorporated for its reasonable out-of-pocket expenses
associated with its acting as records management agent in an amount not to exceed $5,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lock-up Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our directors and executive officers have agreed not to, directly or indirectly, offer,
sell, transfer, pledge, assign, hypothecate or otherwise encumber any shares of our common stock or
options, warrants or other securities exercisable, convertible or exchangeable for our common stock
during the period commencing with the filing of the registration statement for the offering and
conversion and ending 90&nbsp;days after completion of the offering and conversion without the prior
written consent of Stifel, Nicolaus &#038; Company, Incorporated. In addition, except for securities
issued pursuant to existing employee benefit plans in accordance with past practices or securities
issued in connection with a merger or acquisition by us, we have agreed not to issue, offer to sell
or sell any shares of our common stock or options, warrants or other securities exercisable,
convertible or exchangeable for our common stock without the prior written consent of Stifel,
Nicolaus &#038; Company, Incorporated for a period of 90&nbsp;days after completion of the offering and
conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Offering Deadline</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The subscription and community offerings will expire at 2:00 p.m., Eastern Time, on
&#091;expiration date&#093;, unless extended, without notice to you, for up to 45&nbsp;days. Any extension of the
subscription and/or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">community offering beyond &#091;extension date&#093; would require the OTS&#146;s approval. In such event,
we would conduct a resolicitation. Purchasers would have the opportunity to maintain, change or
cancel their stock orders within a specified period. If a purchaser does not respond during the
resolicitation period, his or her stock order will be canceled and payment will be returned
promptly, with interest calculated at Oritani Bank&#146;s passbook savings rate, and deposit account
withdrawal authorizations will be canceled. We will not execute orders until at least the minimum
number of shares offered has been sold. If we have not sold the minimum by the expiration date or
any extension thereof, we will terminate the offering and cancel all orders, as described above.
Any single offering extension will not exceed 90&nbsp;days; aggregate extensions may not conclude beyond
&#091;final expiration date&#093;, which is two years after the special meeting of members to vote on the
conversion. We reserve the right in our sole discretion to terminate the offering at any time and
for any reason, in which case we will cancel any deposit account withdrawal orders and promptly
return all funds submitted, with interest calculated at Oritani Bank&#146;s passbook savings rate from
the date of receipt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Prospectus Delivery</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure that each purchaser receives a prospectus at least 48 hours before the expiration
date of the offering in accordance with Rule&nbsp;15c2-8 of the Securities Exchange Act of 1934, we may
not mail a prospectus any later than five days prior to the expiration date or hand deliver any
later than two days prior to the expiration date. Execution of an order form will confirm receipt
of delivery in accordance with Rule&nbsp;15c2-8. Order forms will only be distributed with or preceded
by a prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the syndicated community offering or any &#147;stand by&#148; underwritten public offering, a
prospectus in electronic format may be made available on the Internet sites or through other online
services maintained by Stifel, Nicolaus &#038; Company, Incorporated or one or more other members of the
syndicate, or by their respective affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the syndicate member, prospective investors may be
allowed to place orders online. The members of the syndicate may agree with us to allocate a
specific number of shares for sale to online brokerage account holders. Any such allocation for
online distributions will be made on the same basis as other allocations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than the prospectus in electronic format, the information on the Internet sites
referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration
statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by
Stifel, Nicolaus &#038; Company, Incorporated or any other member of the syndicate in its capacity as
selling agent or syndicate member and should not be relied upon by investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Procedure for Purchasing Shares in the Subscription and Community Offerings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Use of Stock Order Forms</I></B><I>. </I>In order to purchase shares of common stock in the subscription
offering and community offering, you must submit a properly completed original stock order form and
remit full payment. Incomplete stock order forms or stock order forms that are not signed are not
required to be accepted. We are not required to accept stock orders submitted on photocopied or
facsimiled stock order forms. All stock order forms must be received (not postmarked) prior to 2:00
p.m. Eastern Time, on &#091;expiration date&#093;. We are not required to accept stock order forms that are
not received by that time, are executed defectively or are received without full payment or without
appropriate withdrawal instructions. We are not required to notify purchasers of incomplete or
improperly executed stock order forms. We have the right to waive or permit the correction of
incomplete or improperly executed stock order forms, but we do not represent that we will do so.
You may submit your stock order form and payment by mail using the stock order reply envelope
provided, by bringing your stock order
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">form to our Stock Information Center, or by overnight delivery to the indicated address on the
order form. Our Stock Information Center is located at Oritani Bank&#146;s main office, 370 Pascack
Road, Township of Washington, New Jersey 07676. Stock order forms may not be delivered to other
Oritani Bank offices. Once tendered, a stock order form cannot be modified or revoked without our
consent. We reserve the absolute right, in our sole discretion, to reject orders received in the
community offering, in whole or in part, at the time of receipt or at any time prior to completion
of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are ordering shares in the subscription offering, by signing the stock order form you
are representing that you are purchasing shares for your own account and that you have no agreement
or understanding with any person for the sale or transfer of the shares. Our interpretation of the
terms and conditions of the plan of conversion and reorganization and of the acceptability of the
stock order forms will be final.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By signing the stock order form, you will be acknowledging that the common stock is not a
deposit or savings account and is not federally insured or otherwise guaranteed by Oritani Bank or
any federal or state government, and that you received a copy of this prospectus. However, signing
the stock order form will not cause you to waive your rights under the Securities Act of 1933 or
the Securities Exchange Act of 1934. We have the right to reject any order submitted in the
offering by a person who we believe is making false representations or who we otherwise believe,
either alone or acting in concert with others, is violating, evading, circumventing, or intends to
violate, evade or circumvent the terms and conditions of the plan of conversion and reorganization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment for Shares</I></B><I>. </I>Payment for all shares of common stock will be required to accompany all
completed order forms for the purchase to be valid. You may not submit cash or wire transfers.
Payment for shares may be made by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal check, bank check or money order, made payable to Oritani Bank; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>authorization of withdrawal from the types of Oritani Bank deposit accounts
designated on the stock order form.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appropriate means for designating withdrawals from deposit accounts at Oritani Bank are
provided on the order forms. The funds designated must be available in the account(s) at the time
the stock order form is received. A hold will be placed on these funds, making them unavailable to
the depositor. Funds authorized for withdrawal will continue to earn interest within the account at
the contract rate until the offering is completed, at which time the designated withdrawal will be
made. Interest penalties for early withdrawal applicable to certificate of deposit accounts will
not apply to withdrawals authorized for the purchase of shares of common stock; however, if a
withdrawal results in a certificate of deposit account with a balance less than the applicable
minimum balance requirement, the certificate of deposit will be canceled at the time of withdrawal
without penalty and the remaining balance will earn interest calculated at the current passbook
savings rate subsequent to the withdrawal. In the case of payments made by personal check, these
funds must be available in the account(s) wire transfers or check and money orders will be
immediately cashed and placed in a segregated account at Oritani Bank or another depository
institution and will earn interest calculated at Oritani Bank&#146;s passbook savings rate from the date
payment is processed until the offering is completed, at which time a subscriber will be issued a
check for interest earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may not remit Oritani Bank line of credit checks, and we will not accept wire transfers or
third-party checks, including those payable to you and endorsed over to Oritani. You may not
designate on your stock order form a direct withdrawal from an Oritani Bank retirement account.
See &#147;&#151;Using Retirement Account Funds to Purchase Shares&#148; for information on using such funds.
Additionally, you
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may not designate on your stock order form a direct withdrawal from Oritani Bank deposit
accounts with check-writing privileges. Please provide a check instead. If you request direct
withdrawal, we reserve the right to interpret that as your authorization to treat those funds as if
we had received a check for the designated amount, and we will immediately withdraw the amount from
your checking account(s). Once we receive your executed stock order form, it may not be modified,
amended or rescinded without our consent, unless the offering is not completed by &#091;extension date&#093;,
in which event purchasers may be given the opportunity to increase, decrease or rescind their
orders for a specified period of time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations prohibit Oritani Bank from lending funds or extending credit to any persons to
purchase shares of common stock in the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right, in our sole discretion, to permit institutional investors to submit
irrevocable orders together with a legally binding commitment for payment and to thereafter pay for
the shares of common stock for which they subscribe in the community offering at any time prior to
48 hours before the completion of the conversion. This payment may be made by wire transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our employee stock ownership plan purchases shares in the offering, it will not be required
to pay for such shares until consummation of the offering, provided that there is a loan commitment
from an unrelated financial institution or Oritani to lend to the employee stock ownership plan the
necessary amount to fund the purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Using Retirement Account Funds to Purchase Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons interested in purchasing common stock using funds currently in an individual
retirement account (&#147;IRA&#148;) or any other retirement account, whether held through Oritani Bank or
elsewhere, should contact our Stock Information Center for guidance. Please contact the Stock
Information Center as soon as possible, preferably at least two weeks prior to the &#091;expiration
date&#093; offering deadline, because processing such transactions takes additional time, and whether
such funds can be used may depend on limitations imposed by the institution where the funds are
currently held. Additionally, if such funds are not currently held in a self-directed retirement
account, then before placing your stock order, you will need to establish one with an independent
trustee or custodian, such as a brokerage firm. The new trustee or custodian will hold the shares
of common stock in a self-directed account in the same manner as we now hold retirement account
funds. An annual administrative fee may be payable to the new trustee or custodian. Assistance on
how to transfer such retirement accounts can be obtained from the Stock Information Center.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank cannot offer self-directed retirement accounts. If you wish to use some or all
of your funds that are currently held in an Oritani Bank IRA or other retirement account, you may
not designate on the stock order form that you wish funds to be withdrawn from the account(s) for
the purchase of common stock. Before you place your stock order, the funds you wish to use must be
transferred from those accounts to a self-directed retirement account at an independent trustee or
custodian, as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Delivery of Stock Certificates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates representing shares of common stock issued in the subscription and community
offering will be mailed by regular mail to the persons entitled thereto at the certificate
registration address noted by them on the stock order form, as soon as practicable following
consummation of the conversion. Any certificates returned as undeliverable will be held by our
transfer agent until claimed by persons legally entitled thereto or otherwise disposed of in
accordance with applicable law. <B>Until certificates for the shares of common stock are available and
delivered to purchasers, purchasers may not be able</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>to sell the shares of common stock which they ordered, even though the common stock will have
begun trading. Your ability to sell shares of common stock before you receive stock certificates
will depend upon the arrangements you may make with your brokerage firm.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are currently a stockholder of Oritani Financial Corp., see &#147;&#151;Exchange of Existing
Stockholders&#146; Stock Certificates.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Other Restrictions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of the plan of conversion and reorganization, no person is
entitled to purchase any shares of common stock to the extent the purchase would be illegal under
any federal or state law or regulation, including state &#147;blue sky&#148; regulations, or would violate
regulations or policies of the Financial Industry Regulatory Authority. We may ask for an
acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may
refuse to honor any purchase order if an opinion is not timely furnished. In addition, we are not
required to offer shares of common stock to any person who resides in a foreign country, or in a
State of the United States with respect to which any of the following apply: (a)&nbsp;a small number of
persons otherwise eligible to subscribe for shares under the plan of conversion and reorganization
reside in such state; (b)&nbsp;the issuance of subscription rights or the offer or sale of shares of
common stock to such persons would require us, under the securities laws of such state, to register
as a broker, dealer, salesman or agent or to register or otherwise qualify our securities for sale
in such state; or (c)&nbsp;such registration or qualification would be impracticable for reasons of cost
or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Restrictions on Transfer of Subscription Rights and Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit any person with subscription rights, including the Eligible Account
Holders, Supplemental Eligible Account Holders and Other Depositors, from transferring or entering
into any agreement or understanding to transfer the legal or beneficial ownership of the
subscription rights issued under the plan of conversion and reorganization or the shares of common
stock to be issued upon their exercise. These rights may be exercised only by the person to whom
they are granted and only for his or her account. When registering your stock purchase on the
stock order form, you should not add the name(s) of persons who do not have subscription rights or
who qualify only in a lower purchase priority than you do. Doing so may jeopardize your
subscription rights. Each person exercising subscription rights will be required to certify that
he or she is purchasing shares solely for his or her own account and that he or she has no
agreement or understanding regarding the sale or transfer of such shares. The regulations also
prohibit any person from offering or making an announcement of an offer or intent to make an offer
to purchase subscription rights or shares of common stock to be issued upon their exercise prior to
completion of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pursue any and all legal and equitable remedies in the event we become aware of the
transfer of subscription rights, and we will not honor orders that we believe involve the transfer
of subscription rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Information Center</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call or visit
our Stock Information Center, located at Oritani Bank&#146;s main office, 370 Pascack Road, Township of
Washington, New Jersey 07676. The toll-free telephone number is 1-877-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Stock
Information Center is open Monday through Friday between 10:00&nbsp;a.m. and 4:00 p.m., Eastern Time.
The Stock Information
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Center will be closed weekends and bank holidays. Other Oritani Bank offices will not have
offering materials and will not accept stock order forms or proxy cards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Liquidation Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation prior to the conversion</I></B><B>. </B>In the unlikely event of a complete liquidation of
Oritani Bank and Oritani Financial Corp., MHC prior to the conversion, all claims of creditors of
Oritani Financial Corp., MHC would be paid first. Thereafter, if there were any assets of Oritani
Financial Corp., MHC remaining, these assets would be distributed to depositors of Oritani Bank.
The amount received by such depositors would be equal to their pro rata interest in the remaining
value of Oritani Financial Corp., MHC, after claims of creditors, based on the relative size of
their deposit. Any assets of Oritani Financial Corp., MHC remaining after distributions under the
liquidation accounts would be distributed to the depositors of Oritani Bank pro rata, based upon
the relative size of their deposit accounts,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation following the conversion</I></B><B>. </B>In the unlikely event that Oritani Bank were to
liquidate after the conversion, all claims of creditors, including those of depositors, would be
paid first. However, except with respect to the liquidation account to be established in Oritani
as further described below, a depositor&#146;s claim would be solely for the principal amount of his or
her deposit accounts plus accrued interest. Depositors would not have an interest in the value of
the assets of Oritani Bank or Oritani above that amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan of conversion provides for the establishment, upon the completion of the conversion,
of a &#147;liquidation account&#148; by Oritani for the benefit of Eligible Account Holders and Supplemental
Eligible Account Holders in an amount equal to (i)&nbsp;Oritani Financial Corp., MHC&#146;s ownership
interest in Oritani Financial Corp.&#146;s total stockholders equity as of the date of its latest
statement of financial condition contained in this prospectus plus (ii)&nbsp;the value of the net assets
of Oritani Financial Corp., MHC as of the date of the latest statement of financial condition of
Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding its ownership
of Oritani). The plan of conversion also provides for the
establishment of a parallel
liquidation account in Oritani Bank to support the liquidation account
in Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The liquidation account established by Oritani is designed to provide payments to depositors
of their liquidation interests (exchanged for the liquidation rights such persons had in Oritani
Financial Corp., MHC) in the event of a liquidation of Oritani and Oritani Bank or a liquidation
solely of Oritani Bank. Specifically, in the unlikely event that either (i)&nbsp;Oritani Bank or (ii)
Oritani and Oritani Bank were to liquidate after the conversion, all claims of creditors, including
those of depositors, would be paid first, followed by distribution to depositors as of December&nbsp;31,
2008 and March&nbsp;31, 2010 of their interests in the liquidation account maintained by Oritani. Also, in a complete
liquidation of both entities, or of Oritani Bank, when Oritani has insufficient assets (other than
the stock of Oritani Bank), to fund the liquidation account distribution due to Eligible Account
Holders and Supplemental Eligible Account Holders and Oritani Bank has positive net worth, Oritani
Bank shall immediately make a distribution to fund Oritani&#146;s remaining obligations under the
liquidation account. If Oritani is completely
liquidated or sold apart from a sale or liquidation of Oritani Bank,
then the Oritani liquidation account will cease to exist and  Eligible
Account Holders and Supplemental Eligible Account Holders will receive
an equivalent interest in the Oritani Bank liquidation
account, subject to the same rights and terms as the liquidation account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the plan of conversion, after two years from the date of conversion and upon the
written request of the OTS, Oritani will transfer the liquidation account and the depositors&#146;
interests in such account to Oritani Bank and the liquidation account shall thereupon become the
liquidation account of Oritani Bank.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rules and regulations of the OTS, a post-conversion merger, consolidation, or
similar combination or transaction with another depository institution in which Oritani or Oritani
Bank is not the surviving institution would not be considered a liquidation. In such a
transaction, the liquidation account would be assumed by the surviving institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Eligible Account Holder or Supplemental Eligible Account Holder would have an initial
pro rata
interest in the liquidation account for each deposit account, including savings accounts,
transaction accounts such as negotiable order of withdrawal accounts, money market deposit
accounts, and certificates of deposit, with a balance of $50.00 or more held in Oritani Bank on
December&nbsp;31, 2008 or March&nbsp;31, 2010, equal to  the proportion that the
balance of each  Eligible Account Holder and Supplemental  Eligible
Account Holder&#146;s deposit account on December&nbsp;31, 2008 and
March&nbsp;31, 2010 respectively, bears to the balance of
all deposit accounts  of Eligible Account Holders and Supplemental
Eligible Account Holders in Oritani Bank on such dates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, however, on any June&nbsp;30 annual closing date commencing after the effective date of the
conversion, the amount in any such deposit account is less than the amount in the deposit account
on December&nbsp;31, 2008 or March&nbsp;31, 2010 or any other annual closing date, then the interest in the
liquidation account relating to such deposit account would be reduced from time to time by the
proportion of any such reduction, and such interest will cease to exist if such deposit account is
closed. In addition, no interest in the liquidation account would ever be increased despite any
subsequent increase in the related deposit account. Payment pursuant to liquidation rights of
Eligible Account Holders and Supplemental Eligible Account Holder would be separate and apart from
the payment of any insured deposit accounts to such depositor. Any assets remaining after the above
liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holder are
satisfied would be available for distribution to  stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Completion of the conversion is subject to the prior receipt of an opinion of counsel or tax
advisor with respect to federal and state income tax consequences of the conversion to Oritani
Financial MHC, Oritani Financial Corp., Oritani Bank or Oritani, Eligible Account Holders and
Supplemental Eligible Account Holders of Oritani. Unlike private letter rulings, the opinions of
counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing
authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that Oritani or Oritani Bank would prevail in a judicial
proceeding.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>We have received an opinion of counsel Luse Gorman Pomerenk &#038; Schick as to the federal tax
consequences of the conversion. We have received an opinion of KPMG LLP to the effect that, more
likely than not, the income tax consequences under New Jersey law of the offering are not
materially different than for federal income tax purposes.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luse Gorman Pomerenk &#038; Schick, has issued an opinion to Oritani Financial Corp., MHC, Oritani
Financial Corp., Oritani Bank and Oritani that for federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The merger of Oritani Financial Corp., MHC with and into Oritani Financial
Corp. will qualify as a tax-free reorganization within the meaning of Section
368(a)(1)(A) of the Internal Revenue Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The constructive exchange of Eligible Account Holders&#146; and Supplemental
Eligible Account Holders&#146; liquidation interests in Oritani Financial Corp., MHC for
liquidation interests in Oritani Financial Corp. will satisfy the continuity of
interest requirement of Section&nbsp;1.368-1(b) of the Federal Income Tax Regulations.</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of Oritani Financial Corp., MHC, Oritani Financial Corp., Eligible Account
Holders nor Supplemental Eligible Account Holders, will recognize any gain or loss on
the transfer of the assets of Oritani Financial Corp., MHC to Oritani Financial Corp.
in constructive exchange for a liquidation interest established in Oritani Financial
Corp. for the benefit of such persons who remain depositors of Oritani Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The basis of the assets of Oritani Financial Corp., MHC and the holding period
of such assets to be received by Oritani Financial Corp. will be the same as the basis
and holding period in such assets in the hands of Oritani Financial Corp., MHC
immediately before the exchange. (Sections&nbsp;362(b) and 1223(2) of the Internal Revenue
Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The merger of Oritani Financial Corp. with and into Oritani will constitute a
mere change in identity, form or place of organization within the meaning of Section
368(a)(1)(F) of the Code and therefore will qualify as a tax-free reorganization within
the meaning of Section&nbsp;368(a)(1)(F) of the Code. Neither Oritani Financial Corp. nor
Oritani will recognize gain or loss as a result of such merger. (Sections&nbsp;361(a) and
1032(a) of the Internal Revenue Code).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The basis of the assets of Oritani Financial Corp. and the holding period of
such assets to be received by Oritani will be the same as the basis and holding period
in such assets in the hands of Oritani Financial Corp. immediately before the exchange.
(Sections&nbsp;362(b) and 1223(2) of the Internal Revenue Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current stockholders of Oritani Financial Corp. will not recognize any gain or
loss upon their constructive exchange of Oritani Financial Corp. common stock for
Oritani common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eligible Account Holders and Supplemental Eligible Account Holders will not
recognize any gain or loss upon their constructive exchange of their liquidation
interests in Oritani Financial Corp. for the liquidation accounts in Oritani.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The constructive exchange of the Eligible Account Holders and Supplemental
Eligible Account Holders liquidation interests in Oritani Financial Corp. for interests
in a liquidation account established in Oritani will satisfy the continuity of interest
requirement of Section&nbsp;1.368-1(b) of the Federal Income Tax Regulations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stockholder&#146;s aggregate basis in shares of Oritani common stock (including
fractional share interests) received in the exchange will be the same as the aggregate
basis of Oritani Financial Corp. common stock surrendered in the exchange.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stockholder&#146;s holding period in his or her Oritani common stock received
in the exchange will include the period during which the Oritani Financial Corp. common
stock surrendered was held, provided that the Oritani Financial Corp. common stock
surrendered is a capital asset in the hands of the stockholder on the date of the
exchange.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash received by any current stockholder of Oritani Financial Corp. in lieu of
a fractional share interest in shares of Oritani common stock will be treated as having
been received as a distribution in full payment in exchange for a fractional share
interest of Oritani common stock, which such stockholder would otherwise be entitled to
receive. Accordingly, a stockholder will recognize gain or loss equal to the difference
between the cash received and</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the basis of the fractional share. If the common stock is held by the stockholder as a
capital asset, the gain or loss will be capital gain or loss.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the fair market value of the nontransferable
subscription rights to purchase Oritani common stock is zero. Accordingly, no gain or
loss will be recognized by Eligible Account Holders, Supplemental Eligible Account
Holders or Other Members upon distribution to them of nontransferable subscription
rights to purchase shares of Oritani common stock. Eligible Account Holders,
Supplemental Eligible Account Holders and Other Members will not realize any taxable
income as the result of the exercise by them of the nontransferable subscriptions
rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the fair market value of the benefit provided
by the liquidation account of Oritani Bank supporting the payment of the Oritani
liquidation account in the event Oritani lacks sufficient net assets is zero.
Accordingly, it is more likely than not that no gain or loss will be recognized by
Eligible Account Holders and Supplemental Eligible Account Holders upon the
constructive distribution to them of such rights in the Oritani Bank liquidation
account as of the effective date of the merger of Oritani Financial Corp. with and into
Oritani. (Section&nbsp;356(a) of the Internal Revenue Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is more likely than not that the basis of the shares of Oritani common stock
purchased in the offering by the exercise of nontransferable subscription rights will
be the purchase price. The holding period of the Oritani common stock purchased
pursuant to the exercise of nontransferable subscription rights will commence on the
date on which the right to acquire such stock was exercised.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No gain or loss will be recognized by Oritani on the receipt of money in
exchange for Oritani common stock sold in the offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the tax opinions summarized above address all material federal income tax
consequences that are generally applicable to Oritani Financial Corp., MHC, Oritani Financial
Corp., Oritani Bank, Oritani and persons receiving subscription rights and shareholders of Oritani
Financial Corp. The tax opinion as to items 8 and 13 above is based on the position that
subscription rights to be received by Eligible Account Holders, Supplemental Eligible Account
Holders and Other Members do not have any economic value at the time of distribution or the time
the subscription rights are exercised. In this regard, Luse Gorman Pomerenk &#038; Schick noted that the
subscription rights will be granted at no cost to the recipients, are legally non-transferable and
of short duration, and will provide the recipient with the right only to purchase shares of common
stock at the same price to be paid by members of the general public in any community offering. The
firm also noted that the Internal Revenue Service has not in the past concluded that subscription
rights have value. Based on the foregoing, Luse Gorman Pomerenk &#038; Schick believes that it is more
likely than not that the nontransferable subscription rights to purchase shares of common stock
have no value. However, the issue of whether or not the nontransferable subscription rights have
value is based on all the facts and circumstances. If the subscription rights granted to Eligible
Account Holders, Supplemental Eligible Account Holders and Other Members are deemed to have an
ascertainable value, receipt of these rights could result in taxable gain to those Eligible Account
Holders, Supplemental Eligible Account Holders and Other Members who exercise the subscription
rights in an amount equal to the ascertainable value, and we could recognize gain on a
distribution. Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are
encouraged to consult with their own tax advisors as to the tax consequences in the event that
subscription rights are deemed to have an ascertainable value.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also have received a letter from RP Financial stating its belief that the subscription
rights do not have any ascertainable fair market value and that the price at which the subscription
rights are exercisable will not be more or less than the fair market value of the shares on the
date of the exercise. This position is based on the fact that these rights are acquired by the
recipients without cost, are nontransferable and of short duration, and afford the recipients the
right only to purchase the common stock at the same price as will be paid by members of the general
public in any community offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion as to item 14 above is based on the position that Oritani: (i)&nbsp;there is no history
of any holder of a liquidation account receiving any payment attributable to a liquidation account;
(ii)&nbsp;the interests in the liquidation accounts are not transferable; (iii)&nbsp;the amounts due under
the liquidation account with respect to each Eligible Account Holder and Supplemental Eligible
Account Holder will be reduced as their deposits in Oritani Bank are reduced; and (iv)&nbsp;the Oritani
Bank liquidation account payment obligation arises only if Oritani lacks sufficient net assets to
fund the liquidation account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we have received a letter from RP Financial stating its belief that the benefit
provided by the Oritani Bank liquidation account supporting the payment of the liquidation account
in the event Oritani lacks sufficient net assets does not have any economic value at the time of
the merger of Oritani Financial Corp. and Oritani. Based on the foregoing, Luse Gorman Pomerenk &#038;
Schick believes it is more likely than not that such rights in the Oritani Bank liquidation account
have no value. If such rights are subsequently found to have an economic value, income may be
recognized by each Eligible Account Holder or Supplemental Eligible Account Holder in the amount of
such fair market value as of the date of the merger of Oritani Financial Corp. and Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not plan to apply for a private letter ruling from the Internal Revenue Service
concerning the transactions described herein. Unlike private letter rulings issued by the Internal
Revenue Service, opinions of counsel are not binding on the Internal Revenue Service or any state
tax authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that the conclusions reached in an opinion of counsel would
be sustained by a court if contested by the Internal Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The federal tax opinion has been filed with the Securities and Exchange Commission as an
exhibit to Oritani&#146;s registration statement. Advice regarding the New Jersey income tax
consequences consistent with the federal tax opinion is expected to be issued by KPMG LLP, tax
advisors to Oritani Financial Corp., MHC and Oritani Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Restrictions on Purchase or Transfer of Our Shares after the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of common stock purchased in the offering by a director or an executive officer of
Oritani Bank generally may not be sold for a period of one year following the closing of the
conversion, except in the event of the death of the director or executive officer. Each certificate
for restricted shares will bear a legend giving notice of this restriction on transfer, and
instructions will be issued to the effect that any transfer within this time period of any
certificate or record ownership of the shares other than as provided above is a violation of the
restriction. Any shares of common stock issued at a later date as a stock dividend, stock split, or
otherwise, with respect to the restricted stock will be similarly restricted. The directors and
executive officers of Oritani also will be restricted by the insider trading rules promulgated
pursuant to the Securities Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of shares of our common stock by any of our directors, executive officers and their
associates, during the three-year period following the closing of the conversion may be made only
through a broker or dealer registered with the Securities and Exchange Commission, except with the
prior written approval of the OTS. This restriction does not apply, however, to negotiated
transactions involving more than 1% of our outstanding common stock or to purchases of our common
stock by our
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stock-based incentive plan or any of our tax-qualified employee stock benefit plans or
non-tax-qualified employee stock benefit plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit Oritani from repurchasing its shares of common stock during the first
year following the conversion unless compelling business reasons exist for such repurchases. After
one year, the OTS does not impose any repurchase restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the Plan of Conversion and
Reorganization of Oritani Financial Corp., MHC.</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 2 &#151; ADJOURNMENT OF THE SPECIAL MEETING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If there are not sufficient votes to constitute a quorum or to approve the plan of conversion
at the time of the special meeting, the proposals may not be approved unless the special meeting is
adjourned to a later date or dates in order to permit further solicitation of proxies. In order to
allow proxies that have been received by Oritani Financial Corp. at the time of the special meeting
to be voted for an adjournment, if necessary, Oritani Financial Corp. has submitted the question of
adjournment to its stockholders as a separate matter for their consideration. The Board of
Directors of Oritani Financial Corp. recommends that stockholders vote &#147;FOR&#148; the adjournment
proposal. If it is necessary to adjourn the special meeting, no notice of the adjourned special
meeting is required to be given to stockholders (unless the adjournment is for more than 30&nbsp;days or
if a new record date is fixed), other than an announcement at the special meeting of the hour, date
and place to which the special meeting is adjourned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the adjournment of the special meeting,
if necessary, to solicit additional proxies in the event that there are not sufficient votes at the
time of the special meeting to approve the plan of conversion.</B>
</DIV>


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</DIV>



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<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSALS 3a THROUGH 3d &#151; INFORMATIONAL PROPOSALS RELATED TO THE<BR>
CERTIFICATE OF INCORPORATION AND BYLAWS OF ORITANI</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By their approval of the plan of conversion as set forth in Proposal 1, the Board of Directors
of Oritani Financial Corp. has approved each of the informational proposals numbered 3a through 3d,
all of which relate to provisions included in the certificate of incorporation or bylaws of
Oritani. Each of these informational proposals is discussed in more detail below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the conversion, the public stockholders of Oritani Financial Corp., whose
rights are presently governed by the charter and bylaws of Oritani Financial Corp., will become
stockholders of Oritani, whose rights will be governed by the certificate of incorporation and
bylaws of Oritani. The following informational proposals address the material differences between
the governing documents of the two companies. This discussion is qualified in its entirety by
reference to the charter and bylaws of Oritani Financial Corp. and the certificate of incorporation
and bylaws of Oritani. See &#147;Where You Can Find Additional Information&#148; for procedures for
obtaining a copy of those documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of Oritani&#146;s certificate of incorporation and bylaws which are summarized as
informational proposals 3a through 3d were approved as part of the process in which the Board of
Directors of Oritani Financial Corp. approved the plan of conversion. These proposals are
informational in nature only, because the Office of Thrift Supervision&#146;s regulations governing
mutual-to-stock conversions do not provide for votes on matters other than the plan of conversion.
Oritani Financial Corp.&#146;s stockholders are not being asked to approve these informational proposals
at the special meeting. While we are asking you to vote with respect to each of the informational
proposals set forth below, the proposed provisions for which an informational vote is requested
will become effective if stockholders approve the plan of conversion, regardless of whether
stockholders vote to approve any or all of the informational proposals. The provisions of
Oritani&#146;s certificate of incorporation and bylaws which are summarized as informational proposals
may have the effect of deterring or rendering more difficult attempts by third parties to obtain
control of Oritani, if such attempts are not approved by the Board of Directors, or may make the
removal of the Board of Directors or management, or the appointment of new directors, more
difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3a &#151; Approval of a Provision in Oritani&#146;s Certificate of incorporation
and Bylaws to Limit the Ability of Stockholders to Remove Directors. </B>The certificate of
incorporation of Oritani provides that any director may be removed by stockholders only for cause
upon the affirmative vote of the holders of at least a majority of the shares entitled to vote in
the election of directors. However, Oritani&#146;s bylaws provide that a special meeting of the
stockholders shall be called at the request of stockholders only on the written request of
stockholders entitled to cast at least a majority of all the votes entitled to be cast at the
meeting. These provisions, along with the prohibition against any beneficial owner voting more
than 10% of the outstanding voting stock, which is discussed below, will prevent anyone that
acquires beneficial ownership, directly or indirectly, of a majority of the outstanding shares from
voting shares in excess of the 10% limit to call a special meeting to remove directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s bylaws provide that any director may be removed only for cause by a
vote of the holders of a majority of the outstanding voting shares at a meeting of stockholders
called for such purpose. This has provided an adequate degree of protection under the mutual
holding company structure, in which the mutual holding company owns a majority of all voting shares
and can prevent a third party from seeking removal of one or more directors in order to promote an
agenda that may not be in the best interests of all other stockholders.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The majority voting requirement for the removal of directors for cause, together with the 10%
voting limit and the provision regarding the calling of special meetings, is intended to prevent
sudden and fundamental changes to the composition of the Board of Directors except in the case of
director misconduct. This provision does not prevent the replacement of one or more directors at a
special meeting of stockholders, and will not prevent replacement of the entire Board over the
course of three years. This provision is intended to reduce the ability of anyone to coerce
members of the Board of Directors by threatening them with removal from office, in cases where the
directors are acting in good faith to discharge their duties to the corporation and to all
stockholders as a group. This provision will not prevent a stockholder from conducting a proxy
contest with respect to the election of directors at a special meeting of stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The majority vote threshold, together with the other provisions discussed above, may make it
more difficult to bring about a change in control of Oritani One method for a hostile stockholder
to take control of a company is to acquire a majority of the outstanding shares of the company
through a tender offer or open market purchases and then use its voting power to remove the
existing directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors believes that it is desirable to adopt the provision requiring a
majority vote to remove a director so that a director&#146;s continued service will be conditioned on
his or her ability to serve and discharge his or her duties to the corporation and the stockholders
in good faith, rather than his or her position relative to a dominant stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the approval of a provision in Oritani&#146;s
certificate of incorporation and bylaws to limit the ability of stockholders to remove directors.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3b. &#151; Approval of a Provision in Oritani&#146;s Certificate of
incorporation Requiring a Super-Majority Vote to Approve Certain Amendments to Oritani&#146;s
Certificate of incorporation. </B>No amendment of the charter of Oritani Financial Corp. may be made
unless it is first proposed by the Board of Directors, then preliminarily approved by the Office of
Thrift Supervision, and thereafter approved by the holders of a majority of the total votes
eligible to be cast at a legal meeting. The certificate of incorporation of Oritani generally may
be amended by the holders of a majority of the shares entitled to vote; provided, however, that any
amendment of Section&nbsp;C, D and E of Article&nbsp;Sixth (Preferred Stock, Restrictions on Voting Rights of
the Corporation&#146;s Equity Securities, Majority Vote), Article&nbsp;6 (Directors), Article&nbsp;7 (Bylaws),
Article&nbsp;8 (Approval of Certain Business Combinations), Article&nbsp;9 (Indemnification, etc. of
Directors and Officers), Article&nbsp;10 (Limitation of Liability) and Article&nbsp;11 (Amendment of the
Certificate of incorporation) must be approved by the affirmative vote of the holders of at least
80% of the outstanding shares entitled to vote (or in the case of Article&nbsp;11, at least 85% of the
understanding shares entitled to vote), except that the Board of Directors may amend the
certificate of incorporation without any action by the stockholders to increase or decrease the
aggregate number of shares of capital stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These limitations on amendments to specified provisions of Oritani&#146;s certificate of
incorporation are intended to ensure that the referenced provisions are not limited or changed upon
a simple majority vote. While this limits the ability of stockholders to amend those provisions,
Oritani Financial Corp., MHC, as a 74.4% stockholder, currently can effectively block any
stockholder proposed change to the charter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The requirement of a super-majority stockholder vote to amend specified provisions of
Oritani&#146;s certificate of incorporation could have the effect of discouraging a tender offer or
other takeover attempt where the ability to make fundamental changes through amendments to the
certificate of incorporation is an important element of the takeover strategy of the potential
acquiror. The Board of Directors believes
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->66<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">that the provisions limiting certain amendments to the certificate of incorporation will put the
Board of Directors in a stronger position to negotiate with third parties with respect to
transactions potentially affecting the corporate structure of Oritani and the fundamental rights of
its stockholders, and to preserve the ability of all stockholders to have an effective voice in the
outcome of such matters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the approval of a provision in Oritani&#146;s
certificate of incorporation requiring a super-majority vote to approve certain amendments to
Oritani&#146;s certificate of incorporation.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3c. &#151; Approval of a Provision in Oritani&#146;s Bylaws Requiring a
Super-Majority Vote of Stockholders to Approve Stockholder Proposed Amendments to Oritani&#146;s Bylaws.</B>
An amendment to Oritani Financial Corp.&#146;s bylaws proposed by stockholders must be approved by the
holders of a majority of the total votes eligible to be cast at a legal meeting subject to
applicable approval by the Office of Thrift Supervision. The bylaws of Oritani provide that
stockholders may only amend the bylaws if such proposal is approved by the affirmative vote of the
holders of at least 80% of the outstanding shares entitled to vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The requirement of a super-majority stockholder vote to amend the bylaws of Oritani is
intended to ensure that the bylaws are not limited or changed upon a simple majority vote of
stockholders. While this limits the ability of stockholders to amend the bylaws, Oritani Financial
Corp., MHC, as a 74.4% stockholder, currently can effectively block any stockholder proposed change
to the bylaws. Also, the Board of Directors of both Oritani Financial Corp. and Oritani may by a
majority vote amend either company&#146;s bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This provision in Oritani&#146;s bylaws could have the effect of discouraging a tender offer or
other takeover attempt where the ability to make fundamental changes through amendments to the
bylaws is an important element of the takeover strategy of the potential acquiror. The Board of
Directors believes that the provision limiting amendments to the bylaws will put the Board of
Directors in a stronger position to negotiate with third parties with respect to transactions
potentially affecting the corporate structure of Oritani and the fundamental rights of its
stockholders, and to preserve the ability of all stockholders to have an effective voice in the
outcome of such matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the approval of the provision in
Oritani&#146;s bylaws requiring a super-majority vote of stockholders to approve stockholder proposed
amendments to Oritani&#146;s bylaws.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Informational Proposal 3d. &#151; Approval of a Provision in Oritani&#146;s Certificate of
incorporation to Limit the Voting Rights of Shares Beneficially Owned in Excess of 10% of Oritani&#146;s
Outstanding Voting Stock. </B>The certificate of incorporation of Oritani provide that in no event
shall any person, who directly or indirectly beneficially owns in excess of 10% of the
then-outstanding shares of common stock as of the record date for the determination of stockholders
entitled or permitted to vote on any matter, be entitled or permitted to any vote in respect of the
shares held in excess of the 10% limit. Beneficial ownership is determined pursuant to the federal
securities laws and includes, but is not limited to, shares as to which any person and his or her
affiliates (i)&nbsp;have the right to acquire pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights, warrants or options and (ii)&nbsp;have or share
investment or voting power (but shall not be deemed the beneficial owner of any voting shares
solely by reason of a revocable proxy granted for a particular meeting of stockholders, and that
are not otherwise beneficially, or deemed by Oritani to be beneficially, owned by such person and
his or her affiliates).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->67<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing restriction does not apply to any employee benefit plans of Oritani or any
subsidiary or a trustee of a plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The charter of Oritani Bank provides that, for a period of five years from the effective date
of Oritani Bank&#146;s mutual holding company reorganization, no person, other than Oritani Financial
Corp., MHC, shall directly or indirectly offer to acquire or acquire more than 10% of the
then-outstanding shares of common stock. The foregoing restriction does not apply to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the purchase of shares by underwriters in connection with a public offering; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the purchase of shares by any employee benefit plans of Oritani Financial Corp. or
any subsidiary.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision in Oritani&#146;s certificate of incorporation limiting the voting rights of
beneficial owners of more than 10% of Oritani&#146;s outstanding voting stock is intended to limit the
ability of any person to acquire a significant number of shares of Oritani common stock and thereby
gain sufficient voting control so as to cause Oritani to effect a transaction that may not be in
the best interests of Oritani and its stockholders generally. This provision will not prevent a
stockholder from seeking to acquire a controlling interest in Oritani, but it will prevent a
stockholder from voting more than 10% of the outstanding shares of common stock unless that
stockholder has first persuaded the Board of Directors of the merits of the course of action
proposed by the stockholder. The Board of Directors of Oritani believes that fundamental
transactions generally should be first considered and approved by the Board of Directors as it
generally believes that it is in the best position to make an initial assessment of the merits of
any such transactions and that its ability to make the initial assessment could be impeded if a
single stockholder could acquire a sufficiently large voting interest so as to control a
stockholder vote on any given proposal. This provision in Oritani&#146;s certificate of incorporation
makes an acquisition, merger or other similar corporate transaction less likely to occur, even if
such transaction is supported by most stockholders, because it can prevent a holder of shares in
excess of the 10% limit from voting the excess shares in favor of the transaction. Thus, it may be
deemed to have an anti-takeover effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that you vote &#147;FOR&#148; the approval of a provision in Oritani&#146;s
certificate of incorporation to limit the voting rights of shares beneficially owned in excess of
10% of Oritani&#146;s outstanding voting stock.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The summary financial information presented below is derived in part from the consolidated
financial statements of Oritani Financial Corp. and subsidiaries. The following is only a summary
and you should read it in conjunction with the consolidated financial statements and notes
beginning on page F-1. The information at June&nbsp;30, 2009 and 2008 and for the years ended June&nbsp;30,
2008 and 2007 is derived in part from the audited consolidated financial statements of Oritani
Financial Corp. that appear in this prospectus. The operating data for the three months and six
months ended December&nbsp;31, 2009 and 2008 and the financial condition data at December&nbsp;31, 2009 were
not audited. However, in the opinion of management of Oritani Financial Corp., all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of the results of
operations for the unaudited periods have been made. No adjustments were made other than normal
recurring entries. The results of operations for the three months and six months ended December
31, 2009 are not necessarily indicative of the results of operations that may be expected for the
entire year.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At December</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Condition Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,913,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,443,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,194,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,031,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,051,702</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">643,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">493,554</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,924</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale, at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank owned life insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank of New York stock, at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,967</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,405</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments in real estate joint ventures, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate held for investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,425</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">695,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">688,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,980</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,796</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,056</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,463</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after
provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,340</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,795</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,545</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>For the Year Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Operating Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">71,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,349</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,090</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net interest income after provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,309</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,663</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,153</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,664</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,193</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,960</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>At or for the Six Months</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Ended December 31,</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Selected Financial Ratios and Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Performance Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on assets <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return on equity <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.51</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.54</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Efficiency ratio <SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">46.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">56.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">58.35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">70.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">54.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49.74</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest expense to average total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest-earning assets to average
interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">111.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">114.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">123.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">115.05</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">114.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Asset Quality Ratios:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-performing loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.54</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to nonperforming loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">39.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Capital Ratios: </B><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity to assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.55</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to average assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.31</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.62</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of full service offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Full time equivalent employees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Ratios are annualized where appropriate.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net income divided by average total assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net income divided by average equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents average yield on interest-owning assets less average cost of interest-bearing
liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents net interest income as a percent of average interest-earning assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents non-interest expense divided by the sum of net interest income before provision
for loan losses and non-interest income.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Represent consolidated ratios.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">N/M Not meaningful.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains forward-looking statements, which can be identified by the use of
words such as &#147;estimate,&#148; &#147;project,&#148; &#147;believe,&#148; &#147;intend,&#148; &#147;anticipate,&#148; &#147;plan,&#148; &#147;seek,&#148; &#147;expect&#148;
and words of similar meaning. These forward-looking statements include, but are not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements of our goals, intentions and expectations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements regarding our business plans, prospects, growth and operating
strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements regarding the asset quality of our loan and investment
portfolios; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>estimates of our risks and future costs and benefits.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These forward-looking statements are based on current beliefs and expectations of our
management and are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in laws or government regulations or policies affecting financial
institutions, including changes in regulatory fees and capital requirements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic conditions, either nationally or in our market areas,
that are worse than expected;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition among depository and other financial institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inflation and changes in the interest rate environment that reduce our
margins or reduce the fair value of financial instruments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in the securities markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to enter new markets successfully and capitalize on growth
opportunities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to successfully integrate acquired entities, if any;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in consumer spending, borrowing and savings habits;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our organization, compensation and benefit plans;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to continue to increase and manage our commercial and
residential real estate, multi-family, and commercial and industrial loans;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible impairments of securities held by us, including those issued by
government entities and government sponsored enterprises;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->71<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of future deposit premium assessments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the current recession on our loan portfolio (including cash
flow and collateral values), investment portfolio, customers and capital market
activities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of the current governmental effort to restructure the U.S.
financial and regulatory system;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the financial performance and/or condition of our borrowers;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Securities and Exchange Commission,
the Public Company Accounting Oversight Board, the Financial Accounting Standards Board
and other accounting standard setters.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. Please see &#147;Risk
Factors&#148; beginning on page 22.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->72<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we cannot determine what the actual net proceeds from the sale of the shares of
common stock in the offering will be until the offering is completed, we anticipate that the
aggregate net proceeds will be between $318.4&nbsp;million and $431.4&nbsp;million, or $496.5&nbsp;million if the
offering range is increased by 15%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to distribute the net proceeds from the stock offering as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $10.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>33,150,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>39,000,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>44,850,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>51,577,500 Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Net</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Net</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Proceeds</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: offering expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,322</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net offering proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">374,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distribution of net proceeds:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">To Oritani Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">159,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">To fund the loan to
employee stock ownership
plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained by Oritani</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">145,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">197,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">227,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">45.8</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares which could occur due to a
15% increase in the offering range to reflect demand for the shares or changes in market or
general financial conditions following the commencement of the offering.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for shares of common stock made through withdrawals from existing deposit
accounts will not result in the receipt of new funds for investment but will result in a reduction
of Oritani Bank&#146;s deposits. The net proceeds may vary because total expenses relating to the
offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the
subscription and community offerings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oritani and Oritani Bank May Use the Proceeds it Retains From the Offering:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to support internal growth through lending and deposit gathering in the
communities we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->73<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered &#147;well capitalized&#148; for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to use the additional capital for other general corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current OTS regulations, we may not repurchase shares of our common stock during the
twelve months following the completion of the conversion, except to fund certain stock-based plans
or, with prior regulatory approval, when extraordinary circumstances exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially, a substantial portion of the net proceeds will likely be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities. The use of proceeds
may change based on changes in interest rates, equity markets, laws and regulations affecting the
financial services industry, our relative position in the financial services industry, the
attractiveness of potential acquisitions, and overall market conditions. Our business strategy for
the deployment of the net proceeds raised in the offering is discussed in more detail in
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#151;Business
Strategy.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our return on equity may be relatively low until we are able to effectively reinvest the
additional capital raised in the offering. Until we can deploy our capital until we have a
leverage ratio similar to peers, our return on equity may be below the industry average, which may
negatively affect the value of our common stock. See &#147;Risk Factors&#151;Our return on equity initially
will be low compared to our historical performance. A lower return on equity may negatively impact
the trading price of our common stock.&#148;
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OUR POLICY REGARDING DIVIDENDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. We expect the annual dividends to equal $0.30
per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering range,
respectively, which represents an annual dividend yield of 3.0% at each of the minimum, midpoint,
maximum and adjusted maximum of the offering range, respectively, based upon a stock price of
$10.00 per share. The amount of dividends that we intend to pay to our stockholders following the
conversion is intended to preserve the per share dividend rate that Oritani Financial Corp.
stockholders currently receive. The dividend rate and the continued payment of dividends will
depend on a number of factors including our capital requirements, our financial condition and
results of operations, tax considerations, statutory and regulatory limitations, and general
economic conditions. We cannot assure you that we will not reduce or eliminate dividends in the
future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rules of the OTS, Oritani Bank will not be permitted to pay dividends on its capital
stock to Oritani, its sole stockholder, if Oritani Bank&#146;s stockholder&#146;s equity would be reduced
below the amount of the liquidation account established in connection with the conversion. In
addition, Oritani Bank will not be permitted to make a capital distribution if, after making such
distribution, it would be undercapitalized. See &#147;The Conversion and Offering&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unlike Oritani Bank, we are not restricted by OTS regulations on the payment of dividends to
our stockholders, although the source of dividends will depend on the net proceeds retained by us
and earnings and dividends from Oritani Bank. However, we will be subject to state law limitations
on the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->74<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payment of dividends. Delaware law generally limits dividends to be paid out of its capital
surplus or, if there is no surplus, out of net profits from the fiscal year in which the dividend
is declared, and the preceding fiscal year, subject to certain limitations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, pursuant to OTS regulations, during the three-year period following the conversion,
we will not take any action to declare an extraordinary dividend to stockholders that would be
treated by recipients as a tax-free return of capital for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Selected Consolidated Financial and Other Data&#148; and &#147;Market for the Common Stock&#148; for
information regarding our historical dividend payments.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MARKET FOR THE COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s common stock currently trades on the Nasdaq Global Market under the
symbol &#147;ORIT.&#148; Upon completion of the offering, the shares of common stock of Oritani will replace
Oritani Financial Corp.&#146;s shares of common stock. We expect that Oritani&#146;s shares of
common stock will trade on the Nasdaq Global Market under the trading symbol &#147;ORITD&#148; for a period
of 20 trading days after the completion of the offering. Thereafter, Oritani&#146;s trading symbol will
revert to &#147;ORIT.&#148; In order to list our common stock on the Nasdaq Global Market, we are required
to have at least three broker-dealers who will make a market in our common stock. Oritani
Financial Corp. currently has &#95;&#95;&#95;registered market makers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The development of a public market having the desirable characteristics of depth, liquidity
and orderliness depends on the existence of willing buyers and sellers, the presence of which is
not within our control or that of any market maker. The number of active buyers and sellers of our
common stock at any particular time may be limited, which may have an adverse effect on the price
at which our common stock can be sold. You may not be able to sell your shares at or above the
$10.00 price per share in the offering. Purchasers of our common stock should have a long-term
investment intent and should recognize that there may be a limited trading market in our common
stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the conversion and offering, each existing publicly held share of common
stock of Oritani Financial Corp. will be converted into a right to receive a number of shares of
Oritani common stock, based upon the exchange ratio that is described in other sections of this
prospectus. See &#147;The Conversion and Offering&#151;Share Exchange Ratio for Current Stockholders.&#148;
Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio. The vesting period of such options
as well as any outstanding stock awards will be accelerated upon the closing of the conversion and
the term of such options will remain unchanged. We anticipate the pre-tax expense of such
accelerated vesting will be approximately $11.3&nbsp;million, which represents the remaining
amortization for such accelerated options and awards, with such expense to be incurred during the
fiscal quarter in which the stock offering is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares of common stock are traded on the Nasdaq Global Market under the symbol &#147;ORIT&#148;. The
approximate number of holders of record of Oritani Financial Corp.&#146;s common stock as of
&#091;shareholder record date&#093; was &#95;&#95;&#95;. Certain shares of Oritani Financial Corp. are held in
&#147;nominee&#148; or &#147;street&#148; name and accordingly, the number of beneficial owners of such shares is not
known or included in the foregoing number. The following table presents quarterly market
information for Oritani Financial Corp.&#146;s common stock for the periods indicated.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->75<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Fiscal 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividends</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>per share</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.075</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter
(through___)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Fiscal 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Fiscal 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividend</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Dividend</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>per share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>per share</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sources of funds for the payment of a cash dividend are the retained proceeds from
the initial sale of shares of common stock and earnings on those proceeds, interest and principal
payments with respect to Oritani Financial Corp.&#146;s loan to the Employee Stock Ownership Plan, and
dividends from Oritani Bank. For a discussion of the limitations applicable to Oritani Bank&#146;s
ability to pay dividends, see &#147;Supervision and Regulation&#151;Federal Banking Regulation.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;18, 2010, the business day immediately preceding the public announcement of the
conversion, the closing price of Oritani Financial Corp. common stock as reported on the Nasdaq
Global Market was $13.88 per share. At <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the closing price of Oritani Financial
Corp.&#146;s common stock was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and there were approximately <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> stockholders of record.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->76<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="112"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, Oritani Bank exceeded all of the applicable regulatory capital
requirements. The table below sets forth the historical equity capital and regulatory capital of
Oritani Bank at December&nbsp;31, 2009, and the pro forma regulatory capital of Oritani Bank, after
giving effect to the sale of Oritani&#146;s shares of common stock at a $10.00 per share purchase price.
Accordingly, the table assumes the receipt by Oritani Bank of at least 50% of the net proceeds.
See &#147;How We Intend to Use the Proceeds from the Offering.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Oritani Bank Historical</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>Pro Forma at December 31, 2009 Based Upon the Sale at $10.00 Per Share</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>33,150,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>39,000,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>44,850,000 Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>51,577,500 Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Assets (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Assets (2)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="42"><B>(Dollars in thousands)</B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">194,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">327,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">350,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.22</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">374,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">401,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (leverage)&nbsp;capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">326,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">373,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (leverage)
requirement (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,773</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">263,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">285,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">311,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 risk-based
capital (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">326,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">373,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 requirement (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,943</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,922</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">107,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">238,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">261,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">284,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">311,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk-based
capital (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">211,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">344,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">367,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">391,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-based requirement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">96,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">226,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">250,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">273,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">299,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reconciliation of
capital infused into
Oritani Bank:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">159,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock acquired by employee
stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock acquired by the stock-based
incentive plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets received from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma increase in GAAP and regulatory
capital (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">132,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">207,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares of common stock that
could occur due to a 15% increase in the offering range to reflect demand for the
shares, or changes in market or general financial conditions following the commencement
of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Tangible and core capital levels are shown as a percentage of total adjusted assets.
Risk-based capital levels are shown as a percentage of risk-weighted assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Although not adopted in regulation form, the New Jersey Department of Banking and Insurance
utilizes capital standards of 6% leverage capital and 8.0% risk-based capital. In addition,
the FDIC requires a Tier 1 risk-based capital ratio of 4.0% or greater.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Pro forma capital levels assume that we fund the stock-based incentive plans with purchases
in the open market equal to 4.0% of the shares of common stock sold in the stock offering at a
price equal to the price for which the shares of common stock are sold in the stock offering,
and that the employee stock ownership plan purchases 4.0% of the shares of common stock sold
in the stock offering with funds we lend. Pro forma GAAP and regulatory capital have been
reduced by the amount required to fund both of these plans. See &#147;Management&#148; for a discussion
of the stock-based incentive plan and employee stock ownership plan. We may award shares of
common stock under one or more stock-based incentive plans in excess of this amount if the
stock-based incentive plans are adopted more than one year following the stock offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20%
risk weighting.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->77<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the historical consolidated capitalization of Oritani Financial
Corp. at December&nbsp;31, 2009 and the pro forma consolidated capitalization of Oritani after giving
effect to the offering, based upon the assumptions set forth in the &#147;Pro Forma Data&#148; section.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Oritani</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Financial Corp.</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Historical at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Oritani $10.00 Per Share Pro Forma Based on the Sale of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>33,150,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>39,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>44,850,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>51,577,500</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total deposits and borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,717,946</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock $0.01 par value,
150,000,000 shares authorized
(post-conversion); shares to be
issued as reflected (3) (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Paid-in capital (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">506,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628,229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Oritani Financial Corp., MHC
capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive
income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,649</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock to be acquired by the
ESOP (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,512</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,772</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,112</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34,143</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock to be acquired by the
stock-based incentive plan (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">591,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">703,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Shares outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Exchange shares issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,395,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,704,777</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares offered for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,577,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total stockholders&#146; equity as a
percentage of total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tangible equity ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">26.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.57</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares of common stock that could
occur due to a 15% increase in the offering range to reflect demand for the shares, or changes
in market or general financial conditions following the commencement of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not reflect withdrawals from deposit accounts for the purchase of shares of common stock
in the offering. These withdrawals would reduce pro forma deposits by the amount of the
withdrawals.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Oritani Financial Corp. currently has 10,000,000 authorized shares of preferred stock and
80,000,000 authorized shares of common stock, par value $0.01 per share. On a pro forma
basis, Oritani common stock and additional paid-in capital have been revised to reflect the
number of shares of Oritani common stock to be outstanding, which is 44,592,252 shares,
52,387,355 shares, 60,245,458 shares and 69,282,277 shares at the minimum, midpoint, maximum
and adjusted maximum of the offering range, respectively.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>No effect has been given to the issuance of additional shares of Oritani common stock
pursuant to stock options to be granted under a stock-based incentive plan. If this plan
is implemented within one year of the completion of the offering, an amount up to 10.0% of
the shares of Oritani common stock sold in the offering will be reserved for issuance upon
the exercise of options. We may exceed this limit if the plan is implemented more than
one year following the completion of the offering. No effect has been given to the
exercise of options currently outstanding. See &#147;Management&#151;Benefits to be Considered
Following Completion of the Conversion.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oritani Bank will be substantially restricted after the
conversion. See &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and &#147;Supervision and
Regulation.&#148;</TD>
</TR>

</TABLE>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>(Footnotes continued on next page)</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->78<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>(continued from previous page)</I>
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of the shares sold in the offering will be acquired by the employee
stock ownership plan financed by a loan from Oritani The loan will have a term of 20&nbsp;years
and an interest rate equal to the prime rate as published in <I>The Wall Street Journal</I>,
and be repaid principally from Oritani Bank&#146;s contributions to the employee stock
ownership plan. Since Oritani will finance the employee stock ownership plan debt, this
debt will be eliminated through consolidation and no liability will be reflected on
Oritani&#146;s consolidated financial statements. Accordingly, the amount of shares of common
stock acquired by the employee stock ownership plan is shown in this table as a reduction
of total stockholders&#146; equity.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes at the minimum, midpoint, the maximum and the maximum as adjusted, of the
offering range that a number of shares of common stock equal to 4.0% of the shares of
common stock to be sold in the offering will be purchased by the stock-based incentive
plan in open market purchases. The stock-based incentive plan will be submitted to a vote
of stockholders following the completion of the offering. Our current intent is to
implement a new stock-based incentive plan no earlier than twelve months after completion
of the conversion. The funds to be used by the stock-based incentive plan to purchase the
shares will be provided by Oritani. The dollar amount of common stock to be purchased is
based on the $10.00 per share offering price and represents unearned compensation. This
amount does not reflect possible increases or decreases in the value of common stock
relative to the subscription price in the offering. As Oritani accrues compensation
expense to reflect the vesting of shares pursuant to the stock-based incentive plan, the
credit to capital will be offset by a charge to operations. Implementation of the
stock-based incentive plan will require stockholder approval.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->79<!-- /Folio -->
</DIV>



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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRO FORMA DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables summarize historical data of Oritani Financial Corp. and pro forma data
at and for the six months ended December&nbsp;31, 2009 and at and for the year ended June&nbsp;30, 2009.
This information is based on assumptions set forth below and in the tables, and should not be used
as a basis for projections of market value of the shares of common stock following the offering.
Moreover, pro forma stockholders&#146; equity per share does not give effect to the liquidation account
to be established in the conversion or, in the unlikely event of a liquidation of Oritani Bank, to
the recoverability of intangible assets or the tax effect of the recapture of the bad debt reserve.
See &#147;The Conversion and Offering&#151;Liquidation Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net proceeds in the tables are based upon the following assumptions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>forty percent of all shares of common stock will be sold in the subscription
and community offerings, including shares purchased by insiders, with the remaining
 shares to be sold in the syndicated community offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>150,000 shares of common stock will be purchased by our executive officers and
directors, and their associates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our employee stock ownership plan will purchase 4.0% of the shares of common
stock sold in the offering, with a loan from Oritani. The loan will be repaid in
substantially equal payments of principal and interest over a period of 20&nbsp;years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stifel, Nicolaus &#038; Company, Incorporated will receive a fee equal to 1% of all
 shares of common stock sold in the subscription and community offerings and a fee equal
to 5% of all shares sold in the syndicated community offering. No fee will be paid
with respect to shares of common stock purchased by our qualified and non-qualified
employee stock benefit plans, or stock purchased by our officers, directors and
employees, and their immediate families; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>total expenses of the offering, including the marketing fees to be paid to
Stifel, Nicolaus &#038; Company, Incorporated, will be between $13.1&nbsp;million at the minimum
of the offering range and $19.3&nbsp;million at the maximum of the offering range, as
adjusted.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculated pro forma consolidated net income for the six months ended December&nbsp;31, 2009 and
the year ended June&nbsp;30, 2009 as if the estimated net proceeds we received had been invested at the
beginning of each period at an assumed interest rate of 2.69% (1.64% on an after-tax basis) and
2.54% (1.55% on an after-tax basis). This represents the five-year United States Treasury note
yield as of December&nbsp;31, 2009 and June&nbsp;30, 2009. We consider the resulting rate to reflect more
accurately the pro forma reinvestment rate than an arithmetic average method in light of current
market interest rates. The effect of withdrawals from deposit accounts for the purchase of shares
of common stock has not been reflected. Historical and pro forma per share amounts have been
calculated by dividing historical and pro forma amounts by the indicated number of shares of common
stock. No effect has been given in the pro forma stockholders&#146; equity calculations for the assumed
earnings on the net proceeds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma tables give effect to the implementation of the stock-based incentive plan.
Subject to the receipt of stockholder approval, we have assumed that the stock-based incentive plan
will acquire for restricted stock awards a number of shares of common stock equal to 4.0% of the
shares of common stock sold in the stock offering at the same price for which they were sold in the
stock offering. We
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->80<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assumed that shares of common stock are granted under the plans in awards that vest over a
five-year period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also assumed that the stock-based incentive plans will grant options to acquire shares
of common stock equal to 10.0% of the shares of common stock sold in the stock offering. In
preparing the tables below, we assumed that stockholder approval was obtained, that the exercise
price of the stock options and the market price of the stock at the date of grant were $10.00 per
share and that the stock options had a term of ten years and vested over five years. We applied
the Black-Scholes option pricing model to estimate a grant-date fair value of $3.43 for each
option. In addition to the terms of the options described above, the Black-Scholes option pricing
model assumed an estimated volatility rate of 36.45% for the shares of common stock, a dividend
yield of 3.0%, an expected option life of eight years and a risk-free interest rate of 3.85%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may grant options and award shares of common stock under one or more stock-based incentive
plans in excess of 10.0% and 4.0%, respectively, of the shares of common stock sold in the stock
offering if the stock-based incentive plans are adopted more than twelve months following the stock
offering. Our current intention is to implement a new stock-based incentive plan no earlier than
twelve months after completion of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed under &#147;How We Intend to Use the Proceeds from the Offering,&#148; we intend to
contribute at least 50% of the net proceeds from the stock offering to Oritani Bank, and we will
retain the remainder of the net proceeds from the stock offering. We will use a portion of the
proceeds we retain for the purpose of making a loan to the employee stock ownership plan and retain
the rest of the proceeds for future use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma table does not give effect to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>withdrawals from deposit accounts for the purpose of purchasing shares of
common stock in the stock offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our results of operations after the stock offering; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the market price of the shares of common stock after the stock
offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following pro forma information may not represent the financial effects of the stock
offering at the date on which the stock offering actually occurs and you should not use the table
to indicate future results of operations. Pro forma stockholders&#146; equity represents the difference
between the stated amount of our assets and liabilities, computed in accordance with GAAP. We did
not increase or decrease stockholders&#146; equity to reflect the difference between the carrying value
of loans and other assets and their market value. Pro forma stockholders&#146; equity is not intended
to represent the fair market value of the shares of common stock and may be different than the
amounts that would be available for distribution to stockholders if we liquidated. Per share
figures have been calculated based on shares of Oritani Financial Corp. issued and outstanding as
of the date of this prospectus.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->81<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>At or for the Six Months Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $10.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>33,150,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>39,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>44,850,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>51,577,500</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value of shares issued in the exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,048</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma market capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">445,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">523,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">602,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">692,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,322</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus: Assets received from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by the stock-based incentive plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Estimated net proceeds, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">292,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">343,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">395,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">455,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the Six Months Ended December&nbsp;31, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated net income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,412</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,735</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(238</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(274</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(315</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(809</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(952</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,095</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,259</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(916</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,077</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,239</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,424</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income per share (5):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income per share (5) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price to pro forma net income per share (annualized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.78</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.25</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.71</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.67</TD>
    <TD>x</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares used in net income per share calculations (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,236,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,866,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,496,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,270,754</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>At December&nbsp;31, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">247,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">374,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Pro forma tangible stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">540,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">591,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">703,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity per share (7):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Pro forma tangible stockholders&#146; equity per share (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma tangible stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">82.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">93.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">98.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares outstanding for pro forma book value per share calculations (8).</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->82<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market or
financial conditions following the commencement of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire these
shares are assumed to have been borrowed by the employee stock ownership plan from Oritani.
The loan will have a term of 20&nbsp;years and an interest rate equal to the prime rate as
published in <I>The Wall Street Journal</I>. Oritani Bank intends to make annual contributions to
the employee stock ownership plan in an amount at least equal to the required principal and
interest payments on the debt. Oritani Bank&#146;s total annual payments on the employee stock
ownership plan debt are based upon 20 equal annual
installments of principal and interest. Statement of Position 93-6, &#147;Employers&#146; Accounting for
Employee Stock Ownership Plans&#148; (&#147;SOP 93-6&#148;), requires that an employer record compensation
expense in an amount equal to the fair value of the shares committed to be released to
employees. The pro forma adjustments assume that: (i)&nbsp;the employee stock ownership plan shares
are allocated in equal annual installments based on the number of loan repayment installments
assumed to be paid by Oritani Bank, (ii)&nbsp;the fair value of the common stock remains equal to the
$10.00 subscription price; and (iii)&nbsp;the employee stock ownership plan expense reflects an
effective combined federal and state tax rate of 39.0%. The unallocated employee stock
ownership plan shares are reflected as a reduction of stockholders&#146; equity. No reinvestment is
assumed on proceeds contributed to fund the employee stock ownership plan. The pro forma net
income further assumes that 33,150, 39,000, 44,850 and 51,578 shares were committed to be
released during the period at the minimum, midpoint, maximum, and adjusted maximum of the
offering range, respectively, and in accordance with SOP 93-6, only the employee stock ownership
plan shares committed to be released during the period were considered outstanding for purposes
of net income per share calculations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the grant of restricted stock awards pursuant to the stock-based incentive
plan expected to be adopted by following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that at the minimum, midpoint, maximum and maximum as adjusted, of the offering range this
plan acquires a number of shares of restricted common stock equal to 4.0% of the shares sold
in the offering, either through open market purchases, from authorized but unissued shares of
common stock or treasury stock. Funds used by the stock-based incentive plan to purchase the
shares of common stock will be contributed by Oritani. In calculating the pro forma effect of
the stock-based incentive plan, it is assumed that the shares of restricted stock were
acquired by the plan in open market purchases at the beginning of the period presented for a
purchase price equal to the price for which the shares are sold in the offering, and that
10.0% of the amount contributed was an amortized expense (20.0% annually based upon a
five-year vesting period) during the six months ended December&nbsp;31, 2009. There can be no
assurance that the actual purchase price of the shares of common stock granted under the
stock-based incentive plan will be equal to the $10.00 subscription price. If shares are
acquired from authorized but unissued shares of common stock or from treasury shares, our net
income per share and stockholders&#146; equity per share will decrease. This will also have a
dilutive effect of approximately 2.89% (at the maximum of the offering range) on the ownership
interest of stockholders. The impact on pro forma net income per share and pro forma
stockholders&#146; equity per share is not material.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by Oritani following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that options will be granted to acquire shares of common stock equal to 10.0% of the shares
sold in the offering. In calculating the pro forma effect of the stock options, it is assumed
that the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant-date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i)&nbsp;the trading price on date of grant was $10.00 per share;
(ii)&nbsp;exercise price is equal to the trading price on the date of grant; (iii)&nbsp;dividend yield
of 3.0%; (iv)&nbsp;expected life of ten years; (v)&nbsp;expected volatility of 36.45%; (vi)&nbsp;risk-free
interest rate of 3.85%, and (vii)&nbsp;50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders&#146; equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, and subtracting the
employee stock ownership plan shares which have not been committed for release during the
period in accordance with SOP 93-6. See footnote 2, above.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See &#147;Our Policy Regarding Dividends,&#148; &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and
&#147;Supervision and Regulation.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders&#146; equity
per share calculations are based upon the sum of (i)&nbsp;the number of subscription shares assumed
to be sold in the offering; and (ii)&nbsp;shares to be issued in exchange for publicly held shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma stockholders&#146; equity per share is equal to
the total number of shares to be outstanding upon completion of the offering.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->83<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>At or for the Year Ended June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Based Upon the Sale at $10.00 Per Share of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>33,150,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>39,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>44,850,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>51,577,500</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value of shares issued in the exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,048</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma market capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">445,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">523,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">602,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">692,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross proceeds of offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">331,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">448,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">515,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,096</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,322</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plus: Assets received from MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">318,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by employee stock ownership plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Common stock purchased by the stock-based incentive plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">292,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">343,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">395,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">455,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the Year Ended June&nbsp;30, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated net income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,552</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,053</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(404</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(476</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(547</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(629</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,618</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,903</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,189</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,517</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,831</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,154</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,477</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,848</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,611</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income per share (5):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income on adjusted net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Shares granted under the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Options granted under the stock-based incentive plan (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Pro forma net income per share (5) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price to pro forma net income per share (annualized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.43</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83.33</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90.91</TD>
    <TD>x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD>x</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares used in net income per share calculations (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,269,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,905,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,541,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,322,332</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>At June&nbsp;30, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,098</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">374,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,940</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,631</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Pro forma tangible stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">532,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">584,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">635,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">695,498</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity per share (7):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Historical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Estimated net proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Oritani Financial Corp., MHC capital contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by employee stock ownership plan (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less: Common stock acquired by the stock-based incentive plan (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:90px; text-indent:-15px">Pro forma tangible stockholders&#146; equity per share (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">83.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">94.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering price as percentage of pro forma tangible stockholders&#146; equity per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">53.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">94.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of shares outstanding for pro forma book value per share calculations (8).</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,529,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,387,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,245,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,282,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market and
financial conditions following the commencement of the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire
these shares are assumed to have been borrowed by the employee stock ownership plan from
Oritani. The loan will have a term of 20&nbsp;years and an interest rate equal to the prime
rate as published in <I>The Wall Street Journal</I>. Oritani Bank intends to make annual
contributions to the employee stock ownership plan in an amount at least equal to the
required principal and interest payments on the debt. Oritani Bank&#146;s total annual
payments on the employee stock ownership plan debt are based upon 20 equal annual
installments of principal and interest. SOP 93-6 requires that an employer record
compensation expense in an amount equal to the fair value of the shares committed to be
released to employees. The pro forma adjustments assume that: (i)&nbsp;the
employee stock ownership plan shares are allocated in equal annual installments based on the
number of loan repayment installments assumed to be paid by Oritani Bank; (ii)&nbsp;the fair
value of the common stock remains equal to the $10.00 subscription price and (iii)&nbsp;the
employee stock ownership plan expense reflects an effective combined federal and state tax
rate of 39%. The unallocated employee stock ownership plan shares are reflected as a
reduction of stockholders&#146; equity. No reinvestment is assumed on proceeds contributed to
fund the employee stock ownership plan. The pro forma net income further assumes that
66,300, 78,000, 89,700 and 103,155 shares were committed to be released during the year at
the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively,
and in accordance with SOP 93-6, only the employee stock ownership plan shares committed to
be released during the year were considered outstanding for purposes of net income per share
calculations.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the grant of restricted stock awards pursuant to the stock-based
incentive plan expected to be adopted by following the offering and presented to
stockholders for approval not earlier than six months after the completion of the
offering. We have assumed that at the midpoint, maximum and maximum as adjusted, of the
offering range this plan acquires a number of shares of restricted common stock equal to
4.0% of the shares sold in the stock offering, either through open market purchases, from
authorized but unissued shares of common stock or treasury stock. Funds used by the
stock-based incentive plan to purchase the shares of restricted stock will be contributed
by Oritani. In calculating the pro forma effect of the stock-based incentive plan, it is
assumed that the shares of common stock were acquired by the plan in open market purchases
at the beginning of the period presented for a purchase price equal to the price for which
the shares are sold in the offering, and that 20.0% of the amount contributed was an
amortized expense (based upon a five-year vesting period) during the year ended June&nbsp;30,
2009. There can be no assurance that the actual purchase price of the shares of common
stock granted under the stock-based incentive plan will be equal to the $10.00
subscription price. If shares are acquired from authorized but unissued shares of common
stock or from treasury shares, our net income per share and stockholders&#146; equity per share
will decrease. This will also have a dilutive effect of approximately 2.89% (at the
maximum of the offering range) on the ownership interest of stockholders. The impact on
pro forma net income per share and pro forma stockholders&#146; equity per share is not
material.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by following the offering and presented to stockholders for approval
not earlier than twelve months after the completion of the offering. We have assumed that
options will be granted to acquire shares of common stock equal to 10.0% of the shares sold in
the offering. In calculating the pro forma effect of the stock options, it is assumed that
the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i)&nbsp;the trading price on date of grant was $10.00 per share;
(ii)&nbsp;exercise price is equal to the trading price on the date of grant; (iii)&nbsp;dividend yield
of 3.00%; (iv)&nbsp;expected life of ten years; (v)&nbsp;expected volatility of 36.45%; (vi)&nbsp;risk-free
interest rate of 3.85%, and (vii)&nbsp;50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant-date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders&#146; equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, plus the shares
contributed, and subtracting the employee stock ownership plan shares which have not been
committed for release during the period in accordance with SOP 93-6. See footnote 2, above.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See &#147;Our Policy Regarding Dividends,&#148; &#147;The Conversion and Offering&#151;Liquidation Rights&#148; and
&#147;Supervision and Regulation.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders&#146; equity
per share calculations are based upon the sum of (i)&nbsp;the number of subscription shares assumed
to be sold in the offering; and (ii)&nbsp;shares to be issued in exchange for publicly held shares.
The number of subscription shares actually sold and the corresponding number of exchange
shares may be more or less than the assumed amounts.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>The number of shares used to calculate pro forma stockholders&#146; equity per share is equal to
the total number of shares to be outstanding upon completion of the offering.</TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<BR>
AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion and analysis reflects our consolidated financial statements and other relevant
statistical data. The information in this section has been derived from the audited and unaudited
consolidated financial statements, which appear beginning on page F-1 of this prospectus. You
should read the information in this section in conjunction with the business and financial
information regarding Oritani Financial Corp. provided in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business Strategy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to continue to operate as a well-capitalized and profitable financial institution
dedicated to understanding the banking needs of both our individual and business customers, and
tailoring our products and services accordingly. This approach enables us to be more flexible and
responsive to our customers and to provide an exceptional level of personal service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Highlights of our business strategy are discussed below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Continue our focus on multi-family and commercial real estate lending</B>. Unlike many
traditional thrifts, we have focused on the origination of multi-family and commercial real estate
loans. Such loans comprise 66.9% of our total loan portfolio at December&nbsp;31, 2009. We have
focused on this type of lending because the interest rates earned for such loans are higher than
the prevailing rates for residential loans, resulting in a greater level of interest income
potential. We are also able to generate significantly higher fee income on such loans. In
addition, the repayment terms usually expose us to less interest rate risk than fixed-rate
residential loans. While our actual origination volume will depend on market conditions, we intend
to continue our emphasis on multi-family and commercial real estate lending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced substantial growth in our combined multi-family and commercial real estate
loan portfolio in recent years. The growth rate of the portfolio has been 20.27%; 40.62%; 32.37%;
18.97% and 39.71% for the six months ended December&nbsp;31, 2009 (annualized)&nbsp;and years ended June&nbsp;30,
2009, 2008, 2007 and 2006, respectively. In addition, despite our more stringent underwriting
standards discussed below, we believe that the exit of many larger banks and conduit lenders from
the commercial real estate lending market due to the financial crisis has enabled us, as a
community bank, to increase the number and size of the commercial real estate loans that we
originate while lending to a higher quality of borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have been involved in multi-family lending for over thirty years. Over the past seven
years, we have assembled a department exclusively devoted to the origination and administration of
multi-family and commercial real estate loans. Over the past two years, we have established a
separate credit department to review all such originations and ensure compliance with our
underwriting standards. There are presently eight loan officers as well as support staff in the
origination department and three officers as well as support staff in the credit department. Our
business plan projects continued growth of the portfolio and continued additions to our staff to
support such growth. In addition, due to current economic conditions and related risks, management
has been applying stricter underwriting guidelines, including requiring higher debt service
coverage ratios and lower loan to value ratios, to these loans. We have also focused our
multi-family and commercial real estate lending on more seasoned and experienced developers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Reduce problem assets and aggressively remedy delinquent loans</B>. One of management&#146;s primary
objectives is to reduce our level of problem assets. While no assurances can be provided regarding
results, management will focus a significant amount of its time on the resolution of problem
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assets. Management&#146;s tactics toward delinquent borrowers are considered aggressive. We have
commenced legal action against virtually all borrowers who are more than 45&nbsp;days delinquent. We
have generally refused to extend the maturity date of any construction loan, even if the interest
payments are current, unless the borrower agrees to reduce our exposure through additional
principal payments and/or additional collateral, and agrees to an additional fee if the loan is not
paid in full on or before the new maturity date. We realize that such actions contribute to the
high level of delinquencies but believe this is the most prudent path to addressing delinquent
loans. Since June&nbsp;30, 2009 our level of non-performing assets to total assets has declined from
2.74% to 2.62% at December&nbsp;31, 2009. Additionally, $13.9&nbsp;million of our delinquent loans are
expected to be resolved in the coming months as the underlying collateral are under contracts for
sale.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Increase core deposits</B>. During the past two years, we have devoted significant internal
attention to growing our deposits. We hired key, experienced personnel and have implemented an
incentive program that rewards branch personnel for attracting core deposit relationships. We have
also begun to emphasize obtaining deposits from our commercial borrowers, reexamined our pricing
strategies and promoted our status as a local community bank. As a result of these efforts, we
have recently experienced a period of unprecedented deposit growth. Our deposit balances grew
61.3% from June&nbsp;30, 2008 to June&nbsp;30, 2009. The growth has continued as our annualized growth for
the six month period ended December&nbsp;31, 2009 was 14.7%. Much of the increase came in the areas of
certificates of deposit and money market accounts. Our ongoing focus will be to build upon this
success, with a particular emphasis on growing core commercial and retails deposits. In addition
to continuing to attract new customers to Oritani Bank, we will also focus on cross-selling core
deposit accounts to customers who have limited deposit services with Oritani Bank and seeking to
further develop the relationship by providing quality customer service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Expand our market share within our primary market area. </B>Our deposit growth significantly
boosted our market penetration in Bergen County, the primary county of our operations. We
increased our percentage of Bergen County deposits from 1.8%, or the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> highest
financial institution, at June&nbsp;30, 2008 to 2.6%, or the 9<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> highest financial
institution, at June&nbsp;30, 2009. In October&nbsp;2008, Oritani Bank opened two de novo branches. These
branches had combined deposit totals of $49.6&nbsp;million at December&nbsp;31, 2009. In February&nbsp;2010, we
opened a de novo branch in Bergenfield, New Jersey. We intend to continue the strategy of
opportunistic de novo branching. We typically seek de novo branch locations in under-banked areas
that are either a contiguous extension or fill-in of our existing branch network. We also have
budgeted monies for infrastructure improvements in our existing branches. We may also consider the
acquisition of branches from other financial institutions in our market area. We believe these
strategies, along with continued growth, will help us achieve our goal of deposit growth and market
expansion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Continue to emphasize operating efficiencies and cost control</B>. One of the hallmarks of our
operations has been expense control as evidenced by an efficiency ratio of 46.5% for the six months
ended December&nbsp;31, 2009. Our efficiency ratio as well as numerous other expense measurement
ratios, have consistently outperformed peers. We intend to maintain our posture on expense control
while continuing to make prudent investments in our operations by effectively managing costs in
relation to revenues. We realize that our expense ratios will be challenged in the future with the
intended implementation of stock benefit plans. However, we have recently been able to generate
favorable peer comparisons with such plans in place.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Remain true to our core competencies</B>. We are very proud of the institution we have helped to
build. We realize many of our peers have ventured into other areas of banking operations, such as
C&#038;I lending, leasing and sales of alternative investment products. While these areas may be
profitable, they also have inherent risks and require significant expertise separate from our core
lending and deposit gathering operations. For the foreseeable future, we do not intend to utilize
our capital to enter into new
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">types of lending or other areas of operations that we consider to be risky. We believe that
we possess expertise in our current types of lending and operations and intend to rely on this
existing expertise for future growth and profitability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Critical Accounting Policies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider accounting policies that require management to exercise significant judgment or
discretion or to make significant assumptions that have, or could have, a material impact on the
carrying value of certain assets or on income, to be critical accounting policies. We consider the
following to be our critical accounting policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Allowance for Loan Losses</B>. The allowance for loan losses is the estimated amount considered
necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The
allowance is established through the provision for loan losses that is charged against income. The
allowance for loan losses is considered a critical accounting policy by management because of the
high degree of judgment involved, the subjectivity of the assumptions used, and the potential for
changes in the economic environment that could result in changes to the amount of the recorded
allowance for loan losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for loan losses has been determined in accordance with U.S. generally accepted
accounting principles, under which we are required to maintain an allowance for probable losses at
the balance sheet date. We are responsible for the timely and periodic determination of the amount
of the allowance required. We believe that our allowance for loan losses is adequate to cover
specifically identifiable losses, as well as estimated losses inherent in our portfolio for which
certain losses are probable but not specifically identifiable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management performs a quarterly evaluation of the adequacy of the allowance for loan losses.
The analysis of the allowance for loan losses has two components: specific and general allocations.
Specific allocations may be made for loans that are criticized or impaired. Management will
identify loans that have demonstrated issues that cause concern regarding full collectibility in
the required time frame. Delinquency is a key indicator of such issues. In addition, we utilize
the services of an external loan review firm to review a significant portion of new originations
and the existing portfolio over the course of the year. Their scope is determined by the Audit
Committee. This firm prepares quarterly reports that include recommendations for classification.
Their services assist in identifying loans that should be classified, particularly prior to
delinquency issues. Management summarizes all problem loans and classifies such loans within the
following industry standard categories: Watch; Special Mention; Substandard; Doubtful or Loss. In
addition, a classified loan may be considered impaired. Impairment is measured by determining the
present value of expected future cash flows or, for collateral-dependent loans, the fair value of
the collateral adjusted for market conditions and selling expenses. The general allocation is
determined by segregating the remaining loans by type of loan, and specific collateral category.
We also analyze historical loss experience, delinquency trends, general economic conditions and
geographic concentrations. This analysis establishes factors that are applied to the loan groups
to determine the amount of the general allocation. This evaluation is inherently subjective, as it
requires material estimates that may be susceptible to significant revisions based upon changes in
economic and real estate market conditions. Actual loan losses may be significantly more than the
allowance for loan losses we have established, which could have a material negative effect on our
financial results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On a quarterly basis, the Chief Financial Officer reviews the current status of various loan
assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation
process, specific loans are analyzed to determine their risk of loss. This process includes all
loans, concentrating on non-accrual and classified loans. Each non-accrual or classified loan is
evaluated for loss exposure. To determine the adequacy of collateral on a particular loan, an
estimate of the fair market value of the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">collateral is based on the most current appraised value available. This appraised value is
then reduced to reflect estimated liquidation expenses. Any shortfall results in a charge to the
allowance if the likelihood of loss is evaluated as probable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of this quarterly process are summarized along with recommendations and presented
to executive management for their review. Based on these recommendations, specific loan loss
reserves are approved by executive management. All supporting documentation with regard to the
evaluation process, loan loss experience, allowance levels and the schedules of classified loans
are maintained by the Chief Financial Officer. A summary of specific loan loss reserves is
presented to the Board of Directors on a quarterly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a concentration of loans secured by real property located in New Jersey. As a
substantial amount of our loan portfolio is collateralized by real estate, appraisals of the
underlying value of property securing loans are critical in determining the amount of the allowance
required for specific loans. Assumptions for appraisal valuations are instrumental in determining
the value of properties. Overly optimistic assumptions or negative changes to assumptions could
significantly impact the valuation of a property securing a loan and the related allowance
determined. Only Board-approved appraisers are utilized. The assumptions supporting such
appraisals are carefully reviewed by management to determine that the resulting values reasonably
reflect amounts realizable on the related loans. Based on the composition of our loan portfolio,
we believe the primary risks are increases in interest rates, a decline in the economy generally,
and a decline in real estate market values in New Jersey. Any one or combination of these events
may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and
future levels of loan loss provisions. We consider it important to maintain the ratio of our
allowance for loan losses to total loans at an adequate level. Factors such as current economic
conditions, interest rates, and the composition of the loan portfolio will effect our determination
of the level of this ratio for any particular period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our allowance for loan losses in recent years reflects probable future losses resulting from
the actual growth in our loan portfolio. We recognize that our overall delinquencies, impaired
loans and nonaccrual loans have increased significantly over the past two years. We believe the
allowance for loan losses at December&nbsp;31, 2009 adequately reflects our portfolio credit risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe we have established and maintained the allowance for loan losses at
adequate levels, additions may be necessary if future economic and other conditions differ
substantially from the current operating environment. Although management uses the best
information available, the level of the allowance for loan losses remains an estimate that is
subject to significant judgment and short-term change. In addition, the FDIC and the New Jersey
Department of Banking and Insurance, as an integral part of their examination process, will
periodically review our allowance for loan losses. Such agencies may require us to recognize
adjustments to the allowance based on its judgments about information available to them at the time
of their examination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Deferred Income Taxes</B>. We use the asset and liability method of accounting for income taxes.
Under this method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. If current available
information raises doubt as to the realization of the deferred tax assets, a valuation allowance
may be established. We consider the determination of this valuation allowance to be a critical
accounting policy because of the need to exercise significant judgment in evaluating the amount and
timing of recognition of deferred tax liabilities and assets, including projections of future
taxable income. These judgments and estimates are reviewed on a quarterly basis as
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">regulatory and business factors change. A valuation allowance for deferred tax assets may be
required if the amounts of taxes recoverable through loss carry backs decline, or if we project
lower levels of future taxable income. Such a valuation allowance would be established through a
charge to income tax expense that would adversely affect our operating results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Asset Impairment Judgments</B>. Some of our assets are carried on our consolidated balance sheets
at cost, fair value or at the lower of cost or fair value. Valuation allowances or write-downs are
established when necessary to recognize impairment of such assets. We periodically perform
analyses to test for impairment of such assets. In addition to the impairment analyses related to
our loans discussed above, another significant impairment analysis is the determination of whether
there has been an other-than-temporary decline in the value of one or more of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our available-for-sale securities portfolio is carried at estimated fair value, with any
unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or
loss in stockholders&#146; equity. Our held-to-maturity securities portfolio, consisting of debt
securities for which we have a positive intent and ability to hold to maturity, is carried at
amortized cost. We conduct a periodic review and evaluation of the securities portfolio to
determine if the value of any security has declined below its cost or amortized cost, and whether
such decline is other-than-temporary. If such decline is deemed other-than-temporary, we would
adjust the cost basis of the security by writing down the security to fair market value through a
charge to current period operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Stock-Based Compensation</B>. We recognize the cost of employee services received in exchange for
awards of equity instruments based on the grant-date fair value of those awards in accordance with
SFAS No.&nbsp;123(R) and its successor, FASB ASC Topic 718.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate the per share fair value of option grants on the date of grant using the
Black-Scholes option pricing model using assumptions for the expected dividend yield, expected
stock price volatility, risk-free interest rate and expected option term. These assumptions are
subjective in nature, involve uncertainties and, therefore, cannot be determined with precision.
The Black-Scholes option pricing model also contains inherent limitations when applied to options
that are not traded on public markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The per share fair value of options is highly sensitive to changes in assumptions. In general,
the per share fair value of options will move in the same direction as changes in the expected
stock price volatility, risk-free interest rate and expected option term, and in the opposite
direction as changes in the expected dividend yield. For example, the per share fair value of
options will generally increase as expected stock price volatility increases, risk-free interest
rate increases, expected option term increases and expected dividend yield decreases. The use of
different assumptions or different option pricing models could result in materially different per
share fair values of options.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Financial Condition at December&nbsp;31, 2009 and June&nbsp;30, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Balance Sheet Summary</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Assets. </I></B>Total assets increased $93.4&nbsp;million, or 4.9%, to $2.01&nbsp;billion at December&nbsp;31,
2009, from $1.91&nbsp;billion at June&nbsp;30, 2009. The increase was due primarily to the growth of loans
and securities AFS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Cash and Cash Equivalents. </I></B>Cash and cash equivalents (which includes fed funds and short term
investments) decreased $109.1&nbsp;million to $26.3&nbsp;million at December&nbsp;31, 2009 from $135.4&nbsp;million at
June&nbsp;30, 2009 as excess liquidity was deployed primarily into securities available for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loans, net. </I></B>Net loans increased $78.5&nbsp;million, or 6.1%, to $1.36&nbsp;billion at December&nbsp;31, 2009 from
$1.28&nbsp;billion at June&nbsp;30, 2009. We continued our emphasis on loan originations, particularly
multi-family and commercial real estate loans. Loan originations and purchases totaled $192.1
million for the six months ended December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The allowance for loan losses increased $1.5&nbsp;million to $22.2&nbsp;million at December&nbsp;31, 2009 from
$20.7&nbsp;million at June&nbsp;30, 2009. We charged off loans of $3.6&nbsp;million and recovered $3,000 in
previously charged off loans during the six months ended December&nbsp;31, 2009. There were no
charge-offs or recoveries during the six months ended December&nbsp;31, 2008. The delinquency and
nonaccrual totals, along with charge-offs and economic factors, remain the primary contributors to
the current level of provision for loan losses. Loan growth was also a component of the provision
for loan losses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delinquency information is provided below:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Delinquency Totals
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>September 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>March 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30 &#151; 59&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,979</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60 &#151; 89&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,942</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,067</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total delinquent loans decreased by $13.5&nbsp;million during the six months ended December
31, 2009 and by $4.4&nbsp;million over the three months ended December&nbsp;31, 2009. While the totals
decreased over the 2009 periods, nonaccrual and total delinquent loan totals remain at elevated
levels. The nonaccrual loan total was fairly stable from September&nbsp;30, 2009 to December&nbsp;31, 2009.
However, as further described below, $13.9&nbsp;million of this total is expected to be resolved shortly
as the underlying collateral is currently under contracts for sale. We have been utilizing all
legal remedies reasonably possible to expedite these closings, however, circumstances may occur
that could cause closings to be deferred or not occur at all. The $3.1&nbsp;million property described
below was originally estimated for a March, 2010 closing, but that has now been postponed until
April. We have continued our aggressive posture toward delinquent borrowers. We have commenced
legal action against virtually all borrowers who are more than 45&nbsp;days delinquent. The Company has
refused to extend the maturity date of any construction loan, even if the interest payments are
current, unless the borrower agrees to reduce the Company&#146;s exposure through additional principal
payments and/or additional collateral, and agrees to an additional fee if the loan is not paid in
full on or before the new maturity date. We realize that such actions contribute to the high level
of delinquencies but believe this is the most prudent path to addressing problem loans.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion of the significant components of the nonaccrual loan total at December&nbsp;31, 2009
follows. These loans comprise $50.2&nbsp;million of total nonaccrual loans at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;Two of these loans are to one borrower and totaled $15.9&nbsp;million at December&nbsp;31, 2009. The
loans are secured by a condominium construction project and raw land with all building approvals,
both of which are in Northern New Jersey. The borrower declared bankruptcy and Oritani Bank has
provided debtor in possession financing for the completion of the condominium construction project.
While significant costs and delays have been encountered in finalizing the project and obtaining
certificates of occupancy (&#147;CO&#148;) for the residential units, we believe that the final matters
necessary to realize these items are in the final phases of completion. Numerous residential units
remain under contract and new sales are continuing, providing a clear indicator of current value.
These contracts are not included in the $13.9&nbsp;million of loans described above that are expected to
be resolved shortly through the sale of the underlying collateral. They were not included in this
total due to prior disappointments regarding the attainment of a CO and uncertainty regarding the
ultimate closing dates. Prior charge offs of the construction loan total $4.0&nbsp;million. During
the quarter ended December&nbsp;31, 2009, Oritani Bank charged off $661,000 of the land loan. Both
loans are classified as impaired as of December&nbsp;31, 2009. In addition, specific reserves totaling
$1.7&nbsp;million have been recorded against these loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $7.9&nbsp;million loan secured by a retail mall in Northern New Jersey is classified as
nonaccrual and impaired at December&nbsp;31, 2009. The borrower has declared bankruptcy. Foreclosure
proceedings are progressing and the bankruptcy trustee has accepted a contract for sale of this
property. In accordance with the results of the impairment analyses, no reserve was required for
this loan as it was considered to be well collateralized. Foreclosure auction date was scheduled
for February of 2010 but has been postponed until March. Management currently expects that the
current contract will close shortly after the auction date. However, an investor in the original
project is attempting to use legal remedies to postpone or cancel this sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;Three loans to one borrower totaling $5.8&nbsp;million, secured by various warehouse properties
in Rockland, Nassau and Westchester counties, New York, are classified as nonaccrual and impaired
at December&nbsp;31, 2009. Oritani Bank is in litigation with the borrower and the guarantor.
Foreclosure auctions have occurred for two of the three properties and, in both instances, the
properties were sold at the auction. These two sales have closed and proceeds have been received
in the current quarter. Foreclosure proceedings are progressing on the third property and a
foreclosure date has been scheduled for April, 2010. During the quarter ended December&nbsp;31, 2009,
Oritani Bank charged off $785,000 of the loans associated with the properties sold at auction. In
addition, specific reserves totaling $355,000 have been recorded against the loan on the remaining
property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $14.1&nbsp;million loan secured by a multi-tenant commercial property in Hudson County, New
Jersey. The borrower has experienced cash flow difficulties. Oritani Bank is in litigation with
this borrower, foreclosure proceedings are progressing and all tenant rent payments are being made
directly to Oritani Bank. The rents received were sufficient to make each of the monthly payments
during the quarter. Specific reserves totaling $1.1&nbsp;million have been recorded against this loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $3.1&nbsp;million loan secured by a commercial property located in Bergen County, New Jersey.
The borrower and guarantor on this loan have declared bankruptcy. A contract for the sale of the
property has been accepted by the bankruptcy trustee. This contract is currently expected to close
in April, 2010. In accordance with the results of the impairment analysis for this loan, no
reserve was required as the loan is considered to be well collateralized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $1.1&nbsp;million multi-family loan located in Hudson County, New Jersey. Oritani Bank and the
borrower have signed a forbearance agreement and the borrower continues to make payments in
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">accordance with the agreement. The loan was removed from nonaccrual classification in
February as a sufficient history of satisfactory payment under the forbearance agreement has been
demonstrated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#149;</B>&nbsp;A $2.3&nbsp;million residential construction loan for two luxury homes and an improved lot
located in Essex County, New Jersey. The borrower encountered cash flow difficulties due to an
extended construction and marketing period. An extension request was declined, and we are now
pursuing legal remedies.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Securities Available for Sale (&#147;AFS&#148;). </I></B>Securities AFS increased $176.0&nbsp;million to $320.4&nbsp;million
at December&nbsp;31, 2009, from $144.4&nbsp;million at June&nbsp;30, 2009. As described in the discussion of
total interest income in the &#147;Comparison of Operating Results for the Six Months ended December&nbsp;31,
2009 and 2008,&#148; we believe this investment option currently presents the best risk/reward profile.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mortgage-Backed Securities (&#147;MBS&#148;) Held to Maturity (&#147;HTM&#148;). </I></B>Mortgage-backed securities held to
maturity decreased $32.6&nbsp;million, or 27.5%, to $86.2&nbsp;million at December&nbsp;31, 2009 from $118.8
million at June&nbsp;30, 2009. This decrease was primarily due to principal repayments received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Mortgage-Backed Securities Available for Sale. </I></B>Mortgage-backed securities available for sale
decreased $30.1&nbsp;million, or 23.4%, to $98.5&nbsp;million at December&nbsp;31, 2009 from $128.6&nbsp;million at
June&nbsp;30, 2009. This decrease was primarily due to principal repayments received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Deposits. </I></B>Deposits increased $82.9&nbsp;million, or 7.3%, to $1.21&nbsp;billion at December&nbsp;31, 2009 from
$1.13&nbsp;million at June&nbsp;30, 2009. Oritani Bank has implemented several initiatives designed to
achieve deposit growth. A new branch location opened in February, 2010. Strong deposit growth
remains one of our strategic objectives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Stockholders&#146; Equity. </I></B>Stockholders&#146; equity increased $7.9&nbsp;million, or 3.3%, to $248.0&nbsp;million at
December&nbsp;31, 2009 from $240.1&nbsp;million at June&nbsp;30, 2009. The increase was primarily the result of
net income of $7.4&nbsp;million for the six months ended December&nbsp;31, 2009. On March&nbsp;18, 2009, we
announced the commencement of a fourth (967,828 shares) 10.0% repurchase program. As of December
31, 2009, we had repurchased a total of 3,669,937 shares at a total cost of $57.1&nbsp;million and an
average cost of $15.57 per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Comparison of Operating Results for the Six Months Ended December&nbsp;31, 2009 and 2008
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income. </I></B>Net income increased $4.9&nbsp;million to $7.4&nbsp;million for the six months ended December
31, 2009 from net income of $2.5&nbsp;million for the corresponding 2008 period. The primary cause of
the increased income in the 2009 period was increased net interest income and decreased impairment
charges related to equity investments. Our annualized return on average assets was .76% for the
six months ended December&nbsp;31, 2009, and .33% for the corresponding 2008 period. Our annualized
return on average equity was 6.19% for the six months ended December&nbsp;31, 2009, and 1.94% for the
corresponding 2008 period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Income. </I></B>Total interest income increased by $8.7&nbsp;million, or 20.5%, to $51.2&nbsp;million
for the six months ended December&nbsp;31, 2009, from $42.5&nbsp;million for the six months ended December
31, 2008. The largest increase occurred in interest on loans, which increased $7.4&nbsp;million or
21.4%, to $42.1&nbsp;million for the six months ended December&nbsp;31, 2009, from $34.6&nbsp;million for the six
months ended December&nbsp;31, 2008. Over that same period, the average balance of loans increased
$213.4&nbsp;million and the yield on the portfolio increased 13 basis points. Included in total
interest income for the 2009 period is $1.3&nbsp;million in interest income, prepayment penalties,
default interest and deferred fee earnings recovered on the resolution of three classified loans.
These recoveries occurred during the quarter ended
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">September&nbsp;30, 2009. There were also significant changes to income on securities AFS; MBS HTM and
MBS AFS. Over the period, excess liquidity was generally deployed in securities classified as
available for sale as management felt such investments provided the best risk/reward profile
considering the current and projected cash needs of the Company. Such investments were typically
callable notes of government sponsored agencies with limited optionality and call features that
made the notes likely to be called when management estimated we would need the liquidity.
Management classified the investments as AFS so they could be sold should unexpected liquidity
needs develop. Interest on securities AFS increased by $3.1&nbsp;million to $3.7&nbsp;million for the six
months ended December&nbsp;31, 2009, from $633,000 for the six months ended December&nbsp;31, 2008. The
average balance of securities AFS increased $231.3&nbsp;million over that same period. The yield on the
portfolio decreased considerably due to current market rates as well as the conservative structure
of the new investments. Cash flows from other investment categories were redeployed into
securities AFS because, as described above, management felt securities AFS provided the best
risk/reward profile given current economic circumstances and investment options. Interest on MBS
HTM decreased by $1.1&nbsp;million to $1.9&nbsp;million for the six months ended December&nbsp;31, 2009, from $3.0
million for the six months ended December&nbsp;31, 2008. Interest on MBS AFS decreased by $955,000 to
$2.7&nbsp;million for the six months ended December&nbsp;31, 2009, from $3.7&nbsp;million for the six months ended
December&nbsp;31, 2008. The combined average balances of the two MBS portfolios decreased $81.7&nbsp;million
over the period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Expense. </I></B>Total interest expense increased by $1.6&nbsp;million, or 7.4%, to $22.6&nbsp;million
for the six months ended December&nbsp;31, 2009, from $21.1&nbsp;million for the six months ended December
31, 2008. Interest expense on deposits increased by $1.0&nbsp;million, or 9.1%, to $12.1&nbsp;million for
the six months ended December&nbsp;31, 2009, from $11.1&nbsp;million for the six months ended December&nbsp;31,
2008. The average balance of interest bearing deposits increased $426.7&nbsp;million while the average
cost of these funds decreased 88 basis points over this period. Market interest rates allowed
Oritani Bank to reprice many maturing time deposits, as well as other interest bearing deposits, at
lower rates, decreasing the cost of funds. Interest expense on borrowings increased by $554,000,
or 5.6%, to $10.5&nbsp;million for the six months ended December&nbsp;31, 2009, from $9.9&nbsp;million for the six
months ended December&nbsp;31, 2008. The average balance of borrowings increased $5.8&nbsp;million and the
cost increased 17 basis points over this period. The primary reason for this increased cost was
that we had greater reliance on short term borrowings in the 2008 period. Short term borrowings
are generally lower cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Income Before Provision for Loan Losses. </I></B>Net interest income increased by $7.2
million, or 33.4%, to $28.6&nbsp;million for the six months ended December&nbsp;31, 2009, from $21.5&nbsp;million
for the six months ended December&nbsp;31, 2008. Our net interest rate spread increased to 2.61%
(normalized)&nbsp;for the six months ended December&nbsp;31, 2009, from 2.42% for the six months ended
December&nbsp;31, 2008. The normalized spread calculation does not include the $1.3&nbsp;million in loan
interest income realized on the resolution of three classified loans in the September&nbsp;30, 2009
quarter. Our actual net interest rate spread for the six months ended December&nbsp;31, 2009 was 2.75%.
Our actual and normalized net interest margin for the six months ended December&nbsp;31, 2009 were
3.03% and 2.89%, respectively, versus 2.90% for the six months ended December&nbsp;31, 2008. Our net
interest income was reduced by $1.3&nbsp;million and $1.4&nbsp;million for the six months ended December&nbsp;31,
2009 and 2008, respectively, due to the impact of nonaccrual loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Provision for Loan Losses. </I></B>We recorded provisions for loan losses of $5.1&nbsp;million for the six
months ended December&nbsp;31, 2009 as compared to $5.4&nbsp;million for the six months ended December&nbsp;31,
2008. See discussion of the allowance for loan losses in &#147;Comparison of Financial Condition at
December&nbsp;31, 2009 and June&nbsp;30, 2009&#148; and note 7 of the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Income. </I></B>Other income increased to $3.6&nbsp;million for the six months ended December&nbsp;31, 2009
from $668,000 for the six months ended December&nbsp;31, 2008. The 2008 period was muted by an $1.8
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">million impairment charge taken regarding equity securities in our AFS portfolio, compared to a
$202,000 charge in the 2009 period. In addition, in the 2009 period, we realized a $1.0&nbsp;million
gain on the sale of a commercial office property that had been held and operated as a real estate
investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Expense. </I></B>Other expense increased by $2.6&nbsp;million or 20.8% to $15.0&nbsp;million for the six
months ended December&nbsp;31, 2009, from $12.4&nbsp;million for the six months ended December&nbsp;31, 2008. The
increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.2
million, or 13.1%, over the period. This increase consisted of various components. There was an
increase of $550,000 directly pertaining to compensation, due to additional staff and merit
increases. Bonus expense increased $356,000 as management met all goals and the maximum bonus
level was achieved in our incentive compensation plan. Payroll taxes increased $115,000, primarily
due to social security tax on the increased pay. Expenses and accruals associated with the
Company&#146;s qualified and nonqualified benefit plans increased $67,000. There was also a $66,000
increase in health care insurance expense. Federal deposit insurance premiums increased
significantly over six months ended December&nbsp;31, 2009 due to an increase in FDIC deposit insurance
rates, an increase in insurable deposits and the depletion of a credit against FDIC deposit
insurance charges. Federal deposit insurance premiums increased $1.1&nbsp;million, to $1.2&nbsp;million for
the six months ended December&nbsp;31, 2009, from $60,000 for the six months ended December&nbsp;31, 2008.
Other expenses increased by $29,000 during the six months ended December&nbsp;31, 2009 as compared to
the six months ended December&nbsp;31, 2008. In the 2009 period, a recovery of legal expenses in
conjunction with the resolution of three classified loans partially offset increased problem asset
expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Tax Expense</I></B>. Income tax expense for the six months ended December&nbsp;31, 2009, was $4.8
million, due to pre-tax income of $12.2&nbsp;million, resulting in an effective tax rate of 39.2%. For
the six months ended December&nbsp;31, 2008, income tax expense was $1.8&nbsp;million, due to pre-tax income
of $4.3&nbsp;million, resulting in an effective tax rate of 41.4%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Operating Results for the Years Ended June&nbsp;30, 2009 and June&nbsp;30, 2008</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income</I></B>. Net income decreased $3.4&nbsp;million, or 38.0%, to $5.6&nbsp;million for the year ended June
30, 2009, versus $9.0&nbsp;million for the corresponding 2008 period. The items primarily impacting the
twelve month period ended June&nbsp;30, 2009 were provision for loan losses totaling $9.9&nbsp;million, a
pre-tax charge of $2.0&nbsp;million as a result of an other than temporary impairment in the value of
investment securities available for sale, and increased FDIC expense of $1.7&nbsp;million. The items
primarily impacting the year ended June&nbsp;30, 2008 were provision for loan losses totaling $4.7
million, a pre-tax charge of $998,000 as a result of an other than temporary impairment in the
value of investment securities available for sale, and a $1.1&nbsp;million gain on the sale of a real
estate held for investment property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Income</I></B>. For the year ended June&nbsp;30, 2009, total interest income increased by $16.8
million, or 23.5%, to $88.4&nbsp;million, from $71.6&nbsp;million for the year ended June&nbsp;30, 2008. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $17.1
million, or 31.1%, to $72.2&nbsp;million for the year ended June&nbsp;30, 2009, from $55.1&nbsp;million for the
year ended June&nbsp;30, 2008. The average balance of loans, net increased $323.2&nbsp;million while the
yield on the portfolio decreased 31 basis points. The yield on the portfolio in 2009 was
negatively impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest
in nonaccrual loans), the yield remained stable. Interest on federal funds sold and short term
investments decreased by $1.6&nbsp;million to $73,000 for the year ended June&nbsp;30, 2009, from $1.7
million for the year ended June&nbsp;30, 2008. The decrease is related to a $20.3&nbsp;million decrease in
the average balance and a decrease in yield of 347 basis points. The Federal Open Market Committee
has significantly decreased the federal funds target rate over the period. While the Company seeks
to prudently deploy cash inflows as quickly as possible, the significant growth in deposits has
increased liquidity above an optimal level. Our primary asset investment had been loans.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">However, for this period, deposit growth outpaced loan growth. Excess cash flows were initially
invested in MBS AFS. Over the course of the year, as the risk/reward profiles of the investment
options changed, and our current and projected cash needs changed, the primary investment vehicle
for the excess cash became securities AFS. Interest on MBS AFS increased by $2.3&nbsp;million to $7.0
million for the year ended June&nbsp;30, 2009, from $4.7&nbsp;million for the year ended June&nbsp;30, 2008. The
average balance increased $54.7&nbsp;million while the yield decreased 34 basis points. Interest on the
other investment related captions of securities HTM, securities AFS and MBS HTM decreased by
$972,000, or 9.6%, to $9.2&nbsp;million for the year ended June&nbsp;30, 2009, from $10.1&nbsp;million for the
year ended June&nbsp;30, 2008. The decrease was primarily due to a decrease in the combined average
balance of $10.8&nbsp;million and a decreased yield.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Expense. </I></B>Total interest expense increased by $7.3&nbsp;million, or 19.6%, to $44.5&nbsp;million for
the year ended June&nbsp;30, 2009, from $37.2&nbsp;million for the year ended June&nbsp;30, 2008. The vast
majority of the increase was due to borrowings as interest expense on deposits increased by
$397,000 while interest expense on borrowings increased by $6.9&nbsp;million. The average balance of
deposits increased 27.0% to $880.8&nbsp;million for the year ended June&nbsp;30, 2009 from $693.3&nbsp;million for
the year ended June&nbsp;30, 2008. The cost of deposits decreased to 2.75% for the year ended June&nbsp;30,
2009 from 3.44% for the year ended June&nbsp;30, 2008. The average balance of borrowings increased to
$505.6&nbsp;million for the year ended June&nbsp;30, 2009 from $310.2&nbsp;million for the year ended June&nbsp;30,
2008. The cost of borrowings decreased to 4.00% for the year ended June&nbsp;30, 2009 from 4.30% for the
year ended June&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Income. </I></B>Net interest income increased by $9.5&nbsp;million, or 27.8%, to $43.9&nbsp;million for
the year ended June&nbsp;30, 2009, from $34.4&nbsp;million for the year ended June&nbsp;30, 2008. Our net
interest income and net interest rate spread were both negatively impacted for the year ended June
30, 2009 due to the reversal of accrued interest income on loans delinquent more than 90&nbsp;days. The
total of such income reversed was $3.7&nbsp;million for the year ended June&nbsp;30, 2009 compared to
$521,000 for the year ended June&nbsp;30, 2008. Our net interest rate spreads for the years ended June
30, 2009 and June&nbsp;30, 2008 were 2.36% and 2.06%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Provision for Loan Losses</I></B><I>. </I>We recorded provisions for loan losses of $9.9&nbsp;million for the year
ended June&nbsp;30, 2009 as compared to $4.7&nbsp;million for the year ended June&nbsp;30, 2008. We charged off a
total of $2.7&nbsp;million in loans during the year ended June&nbsp;30, 2009 related to losses deemed
probable. There were no recoveries in any of the periods. Our allowance for loan losses is
analyzed quarterly and many factors are considered. As in prior periods, loan growth was a
component of the provision for loan losses in the 2009 periods. The delinquency and nonaccrual
totals, however, were the primary contributors to the increased level of provision for loan losses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Delinquency information is provided below:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Delinquency Totals</B></div>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30 &#151; 59&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60 &#151; 89&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">594</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Income</I></B><I>. </I>Other income decreased by $2.2&nbsp;million to $2.8&nbsp;million for the year ended June
30, 2009, from $4.9&nbsp;million for the year ended June&nbsp;30, 2008, primarily due to impairment charges
during the 2009 fiscal year and gain on sale of assets recognized during the 2008 fiscal year. Net
gain on sale of assets decreased $1.1&nbsp;million for the year ended June&nbsp;30, 2009, due to the sale of
a multi-family property that had been held and operated as a real estate investment during fiscal
2008. Writedowns due to investment impairments increased by $1.0&nbsp;million to $2.0&nbsp;million for the
year ended June&nbsp;30, 2009, from $1.0&nbsp;million for the year ended June&nbsp;30, 2008. The writedowns in
the 2009 period primarily pertain to impairment charges recorded in relation to equity securities
in our AFS portfolio.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Expenses. </I></B>Other expenses increased by $7.8&nbsp;million, or 39.8%, to $27.3&nbsp;million for the year
ended June&nbsp;30, 2009, from $19.5&nbsp;million for the year ended June&nbsp;30, 2008. Compensation, payroll
taxes and fringe benefits increased by $4.7&nbsp;million to $18.7&nbsp;million for the year ended June&nbsp;30,
2009, from $13.9&nbsp;million for the year ended June&nbsp;30, 2008. In May&nbsp;2008, stock and options grants
that had been approved in our 2008 Equity Incentive Plan were awarded. The amortization of the
cost of this plan began in May&nbsp;2008. The increase in the amortization of the costs of Equity
Incentive Plan costs are greater as an entire 12&nbsp;months worth of expense is included in the 2009
period. Such expenses totaled $3.8&nbsp;million for the year ended June&nbsp;30, 2009, versus $610,000 for
the year ended June&nbsp;30, 2008. Compensation costs increased $1.0&nbsp;million primarily due to increased
personnel to assist with implementing the organic growth strategy. Another significant component
of the increase was FDIC insurance premiums increasing $1.7&nbsp;million to $1.8&nbsp;million for the year
ended June&nbsp;30, 2009, versus $92,000 for the year ended June&nbsp;30, 2008. Other significant factors
contributing to the 2009 increase were an increase of $493,000 in office occupancy expense
primarily due to cost associated with the branch openings in October&nbsp;2008 and an increase of
$668,000 in other expense primarily due to expenses associated with problem loans, such as legal
costs related to foreclosure actions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Taxes. </I></B>For the year ended June&nbsp;30, 2009, income tax expense of $4.0&nbsp;million was recognized
against pre-tax income of $9.6&nbsp;million. For the year ended June&nbsp;30, 2008, income tax expense of
$6.2&nbsp;million was recognized against pre-tax income of $15.2&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Comparison of Operating Results for the Years Ended June&nbsp;30, 2008 and June&nbsp;30, 2007</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Income</I></B>. Net income decreased $2.1&nbsp;million, or 18.8%, to $9.0&nbsp;million for the year ended June
30, 2008, versus $11.0&nbsp;million for the corresponding 2007 period. There were several atypical
items that affected the Company&#146;s results of operations in both periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The items primarily impacting the twelve month period ended June&nbsp;30, 2008 were provision for loan
losses totaling $4.7&nbsp;million, a pre-tax charge of $998,000 as a result of an other than temporary
impairment in the value of investment securities available for sale, and a $1.1&nbsp;million gain on the
sale of a real estate held for investment property. The items primarily impacting the twelve month
period ended June&nbsp;30, 2007 were the reversal of a $3.2&nbsp;million valuation allowance related to
certain New Jersey State deferred tax assets, the reinvestment of the proceeds related to the stock
subscription offering, a gain of $514,000 regarding the sale of our former headquarters, and a $9.1
million pre-tax charitable contribution to the OritaniBank Charitable Foundation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Total Interest Income</I></B>. For the year ended June&nbsp;30, 2008, total interest income increased by $8.2
million, or 13.0%, to $71.6&nbsp;million, from $63.3&nbsp;million for the year ended June&nbsp;30, 2007. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $10.8
million, or 24.3%, to $55.1&nbsp;million for the year ended June&nbsp;30, 2008, from $44.3&nbsp;million for the
year ended June&nbsp;30, 2007. The average balance of loans, net increased $164.3&nbsp;million and the yield
on the portfolio increased 3 basis points. The yield on the portfolio in 2008 was negatively
impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest in
nonaccrual loans), the yield increased 10 basis points. Interest on federal funds sold and short
term investments decreased by $5.1&nbsp;million to $1.7&nbsp;million for the year ended June&nbsp;30, 2008, from
$6.8&nbsp;million for the year ended June&nbsp;30, 2007. The decrease is related to an $81.9&nbsp;million
decrease in the average balance and a decrease in yield of 162 basis points. The federal funds
rate decreased over the year from 5.25% at June&nbsp;30, 2007 to 2.00% at June&nbsp;30, 2008. Partially due
to this decreased return, we shifted liquid assets into longer term assets. Interest on MBS AFS
increased by $3.9&nbsp;million to $4.7&nbsp;million for the year ended June&nbsp;30, 2008, from $813,000 for the
year ended June&nbsp;30, 2007. The average balance increased $74.9&nbsp;million and the yield increased 14
basis points. Interest on the other investment related captions of securities HTM, securities AFS
and MBS HTM decreased by
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->97<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$1.3&nbsp;million, or 11.3%, to $10.1&nbsp;million for the year ended June&nbsp;30, 2008, from $11.4&nbsp;million for
the year ended June&nbsp;30, 2007. The decrease was primarily due to a decrease in the combined
average balance of $34.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Interest Expense. </I></B>Total interest expense increased by $4.4&nbsp;million, or 13.3%, to $37.2&nbsp;million for
the year ended June&nbsp;30, 2008, from $32.8&nbsp;million for the year ended June&nbsp;30, 2007. Interest
expense on deposits and stock subscription proceeds was relatively stable, increasing by $183,000
in fiscal 2008 versus fiscal 2007. Results for the 2007 period were enhanced by the lower rate of
interest paid on stock subscription proceeds. The average balance of deposits decreased $51.5
million and the cost increased 26 basis points. Interest expense on borrowings increased by $4.2
million to $13.3&nbsp;million for the year ended June&nbsp;30, 2008, from $9.1&nbsp;million for the year ended
June&nbsp;30, 2007. The average balance of borrowings increased by $99.6&nbsp;million over the period while
the cost decreased 4 basis points.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Net Interest Income. </I></B>Net interest income increased by $3.9&nbsp;million, or 12.7%, to $34.4&nbsp;million for
the year ended June&nbsp;30, 2008, from $30.5&nbsp;million for the year ended June&nbsp;30, 2007. Our net
interest income and net interest rate spread were both negatively impacted in the three month
period ended June&nbsp;30, 2008 due to the reversal of accrued interest income on loans delinquent more
than 90&nbsp;days. Our net interest rate spreads for the years ended June&nbsp;30, 2008 and June&nbsp;30, 2007
were 2.06% and 2.23%, respectively. Our net interest rate margins for the years ended June&nbsp;30,
2008 and June&nbsp;30, 2007 were 2.77% and 2.73%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Provision for Loan Losses</I></B><I>. </I>We recorded provisions for loan losses of $4.7&nbsp;million for the year
ended June&nbsp;30, 2008 as compared to $1.2&nbsp;million for the year ended June&nbsp;30, 2007. There were no
recoveries or charge-offs in either period. A significant component of the increased 2008
provisions was loan growth during the periods. Loans, net increased $248.5&nbsp;million during the year
ended June&nbsp;30, 2008, as compared to growth of $115.5&nbsp;million during the year ended June&nbsp;30, 2007.
Another significant component of the increased 2008 provisions was increased delinquent and
impaired loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Delinquency information is provided below:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Delinquency Totals</B></div>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30 &#151; 59&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">60 &#151; 89&nbsp;days past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">594</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Income</I></B><I>. </I>Other income decreased by $373,000, or 7.0%, to $4.9&nbsp;million for the year ended
June&nbsp;30, 2008, from $5.3&nbsp;million for the year ended June&nbsp;30, 2007. Net gain on sale of assets
increased by $582,000 to $1.1&nbsp;million for the year ended June&nbsp;30, 2008, from $514,000 for the year
ended June&nbsp;30, 2007. The 2008 total is due to a $1.1&nbsp;million gain on the sale of a multi-family
property that had been held and operated as a real estate investment. The 2007 gain pertains to
the sale of our former headquarters in Hackensack, New Jersey. Writedowns due to investment
impairments totaled $998,000 for the year ended June&nbsp;30, 2008. The writedowns consisted of a
$646,000 impairment charge taken on Oritani Bank&#146;s investment in a mutual fund investment as well
as a $352,000 impairment charge related to equity securities that we recorded in the March&nbsp;31, 2008
period. There were no impairment charges taken in 2007. The mutual fund invests primarily in
agency and private label MBS. The market values of the fund&#146;s holdings have been steadily
decreasing which has caused a corresponding decrease in the fund&#146;s net asset value. Oritani Bank
has a $7.8&nbsp;million investment remaining in this asset. The &#147;other&#148; caption within other income
decreased by $257,000 to $146,000 for the year ended June&nbsp;30, 2008, from $403,000 for the year
ended June&nbsp;30, 2007. The decrease in this caption was primarily due to float earnings on the
oversubscription funds returned to subscribers that was realized in 2007.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Expenses. </I></B>Other expenses decreased by $5.8&nbsp;million to $19.5&nbsp;million for the year ended June
30, 2008, from $25.2&nbsp;million for the year ended June&nbsp;30, 2007. The primary reason for the decrease
was the $9.1&nbsp;million contribution to the OritaniBank Charitable Foundation in the 2007 period.
Compensation, payroll taxes and fringe benefits increased by $2.7&nbsp;million, or 24.2%, to $13.9
million for the year ended June&nbsp;30, 2008, from $11.2&nbsp;million for the year ended June&nbsp;30, 2007. In
May&nbsp;2008, stock and options grants that had been approved in our 2007 Equity Incentive Plan were
awarded. The amortization of the cost of this plan began in May&nbsp;2008 and totaled $610,000 for the
year ended June&nbsp;30, 2008. Employee stock ownership plan-related expenses increased $758,000 to
$1.4&nbsp;million for the year ended June&nbsp;30, 2008 from $607,000 for the twelve months June&nbsp;30, 2007.
Expenses for the 2007 period were reduced due to a $492,000 refund of a prior period pension
contribution. Other significant factors contributing to the 2008 increase (versus 2007) were an
increase in Director related costs of $218,000; payroll tax expenses of $103,000 and employee
health insurance expenses of $120,000. The balance of the increase is due to increased
compensation costs as we have increased personnel to assist with implementing the organic growth
strategy. Insurance, Legal, Audit and Accounting expenses increased by $477,000 to $1.3&nbsp;million
for the year ended June&nbsp;30, 2008, from $779,000 for the year ended June&nbsp;30, 2007. The increase is
primarily related to increased external auditing fees and costs associated with implementation and
compliance with Section&nbsp;404 of the Sarbanes-Oxley Act of 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Income Taxes. </I></B>For the year ended June&nbsp;30, 2008, income tax expense of $6.2&nbsp;million was recognized
against pre-tax income of $15.2&nbsp;million. For the year ended June&nbsp;30, 2007, income tax benefit of
$1.7&nbsp;million was recognized against pre-tax income of $9.4&nbsp;million. The tax benefit was due to the
$3.2&nbsp;million valuation allowance reversal as well as a decreased effective tax rate. The
contribution to OritaniBank Charitable Foundation resulted in a decrease in the effective tax rate
for 2007.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->99<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Average Balances and Yields</I></B><I>. </I>The following tables set forth average balance sheets, average
yields and costs, and certain other information for the periods indicated. No tax-equivalent yield
adjustments were made, as the effect thereof was not material. All average balances are daily
average balances. Non-accrual loans were included in the computation of average balances, but have
been reflected in the table as loans carrying a zero yield. The yields set forth below include the
effect of deferred fees, discounts and premiums that are amortized or accreted to interest income
or expense.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>For the Six Months Ended (unaudited)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Earned/Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Earned/Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,336,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.29</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,123,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,892,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,480,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.75</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,978,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,557,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,313</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470,220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,187,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">760,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">508,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">502,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,695,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,263,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,734,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,295,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,978,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,557,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest-earning assets<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">216,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.90</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average of interest-earning assets to
interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">111.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.16</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes nonaccrual loans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes Federal Home Loan Bank Stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest rate spread represents the difference between the yield on average
interest-earning assets and the cost of average interest-bearing liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest-earning assets represents total interest-earning assets less total
interest-bearing liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest margin represents net interest income divided by average total interest-earning
assets.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->100<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE --></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Yield/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans, net <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,181,385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">858,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">693,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.38</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities available for
sale at market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,484</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Funds sold and short term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,587,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,240,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,117,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.67</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,671,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,310,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,180,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">151,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">211,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.46</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">425,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">880,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">505,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,386,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,003,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">955,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,419,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,030,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978,703</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">252,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities and Stockholders&#146; Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,671,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,310,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,180,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest rate spread <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest-earning assets<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">236,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">162,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest margin <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.73</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of interest-earning assets to
interest-bearing liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">114.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">123.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">117.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes nonaccrual loans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest rate spread represents the difference between the weighted-average yield on
interest-earning assets and the weighted- average cost of interest-bearing liabilities for the
period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest-earning assets represents total interest-earning assets less interest-bearing
liabilities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Net interest margin represents net interest income as a percent of average interest-earning
assets for the period.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->101<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><!-- LANDSCAPE -->
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Rate/Volume Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the effects of changing rates and volumes on our net interest
income for the periods indicated. The rate column shows the effects attributable to changes in
rate (changes in rate multiplied by prior volume). The volume column shows the effects
attributable to changes in volume (changes in volume multiplied by prior rate). The total increase
(decrease)&nbsp;column represents the sum of the prior columns. For purposes of this table, changes
attributable to both rate and volume which can not be segregated have been allocated to volume.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Six Months Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009 vs. 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009 vs. 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008 vs. 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase (Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase (Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Increase (Decrease) Due</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Due to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Due to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-earning assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,582</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,625</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,938</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(892</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,027</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(179</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(229</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(80</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(74</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(784</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(171</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(955</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(491</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,897</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities held
to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(985</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(129</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,114</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,911</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,794</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,068</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,066</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal Funds sold and short
term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(98</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(763</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(868</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,631</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,406</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(732</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,138</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest-earning assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,335</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,988</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(574</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interest-bearing liabilities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(406</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(394</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(101</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(347</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(448</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(883</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(666</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Money market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(1,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(951</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(184</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,876</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,972</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(208</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,911</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,501</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(494</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,508</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(131</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total interest-bearing
liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,471</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,009</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,379</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in net interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,120</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,863</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->102<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management of Market Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B>. The majority of our assets and liabilities are monetary in nature. Consequently,
our most significant form of market risk is interest rate risk. Our assets, consisting primarily
of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits.
As a result, a principal part of our business strategy is to manage interest rate risk and reduce
the exposure of our net interest income to changes in market interest rates. Accordingly, our
Board of Directors has the authority and responsibility for managing interest rate risk. Oritani
Bank has established an Asset/Liability Management Committee, comprised of various members of its
senior management, which is responsible for evaluating the interest rate risk inherent in our
assets and liabilities, for recommending to the Board of Directors the level of risk that is
appropriate, given our business strategy, operating environment, capital, liquidity and performance
objectives, and for managing this risk consistent with the guidelines approved by the Board of
Directors. The Asset/Liability Management Committee reports its activities to the Board of
Directors on a monthly basis. An interest rate risk analysis is presented to the Board of
Directors on a quarterly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have sought to manage our interest rate risk in order to minimize the exposure of our
earnings and capital to changes in interest rates. As part of our ongoing asset-liability
management, we currently use the following strategies to manage our interest rate risk:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>originating multi-family and commercial real estate loans that generally tend
to have shorter interest duration and generally reset at five years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investing in shorter duration securities and mortgage-backed securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtaining general financing through FHLB advances with either a fixed long
term or with call options that are considered unlikely.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shortening the average maturity of our interest-earning assets by increasing our investments
in shorter-term loans and securities, as well as loans and securities with variable rates of
interest, helps to better match the maturities and interest rates of our assets and liabilities,
thereby reducing the exposure of our net interest income to changes in market interest rates. By
following these strategies, we believe that we are well-positioned to react to increases in market
interest rates. However, in conjunction with the growth of our net interest spread, and net
interest income, we recognize that our interest rate risk has increased. We accept the current
level of interest rate risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Net Portfolio Value</I></B><B>. </B>We compute the amounts by which our net present value of cash flow from
assets, liabilities and off balance sheet items (the institution&#146;s net portfolio value or &#147;NPV&#148;)
would change in the event of a range of assumed changes in market interest rates. A basis point
equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in
interest rates from 3% to 4.0% would mean, for example, a 100 basis point increase in the &#147;Change
in Interest Rates&#148; column below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth, as of December&nbsp;31, 2009, the estimated changes in our net
portfolio value that would result from the designated instantaneous changes in the United States
Treasury yield curve. Computations of prospective effects of hypothetical interest rate changes
are based on numerous assumptions, including relative levels of market interest rates and loan
prepayment and deposit decay rates, and should not be relied upon as indicative of actual results.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->103<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>NPV as a Percentage of Present</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Estimated Increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Value of Assets (3)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Decrease) in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Change in Interest</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>NPV</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Decrease)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Rates (basis points) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>NPV (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>NPV Ratio (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(basis points)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#043;200</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53,593</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20.86</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(209</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">0</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">-100</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes an instantaneous uniform change in interest rates at all maturities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>NPV is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet contracts.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Present value of assets represents the discounted present value of incoming
cash flows on interest-earning assets.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>NPV Ratio represents NPV divided by the present value of assets.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table above indicates that at December&nbsp;31, 2009 in the event of a 100 basis point
decrease in interest rates, we would experience a 8.5% increase in net portfolio value. In the
event of a 200 basis point increase in interest rates, we would experience a 20.9% decrease in net
portfolio value. These changes in net portfolio value are within the limitations established in
our asset and liability management policies. This data does not reflect any future actions we may
take in response to changes in interest rates, such as changing the mix of our assets and
liabilities, which could change the results of the NPV and net interest income calculations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain shortcomings are inherent in the methodology used in the above interest rate risk
measurement. Modeling changes in net portfolio value require making certain assumptions that may
or may not reflect the manner in which actual yields and costs respond to changes in market
interest rates. In this regard, the net portfolio value table presented assumes that the
composition of our interest-sensitive assets and liabilities existing at the beginning of a period
remains constant over the period being measured and assumes that a particular change in interest
rates is reflected uniformly across the yield curve regardless of the duration or repricing of
specific assets and liabilities. Accordingly, although the net portfolio value table provides an
indication of our interest rate risk exposure at a particular point in time, such measurements are
not intended to and do not provide a precise forecast of the effect of changes in market interest
rates on our net interest income and will differ from actual results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Liquidity and Capital Resources</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity is the ability to meet current and future financial obligations of a short-term
nature. Our primary sources of funds consist of deposit inflows, loan and mortgage-backed security
repayments, maturities and sales of securities and FHLB borrowings. While maturities and scheduled
amortization of loans and securities are predictable sources of funds, deposit flows and mortgage
prepayments are greatly influenced by general interest rates, economic conditions and competition.
Our Asset/Liability Management Committee is responsible for establishing and monitoring our
liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting
the borrowing needs of our customers as well as unanticipated contingencies. Our Asset/Liability
Management Committee focuses on our level of liquid assets as well as our borrowing capacity with
the FHLB. Funds can be obtained from the FHLB on a same day basis, significantly reducing the need
to maintain excess liquid assets to address liquidity concerns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We regularly adjust our investments in liquid assets based upon our assessment of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected loan demand;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected deposit flows;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->104<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected payments from the loan and investment portfolios;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>funds available through borrowings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>yields available on interest-earning deposits and securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>yields and structures available on alternate investments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the objectives of our asset/liability management program</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess liquid assets are invested generally in interest-earning deposits and short- and
intermediate-term securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent
on our operating, financing, lending and investing activities during any given period. At December
31, 2009, cash and cash equivalents totaled $26.3&nbsp;million. Securities and mortgage-backed
securities classified as available for sale, which provide additional sources of liquidity, totaled
$419.0&nbsp;million at December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our cash flows are derived from operating activities, investing activities and financing
activities as reported in our Consolidated Statements of Cash Flows included in our Consolidated
Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the normal course of business, we routinely enter into various commitments, primarily
relating to the origination of loans. At December&nbsp;31, 2009, outstanding commitments to originate
loans totaled $47.6&nbsp;million and outstanding commitments to extend credit totaled $62.3&nbsp;million. We
expect to have sufficient funds available to meet current commitments in the normal course of
business. Time deposits due within one year of December&nbsp;31, 2009 totaled $583.8&nbsp;million, or 48.2%
of total deposits. If these deposits do not remain with us, we will be required to seek other
sources of funds, including other time deposits and FHLB advances. Depending on market conditions,
we may be required to pay higher rates on such deposits or other borrowings than we currently pay
on the time deposits. We believe, however, based on past experience, that a significant portion of
our time deposits will remain with us. We have the ability to attract and retain deposits by
adjusting the interest rates offered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary investing activity currently is the origination of loans and the purchase of loans
and securities. During the six months ended December&nbsp;31, 2009, we originated $188.4&nbsp;million of
loans, purchased $3.7&nbsp;million of loans and purchased $251.0&nbsp;million of securities. During the year
ended June&nbsp;30, 2009, we originated $412.8&nbsp;million of loans, purchased $37.0&nbsp;million of loans, and
purchased $174.9&nbsp;million of securities. During the year ended June&nbsp;30, 2008, we originated $359.3
million of loans, purchased $11.83&nbsp;million of loans, and purchased $141.8&nbsp;million of securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing activities consist primarily of activity in deposit accounts and FHLB advances. We
experienced a net increase in total deposits of $428.7&nbsp;million and $3.2&nbsp;million for the fiscal
years ended June&nbsp;30, 2009 and 2008, respectively. Deposit flows are affected by the overall level
of interest rates, the interest rates and products offered by us and our local competitors and
other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity management is both a daily and long-term function of business management. If we
require funds beyond our ability to generate them internally, borrowing agreements exist with the
FHLB-NY, which provide an additional source of funds. FHLB advances reflected a net increase of
$75.3&nbsp;million and a net increase of $237.0&nbsp;million during the fiscal years ended June&nbsp;30, 2009 and
2008, respectively. Our total borrowings at December&nbsp;31, 2009, consisted of the $507.1&nbsp;million in
longer term
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->105<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">borrowings with the FHLB and minor amounts due to Oritani Financial Corp., MHC. FHLB advances
have primarily been used to fund loan demand and provide longer-term sources of funding. At
December&nbsp;31, 2009, we had a commitment for an overnight line of credit with the FHLB totaling
$200.0&nbsp;million, of which there were no balances. The line of credit is priced at federal funds
rate plus a spread (generally between 20 and 40 basis points) and re-prices daily. At December&nbsp;31,
2009, we also had $45.0&nbsp;million in discount window borrowing capacity through the Federal Reserve
Bank of New York, of which there were no balances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;29, 2009, the FDIC issued a rule pursuant to which all insured depository
institutions would be required to prepay their estimated assessments for the fourth quarter of
2009, and for all of 2010, 2011 and 2012. On December&nbsp;30, 2009, we paid $8.2&nbsp;million in estimated
assessments, of which $7.6&nbsp;million is prepaid for the 2010, 2011and 2012 assessment periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is subject to various regulatory capital requirements, including a risk-based
capital measure. The risk-based capital guidelines include both a definition of capital and a
framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance
sheet items to broad risk categories. As of December&nbsp;31, 2009, Oritani Bank exceeded all regulatory
capital requirements as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Required</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to risk-weighted assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier I capital (to average assets)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;14, 2008, the United States Department of the Treasury announced a voluntary
Capital Purchase Program under the Troubled Asset Relief Program to encourage U.S. financial
institutions to build capital and increase financing. We are not participating in this program.
We currently support very strong capital ratios and capital levels have not been, and are not
anticipated to be, a hindrance on our ability to lend. The United States Department of the
Treasury and the FDIC have also announced an insurance guarantee program, whereby all funds in
non-interest bearing transaction deposit account, regardless of their balance, would be covered by
FDIC insurance through June&nbsp;30, 2010. Oritani Bank is a participant in this program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Off-Balance Sheet Arrangements and Aggregate Contractual Obligations</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Commitments. </I></B>As a financial services provider, we routinely are a party to various financial
instruments with off-balance-sheet risks, such as commitments to extend credit, standby letters of
credit and unused lines of credit. While these contractual obligations represent our future cash
requirements, a significant portion of commitments to extend credit may expire without being drawn
upon. Such commitments are subject to the same credit policies and approval process accorded to
loans we make. We consider commitments to extend credit in determining our allowance for loan
losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Contractual Obligations. </I></B>In the ordinary course of our operations, we enter into certain
contractual obligations. Such obligations include operating leases for premises and equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes our significant fixed and determinable contractual obligations
and other funding needs by payment date at December&nbsp;31, 2009. The payment amounts represent those
amounts due to the recipient and do not include any unamortized premiums or discounts or other
similar carrying amount adjustments.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->106<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Payments Due by Period</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One to Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three to Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>More than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B><I>Contractual Obligations</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands)</B></TD>

     <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>   <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">131,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">509,019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to extend credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">49,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,588</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unadvanced construction loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unused lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,673</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to purchase securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes our significant fixed and determinable contractual
obligations and other funding needs by payment date at June&nbsp;30, 2009. The payment amounts
represent those amounts due to the recipient and do not include any unamortized premiums or
discounts or other similar carrying amount adjustments.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Payments Due by Period</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One to Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three to Five</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>More than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B><I>Contractual Obligations</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Home Loan Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">330,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,725</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">330,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to extend credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,729</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unadvanced construction loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,708</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unused lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments to purchase securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Impact of Inflation and Changing Prices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our consolidated financial statements and related notes have been prepared in accordance with
U.S. Generally Accepted Accounting Principles (&#147;GAAP&#148;). GAAP generally requires the measurement of
financial position and operating results in terms of historical dollars without consideration for
changes in the relative purchasing power of money over time due to inflation. The impact of
inflation is reflected in the increased cost of our operations. Unlike industrial companies, our
assets and liabilities are primarily monetary in nature. As a result, changes in market interest
rates have a greater impact on performance than the effects of inflation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->107<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Oritani Financial Corp., MHC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC is a federally chartered mutual holding company and currently
owns 74.4% of the outstanding shares of common stock of Oritani Financial Corp. Oritani Financial
Corp., MHC has not engaged in any significant business activity other than owning the common stock
of Oritani Financial Corp., and does not intend to expand its business activities. So long as
Oritani Financial Corp., MHC exists, it is required to own a majority of the voting stock of
Oritani Financial Corp. The executive office of Oritani Financial Corp., MHC, is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp., MHC is subject to comprehensive regulation and examination by
the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Financial Corp.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is the federally chartered mid-tier stock holding company of Oritani
Bank. Oritani Financial Corp. owns 100% of the outstanding shares of common stock of Oritani Bank.
Since being formed in 1998, Oritani Financial Corp. has engaged primarily in the business of
holding the common stock of Oritani Bank as well as two limited liability companies that own a
variety of real estate investments. Oritani Financial Corp.&#146;s executive office is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp. is subject to comprehensive regulation and examination by the
OTS. At December&nbsp;31, 2009, Oritani Financial Corp. had consolidated assets of $2.01&nbsp;billion,
consolidated deposits of $1.21&nbsp;billion and consolidated stockholders&#146; equity of $248.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Oritani Bank</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>General</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is a New Jersey-chartered savings bank headquartered in the Township of
Washington, New Jersey. Oritani Bank was originally founded in 1911, as a New Jersey building and
loan association. Over the years, Oritani Bank has expanded primarily through internal growth. In
1997, Oritani Bank converted to a mutual savings bank charter, and in March&nbsp;1998, reorganized into
the two-tier mutual holding company structure. Oritani Bank conducts business from its main office
located at 370 Pascack Road, in the Township of Washington, New Jersey 07676, and its 21 branch
offices located in the New Jersey counties of Bergen, Hudson and Passaic. The telephone number at
its main office is (201)&nbsp;664-5400. Oritani Bank was formerly known as Oritani Savings Bank.
Effective September&nbsp;8, 2008, the name was changed to Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal business consists of attracting retail and commercial bank deposits from the
general public in the areas surrounding our main office in the Township of Washington, New Jersey
and our branch offices located in the New Jersey counties of Bergen (16 branches, including our
main office), Hudson (five branches) and Passaic (one branch), and investing those deposits,
together with funds generated from operations, in multi-family and commercial real estate loans,
one- to four-family residential mortgage loans as well as in second mortgage and equity loans,
construction loans, business loans, other consumer loans, and investment securities. We originate
loans primarily for investment and hold such loans in our portfolio. Occasionally, we will also
enter into loan participations. Our revenues are derived principally from interest on loans and
securities as well as our investments in real estate and real estate joint ventures. We also
generate revenues from fees and service charges and other income.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->108<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our primary sources of funds are deposits, borrowings and principal and interest payments on
loans and securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our website address is <U>www.oritani.com</U>. Information on our website should not be
considered a part of this report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Market Area</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From our headquarters in the Township of Washington, New Jersey, we operate 22 full service
branches, including our main office. We operate branches in three separate counties of New Jersey:
Bergen, Hudson and Passaic. The majority of our branches (sixteen)&nbsp;and deposits are located in
Bergen County. In addition, we operate five branches in Hudson County and one branch in Passaic
County. Our market area for lending is broader and includes the state of New Jersey, the broader
New York metropolitan area, eastern Pennsylvania, and southern Connecticut.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In terms of population, Bergen County ranks as the largest county in New Jersey (out of
twenty-one counties) while Hudson County ranks fifth and Passaic County ranks ninth. The economy
in our primary market area has benefited from being varied and diverse. It is largely urban and
suburban with a broad economic base. As one of the wealthiest states in the nation, New Jersey,
with a population of 8.7&nbsp;million, is considered one of the most attractive banking markets in the
United States. As of December&nbsp;2009, the unemployment rate for New Jersey increased to 10.1% which
was slightly higher than the national rate of 10.0%. Despite the recent downturn, a total of 3.9
million New Jersey residents remain employed as of December&nbsp;2009. Bergen County is considered part
of the New York metropolitan area. Its county seat is Hackensack. Bergen County ranks 16th among
the highest-income counties in the United States in 2009 in terms of per-capita income. Some of
Bergen County&#146;s major employers are: Hackensack University Medical Center; New Jersey Sports and
Expo Authority; Merck-Medco Managed Care; AT&#038;T Wireless Services, Inc.; Becton Dickinson &#038; Company;
Mellon Investor Services; Marcal Paper Mills; Mercedes-Benz of North America, Inc.; KPMG, LLP and
United States Postal Service. See &#147;Risk Factors &#151; Current Market and Economic Conditions May
Significantly Affect Our Operations and Financial Condition.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bergen County is bordered by Rockland County, New York to the north, the Hudson River to the
east, Hudson County to the south, a small border with Essex County also to the south and Passaic
County to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Passaic County is bordered by Orange County, New York to the north, Rockland County, New York
to the northeast, Bergen County to the east, Essex County to the south, Morris County to the
southwest and Sussex County to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hudson County&#146;s only land border is with Bergen County to the north and west. It is bordered
by the Hudson River and Upper New York Bay to the east; Kill van Kull (which connects Newark Bay
with Upper New York Bay) to the south and Newark Bay and the Hackensack River or the Passaic River
to the west.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Competition</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face intense competition within our market area both in making loans and attracting
deposits. Our market area has a high concentration of financial institutions including large money
center and regional banks, community banks and credit unions. Some of our competitors offer
products and services that we currently do not offer, such as trust services and private banking.
As of June&nbsp;30, 2009, the latest
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->109<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">date for which statistics are available, our market share of deposits was approximately 2.6%
in Bergen County, and less than 1.0% in each of Hudson and Passaic Counties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our competition for loans and deposits comes principally from locally owned and out-of-state
commercial banks, savings institutions, mortgage banking firms, insurance companies and credit
unions. We face additional competition for deposits from short-term money market funds, brokerage
firms, mutual funds and insurance companies. Our primary focus is to build and develop profitable
customer relationships across all lines of business while maintaining our role as a community bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Lending Activities</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal lending activity is the origination of multi-family loans and commercial real
estate loans as well as residential real estate mortgage loans and construction loans secured by
property located primarily in our market area. Our multi-family loans consist primarily of
mortgage loans secured by apartment buildings. Our commercial real estate loans consist primarily
of mortgage loans secured by commercial offices, retail space, warehouses and mixed-use buildings.
Our residential real estate mortgage loans consist of one- to four-family residential real property
and consumer loans. Construction loans consist primarily of one- to four-family development,
condominiums and commercial development projects. We significantly curtailed construction lending
in 2009 due to current market and economic conditions and expect to maintain this posture for the
foreseeable future. Construction loans are now only approved on an exception basis and are subject
to arduous underwriting requirements. Second mortgage and equity loans consist primarily of home
equity loans and home equity lines of credit. Commercial real estate loans represented $628.5
million, or 45.5%, of our total loan portfolio at December&nbsp;31, 2009. Multi-family loans represented
$296.3&nbsp;million, or 21.4%, of our total loan portfolio at December&nbsp;31, 2009. One- to four-family
residential real estate mortgage loans represented $260.1&nbsp;million, or 18.8%, of our total loan
portfolio at December&nbsp;31, 2009. We also offer second mortgages and equity loans. At December&nbsp;31,
2009, such loans totaled $51.0&nbsp;million, or 3.7%, of our loan portfolio. At December&nbsp;31, 2009,
construction and land loans totaled $124.9&nbsp;million, or 9.0%, of our loan portfolio. At December
31, 2009, other loans, which primarily consist of secured business and to a smaller extent, account
loans, totaled $21.6&nbsp;million, or 1.6%, of our loan portfolio.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->110<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE -->
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Portfolio Composition. </I></B>The following table sets forth the composition of our loan
portfolio, by type of loan at the dates indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional one- to four-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">260,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">265,962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">223,087</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">165,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">147,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">562,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">359,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,382,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,302,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,023,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">769,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">652,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">501,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other items:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net deferred loan origination fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,357,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,278,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,007,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">758,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">493,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Portfolio Maturities and Yields. </I></B>The following table summarizes the scheduled
repayments of our loan portfolio at June&nbsp;30, 2009.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>First Mortgage</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Second Mortgage</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Construction and Land</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Other Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Average Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due During the Years Ending June&nbsp;30,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">103,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.97</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012 to 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014 to 2018</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2019 to 2023</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2024 and beyond</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">497,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,105,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,302,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->111<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth at June&nbsp;30, 2009 the dollar amount of all fixed- and
adjustable-rate loans that are contractually due after June&nbsp;30, 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Due After June 30, 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fixed</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjustable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="center" colspan="10" nowrap>(In thousands)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional one- to four family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">219,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">265,937</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556,218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,680</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,309</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,946</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">634,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">549,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,183,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>First Mortgage Loans:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Conventional One- to Four-Family Residential Loans. </I></B>We originate one- to four-family
residential mortgage loans substantially all of which are secured by properties located in our
primary market area. At December&nbsp;31, 2009, $260.1&nbsp;million, or 18.8% of our loan portfolio,
consisted of one- to four-family residential mortgage loans. We generally retain for our portfolio
substantially all of these loans that we originate. One- to four-family mortgage loan originations
are generally obtained from existing or past customers, through advertising, and through referrals
from local builders, real estate brokers, and attorneys and are underwritten pursuant to Oritani
Bank&#146;s policies and standards. In 2008, we began a program where a fee is paid to a broker for a
loan referral that results in an origination or a purchase of a recently closed loan. Generally,
one- to four-family residential mortgage loans are originated in amounts up to 80% of the lesser of
the appraised value or purchase price of the property, with private mortgage insurance required on
loans with a loan-to-value ratio in excess of 80%. We generally will not make loans with a
loan-to-value ratio in excess of 90%. Fixed rate mortgage loans are originated for terms of up to
40&nbsp;years. Generally, fixed rate residential mortgage loans are underwritten according to Freddie
Mac guidelines, policies and procedures, with a maximum origination amount of $2.0&nbsp;million. Our
fixed rate origination volume decreased in calendar 2009. Management felt that the market rates
for such products did not provide adequate compensation for the interest rate risk associated with
the products. Consequently, the pricing of our products were higher than market, causing a
negative impact on origination volumes. This situation is expected to sustain as long as the
market rates for fixed rate residential loans remain at approximately their current levels (or
lower). We do not originate or purchase, and our loan portfolio does not include, any sub-prime
loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also offer adjustable rate mortgage loans for one- to four-family properties, with an
interest rate based on the weekly average yield on U.S. Treasuries adjusted to a constant maturity
of one-year, which adjust either annually or every three years from the outset of the loan or which
adjusts annually after a five-, seven- or ten-year initial fixed rate period. Originations and
purchases of adjustable rate one- to four-family residential loans totaled $27.7&nbsp;million during the
fiscal year ended June&nbsp;30, 2009 as compared to total originations and purchases of $89.9&nbsp;million of
one- to four-family residential loans during the same fiscal year. Our adjustable rate mortgage
loans generally provide for maximum rate adjustments of 2% per adjustment, with a lifetime maximum
adjustment up to 6%, regardless of the initial rate. Our adjustable rate mortgage loans amortize
over terms of up to 30&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustable rate mortgage loans decrease the risk associated with changes in market interest
rates by periodically repricing, but involve other risks because, as interest rates increase, the
underlying payments by the borrower increase, thus increasing the potential for default by the
borrower. At the same time, the marketability of the underlying collateral may be adversely
affected by higher interest rates.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upward adjustment of the contractual interest rate is also limited by the maximum periodic and
lifetime interest rate adjustments permitted by our loan documents and, therefore, the
effectiveness of adjustable rate mortgage loans may be limited during periods of rapidly rising
interest rates. At June&nbsp;30, 2009, $46.2&nbsp;million, or 17.4% of our one- to four-family residential
real estate loans, had adjustable rates of interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an effort to provide financing for first-time homebuyers, we offer our own first-time
homebuyer loan program. This program offers one- to four-family residential mortgage loans to
qualified individuals. These loans are offered with terms and adjustable and fixed rates of
interest similar to our other one- to four-family mortgage loan products. With this program,
borrowers receive a discounted mortgage interest rate and do not pay certain loan origination fees.
Such loans must be secured by an owner-occupied residence. These loans are originated using
similar underwriting guidelines as our other one- to four-family mortgage loans. Such loans are
originated in amounts of up to 90% of the lower of the property&#146;s appraised value or the sale
price. Private mortgage insurance is not required for such loans. The maximum amount of such loan
is $275,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also offer our directors, officers and employees who satisfy certain criteria and our
general underwriting standards fixed or adjustable rate loan products with reduced interest rates.
Employee loans adhere to all other terms and conditions contained in the loan policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All residential mortgage loans that we originate include &#147;due-on-sale&#148; clauses, which give us
the right to declare a loan immediately due and payable in the event that, among other things, the
borrower sells or otherwise disposes of the real property subject to the mortgage and the loan is
not repaid. Regulations limit the amount that a savings bank may lend relative to the appraised
value of the real estate securing the loan, as determined by an appraisal of the property at the
time the loan is originated. All borrowers are required to obtain title insurance for the benefit
of Oritani Bank. We also require homeowner&#146;s insurance and fire and casualty insurance and, where
circumstances warrant, flood insurance on properties securing real estate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Multi-Family and Commercial Real Estate Loans. </I></B>We originate non-residential commercial real
estate mortgage loans and loans on multi-family dwellings. At December&nbsp;31, 2009, $628.5&nbsp;million,
or 45.5% of our loan portfolio, consisted of commercial real estate loans and $296.3&nbsp;million, or
21.4% of our loan portfolio, consisted of multi-family loans. Our commercial real estate mortgage
loans are primarily permanent loans secured by improved property such as mixed-use properties,
office buildings, retail stores and commercial warehouses. Our multi-family mortgage loans are
primarily permanent loans secured by apartment buildings. The typical loan has a fixed rate of
interest for the first five years, after which the loan reprices to a market index plus a spread.
The fixed rate period is occasionally extended to as much as ten years. These loans typically
amortize over 25&nbsp;years and the maximum amortization period is 30&nbsp;years. We also offer such loans
on a self-amortizing basis with fixed rate terms up to 20&nbsp;years. Originations with these terms are
monitored and limited. References to commercial real estate loans below refer to multi-family and
commercial real estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of each loan are tailored to the needs of the borrower and based on
the financial strength of the project and any guarantors. In reaching a decision on whether to
make a commercial real estate loan, we consider the net operating income of the property, the
borrower&#146;s expertise and credit history and the value of the underlying property. Loan to value
ratios are a very important consideration. Generally, however, commercial real estate loans
originated by us will not exceed 80% of the appraised value or the purchase price of the property,
whichever is less. Other factors we consider, with respect to commercial real estate rental
properties, include the term of the lease(s) and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the quality of the tenant(s). We generally require that the properties securing these real
estate loans have debt service coverage ratios (the ratio of earnings before debt service to debt
service) of at least 1.2 times. Environmental reports are generally required for commercial real
estate loans. Commercial real estate loans made to corporations, partnerships and other business
entities may require personal guarantees by the principals as warranted. Property inspections are
conducted no less than every three years, or more frequently as warranted. Oritani Bank lending
policies allow lending up to the 80% loan to value level and 1.2 times debt service coverage ratio.
Over the course of 2009, however, we informally reduced our maximum loan to value ratios and
increased our maximum debt service coverage ratio, as well as taking a more conservative approach
on other underwriting issues. We believe these actions have resulted in originations that are more
conservative in nature than Oritani Bank policy allows. We intend to maintain this conservative
posture at least as long as we perceive a heightened economic risk in this type of lending.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A commercial borrower&#146;s financial information is monitored on an ongoing basis by requiring
periodic financial statement updates, payment history reviews and periodic face-to-face meetings
with the borrower. We require commercial borrowers to provide annually updated financial
statements and federal tax returns. These requirements also apply to the individual principals of
our commercial borrowers. We also require borrowers with rental investment property to provide an
annual report of income and expenses for the property, including a tenant list and copies of
leases, as applicable. The largest commercial real estate loan in our portfolio at December&nbsp;31,
2009 was a $21.0&nbsp;million loan located in Ocean County, New Jersey and secured by a shopping mall.
This loan was performing according to its terms at December&nbsp;31, 2009. Our largest commercial real
estate relationship consisted of properties located mainly in our primary market area with a real
estate investor. The aggregate outstanding loan balance for this relationship is $47.6&nbsp;million,
and these loans are all performing in accordance with their terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans secured by commercial real estate, including multi-family properties, generally involve
larger principal amounts and a greater degree of risk than one- to four-family residential mortgage
loans. Because payments on loans secured by commercial real estate are often dependent on
successful operation or management of the properties, repayment of such loans may be affected by
adverse conditions in the real estate market or the economy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Second Mortgage and Equity Loans</I></B>. We also offer second mortgage and equity loans and home
equity of lines of credit, each of which are secured by one- to four-family residences,
substantially all of which are located in our primary market area. At December&nbsp;31, 2009, second
mortgage and equity loans totaled $51.0&nbsp;million, or 3.7% of total loans. Additionally, at December
31, 2009, the unadvanced amounts of home equity lines of credit totaled $17.3&nbsp;million. The
underwriting standards utilized for home equity loans and equity lines of credit include a
determination of the applicant&#146;s credit history, an assessment of the applicant&#146;s ability to meet
existing obligations and payments on the proposed loan and the value of the collateral securing the
loan. The combined (first and second mortgage liens) loan-to-value ratio for home equity loans and
equity lines of credit is generally limited to 80%. Home equity loans are offered with fixed and
adjustable rates of interest and with terms of up to 30&nbsp;years. Our home equity lines of credit
have adjustable rates of interest which are indexed to the prime rate, as reported in <I>The Wall
Street Journal</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity loans entail greater risk than do residential mortgage loans, particularly if they are
secured by an asset that has a superior security interest. In addition, equity loan collections
depend on the borrower&#146;s continuing financial stability, and thus are more likely to be adversely
affected by job loss, divorce, illness or personal bankruptcy.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Construction Loans. </I></B>We originate construction loans for the development of one- to
four-family residential properties located in our primary market area. Residential construction
loans are generally offered to experienced local developers operating in our primary market area
and to individuals for the construction of their personal residences. At December&nbsp;31, 2009,
residential construction loans amounted to $90.5&nbsp;million, or 6.6% of total loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our residential construction loans generally provide for the payment of interest only during
the construction phase, but in no event exceeding 24&nbsp;months. Residential construction loans can be
made with a maximum loan-to-value ratio of 75% of the appraised value of the land and 100% of the
costs associated with the construction. Residential construction loans are generally made on the
same terms as our one- to four-family mortgage loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also make construction loans for commercial development projects. The projects include
multi-family, apartment, retail and office buildings. We generally require that a commitment for
permanent financing be in place prior to closing the construction loan. The maximum loan-to-value
ratio limit applicable to these loans is generally 80%. At December&nbsp;31, 2009, commercial
construction loans totaled $34.4&nbsp;million, or 2.5% of total loans. At December&nbsp;31, 2009, the
largest outstanding commercial construction loan balance was for $13.9&nbsp;million and is secured by a
condominium project. This loan is one of two loans to the same borrower totaling $15.9&nbsp;million
that are classified as non-accrual and considered impaired with a specific reserve of $1.7&nbsp;million
at December&nbsp;31, 2009. Oritani charged off $4.5&nbsp;million of the construction loan as of December&nbsp;31,
2009, as this portion has been determined to be an incurred loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before making a commitment to fund a construction loan, we require an appraisal on the
property by an independent licensed appraiser. We require title insurance and, if applicable, an
environmental survey prior to making a commitment to fund a construction loan. We generally also
review and inspect each property before disbursement of funds during the terms of the construction
loan. Loan proceeds are disbursed after inspection based on the percentage of completion method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction and development financing is generally considered to involve a higher degree of
credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a
construction loan depends largely upon the accuracy of the initial estimate of the value of the
property at completion of construction compared to the estimated cost (including interest) of
construction and other assumptions. If the estimate of construction cost proves to be inaccurate,
we may be required to advance funds beyond the amount originally committed in order to protect the
value of the property. Additionally, if the estimate of value proves to be inaccurate, we may be
confronted with a project, when completed, having a value which is insufficient to assure full
repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We chose to reduce our exposure to construction lending in 2009 due to current market and
economic conditions. Construction originations for the year ended June&nbsp;30, 2009 were $45.1
million, compared to $99.2&nbsp;million for the comparable 2008 period. Construction originations for
the six month period ended December&nbsp;31, 2009 were $7.4&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Other Loans. </I></B>Other loans totaled $21.6&nbsp;million, or 1.6% of our total loan portfolio, at
December&nbsp;31, 2009. Other loans primarily consist of business loans secured by cash or other
business assets, account loans, and commercial line of credit loans. Commercial line of credit
loans totaled $3.1&nbsp;million at December&nbsp;31, 2009. In 2009, Oritani decided to limit new line of
credit lending to well-established customers.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loan Originations, Purchases, Sales, Participations and Servicing of Loans. </I></B>Lending
activities are conducted primarily by our loan personnel operating at our main office. All loans
originated by us are underwritten pursuant to our policies and procedures. We originate both
adjustable rate and fixed rate loans. Our ability to originate fixed or adjustable rate loans is
dependent upon the relative customer demand for such loans, which is affected by the current and
expected future levels of market interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We retain in our portfolio substantially all loans that we originate, although we have
occasionally sold longer-term, fixed-rate one- to four-family residential mortgage loans into the
secondary market. There were no sales of residential mortgage loans in fiscal 2008 or 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occasionally, we will also participate in loans, sometimes as the &#147;lead lender.&#148; Whether we
are the lead lender or not, we underwrite our participation portion of the loan according to our
own underwriting criteria and procedures. At December&nbsp;31, 2009, we had $60.5&nbsp;million in loan
participation interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, we were servicing loans sold in the amount of $9.9&nbsp;million. Loan
servicing includes collecting and remitting loan payments, accounting for principal and interest,
contacting delinquent mortgagors, supervising foreclosures and property dispositions in the event
of unremedied defaults, making certain insurance and tax payments on behalf of the borrowers and
generally administering the loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended December&nbsp;31, 2009, we originated $27.0&nbsp;million of fixed- and
adjustable-rate one- to four-family residential mortgage loans, all of which were retained by us.
The fixed-rate loans retained by us consisted primarily of loans with terms of 30&nbsp;years or less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-performing and Problem Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We commence collection efforts for residential loans (excluding multi-family) when a loan
becomes ten days past due with system generated reminder notices. Subsequent late charges and
delinquent notices are issued and the account is monitored on a regular basis thereafter. Personal,
direct contact with the borrower is attempted early in the collection process as a courtesy
reminder and later to determine the reason for the delinquency and to safeguard our collateral.
When a loan is more than 45&nbsp;days past due, the credit file is reviewed and, if deemed necessary,
information is updated or confirmed and collateral re-evaluated. We make every effort to contact
the borrower and develop a plan of repayment to cure the delinquency. If no repayment plan is in
process and the loan is delinquent at least two payments, the file is referred to counsel for the
commencement of foreclosure or other collection efforts. A very similar process is followed for
non-residential and multi-family loans. However, the direct, personal contact begins earlier in
the process. Contact is attempted as soon as a late charge is incurred. Also, for such loans, a
plan of repayment to cure the delinquency is not necessarily the only remediation process pursued.
In such instances, counsel is consulted and an approach for resolution is determined and
aggressively pursued. A summary report of all loans 30&nbsp;days or more past due is reported to the
Board of Directors. The status of each of these loans is discussed with the Board of Directors on
a monthly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans are placed on non-accrual status when they are more than 90&nbsp;days delinquent. When loans
are placed on a non-accrual status, unpaid accrued interest is fully reversed. Once the
outstanding principal balance is brought current, income is recognized to the extent it is deemed
collectible. If the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">deficiencies causing the delinquency are resolved, such loans may be placed on accrual status
once all arrearages are resolved. See additional discussion regarding our non-performing assets at
December&nbsp;31, 2009 in &#147;Management Discussion and Analysis of Financial Condition and Results of
Operations.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Non-Performing Assets</I></B><I>. </I>The table below sets forth the amounts and categories of our
non-performing assets at the dates indicated. At each date presented, we had no troubled debt
restructurings (loans for which a portion of interest or principal has been forgiven and loans
modified at interest rates materially less than current market rates).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At December</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-accrual loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total non-accrual loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans greater than 90&nbsp;days delinquent and still accruing:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total loans 90&nbsp;days and still accruing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total non-performing loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate owned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total non-performing assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-performing loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-performing assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Two construction loans totaling $4.2&nbsp;million are less than 60&nbsp;days delinquent at June&nbsp;30,
2009 and are classified as non-accrual.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>One construction loan totaling $335,000 was less than 60&nbsp;days delinquent at June&nbsp;30, 2008 and
was classified as non-accrual.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As noted in the above table, there were nonaccrual loans of $51.9&nbsp;million at December&nbsp;31,
2009, $52.5&nbsp;million at June&nbsp;30, 2009 and $14.2&nbsp;million at June&nbsp;30, 2008. Additional interest
income of $2.1&nbsp;million, $3.6&nbsp;million and $521,000 would have been recorded during the six months
ended December&nbsp;31, 2009 and the years ended June&nbsp;30, 2009 and 2008, respectively, if the loans had
performed in accordance with their original terms.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->117<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Delinquent Loans</I></B>. The following table sets forth our loan delinquencies by type, by amount and
by percentage of type at the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Loans Delinquent For</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>60-89 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>90 Days and Over</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>

<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD colspan="2" align="center" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD colspan="7" align="center"><B>(Dollars in thousands)</B></TD>


<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,537</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,652</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,881</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,291</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,810</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,664</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,808</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">At June&nbsp;30, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">279</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">352</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->118<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the delinquent loans listed above, we had loans that were delinquent 90
days or more past due as to principal. Such loans had passed their maturity date but continued
making monthly payments, keeping their interest current. All such loans have subsequently been
paid in full or were extended by us, which negated their past due maturity status. These loans
totaled $2.7&nbsp;million, $3.1&nbsp;million, $316,000, and $3.2&nbsp;million at December&nbsp;31, 2009, June&nbsp;30, 2009,
2008 and 2007, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Real Estate Owned</I></B>. Real estate acquired by us as a result of foreclosure or by deed in lieu
of foreclosure is classified as real estate owned until sold. When property is acquired it is
recorded at the lower of cost or fair market value at the date of foreclosure, establishing a new
cost basis. Holding costs and declines in fair value result in charges to expense after
acquisition. At June&nbsp;30, 2009 and 2008, we had no real estate owned. During the six months ended
December&nbsp;31, 2009, Oritani Bank obtained title to a property which secured a $877,000
non-performing loan which had been classified as impaired. The property was written down to
$800,000 upon acquisition and was subsequently written down further to $600,000. The property is
currently being marketed for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Classified Assets. </I></B>Federal regulations provide that loans and other assets of lesser quality
should be classified as &#147;substandard,&#148; &#147;doubtful&#148; or &#147;loss&#148; assets. An asset is considered
&#147;substandard&#148; if it is inadequately protected by the current net worth and paying capacity of the
obligor or of the collateral pledged, if any. &#147;Substandard&#148; assets include those characterized by
the &#147;distinct possibility&#148; that we will sustain &#147;some loss&#148; if the deficiencies are not corrected.
Assets classified as &#147;doubtful&#148; have all of the weaknesses inherent in those classified
&#147;substandard,&#148; with the added characteristic that the weaknesses present make &#147;collection or
liquidation in full,&#148; on the basis of currently existing facts, conditions, and values, &#147;highly
questionable and improbable.&#148; Assets classified as &#147;loss&#148; are those considered &#147;uncollectible&#148; and
of such little value that their continuance as assets without the establishment of a specific loss
reserve is not warranted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to establish general allowances for loan losses for loans classified
substandard or doubtful, as well as for other problem loans. General allowances represent loss
allowances which have been established to recognize the inherent losses associated with lending
activities, but which, unlike specific allowances, have not been allocated to particular problem
assets. When we classify problem assets as &#147;loss,&#148; we are required either to establish a specific
allowance for losses equal to 100% of the amount of the asset so classified or to charge off such
amount. Our determination as to the classification of our assets and the amount of our valuation
allowances is subject to review by the FDIC and the New Jersey Department of Banking and Insurance
which can order the establishment of additional general or specific loss allowances. Such
examinations typically occur annually. Our last examination was as of March&nbsp;31, 2009 by the FDIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the aggregate amounts of our classified assets at the date indicated
for both residential real estate and non-residential real estate loans.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30" style="border-bottom: 1px solid #000000"><B>Classified Assets At</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Substandard assets:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">238</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance allocated to total classified assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->119<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The loan portfolio is reviewed on a regular basis to determine whether any loans require
classification in accordance with applicable regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also utilize additional classification for assets that do not meet the definition of any of
the classified assets yet contain an element that warrants a rating that is less than &#147;pass.&#148; We
classify an asset as &#147;special mention&#148; if the asset has a potential weakness that warrants
management&#146;s close attention. While such assets are not impaired, management has concluded that if
the potential weakness in the asset is not addressed, the value of the asset may deteriorate,
adversely affecting the repayment of the asset. Our assets classified as &#147;special mention&#148; totaled
$9.8&nbsp;million, $24.2&nbsp;million, $21.7&nbsp;million and $9.8&nbsp;million at December&nbsp;31, 2009 and June&nbsp;30, 2009,
2008 and 2007, respectively. Effective September&nbsp;30, 2009, we began to also utilize the
classification of &#147;watch&#148; for assets where complete current information has not been procured or a
minor weakness is indicated. Our assets classified as &#147;watch&#148; totaled $9.8&nbsp;million at December&nbsp;31,
2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Impaired Loans</I></B>. In accordance with Statement of Financial Accounting Standards 114 (&#147;FAS
114&#148;), we define an impaired loan as a loan for which it is probable, based on current information,
that we will not collect all amounts due under the contractual terms of the loan agreement. We
generally classify qualifying loans as impaired if they exceed 90&nbsp;days delinquency, as principal
and interest would not be being repaid under the contractual terms in such a situation. Loans we
individually classify as impaired include multi-family, commercial mortgage and construction loans.
Impaired loans are individually assessed to determine that each loan&#146;s carrying value is not in
excess of the fair value of the related collateral or the present value of the expected future cash
flows. If the loan&#146;s carrying value does exceed the fair value, specific reserves are established
to reduce the loan&#146;s carrying value. For classification purposes, impaired loans are typically
classified as substandard. Residential mortgage and consumer loans are deemed smaller balance
homogeneous loans which are evaluated collectively for impairment and are therefore excluded from
the population of impaired loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Allowance for Loan Losses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our allowance for loan losses is maintained at a level necessary to absorb loan losses that
are both probable and reasonably estimable. Management, in determining the allowance for loan
losses, considers the losses inherent in our loan portfolio and changes in the nature and volume of
loan activities, along with the general economic and real estate market conditions. A description
of our methodology in establishing our allowance for loan losses is set forth in the section
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#151;Critical
Accounting Policies&#151;Allowance for Loan Losses.&#148; The allowance for loan losses as of December&nbsp;31,
2009 was maintained at a level that represents management&#146;s best estimate of losses inherent in the
loan portfolio, and such losses were both probable and reasonably estimable. However, this analysis
process is inherently subjective, as it requires us to make estimates that are susceptible to
revisions as more information becomes available. Although we believe that we have established the
allowance at levels to absorb probable and estimable losses, future additions may be necessary if
economic or other conditions in the future differ from the current environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, as an integral part of their examination process, the FDIC, OTS, and the New
Jersey Department of Banking and Insurance has authority to periodically review our allowance for
loan losses. Such agencies may require that we recognize additions to the allowance based on their
judgments of information available to them at the time of their examination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Allowance for Loan Losses</I></B><B>. </B>The following table sets forth activity in our allowance for loan
losses for the fiscal years indicated.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->120<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,372</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><td>&nbsp;</td></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charge-offs:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total charge-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recoveries:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Multi-family and commercial
real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (charge-offs) recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,567</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,732</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><td>&nbsp;</td></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans
outstanding (annualized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to total
loans at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.54</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.23</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->121<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Allocation of Allowance for Loan Losses. </I></B>The following table sets forth the allowance
for loan losses allocated by loan category, the total loan balances by category (including loans
held for sale), and the percent of loans in each category to total loans at the dates indicated.
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.
</DIV>
<DIV align="center">
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Loans in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loans in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loans in Each</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Each Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Loans in Each</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance for</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loan Losses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First mortgage loan balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conventional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,591</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second mortgage and equity
loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction and land loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unallocated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in the allowance for loan losses, and related provision, is primarily due to
the large increases in delinquent and impaired loans at December&nbsp;31, 2009. Such loans are
discussed in &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations.&#148; In addition, the continued increase in the multi-family and commercial real estate
loan portfolio was also a factor. These types of loans inherently contain more credit risk than
one- to four-family residential loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors is responsible for adopting our investment policy. The investment
policy is reviewed periodically by management and any changes to the policy are recommended to and
subject to the approval of the Board of Directors. Authority to make investments under the
approved investment policy guidelines is delegated to appropriate officers. While general
investment strategies are developed and authorized by the Board of Directors, the execution of
specific actions primarily rests with Oritani Bank&#146;s President, Chief Financial Officer and
Asset/Liability Committee, which have responsibility for ensuring that the guidelines and
requirements included in the investment policy are followed and that all
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->122<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">securities are considered prudent for investment. Each of our Chief Financial Officer,
President and Asset/Liability Committee have increasing authority to purchase various types of
investments; all individual investment purchases in excess of $20.0&nbsp;million and all daily purchases
in excess of $30.0&nbsp;million must be approved by our Board of Directors. All investment transactions
are reviewed and ratified or approved (as the case may be) at regularly scheduled meetings of the
Board of Directors. Any investment which, subsequent to its purchase, fails to meet the guidelines
of the policy is reported to the Board of Directors at its next meeting where the Board of
Directors decides whether to hold or sell the investment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Jersey chartered savings banks have authority to invest in various types of assets,
including U.S. Treasury obligations, securities of various federal agencies, mortgage-backed
securities, certain certificates of deposit of insured financial institutions, overnight and
short-term loans to other banks, corporate debt instruments, and Fannie Mae and Freddie Mac equity
securities. Oritani Financial Corp., as a federally chartered mid-tier stock holding company, may
invest in equity securities subject to certain limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investment policy requires that all securities transactions be conducted in a safe and
sound manner. Investment decisions must be based upon a thorough analysis of each security
instrument to determine if its quality and inherent risks fit within Oritani Bank&#146;s overall
asset/liability management objectives, the effect on its risk-based capital measurement and the
prospects for yield and/or appreciation. The investment policy provides that Oritani Bank may
invest in U.S. treasury notes, U.S. and state agency securities, mortgage-backed securities, and
other conservative investment opportunities. Typical investments are currently in U.S. agency
securities and government sponsored mortgage-backed securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment portfolio at December&nbsp;31, 2009, consisted of $311.2&nbsp;million in federal agency
obligations, a $5.4&nbsp;million investment in a mutual fund, $2.1&nbsp;million of corporate debt instruments
and $1.8&nbsp;million in equity securities. We also invest in mortgage-backed securities, all of which
are guaranteed by government sponsored enterprises. At December&nbsp;31, 2009, our mortgage-backed
securities portfolio totaled $184.7&nbsp;million, or 9.2% of total assets, and consisted of $144.1
million in fixed-rate securities and $40.6&nbsp;million in adjustable-rate securities, guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. Securities can be classified as held to maturity or
available for sale at the date of purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>U.S. Government and Federal Agency Obligations. </I></B>At December&nbsp;31, 2009, our U.S. Government and
federal agency securities portfolio totaled $311.2&nbsp;million, all of which was classified as
available for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Corporate Bonds</I></B>. At December&nbsp;31, 2009, our corporate bond portfolio totaled $2.1&nbsp;million,
which consisted of one security, rated BBB- and was classified as available for sale. The industry
represented by our corporate bond issuer was financial. Although corporate bonds may offer higher
yields than U.S. Treasury or agency securities of comparable duration, corporate bonds also have a
higher risk of default due to possible adverse changes in the credit-worthiness of the issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mutual Funds. </I></B>At December&nbsp;31, 2009, our mutual fund portfolio totaled $5.4&nbsp;million, and was
classified as available for sale. The portfolio consisted of an investment in a mutual fund that
holds adjustable-rate mortgage loans and similar securities. During fiscal 2009, the portfolio was
deemed other-than-temporarily impaired and we recorded a non-cash impairment charge to earnings of
$1.7&nbsp;million for the year ended June&nbsp;30, 2009. No further impairment charges were required on this
investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Equity Securities. </I></B>At December&nbsp;31, 2009, our equity securities portfolio totaled $1.8
million, all of which were classified as available for sale. The portfolio consists of financial
industry common stocks.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->123<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2009, several of these holdings were deemed other-than-temporarily impaired and
we recorded a non-cash impairment charge to earnings of $399,000. A further impairment charge
totaling $202,000 was recognized regarding these securities during the quarter ended December&nbsp;31,
2009. Equity securities are not insured or guaranteed investments and are affected by market
interest rates and stock market fluctuations. Such investments are carried at their fair value and
fluctuations in the fair value of such investments, including temporary declines in value, directly
affect our net capital position.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mortgage-Backed Securities. </I></B>We purchase mortgage-backed securities primarily insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We invest in mortgage-backed securities to
achieve positive interest rate spreads with minimal administrative expense, to lower our credit
risk as a result of the guarantees provided by Freddie Mac, Fannie Mae or Ginnie Mae and to offset
a portion of the interest rate risk inherent in our loan portfolio. Our investment policy also
authorizes the investment in collateralized mortgage obligations (&#147;CMOs&#148;), also insured or issued
by Freddie Mac, Fannie Mae and Ginnie Mae. We limit CMO investments to those classes of CMOs
carrying the most stable cash flows and lowest prepayment risk of any class of CMOs and which pass
the Federal Financial Institutions Examination Council&#146;s average life restriction tests at the time
of purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our mortgage-backed securities totaled $184.7&nbsp;million or 9.2%, of total
assets. At December&nbsp;31, 2009, 22.0% of the mortgage-backed securities were backed by adjustable
rate mortgage loans and 78.0% were backed by fixed rate mortgage loans. The mortgage-backed
securities portfolio had a weighted average yield of 4.3% at December&nbsp;31, 2009. The estimated fair
value of our mortgage-backed securities at December&nbsp;31, 2009 was $186.7&nbsp;million, which is $5.4
million more than the amortized cost of $181.4&nbsp;million. Investments in mortgage-backed securities
involve a risk that actual prepayments may differ from estimated prepayments over the life of the
security, which may require adjustments to the amortization of any premium or accretion of any
discount relating to such instruments thereby changing the net yield on such securities. There is
also reinvestment risk associated with the cash flows from such securities or if such securities
are redeemed by the issuer. In addition, the market value of such securities may be adversely
affected by changes in interest rates. All of our mortgage-backed securities are insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->124<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Securities Portfolios. </I></B>The following table sets forth the composition of our investment
securities portfolio at the dates indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Mortgage-Backed Securities Held to Maturity</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,347</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,082</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,329</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,907</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,943</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,094</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,314</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,955</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">120,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">163,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">162,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">222,821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,582</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities and Mortgage-Backed Securities Available for Sale</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amortized Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="30"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States Government and
federal agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">134,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">134,837</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,412</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,837</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,363</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage
obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,964</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">414,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">269,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">273,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">170,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,236</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->125<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- LANDSCAPE -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Portfolio Maturities and Yields. </I></B>The composition and maturities of the investment
securities portfolio at December&nbsp;31, 2009 are summarized in the following table. Maturities are
based on the final contractual payment dates, and do not reflect the impact of prepayments or early
redemptions that may occur.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>More than One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>More than Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>One Year or Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>through Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>through Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>More than Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Total Securities</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Ginnie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States Government and federal
agency obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">311,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate bonds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mutual funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Freddie Mac</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fannie Mae</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Collateralized mortgage obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">377,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">414,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->126<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sources of Funds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>Deposits have traditionally been the primary source of funds for use in lending and
investment activities. We also use borrowings, primarily FHLB advances, to supplement cash flow
needs, to lengthen the maturities of liabilities for interest rate risk management purposes and to
manage the cost of funds. In addition, funds are derived from scheduled loan payments,
mortgaged-backed securities scheduled payments and prepayments, investment maturities, loan
prepayments, retained earnings and income on other earning assets. While scheduled loan payments
and income on earning assets are relatively stable sources of funds, deposit inflows and outflows
can vary widely and are influenced by prevailing interest rates, market conditions and levels of
competition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Deposits. </I></B>Our deposits are generated primarily from residents and businesses within our
primary market area. We offer a selection of deposit accounts, including demand accounts, NOW
accounts, money market deposit accounts, savings accounts, retirement accounts and time deposits.
Deposit account terms vary, with the principal differences being the minimum balance required, the
amount of time the funds must remain on deposit and the interest rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rates, maturity terms, service fees and other account features are established on a
periodic basis. Deposit rates and terms are based primarily on current operating strategies and
market rates, liquidity requirements, rates paid by competitors and growth goals. Personalized
customer service, attractive account features, long-standing relationships with customers,
convenient locations, competitive rates of interest and an active marketing program are relied upon
to attract and retain deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The flow of deposits is influenced significantly by general economic conditions, changes in
prevailing interest rates and competition. The variety of deposit accounts offered allows us to be
competitive in obtaining funds and responding to changes in consumer demand while managing interest
rate risk and minimizing interest expense. At December&nbsp;31, 2009, $685.5&nbsp;million, or 56.6% of our
deposit accounts were time deposits, of which $583.8&nbsp;million had maturities of one year or less.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->127<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<!-- LANDSCAPE -->
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the distribution of total deposits by account type, at the
dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>

    <TD>&nbsp;</TD>


    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>


    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="35"><B>(Dollars in thousands)</B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Deposit type:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.89</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">271,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">685,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">691,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,210,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,127,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">698,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.92</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"  style="border-bottom: 1px solid #000000"><B>Weighted Average</B><br><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Deposit type:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOW accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market deposit accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Time deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">422,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">695,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.59</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->128<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, the aggregate amount of outstanding time deposits in amounts
greater than or equal to $100,000 was approximately $240.3&nbsp;million. The following table sets forth
the maturity of those deposits as of December&nbsp;31, 2009.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>At</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Three months or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,723</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over three months through six months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over six months through one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over one year to three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,688</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,345</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Borrowings. </I></B>Our borrowings primarily consist of advances from the FHLB-NY. As of
December&nbsp;31, 2009, we had total borrowings in the amount of $507.4&nbsp;million, which represented 28.8%
of total liabilities, with an estimated weighted average maturity of 5.5&nbsp;years and a weighted
average rate of 3.96%. The weighted average maturity is estimated because several of our
borrowings, under certain circumstances, can be called by the FHLB prior to the scheduled maturity.
If this were to occur, our weighted average maturity would decrease. At December&nbsp;31, 2009,
advances from the FHLB constituted 99.9% of borrowings. At December&nbsp;31, 2009, borrowings are
secured by mortgage-backed securities and investment securities with a book value of $352.6&nbsp;million
and performing mortgage loans with an outstanding balance of $881.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information concerning balances and interest rates on our FHLB
advances and other borrowings at and for the periods shown:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At or For the Years Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">507,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196,661</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average balance during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">505,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">310,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">210,598</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maximum outstanding at any month end</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">508,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">544,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">433,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">233,797</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average interest rate at
end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average interest rate during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subsidiary Activities and Joint Venture Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is the owner of Oritani Bank, Hampshire Financial LLC and Oritani LLC.
Hampshire Financial LLC and Oritani LLC are New Jersey limited liability companies that own real
estate and investments in real estate as described below. In addition, at December&nbsp;31, 2009,
Oritani Financial Corp., either directly or through one of its subsidiaries, had loans with an
aggregate balance of $29.4&nbsp;million on 12 of the properties in which it (either directly or through
one of its subsidiaries) had an ownership interest. All such loans are performing in accordance
with their terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended June&nbsp;30, 2009, we invested in two new joint venture projects. We
invested in an additional project during the six months ended December&nbsp;31, 2009. All of the new
projects were made through Oritani LLC. We will continue to opportunistically invest in real
estate investments and joint venture projects.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->129<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank has the following subsidiaries: Ormon LLC and Oritani Asset Corporation. Ormon
LLC is a New Jersey limited liability company that owns real estate investments in New Jersey as
well as investments in joint ventures that own income-producing commercial and residential rental
properties in New Jersey as described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Asset Corporation is a real estate investment trust formed in 1998 for the sole
purpose of acquiring mortgage loans and mortgage-backed securities from Oritani Bank. Oritani
Asset Corporation&#146;s primary objective is to maximize long-term returns on equity. At December&nbsp;31,
2009, Oritani Asset Corporation had $351.2&nbsp;million in assets. Oritani Asset Corporation is taxed
and operates in a manner that enables it to qualify as a real estate investment trust under the
Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through these various subsidiaries and pursuant to regulatory authority permitting Oritani
Bank to conduct such activities on a &#147;grandfathered&#148; basis, we maintain investments in real estate
and investment in joint ventures. Detailed below is a summary of these various investments by
subsidiary and by type.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ormon LLC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ormon LLC is a wholly-owned subsidiary of Oritani Bank. Ormon LLC maintains the following
investments in real estate and joint ventures:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Investments in Real Estate</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Park Lane Associates </I>- Ormon LLC maintains a 50% undivided ownership interest in Park Lane
Associates. Park Lane Associates is a 142-unit apartment complex located in Little Falls, New
Jersey. Our initial investment was made in March&nbsp;1980. For the year ended June&nbsp;30, 2009, we
recognized net income of $396,000 on this investment and received cash distributions of $321,000
during this period. At December&nbsp;31, 2009, we had a loan to Park Lane Associates totaling $1.9
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Park View Apartments </I>- Ormon LLC maintains a 50% undivided ownership interest in Park View
Apartments. Park View Apartments is a 114-unit apartment complex located in White Hall,
Pennsylvania. We initially invested in Park View in December&nbsp;1986. For the year ended June&nbsp;30,
2009, we recognized net income of $82,000 on its investment in Park View and received cash
distributions of $39,000 during this period. At December&nbsp;31, 2009, we had a loan to Park View
Apartments totaling $1.2&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Winstead Village </I>- Ormon LLC maintains a 50% undivided ownership interest in Winstead Village.
Winstead Village is a 40-unit apartment complex located in Moorestown, New Jersey. We initially
invested in Winstead in December&nbsp;1986. For the year ended June&nbsp;30, 2009 we recognized net income
of $50,000 on its investment and also received cash distributions of $67,000 during that period.
At December&nbsp;31, 2009, we had a loan to Winstead Village totaling $817,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Parkway East </I>- Ormon LLC maintains a 50% undivided ownership interest in Parkway East. Parkway
East is a 43-unit apartment complex located in Caldwell, New Jersey. We initially invested in
Parkway East in July&nbsp;1981. For the year ended June&nbsp;30, 2009, we recognized net income of $92,000
on its investment in Parkway East and received cash distributions of $94,000 during this period.
We have no loan to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Marine View Apartments </I>- Ormon LLC maintains a 75% undivided ownership interest in Marine View
Apartments. Marine View is an 85-unit apartment complex located in Perth Amboy, New Jersey. We
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">initially invested in Marine View in October&nbsp;1993. For the year ended June&nbsp;30, 2009, we recognized
net income of $219,000 on its investment in Marine View and received cash distributions of $203,000
over that period. We have no loans to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ormon LLC also wholly owns one property that is held and operated for investment purposes. The
property is a 54-unit mixed-use property (49 residential units and 5 store fronts) located in
Palisades Park, New Jersey. We recognized net income of $457,000 for the year ended June&nbsp;30, 2009
from the operation of this property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the quarter ended September&nbsp;30, 2009, Ormon LLC sold a 19-unit office building located in
Hillsdale, New Jersey and recognized a net gain of $1.0&nbsp;million. During the fourth quarter of the
fiscal year ended June&nbsp;30, 2008, Ormon LLC sold an 18-unit apartment complex located in Englewood,
New Jersey and recognized a net gain of $1.1&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><b>Investments
in Joint Ventures</b>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Oaklyn Associates </I>- Oaklyn Associates is a 50% owned joint venture on a 100-unit apartment complex
located in Oaklyn, New Jersey. We initially invested in this joint venture in February&nbsp;1978. For
the year ended June&nbsp;30, 2009, we recognized net income of $67,000 on this investment and received
cash distributions of $42,000 over that period. At December&nbsp;31, 2009, we had a loan to Oaklyn
Associates totaling $873,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Madison Associates </I>- Madison Associates is a 50% owned joint venture on 30-unit apartment complex
located in Madison, New Jersey. We initially invested in this joint venture in January&nbsp;1989. For
the year ended June&nbsp;30, 2009, we recognized net income of $77,000 on this investment and received
cash distribution of $80,000 over that period. We have no loans to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Brighton Court Associates </I>- Brighton Court Associate is a 50% owned joint venture on a 47-unit
apartment complex located in Bethlehem, Pennsylvania. We initially invested in Brighton Court in
July&nbsp;1996. For the year ended June&nbsp;30, 2009, we recognized a net income of $9,000 on this
investment and received cash distributions totaling $37,000 over that period. At December&nbsp;31,
2009, our loans to Brighton Court Associates totaled $1.5&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Plaza 23 Associates </I>- Plaza 23 Associates is 50% owned joint venture on a shopping center in
Pequannock, New Jersey. We initially invested in Plaza 23 Associates in October&nbsp;1983. For the
year ended June&nbsp;30, 2009, we recognized net income of $816,000 related to this investment and
received cash distributions of $1.1&nbsp;million during that period. We have no loans to Plaza 23
Associates but had $10.3&nbsp;million loan to its partner in this joint venture, Plains Plaza Ltd. at
December&nbsp;31, 2009. Plains Plaza Ltd. has pledged its equity interest in Plaza 23 Associates as
collateral for this loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Oritani, LLC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani, LLC is a wholly-owned limited liability corporation of Oritani Financial Corp. The
primary business of Oritani, LLC is real estate investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><b>Investments in Joint Ventures
</b></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Ridge Manor Associates </I>- Ridge Manor Associates is a 50% owned joint venture on a 44-unit apartment
complex located in Park Ridge, New Jersey. We initially invested in Ridge Manor Associates in May
2004. For the year ended June&nbsp;30, 2009, we recognized net income of $11,000 related to this
investment,
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and also received cash distributions of $24,000 during that period. At December&nbsp;31, 2009, we had a
loan to this entity that totaled $4.3&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Van Buren Apartments </I>- Van Buren Apartments is a 50% owned joint venture on a 32-unit apartment
complex located in River Edge, New Jersey. We initially invested in Van Buren in March&nbsp;2002. For
the year ended June&nbsp;30, 2009, we recognized a net income on this investment of $37,000 and received
cash distributions of $49,000 during that period. At December&nbsp;31, 2009, we had a loan to Van Buren
Apartments that totaled $2.3&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>10 Landing Lane </I>- 10 Landing Lane is a 50% owned joint venture on a 143-unit apartment complex
located in New Brunswick, New Jersey. We initially invested in 10 Landing Lane in August&nbsp;1998.
For the year ended June&nbsp;30, 2009, we recognized net income of $204,000 related to this investment
and received cash distributions of $62,000 during that period. We have no loans to this entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FAO Hasbrouck Heights </I>- FAO Hasbrouck Heights is a 50% owned joint venture on 93 mixed-use units
(primarily residential) in Hasbrouck Heights, New Jersey. We initially invested in FAO Hasbrouck
Heights in November&nbsp;2005. For the year ended June&nbsp;30, 2009, we recognized a net loss of $55,000
related to this investment and received cash distributions of $365,000 over that period. In
February, 2009, the loan to this entity was refinanced and the amount outstanding was increased.
This was the primary reason for the cash distribution despite the net loss. At December&nbsp;31, 2009,
we had a loan to FAO Hasbrouck Heights that totaled $7.8&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FAO Terrace Associates</I>- FAO Terrace Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hasbrouck Heights, New Jersey. We initially invested in FAO Terrace Associates
in January&nbsp;2009. For the year ended June&nbsp;30, 2009, we recognized a net income of $7,000 related to
this investment and received cash distributions of $28,000 over that period. At December&nbsp;31, 2009,
we had a loan to FAO Terrace Associates that totaled $2.6&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FAO Gardens Associates</I>- FAO Garden Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hackensack, New Jersey. We initially invested in FAO Garden Associates in
February&nbsp;2009. For the year ended June&nbsp;30, 2009, we recognized a net income of $1,000 related to
this investment and received cash distributions of $18,000 over that period. At December&nbsp;31, 2009,
we had a loan to FAO Garden Associates that totaled $2.6&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>River Villa Mews</I>- River Villa Mews is a 50% owned joint venture on a 44-unit apartment complex
located in Palmyra, New Jersey. We initially invested in River Villa Mews in August&nbsp;2009. At
December&nbsp;31, 2009, we had a loan to River Villa Mews that totaled $624,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Hampshire Financial</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hampshire Financial is a wholly-owned subsidiary of Oritani Financial Corp. The primary
business of Hampshire Financial is real estate investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><b>Investments in Joint Ventures</b>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Hampshire Realty </I>- Hampshire Realty is a 50% owned joint venture on an 81-unit apartment complex
located in Allentown, Pennsylvania. We initially invested in Hampshire in June&nbsp;2002. For the year
ended June&nbsp;30, 2009, we recognized a net loss of $49,000 related to this investment and received
cash distributions of $6,000 over that period. At December&nbsp;31, 2009, we had a loan to Hampshire
that totaled $3.0&nbsp;million.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents a summary of our investments in real estate and investments in
joint ventures for the periods presented.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
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</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>For the Six Months Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: px solid #000000"><B>Book</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Book Value at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Profit/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Distributions</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Value at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Property Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Received</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Held for Investment</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Ormon, LLC &#151; Undivided Interests in Real Estate</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Park Lane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(428</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(185</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(429</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Park View</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(439</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(432</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Winstead Village</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(228</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(207</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parkway East</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(334</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(342</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marine View</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Ormon, LLC &#151; Wholly Owned Properties</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Palisades Park <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hillsdale <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Held For Investment Summary</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,429</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(271</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,410</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Investments in Joint Ventures</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Ormon, LLC</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oaklyn Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(203</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(24</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(172</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Madison Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brighton Court Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plaza 23 Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,023</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Oritani, LLC</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ridge Manor Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">523</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Van Buren Apartments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 Landing Lane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAO Hasbrouck Heights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAO Terrace Associates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAO Gardens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">River Villas Mews</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">403</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Hampshire Financial</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hampshire Realty</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Investments in Joint Ventures Summary</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(753</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(208</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(164</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(199</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The book values for wholly owned properties represent the costs of the fixed assets
associated with the property, less accumulated depreciation.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2009, the net book value of real estate held for investment is $(188,000).
The gross appraised value and equity is $42.0&nbsp;million and $37.0&nbsp;million, respectively. Our share
of the equity is $23.9&nbsp;million, or $24.1&nbsp;million in excess of the book value. At December&nbsp;31, 2009,
the net book value of real estate joint ventures is $5.6&nbsp;million. The gross appraised value and
equity is $96.3&nbsp;million and $62.3&nbsp;million, respectively. Our share of the equity is $31.2&nbsp;million,
or $25.5&nbsp;million in excess of the book value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Personnel</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, we had 148 full-time employees and 54 part-time employees. Our
employees are not represented by any collective bargaining group. Management believes that we have
good relations with our employees.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->133<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUPERVISION AND REGULATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law allows a state savings bank, such as Oritani Bank, that qualifies as a &#147;qualified
thrift lender&#148; (discussed below), to elect to be treated as a savings association for purposes of
the savings and loan holding company provisions of the Home Owners&#146; Loan Act, as amended (&#147;HOLA&#148;).
Such an election results in the savings bank&#146;s holding company being regulated as savings and loan
holding companies by the OTS rather than as bank holding company regulated by the Board of
Governors of the Federal Reserve System. At the time of its reorganization into a holding company
structure, Oritani Bank elected to be treated as a savings association under the applicable
provisions of the HOLA. Accordingly, Oritani Financial Corp. and Oritani Financial Corp., MHC are
savings and loan holding companies and are required to file certain reports with, and are subject
to examination by, and otherwise must comply with the rules and regulations of, the OTS. Oritani
Financial Corp. is also subject to the rules and regulations of the Securities and Exchange
Commission under the federal securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank is a New Jersey-chartered savings bank, and its deposit accounts are insured up
to applicable limits by the FDIC. Oritani Bank is subject to extensive regulation, examination and
supervision by the Commissioner of the New Jersey Department of Banking and Insurance (the
&#147;Commissioner&#148;) as the issuer of its charter, and by the FDIC as the deposit insurer and its
primary federal regulator. Oritani Bank must file reports with the Commissioner and the FDIC
concerning its activities and financial condition, and it must obtain regulatory approval prior to
entering into certain transactions, such as mergers with, or acquisitions of, other depository
institutions and opening or acquiring branch offices. The Commissioner and the FDIC conduct
periodic examinations to assess Oritani Bank&#146;s compliance with various regulatory requirements.
This regulation and supervision establishes a comprehensive framework of activities in which a
savings bank may engage and is intended primarily for the protection of the deposit insurance fund
and depositors. The regulatory structure also gives the regulatory authorities extensive
discretion in connection with their supervisory and enforcement activities and examination
policies, including policies with respect to the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any change in these laws or regulations, whether by the New Jersey Department of Banking and
Insurance, the FDIC, the OTS or the U.S. Congress, could have a material adverse impact on Oritani
Financial Corp., Oritani Bank and their operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the regulatory requirements that are or will be applicable to Oritani Bank, Oritani
Financial Corp. and Oritani Financial Corp., MHC are described below. This description of statutes
and regulations is not intended to be a complete explanation of such statutes and regulations and
their effects on Oritani Bank, Oritani Financial Corp. and Oritani Financial Corp., MHC and is
qualified in its entirety by reference to the actual statutes and regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New Jersey Banking Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Activity Powers. </I></B>Oritani Bank derives its lending, investment and other powers primarily from
the applicable provisions of the New Jersey Banking Act and its related regulations. Under these
laws and regulations, savings banks, such as Oritani Bank, generally may invest in:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>real estate mortgages;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consumer and commercial loans;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->134<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>specific types of debt securities, including certain corporate debt securities
and obligations of federal, state and local governments and agencies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain types of corporate equity securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain other assets.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A savings bank may also invest pursuant to a &#147;leeway&#148; power that permits investments not
otherwise permitted by the New Jersey Banking Act. &#147;Leeway&#148; investments must comply with a number
of limitations on the individual and aggregate amounts of &#147;leeway&#148; investments. Under this
&#147;leeway&#148; authority, New Jersey savings banks may exercise those powers, rights, benefits or
privileges authorized for national banks or out-of-state banks or for federal or out-of-state
savings banks or savings associations, provided that before exercising any such power, right,
benefit or privilege, prior approval by the Commissioner by regulation or by specific authorization
is required. A savings bank may also exercise trust powers upon approval of the Commissioner. The
exercise of these lending, investment and activity powers are limited by federal law and the
related regulations. See &#147;&#151;Federal Banking Regulation&#151;Activity Restrictions on State Chartered
Banks&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loans-to-One-Borrower Limitations. </I></B>With certain specified exceptions, a New Jersey-chartered
savings bank may not make loans or extend credit to a single borrower or to entities related to the
borrower in an aggregate amount that would exceed 15% of the bank&#146;s capital funds. A savings bank
may lend an additional 10.0% of its capital funds if the loan is secured by collateral meeting the
requirements of the New Jersey Banking Act. Oritani Bank currently complies with applicable
loans-to-one-borrower limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dividends. </I></B>Under the New Jersey Banking Act, a stock savings bank may declare and pay a
dividend on its capital stock only to the extent that the payment of the dividend would not impair
the capital stock of the savings bank. In addition, a stock savings bank may not pay a dividend
unless the savings bank would, after the payment of the dividend, have a surplus of not less than
50% of its capital stock, or alternatively, the payment of the dividend would not reduce the
surplus. Federal law may also limit the amount of dividends that may be paid by Oritani Bank. See
&#147;&#151;Federal Banking Regulation&#151;Prompt Corrective Action&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Minimum Capital Requirements. </I></B>Regulations of the Commissioner impose on New Jersey-chartered
depository institutions, such as Oritani Bank, minimum capital requirements similar to those
imposed by the FDIC on insured state banks. See &#147;&#151;Federal Banking Regulation&#151;Capital
Requirements&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Examination and Enforcement. </I></B>The New Jersey Department of Banking and Insurance may examine
Oritani Bank whenever it deems an examination advisable. The New Jersey Department of Banking and
Insurance examines Oritani Bank at least every two years. The Commissioner may order any savings
bank to discontinue any violation of law or unsafe or unsound banking practice, and may direct any
director, officer, attorney or employee of a savings bank engaged in an objectionable activity,
after the Commissioner has ordered the activity to be terminated, to show cause at a hearing before
the Commissioner why such person should not be removed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Banking Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Capital Requirements. </I></B>FDIC regulations require banks to maintain minimum levels of capital.
The FDIC regulations define two tiers, or classes, of capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital is comprised of the sum of:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->135<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>common stockholders&#146; equity, excluding the unrealized appreciation or
depreciation, net of tax, from available for sale securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>non-cumulative perpetual preferred stock, including any related retained
earnings; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>minority interests in consolidated subsidiaries minus all intangible assets,
other than qualifying servicing rights and any net unrealized loss on marketable
equity securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of Tier 2 capital currently include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cumulative perpetual preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain perpetual preferred stock for which the dividend rate may be reset
periodically;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hybrid capital instruments, including mandatory convertible securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>term subordinated debt;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>intermediate term preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>allowance for loan losses; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>up to 45% of pretax net unrealized holding gains on available for sale equity
securities with readily determinable fair market values.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for loan losses includible in Tier 2 capital is limited to a maximum of 1.25% of
risk-weighted assets (as discussed below). Overall, the amount of Tier 2 capital that may be
included in total capital cannot exceed 100% of Tier 1 capital. The FDIC regulations establish a
minimum leverage capital requirement for banks in the strongest financial and managerial condition
of not less than a ratio of 3% of Tier 1 capital to total assets. For all other banks, the minimum
leverage capital requirement is 4%, unless a higher leverage capital ratio is warranted by the
particular circumstances or risk profile of the depository institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC regulations also require that banks meet a risk-based capital standard. The
risk-based capital standard requires the maintenance of a ratio of total capital, which is defined
as the sum of Tier 1 capital and Tier 2 capital, to risk-weighted assets of at least 8% and a ratio
of Tier 1 capital to risk-weighted assets of at least 4%. In determining the amount of
risk-weighted assets, all assets, plus certain off balance sheet items, are multiplied by a
risk-weight of 0% to 100%, based on the risks the FDIC believes are inherent in the type of asset
or item.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The federal banking agencies, including the FDIC, have also adopted regulations to require an
assessment of an institution&#146;s exposure to declines in the economic value of a bank&#146;s capital due
to changes in interest rates when assessing the bank&#146;s capital adequacy. Under such a risk
assessment, examiners evaluate a bank&#146;s capital for interest rate risk on a case-by-case basis,
with consideration of both quantitative and qualitative factors. Institutions with significant
interest rate risk may be required to hold additional capital. According to the agencies,
applicable considerations include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the quality of the bank&#146;s interest rate risk management process;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the overall financial condition of the bank; and
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->136<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of other risks at the bank for which capital is needed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows Oritani Bank&#146;s Core capital, Tier 1 risk-based capital, and Total
risk-based capital ratios at December&nbsp;31, 2009:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>As of December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percent of Assets</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.76</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tier 1 risk-based capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total risk-based capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.75</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>For purposes of calculating Core capital, assets
are based on adjusted total leverage assets. In calculating Tier 1
risk-based capital and total risk-based capital, assets are based on
total risk-weighted assets.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the table shows, as of December&nbsp;31, 2009, Oritani Bank was considered &#147;well
capitalized&#148; under FDIC guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prompt Corrective Action. </I></B>Federal law requires, among other things, that the federal bank
regulatory authorities take &#147;prompt corrective action&#148; with respect to institutions that do not
meet minimum capital requirements. For these purposes, the law establishes five categories: well
capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and
critically undercapitalized. The FDIC&#146;s regulations define the five capital categories as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;well capitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of total capital to risk-weighted assets is at least 10% ;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to risk-weighted assets is at least 6%; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to total assets is at least 5%, and it is not
subject to any order or directive by the FDIC to meet a specific capital level.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;adequately capitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of total capital to risk-weighted assets is at least 8%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to risk-weighted assets is at least 4%; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its ratio of Tier 1 capital to total assets is at least 4% (3% if the bank
receives the highest rating under the Uniform Financial Institutions Rating System)
and it is not a well-capitalized institution.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;undercapitalized&#148; if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its total risk-based capital is less than 8%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its Tier 1 risk-based-capital is less than 4%; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its leverage ratio is less than 4% (or less than 3% if the institution receives
the highest rating under the Uniform Financial Institutions Rating System).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution will be treated as &#147;significantly undercapitalized&#148; if:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->137<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its total risk-based capital is less than 6%;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its Tier 1 capital is less than 3%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>its leverage ratio is less than 3%.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution that has a tangible capital to total assets ratio equal to or less than 2%
would be deemed to be &#147;critically undercapitalized.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC is required, with some exceptions, to appoint a receiver or conservator for an
insured state bank if that bank is &#147;critically undercapitalized.&#148; For this purpose, &#147;critically
undercapitalized&#148; means having a ratio of tangible capital to total assets of less than 2%. The
FDIC may also appoint a conservator or receiver for a state bank on the basis of the institution&#146;s
financial condition or upon the occurrence of certain events, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insolvency, or when the assets of the bank are less than its liabilities to
depositors and others;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>substantial dissipation of assets or earnings through violations of law or
unsafe or unsound practices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>existence of an unsafe or unsound condition to transact business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>likelihood that the bank will be unable to meet the demands of its depositors or
to pay its obligations in the normal course of business; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insufficient capital, or the incurring or likely incurring of losses that will
deplete substantially all of the institution&#146;s capital with no reasonable prospect
of replenishment of capital without federal assistance.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Activity Restrictions on State Chartered Banks. </I></B>Federal law and FDIC regulations generally
limit the activities and investments of state chartered FDIC insured banks and their subsidiaries
to those permissible for national banks and their subsidiaries, unless such activities and
investments are specifically exempted by law or consented to by the FDIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before making a new investment or engaging in a new activity that is not permissible for a
national bank or otherwise permissible under federal law or FDIC regulations, an insured bank must
seek approval from the FDIC to make such investment or engage in such activity. The FDIC will not
approve the activity unless the bank meets its minimum capital requirements and the FDIC determines
that the activity does not present a significant risk to the FDIC insurance funds. Certain
activities of subsidiaries that are engaged in activities permitted for national banks only through
a &#147;financial subsidiary&#148; are subject to additional restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law permits a state chartered savings bank to engage, through financial subsidiaries,
in any activity in which a national bank may engage through a financial subsidiary and on
substantially the same terms and conditions. In general, the law permits a national bank that is
well-capitalized and well-managed to conduct, through a financial subsidiary, any activity
permitted for a financial holding company other than insurance underwriting, insurance investments,
real estate investment or development or merchant banking. The total assets of all such financial
subsidiaries may not exceed the lesser of 45% of the bank&#146;s total assets or $50&nbsp;billion. The bank
must have policies and procedures to assess the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">financial subsidiary&#146;s risk and protect the bank from such risk and potential liability, must
not consolidate the financial subsidiary&#146;s assets with the bank&#146;s and must exclude from its own
assets and equity all equity investments, including retained earnings, in the financial subsidiary.
State chartered savings banks may retain subsidiaries in existence as of March&nbsp;11, 2000 and may
engage in activities that are not authorized under federal law. Although Oritani Bank meets all
conditions necessary to establish and engage in permitted activities through financial
subsidiaries, it has not yet determined whether or the extent to which it will seek to engage in
such activities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Insurance of Deposit Accounts. </I></B>Oritani Bank is a member of the DIF, which is administered by
the FDIC. Deposit accounts at Oritani Bank are insured by the FDIC, generally up to a maximum of
$100,000 for each separately insured depositor and up to a maximum of $250,000 for self-directed
retirement accounts. However, the FDIC increased the deposit insurance available on all deposit
accounts to $250,000, effective until December&nbsp;31, 2013. In addition, certain noninterest-bearing
transaction accounts maintained with financial institutions participating in the FDIC&#146;s Temporary
Liquidity Guarantee Program (&#147;TLG&#148;) are fully insured regardless of the dollar amount until June
30, 2010. Oritani Bank has opted to participate in the FDIC&#146;s TLG Program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC imposes an assessment against all depository institutions for deposit insurance.
This assessment is based on the risk category of the institution and, prior to 2009, ranged from 5
to 43 basis points of the institution&#146;s deposits. On February&nbsp;27, 2009, the FDIC published a final
rule raising the current deposit insurance assessment rates to a range from 12 to 45 basis points
beginning April&nbsp;1, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;22, 2009, the FDIC adopted a final rule imposing a 5 basis point special assessment on
each insured depository institution&#146;s assets minus Tier 1 capital as of June&nbsp;30, 2009. The amount
of the special assessment for any institution will not exceed 10 basis points times the
institution&#146;s assessment base for the second quarter 2009. Our total expense for the special
assessment was $845,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deposit insurance assessment rates are in addition to the assessments for payments on the
bonds issued in the late 1980s by the Financing Corporation, or FICO, to recapitalize the now
defunct Federal Savings and Loan Insurance Corporation. The FICO payments will continue until the
FICO bonds mature in 2017 through 2019. Excluding the special assessment noted above, our expense
for the assessment of deposit insurance and the FICO payments was $928,000 for the year ended June
30, 2009 and $92,000 for the year ended June&nbsp;30, 2008. The FDIC also established 1.25% of
estimated insured deposits as the designated reserve ratio of the DIF. The FDIC is authorized to
change the assessment rates as necessary, subject to the previously discussed limitations, to
maintain the required reserve ratio of 1.25%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC also approved a One-Time Assessment Credit to institutions that were in existence on
December&nbsp;31, 1996 and paid deposit insurance assessments prior to that date, or are a successor to
such an institution. The Bank received a $2.8&nbsp;million One-Time Assessment Credit, all of which was
used to offset substantially all of our deposit insurance assessment, excluding the FICO payments,
for the period from January&nbsp;1, 2007 through March&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is participating in the FDIC&#146;s Temporary Account Guarantee (&#147;TAG&#148;) program, which
is a part of the FDIC&#146;s TLG program. The purpose of the TLG is to strengthen confidence and
encourage liquidity in the banking system. Under the TAG, funds in non-interest-bearing accounts,
in interest-bearing transaction accounts with interest rate of 0.50% or less and in Interest on
Lawyers Trust Accounts will have a temporary unlimited guarantee from the FDIC until June&nbsp;30, 2010.
The coverage of the TAG is in addition to and separate from coverage available under the FDIC&#146;s
general deposit insurance rules, which insure accounts up to $250,000.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Federal Home Loan Bank System. </I></B>Oritani Bank is a member of the Federal Home Loan Bank System,
which consists of 12 regional FHLBs. The Federal Home Loan Bank System provides a central credit
facility primarily for member institutions. As a member of the FHLB-NY, Oritani Bank is required
to acquire and hold shares of capital stock in the FHLB in an amount at least equal to 1% of the
aggregate principal amount of its unpaid residential mortgage loans and similar obligations at the
beginning of each year, 4.5% of its borrowings from the FHLB, or 0.3% of assets, whichever is
greater. As of December&nbsp;31, 2009, Oritani Bank was in compliance with this requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Enforcement. </I></B>The FDIC has extensive enforcement authority over insured savings banks,
including Oritani Bank. This enforcement authority includes, among other things, the ability to
assess civil money penalties, to issue cease and desist orders and to remove directors and
officers. In general, these enforcement actions may be initiated in response to violations of laws
and regulations and to unsafe or unsound practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Transactions with Affiliates of Oritani Bank. </I></B>Transactions between an insured bank, such as
Oritani Bank, and any of its affiliates are governed by Sections&nbsp;23A and 23B of the Federal Reserve
Act and implementing regulations. An affiliate of a insured bank is any company or entity that
controls, is controlled by or is under common control with the bank. Generally, a subsidiary of a
bank that is not also a depository institution or financial subsidiary is not treated as an
affiliate of the bank for purposes of Sections&nbsp;23A and 23B.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;23A:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limits the extent to which the bank or its subsidiaries may engage in &#147;covered
transactions&#148; with any one affiliate to an amount equal to 10.0% of such bank&#146;s
capital stock and retained earnings, and limits all such transactions with all
affiliates to an amount equal to 20% of such capital stock and retained earnings;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>requires that all such transactions be on terms that are consistent with safe
and sound banking practices.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;covered transaction&#148; includes the making of loans, purchase of assets, issuance of
guarantees and other similar types of transactions. Further, most loans by a bank to any of its
affiliates must be secured by collateral in amounts ranging from 100% to 130% of the loan amounts.
In addition, any covered transaction by a bank with an affiliate and any purchase of assets or
services by a bank from an affiliate must be on terms that are substantially the same, or at least
as favorable to the bank, as those that would be provided to a non-affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prohibitions Against Tying Arrangements. </I></B>Banks are subject to the prohibitions of 12 U.S.C.
Section&nbsp;1972 on certain tying arrangements. A depository institution is prohibited, subject to
some exceptions, from extending credit to or offering any other service, or fixing or varying the
consideration for such extension of credit or service, on the condition that the customer obtain
some additional service from the institution or its affiliates or not obtain services of a
competitor of the institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Privacy Standards. </I></B>FDIC regulations require Oritani Bank to disclose their privacy policy,
including identifying with whom they share &#147;non-public personal information,&#148; to customers at the
time of establishing the customer relationship and annually thereafter. Oritani Bank does not
share &#147;non-public personal information&#148; with third parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Oritani Bank is required to provide its customers with the ability to &#147;opt-out&#148;
of having Oritani Bank share their non-public personal information with unaffiliated third parties
before they
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">can disclose such information, subject to certain exceptions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FDIC and other federal banking agencies adopted guidelines establishing standards for
safeguarding customer information. The guidelines describe the agencies&#146; expectations for the
creation, implementation and maintenance of an information security program, which would include
administrative, technical and physical safeguards appropriate to the size and complexity of the
institution and the nature and scope of its activities. The standards set forth in the guidelines
are intended to insure the security and confidentiality of customer records and information,
protect against any anticipated threats or hazards to the security or integrity of such records and
protect against unauthorized access to or use of such records or information that could result in
substantial harm or inconvenience to any customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Community Reinvestment Act and Fair Lending Laws. </I></B>All FDIC insured institutions have a
responsibility under the Community Reinvestment Act and related regulations to help meet the credit
needs of their communities, including low- and moderate-income neighborhoods. In connection with
its examination of a state chartered savings bank, the FDIC is required to assess the institution&#146;s
record of compliance with the Community Reinvestment Act. Among other things, the current
Community Reinvestment Act regulations replace the prior process-based assessment factors with a
new evaluation system that rates an institution based on its actual performance in meeting
community needs. In particular, the current evaluation system focuses on three tests:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a lending test, to evaluate the institution&#146;s record of making loans in its
service areas;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an investment test, to evaluate the institution&#146;s record of investing in
community development projects, affordable housing, and programs benefiting low or
moderate income individuals and businesses; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a service test, to evaluate the institution&#146;s delivery of services through its
branches, ATMs and other offices.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An institution&#146;s failure to comply with the provisions of the Community Reinvestment Act
could, at a minimum, result in regulatory restrictions on its activities. Oritani Bank received a
&#147;satisfactory&#148; Community Reinvestment Act rating in our most recently completed federal
examination, which was conducted by the FDIC in September&nbsp;2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from
discriminating in their lending practices on the basis of characteristics specified in those
statutes. The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act
could result in enforcement actions by the FDIC, as well as other federal regulatory agencies and
the Department of Justice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Loans to a Bank&#146;s Insiders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Federal Regulation. </I></B>A bank&#146;s loans to its executive officers, directors, any owner of more
than 10.0% or more of its stock (each, an insider) and any of certain entities affiliated with any
such persons (an insider&#146;s related interest) are subject to the conditions and limitations imposed
by Section 22(h) of the Federal Reserve Act and its implementing regulations. Under these
restrictions, the aggregate amount of the loans to any insider and the insider&#146;s related interests
may not exceed the loans-to-one-borrower limit applicable to national banks, which is comparable to
the loans-to-one-borrower limit applicable to Oritani Bank. See &#147;-New Jersey Banking
Regulation-Loans-to-One Borrower Limitations.&#148; All loans by a bank to all insiders and insiders&#146;
related interests in the aggregate generally may not exceed the bank&#146;s unimpaired capital and
unimpaired surplus. With certain exceptions, loans to an executive officer, other
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">than loans for the education of the officer&#146;s children and certain loans secured by the
officer&#146;s primary residence, may not exceed the lesser of (1) $100,000 or (2)&nbsp;the greater of
$25,000 or 2.5% of the bank&#146;s unimpaired capital and surplus. Federal regulation also requires
that any proposed loan to an insider or a related interest of that insider be approved in advance
by a majority of the Board of Directors of the bank, with any interested directors not
participating in the voting, if such loan, when aggregated with any existing loans to that insider
and the insider&#146;s related interests, would exceed either (1) $500,000 or (2)&nbsp;the greater of $25,000
or 5% of the bank&#146;s unimpaired capital and surplus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, loans to insiders must be made on substantially the same terms as, and follow
credit underwriting procedures that are not less stringent than, those that are prevailing at the
time for comparable transactions with other persons. An exception is made for extensions of credit
made pursuant to a benefit or compensation plan of a bank that is widely available to employees of
the bank and that does not give any preference to insiders of the bank over other employees of the
bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, federal law prohibits extensions of credit to a bank&#146;s insiders and their related
interests by any other institution that has a correspondent banking relationship with the bank,
unless such extension of credit is on substantially the same terms as those prevailing at the time
for comparable transactions with other persons and does not involve more than the normal risk of
repayment or present other unfavorable features.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>New Jersey Regulation. </I></B>Provisions of the New Jersey Banking Act impose conditions and
limitations on the liabilities to a savings bank of its directors and executive officers and of
corporations and partnerships controlled by such persons that are comparable in many respects to
the conditions and limitations imposed on the loans and extensions of credit to insiders and their
related interests under federal law, as discussed above. The New Jersey Banking Act also provides
that a savings bank that is in compliance with federal law is deemed to be in compliance with such
provisions of the New Jersey Banking Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Other Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other charges collected or contracted for by Oritani Bank are subject to state
usury laws and federal laws concerning interest rates. Oritani Bank&#146;s operations are also subject
to federal laws applicable to credit transactions, such as the:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Truth-In-Lending Act, governing disclosures of credit terms to consumer
borrowers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Home Mortgage Disclosure Act of 1975, requiring financial institutions to
provide information to enable the public and public officials to determine whether
a financial institution is fulfilling its obligation to help meet the housing needs
of the community it serves;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Equal Credit Opportunity Act, prohibiting discrimination on the basis of race,
creed or other prohibited factors in extending credit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair Credit Reporting Act of 1978, governing the use and provision of
information to credit reporting agencies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair Debt Collection Act, governing the manner in which consumer debts may be
collected by collection agencies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rules and regulations of the various federal agencies charged with the
responsibility of implementing such federal laws.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The operations of Oritani Bank also are subject to the:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Right to Financial Privacy Act, which imposes a duty to maintain confidentiality
of consumer financial records and prescribes procedures for complying with
administrative subpoenas of financial records;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronic Funds Transfer Act and Regulation&nbsp;E promulgated thereunder, which
govern automatic deposits to and withdrawals from deposit accounts and customers&#146;
rights and liabilities arising from the use of automated teller machines and other
electronic banking services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Check Clearing for the 21<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> Century Act (also known as &#147;Check 21&#148;),
which gives &#147;substitute checks,&#148; such as digital check images and copies made from
that image, the same legal standing as the original paper check;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title III of The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred to as the
&#147;USA PATRIOT Act&#148;), which significantly expanded the responsibilities of financial
institutions, including savings banks, in preventing the use of the U.S. financial
system to fund terrorist activities. Among other provisions, the USA PATRIOT Act
and the related regulations of the OTS require savings associations operating in
the United States to develop new anti-money laundering compliance programs, due
diligence policies and controls to ensure the detection and reporting of money
laundering. Such required compliance programs are intended to supplement existing
compliance requirements, also applicable to financial institutions, under the Bank
Secrecy Act and the Office of Foreign Assets Control Regulations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Gramm-Leach-Bliley Act, which placed limitations on the sharing of consumer
financial information by financial institutions with unaffiliated third parties.
Specifically, the Gramm-Leach-Bliley Act requires all financial institutions
offering financial products or services to retail customers to provide such
customers with the financial institution&#146;s privacy policy and provide such
customers the opportunity to &#147;opt out&#148; of the sharing of certain personal financial
information with unaffiliated third parties.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Holding Company Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B>. Oritani Financial Corp., MHC and Oritani Financial Corp. are non-diversified savings
and loan holding companies within the meaning of the HOLA. As such, Oritani Financial Corp., MHC
and Oritani Financial Corp. are registered with the OTS and subject to OTS regulations,
examinations, supervision and reporting requirements. In addition, the OTS has enforcement
authority over Oritani Financial Corp. and Oritani Financial Corp., MHC, and their subsidiaries.
Among other things, this authority permits the OTS to restrict or prohibit activities that are
determined to be a serious risk to the subsidiary savings institution. As federal corporations,
Oritani Financial Corp. and Oritani Financial Corp., MHC are generally not subject to state
business organization laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Permitted Activities</I></B>. Pursuant to Section 10(o) of the HOLA and OTS regulations and policy, a
mutual holding company and a federally chartered mid-tier holding company such as Oritani Financial
Corp. may engage in the following activities:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investing in the stock of a savings bank;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->143<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquiring a mutual association through the merger of such
association into a savings bank subsidiary of such holding company or an
interim savings bank subsidiary of such holding company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>merging with or acquiring another holding company, one of
whose subsidiaries is a savings bank;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investing in a corporation, the capital stock of which is
available for purchase by a savings bank under federal law or under the law of
any state where the subsidiary savings bank or associations share their home
offices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>furnishing or performing management services for a savings bank
subsidiary of such company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holding, managing or liquidating assets owned or acquired from
a savings subsidiary of such company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>holding or managing properties used or occupied by a savings
bank subsidiary of such company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acting as trustee under deeds of trust;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other activity:</TD>
</TR>

</table></div>



<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the Federal Reserve Board, by regulation, has determined to be
permissible for bank holding companies under Section 4(c) of the Bank
Holding Company Act of 1956, unless the Director, by regulation, prohibits
or limits any such activity for savings and loan holding companies; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in which multiple savings and loan holding companies were authorized (by
regulation) to directly engage on March&nbsp;5, 1987;</TD>
</TR>





</table>
</div>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any activity permissible for financial holding companies under
Section 4(k) of the Bank Holding Company Act, including securities and
insurance underwriting; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchasing, holding, or disposing of stock acquired in
connection with a qualified stock issuance if the purchase of such stock by
such savings and loan holding company is approved by the Director. If a mutual
holding company acquires or merges with another holding company, the holding
company acquired or the holding company resulting from such merger or
acquisition may only invest in assets and engage in activities listed in (i)
through (x)&nbsp;above, and has a period of two years to cease any nonconforming
activities and divest any nonconforming investments.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The HOLA prohibits a savings and loan holding company, including Oritani Financial Corp. and
Oritani Financial Corp., MHC, directly or indirectly, or through one or more subsidiaries, from
acquiring more than 5% of another savings institution or holding company thereof, without prior
written approval of the OTS. It also prohibits the acquisition or retention of, with certain
exceptions, more than 5% of a nonsubsidiary company engaged in activities other than those
permitted by the HOLA, or acquiring or retaining control of an institution that is not federally
insured. In evaluating applications by holding companies to acquire savings institutions, the OTS
must consider the financial and managerial resources, future prospects of the company and
institution involved, the effect of the acquisition on the risk to the
</DIV>


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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">federal deposit insurance fund, the convenience and needs of the community and
competitive factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OTS is prohibited from approving any acquisition that would result in a multiple savings
and loan holding company controlling savings institutions in more than one state, subject to two
exceptions:</DIV>




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">




<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
<TD>the approval of interstate supervisory acquisitions by savings and loan holding companies;
and</td></tr>
<TR style="font-size: 6pt"><td>&nbsp;</td></TR>





<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisitions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The states vary in the extent to which they permit interstate savings and loan holding company
acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Waivers of Dividends by Oritani Financial Corp., MHC</I></B>. Until the completion of the
reorganization and stock offering, OTS regulations require Oritani Financial Corp., MHC to notify
the OTS of any proposed waiver of its receipt of dividends from Oritani Financial Corp. The OTS
reviews dividend waiver notices on a case-by-case basis, and, in general, does not object to any
such waiver if:</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the waiver would not be detrimental to the safe and sound operation of the
subsidiary savings association; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the mutual holding company&#146;s Board of Directors determines that such waiver is
consistent with such directors&#146; fiduciary duties to the mutual holding company&#146;s
members.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC, applied for, and was granted, permission from the OTS to waive
the dividend paid by Oritani Financial Corp. on July&nbsp;24, 2009. We anticipate that Oritani
Financial Corp., MHC will waive any additional dividends paid by Oritani Financial Corp. Under OTS
regulations, our public stockholders would not be diluted because of any dividends waived by
Oritani Financial Corp., MHC (and waived dividends would not be considered in determining an
appropriate exchange ratio) in the event Oritani Financial Corp., MHC converts to stock form.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Qualified Thrift Lender Test. </I></B>In order for Oritani Financial Corp. and Oritani Financial
Corp., MHC to continue to be regulated as savings and loan holding companies by the OTS (rather
than as a bank holding companies by the Board of Governors of the Federal Reserve System), Oritani
Bank must qualify as a &#147;qualified thrift lender&#148; under OTS regulations or satisfy the &#147;domestic
building and loan association&#148; test under the Internal Revenue Code. Under the qualified thrift
lender test, a savings institution is required to maintain at least 65% of its &#147;portfolio assets&#148;
(total assets less: (i)&nbsp;specified liquid assets up to 20% of total assets; (ii)&nbsp;intangible,
including goodwill; and (iii)&nbsp;the value of property used to conduct business) in certain &#147;qualified
thrift investments&#148; (primarily residential mortgages and related investments, including certain
mortgage-backed and related securities) in at least nine out of each 12&nbsp;month period. Oritani Bank
currently maintains the majority of its portfolio assets in qualified thrift investments and has
met the qualified thrift lender test in each of the last 12&nbsp;months.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Securities Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s common stock is registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended. Oritani Financial Corp. is
subject to the information, proxy solicitation, insider trading restrictions and other requirements
under the
Securities Exchange Act of 1934.</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. common stock held by persons who are affiliates (generally officers,
directors and principal stockholders) of Oritani Financial Corp. may not be resold without
registration or unless sold in accordance with certain resale restrictions. If Oritani Financial
Corp. meets specified current public information requirements, each affiliate of Oritani Financial
Corp. is able to sell in the public market, without registration, a limited number of shares in any
three-month period.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Sarbanes-Oxley Act of 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Sarbanes-Oxley Act of 2002 addresses, among other issues, corporate governance, auditing
and accounting, executive compensation, and enhanced and timely disclosure of corporate
information. As directed by the Sarbanes-Oxley Act of 2002, our Chief Executive Officer and Chief
Financial Officer each will be required to certify that our quarterly and annual reports do not
contain any untrue statement of a material fact. The rules adopted by the Securities and Exchange
Commission under the Sarbanes-Oxley Act of 2002 have several requirements, including having these
officers certify that: they are responsible for establishing, maintaining and regularly evaluating
the effectiveness of our internal controls; they have made certain disclosures to our auditors and
the audit committee of the Board of Directors about our internal controls; and they have included
information in our quarterly and annual reports about their evaluation and whether there have been
significant changes in our internal controls or in other factors that could significantly affect
internal controls. Oritani Financial Corp is required to report under Section&nbsp;404 of the
Sarbanes-Oxley Act and has reported that it complies with such in all material respects.</DIV>

<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FEDERAL AND STATE TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Taxation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B><I>. </I>Oritani Financial Corp. and Oritani Bank are subject to federal income taxation in
the same general manner as other corporations, with some exceptions discussed below. Neither
Oritani Financial Corp.&#146;s nor Oritani Bank&#146;s federal tax returns are currently under audit, and
neither entity has been audited during the past five years. The following discussion of federal
taxation is intended only to summarize certain pertinent federal income tax matters and is not a
comprehensive description of the tax rules applicable to Oritani Financial Corp. or Oritani Bank.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Method of Accounting</I></B><I>. </I>For federal income tax purposes, Oritani Financial Corp. currently
reports its income and expenses on the accrual method of accounting and uses a tax year ending
December&nbsp;31 for filing its federal and state income tax returns.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Bad Debt Reserves</I></B><I>. </I>Historically, Oritani Bank has been subject to special provisions in the
tax law regarding allowable tax bad debt deductions and related reserves. Tax law changes were
enacted in 1996, pursuant to the Small Business Protection Act of 1996 (the &#147;1996 Act&#148;), that
eliminated the use of the percentage of taxable income method for tax years after 1995 and required
recapture into taxable income over a six year period of all bad debt reserves accumulated after
1988. Oritani Bank recaptured its reserve balance over the six-year period ended December&nbsp;31,
2003.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, the Oritani Bank consolidated group uses the specific charge-off method to account
for bad debt deductions for income tax purposes.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Taxable Distributions and Recapture</I></B><I>. </I>Prior to the 1996 Act, bad debt reserves created prior
to January&nbsp;1, 1988 were subject to recapture into taxable income should Oritani Bank fail to meet
certain
thrift asset and definitional tests.</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2009, our total federal pre-base year reserve was approximately $15.1&nbsp;million.
However, under current law, pre-base year reserves remain subject to recapture should Oritani Bank
make certain non-dividend distributions, repurchase any of its stock, pay dividends in excess of
tax earnings and profits, or cease to maintain a bank charter.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Alternative Minimum Tax</I></B><I>. </I>The Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) imposes
an alternative minimum tax (&#147;AMT&#148;) at a rate of 20% on a base of regular taxable income plus
certain tax preferences (&#147;alternative minimum taxable income&#148; or &#147;AMTI&#148;). The AMT is payable to
the extent such AMTI is in excess of an exemption amount and the AMT exceeds the regular income
tax. Net operating losses can offset no more than 90% of AMTI. Certain payments of alternative
minimum tax may be used as credits against regular tax liabilities in future years. Oritani
Financial Corp. and Oritani Bank have not been subject to the AMT and have no such amounts
available as credits for carryover.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Net Operating Loss Carryforwards</I></B><I>. </I>A financial institution may carry back net operating losses
to the preceding two taxable years and forward to the succeeding 20 taxable years. At December&nbsp;31,
2009, Oritani Bank had no net operating loss carryforwards for federal income tax purposes.</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani will consist of six individuals who currently serve as
directors of Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank. The Board of
Directors of Oritani will be divided into three classes, as nearly equal as possible, with
one-third of the directors elected each year. The directors will be elected by the stockholders of
Oritani for three-year terms, and until their successors are elected and have qualified. The terms
of the directors of each of Oritani and Oritani Bank are identical. The executive officers of
Oritani are also executive officers of Oritani Financial Corp. We expect that Oritani and Oritani
Bank will continue to have common directors until there is a business reason to establish separate
management structures.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following individuals will serve as the executive officers of Oritani and hold the offices
set forth below opposite their name.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Positions Held</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Kevin J. Lynch
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael A. DeBernardi
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Operating Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John M. Fields, Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas Guinan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Lending Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Philip M. Wyks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President and Corporate Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive officers of Oritani are elected annually and hold office until their respective
successors have been elected or until death, resignation or removal by the Board of Directors.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides the positions, ages and terms of office as applicable to our
directors and executive officers, along with the beneficial ownership of our common stock held by
our directors and executive officers, individually and as a group, as of December&nbsp;31, 2009.
Percentages are based on 37,041,184 shares outstanding.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unvested Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards included in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares Owned Directly and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficial</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Indirectly (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>within 60 days</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Beneficial Ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ownership</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>DIRECTORS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicholas Antonaccio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Robert S. Hekemian, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">269,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James J. Doyle, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John J. Skelly, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,998</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="21" align="left"><B>NAMED EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas G. Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Directors and
Executive Officers as
a Group (13 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,173,722</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">612,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,785,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">453,897</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Unless otherwise indicated, each person effectively exercises sole, or shared with spouse,
voting and dispositive power as to the shares reported. Totals include unvested stock awards
that were granted pursuant to the 2007 Equity Incentive Plan. The totals for Messrs.&nbsp;Skelly
and Hekemian include 50,000 shares and 16,241 shares, respectively, owned through a company in
which each individual has a beneficial ownership.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 38,724 shares of common stock allocated to the accounts of executive officers under
the Oritani Bank Employee Stock Ownership Plan.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->148<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Business Background of Our Directors and Executive Officers.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business experience for the past five years, as well as the experience, qualifications,
attributes and skills, of each of our directors and executive officers are set forth below. Unless
otherwise indicated, directors and executive officers have held their positions for the past five
years.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal occupation during the past five years of each of our directors is set forth
below. All directors have held their present positions for five years unless otherwise stated.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Nicholas Antonaccio, </B>age 62, is President of CMA Enterprises LLC, a financial advisory firm
founded by Mr.&nbsp;Antonaccio in 2000. Previously, Mr.&nbsp;Antonaccio was the chief financial officer at a
variety of public and private companies, including serving for five years as senior vice president
and chief financial officer of Copelco Capital, Inc. Mr.&nbsp;Antonaccio has extensive financial and
public company expertise, with responsibilities that have spanned all major areas of financial
management, including financial operations and contract, tax, treasury, financial planning, credit,
information technology, human resources and risk management.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Michael A. DeBernardi, </B>age 55, served as Lead Director until April&nbsp;2008 when he was appointed
Executive Vice President and Chief Operating Officer of Oritani Bank. Mr.&nbsp;DeBernardi has
previously served in executive positions with AT&#038;T Capital Corporation, Newcourt Credit Group, CIT
Global Vendor Finance, Aternus Partners, LLC, and US Express Leasing. Mr.&nbsp;DeBernardi is also a
trustee of Chilton Memorial Hospital in Pompton Plains, New Jersey where he serves as Vice-Chairman
of the Audit Committee and Co-Chairman of the Strategic Planning Committee. Mr.&nbsp;DeBernardi has
held executive positions at a variety of capital finance companies throughout his career.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>James J. Doyle, Jr., </B>age 59, served as the President and Chief Executive Officer of Chilton
Memorial Hospital from 1991 until 2004, and also as a consultant to The Chilton Memorial Hospital&#146;s
Foundation Board until 2008. Mr.&nbsp;Doyle has also served as Executive Vice President of Atlantic
Health System from 1994 until 1998, and Executive Vice President of the Valley Health System from
1998 until 2002. Mr.&nbsp;Doyle has significant executive management experience, overseeing
administrative, finance, marketing and human resources activities.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Robert S. Hekemian, Jr., </B>age 49, has been with the 75-year-old, family-owned Hekemian &#038; Co.,
Inc. since 1982, becoming President and Chief Operating Officer in 2004. Hekemian &#038; Co. and its
affiliates own, manage and develop apartments, shopping centers and mixed-use projects primarily
throughout New Jersey, Maryland, Virginia, New York and Pennsylvania. Mr.&nbsp;Hekemian has been
involved in all aspects of real estate development and acquisitions throughout his career.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Kevin J. Lynch, </B>age 63, has been the President and Chief Executive Officer of Oritani Bank
since 1993 and has served as President and Chief Executive Officer of Oritani Financial Corp. since
its creation in 1998. Mr.&nbsp;Lynch is a director of the FHLB-NY and serves on its Executive,
Compensation, and Housing Committees. He is also a director of Pentegra Retirement Services
Financial Institutions Retirement Fund, a national provider of full-service retirement programs.
Mr.&nbsp;Lynch is a former Chairman of the New Jersey League of Community and Savings Bankers and served
as a member of its Board of Governors for several years, and also served on the Board of Directors
of Thrift Institutions Community Investment Corp. Mr.&nbsp;Lynch is a member of the Professional
Development and Education Committee of the American Bankers Association. He is a member of the
American Bar Association and a former member of the Board of Directors of Bergen County Habitat for
Humanity.</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>John J. Skelly, Jr., </B>age 69, is the President and Chief Executive Officer of West Side
Management, which owns and manages affordable and low-income housing developments throughout New
Jersey, New York and Maryland. Mr.&nbsp;Skelly also served as the Deputy Commissioner of Housing for
the City of New York and was a founding Board Member for Habitat for Humanity of Greater Jersey
City. Mr.&nbsp;Skelly has extensive experience with real estate development and finance.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Officers of the Bank Who Are Not Also Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>John M. Fields, Jr.</B>, age 46, has been employed by Oritani Financial Corp. since 1999 and
currently serves as Executive Vice President and Chief Financial Officer. He is also responsible
for information technology, electronic banking and deposit operations, as well as investment and
treasury functions. Prior to 1999, Mr.&nbsp;Fields, Jr. was chief accounting officer and controller at
a local publicly-traded financial institution. Mr.&nbsp;Fields, Jr. is a certified public accountant.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Thomas Guinan</B>, age 45, has been employed by the Oritani Financial Corp since 2003 and
currently serves as Executive Vice President and Chief Lending Officer. Prior to that, Mr.&nbsp;Guinan
served as a senior vice president of commercial lending at a local financial institution. Mr.
Guinan is responsible for overseeing all aspects of the retail and commercial lending operations of
Oritani Bank, including originations, portfolio growth and developing strategies to enhance Oritani
Bank&#146;s market share and profitability.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Philip M. Wyks</B>, age 55, has been employed by Oritani Financial Corp. since 1976 and currently
serves as Senior Vice President and Secretary. Mr.&nbsp;Wyks is also responsible for facilities
management. In addition, Mr.&nbsp;Wyks is a director of Thrift Institutions Community Investment
Corporation, a subsidiary of the New Jersey League of Community Bankers that assists League members
in forming consortia to originate loans on low to moderate income housing loans and initiate
economic development projects throughout the State of New Jersey.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Anthony V. Bilotta, Jr.</B>, age 49, began employment with Oritani Financial Corp. in 2008 as
Senior Vice President Retail Banking. Prior to that, Mr.&nbsp;Bilotta served as senior vice president
of retail banking at a local financial institution. Mr.&nbsp;Bilotta is responsible for all aspects
of retail branch banking, sales development, and Oritani Financial Corp.&#146;s marketing program.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Rosanne P. Buscemi</B>, age 57, has been employed by Oritani Bank since 1978 and currently serves
served as Senior Vice President&#150;Chief Compliance Officer. Ms.&nbsp;Buscemi also assists with training
as well as oversight of new branch development and renovations.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Anne Mooradian</B>, age 48, has been employed by Oritani Bank since 1985 and currently serves as
Senior Vice President and Human Resources Officer. Ms.&nbsp;Mooradian has also held branch retail
positions at Oritani Bank.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Paul M. Cordero</B>, age 54, has been employed by Oritani Bank since 1980 and currently serves as
Vice President and Chief Residential Lending Officer.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ann Marie Jetton</B>, age 43, has been employed by Oritani Bank since 2000 and currently serves as
Vice President and Principal Accounting Officer.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Paul C. Skinner</B>, age 47, began employment with Oritani Financial Corp. in 2008 as Vice
President/Chief Information Officer. Prior to that, Mr.&nbsp;Skinner served as senior vice president of
information technology and operations at a local financial institution. Mr.&nbsp;Skinner is responsible
for</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">information technology, deposit operations, electronic banking and also serves as the
Company&#146;s privacy officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Corporate Governance, Code of Ethics and Business Conduct</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. is committed to maintaining sound corporate governance principles and
the highest standards of ethical conduct and is in compliance with applicable corporate governance
laws and regulations.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has adopted a code of ethics for the principal executive officer,
principal financial officer, principal accounting officer and all persons performing similar
functions, and corporate governance guidelines for directors. These codes are designed to deter
wrongdoing and to promote honest and ethical conduct, the avoidance of conflicts of interest, full
and accurate disclosure and compliance with all applicable laws, rules and regulations. Both of
these documents are available on Oritani Financial Corp.&#146;s website at <U>www.oritani.com.</U> Amendments
to and waivers from the code of ethics and corporate governance guidelines for directors are
disclosed on Oritani Financial Corp.&#146;s website.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Independence</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has determined that, except as to Mr.&nbsp;Lynch and Mr.&nbsp;DeBernardi, each
member of the Board of Directors is an &#147;independent director&#148; within the meaning of the Nasdaq
corporate governance listing standards and Oritani Financial Corp.&#146;s corporate governance policies.
Mr.&nbsp;Lynch and Mr.&nbsp;DeBernardi are not considered independent as each is an executive officer of
Oritani Financial Corp.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Board of Directors has appointed Mr.&nbsp;Antonaccio as Lead Director. The Lead
Director has the following functions:</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preside at executive session of the non-management directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Facilitate communications between other members of the Board of Directors and
the Chief Executive Officer. Any director is free to communicate directly with the
Chief Executive Officer. The Lead Director&#146;s role is to attempt to improve such
communications if they are not entirely satisfactory.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Work with the Chief Executive Officer in the preparation of the Board of
Directors meeting agenda and information to be provided to the Board of Directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chair the annual review of the performance of the Chief Executive Officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Otherwise consult with the Chief Executive Officer on matters relating to
corporate governance and board performance.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given the duties of the Lead Director, the Board of Directors has reaffirmed its position of
allowing one individual to serve as Chairman and Chief Executive Officer. Mr.&nbsp;Lynch has served as
Chairman, President and Chief Executive Officer since the inception of Oritani Financial Corp.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2009, each of Directors John J. Skelly, Jr., James J. Doyle, Jr. and Kevin J.
Lynch had residential mortgage loans with Oritani Bank. Additionally, Oritani Bank had loans
outstanding to entities in which Directors Hekemian and Skelly had an ownership interest in the
amounts of $25.2</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">million and $8.8&nbsp;million, respectively. These loans were made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for comparable
transactions with the general public. Oritani Financial Corp. also utilizes the property
management services of Hekemian &#038; Co., Inc. to manage two properties owned by its subsidiaries.
Director Hekemian has a partial ownership interest in Hekemian &#038; Co., Inc. During the fiscal year
ended June&nbsp;30, 2009, Oritani Financial Corp., through its subsidiaries, paid $87,000 to Hekemian &#038;
Co., Inc. for these management services. In addition, during the fiscal year ended June&nbsp;30, 2009,
Oritani Bank made rent payments for its Cliffside Park branch totaling $88,080 to the landlord,
Willet &#038; Co. Director Hekemian has a partial ownership interest in Willet &#038; Co. The terms of these
agreements were determined in the ordinary course of business and were made on substantially the
same terms by us as could have been made with unaffiliated parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board of Directors Meetings and Committees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Oritani Financial Corp. and Oritani Bank met 12 times during the
fiscal year ended June&nbsp;30, 2009. All directors attended all Board of Directors and committee
meetings during fiscal 2009, including Board and committee meetings of Oritani Bank. Executive
sessions of the independent directors are regularly scheduled. Although not required, attendance
of directors at the Annual Meeting of Stockholders is encouraged. Each of Oritani Financial
Corp.&#146;s directors attended the Oritani Financial Corp.&#146;s 2009 Annual Meeting of Stockholders.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. and Oritani Bank have four standing committees of the Board of
Directors: Compensation and Corporate Governance Committee; Audit Committee; Loan Committee; and
CRA and Compliance Committee.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactions with Certain Related Persons</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law and regulation generally require that all loans or extensions of credit to
executive officers and directors must be made in the ordinary course of business on substantially
the same terms, including interest rates and collateral, as those prevailing at the time for
comparable loans with persons not related to Oritani Bank or Oritani Financial Corp. and must not
involve more than the normal risk of collectibility or present other unfavorable features.
However, applicable regulations permit executive officers and directors to receive the same terms
through loan programs that are widely available to other employees, as long as the director or
executive officer is not given preferential treatment compared to the other participating
employees.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;402 of the Sarbanes-Oxley Act of 2002 generally prohibits an issuer from: (1)
extending or maintaining credit; (2)&nbsp;arranging for the extension of credit; or (3)&nbsp;renewing an
extension of credit in the form of a personal loan for an officer or director. There are several
exceptions to this general prohibition, one of which is applicable to Oritani Bank. Sarbanes-Oxley
does not apply to loans made by a depository institution that is insured by the FDIC and is subject
to the insider lending restrictions of the Federal Reserve Act. All loans to the Company&#146;s
directors and officers are made in conformity with the Federal Reserve Act and Regulation&nbsp;O.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate amount of our loans to our executive officers and directors, and their related
entities, was $38.3&nbsp;million at December&nbsp;31, 2009. These loans were performing according to their
original terms at December&nbsp;31, 2009.</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Compensation and Corporate Governance Committee Interlocks and Insider Participation</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Compensation and Corporate Governance Committee (&#147;C&#038;CG Committee&#148;) determines the salaries
to be paid each year to the Chief Executive Officer and those executive officers who report
directly to the Chief Executive Officer. The C&#038;CG Committee consists of Directors Doyle (Chair),
Antonaccio, Hekemian and Skelly. None of these individuals was an officer or employee of Oritani
Financial Corp. or Oritani Bank during the fiscal year ended June&nbsp;30, 2009, or is a former officer
of Oritani Financial Corp. or Oritani Bank.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended June&nbsp;30, 2009, (i)&nbsp;no executive of Oritani Financial Corp. served
as a member of the compensation committee (or other Board committee performing equivalent functions
or, in the absence of any such committee, the entire Board of Directors) of another entity, one of
whose executive officers served on the C&#038;CG Committee of Oritani Financial Corp.; (ii)&nbsp;no executive
officer of Oritani Financial Corp. served as a director of another entity, one of whose executive
officers served on the C&#038;CG Committee of Oritani Financial Corp.; and (iii)&nbsp;no executive officer of
Oritani Financial Corp. served as a member of the compensation committee (or other board committee
performing equivalent functions or, in the absence of any such committee, the entire Board of
Directors) of another entity, one of whose executive officers served as a director of Oritani
Financial Corp.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Discussion and Analysis</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Compensation Philosophy and Objectives</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The goal of the Executive Compensation Program is to enable us to attract, develop, and retain
strong executive officers capable of maximizing our performance for the benefit of its
stockholders. Our compensation philosophy is to provide competitive compensation opportunities
that are aligned with our financial performance and the generation of value for stockholders
through stock-price appreciation. Our focus is on retaining and motivating key executives,
maintaining profitability, asset quality and loan growth, while aggressively controlling expenses.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Role of the Compensation and Corporate Governance Committee</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee assists the Board of Directors in discharging its responsibilities
regarding the Company&#146;s compensation and benefit plans and practices. Authority granted to the
C&#038;CG Committee is established in its charter, which is available on the Company&#146;s website at
<u>www.oritani.com</u>. The C&#038;CG Committee meets as necessary. One of the responsibilities of the C&#038;CG
Committee is to provide, on an annual basis, final approval of the significant components of the
total compensation of the named executive officers. In making these determinations, the C&#038;CG
Committee considers the executive&#146;s level of job responsibility, the compensation paid by peers for
similar levels of responsibility, industry survey data regarding executive compensation, the
financial condition and performance of the Company, and an assessment of the executive&#146;s individual
performance. The C&#038;CG Committee also strongly considers the recommendations of the CEO regarding
the other named executive officers. The actions of the C&#038;CG Committee are presented for discussion
at meetings of the full Board of Directors.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Use of Outside Advisors and Survey Data. </B>The C&#038;CG Committee uses industry survey data from
independent sources and had previously engaged a consulting firm to assist it in performing its
duties. The independent sources of industry survey data utilized by the C&#038;CG Committee are the
executive compensation reports prepared by the New Jersey League of Community Bankers and L.R.
Webber Associates, Inc. (&#147;Webber Survey&#148;). The Webber Survey provides timely and reliable</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">information on wages, salaries, employee benefits, and compensation practices and trends for
financial institutions. It is widely utilized within the industry. The C&#038;CG Committee engaged a
compensation consulting firm, GK Partners, to prepare a compensation report and analysis in
connection with the compensation package of the named executive officers. The report they produced
is dated September&nbsp;28, 2007. GK Partners is an independent, executive compensation consulting firm
with experience in, and knowledge of, the financial services industry. The data contained in their
report were still considered pertinent and appropriate for usage by the C&#038;CG Committee in
performing its responsibilities in calendar 2008. GK Partners was not engaged specifically for
calendar 2008 data in order to save costs. They were engaged for 2009. The peers selected for the
2007 GK Partners report for purposes of compiling peer data were local publically traded banks that
were considered reasonable competitors based on size, profitability, market capitalization and
lines of business. The specific peers were:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Clifton Savings Bank
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> OceanFirst Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Dime Community Bancshares
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Partners Trust Financial</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Greater Community Bancorp
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> PennFed Financial Services, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Investors Bancorp, Inc.
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Provident Financial Services, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Kearny Financial Corp.
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Provident New York</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Lakeland Bancorp
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Roma Financial Corp.</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; NBT Bancorp Inc.
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Synergy Financial Corp.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee communicated directly with, and received certain reports directly from, GK
Partners. In addition to the raw peer data, the C&#038;CG Committee also considered the relative
business models, loan growth, asset quality, and profitability of the banks and thrifts in the peer
groups. The report prepared by GK Partners included a peer median and average salary and cash
incentive for each of the named executive officers based on their title and responsibilities. The
C&#038;CG Committee considered the executive&#146;s current base salary and historical annual cash incentive,
and compared these amounts to the median and average compensation detailed in the GK Partners
Report for the executive&#146;s title and responsibilities. The peer median and average compensation
were strongly considered by the C&#038;CG Committee when contemplating the executive&#146;s salary and cash
incentive (described in the procedures below). The C&#038;CG Committee decided that the acceptable
range for base salary increases was 0 &#150; 20% and the acceptable range of target bonus opportunity
for annual cash incentives was 20 &#151; 100% of the executive&#146;s current base salary. Given these
restrictions, and considering the information provided in the GK Partners Report, the C&#038;CG
Committee determined a preliminary range of base salary and annual cash incentive for each of the
named executive officers. A final amount for each executive was determined using the procedures
described in the paragraphs below.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Elements of The Compensation Package</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our 2008/2009 compensation program for named executive officers consisted of base salary,
annual cash incentives, equity incentive awards (such as stock options and restricted stock
awards), a comprehensive benefits package and perquisites.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Base Salary. </B>Executive base salary levels are generally reviewed on an annual basis and
adjusted as appropriate. We desire to compensate executives fairly. During the fiscal year ended
June&nbsp;30, 2009 the C&#038;CG Committee considered prevailing market conditions and approved certain
salary adjustments as indicated below. The C&#038;CG Committee also considered the overall performance
of the individual, including their achievement of individual goals as well as their contribution to
our goals in making their determinations. The C&#038;CG Committee relied on the data contained in the
GK Partners Report, as well as the data from independent surveys, in formulating its opinion of
prevailing market conditions. The</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C&#038;CG Committee viewed this information as a broad database of the Company&#146;s peers with
detailed information on Base Salary and Incentive Compensation. The following table sets forth the
base salary increases for the named executive officers approved by the C&#038;CG Committee during fiscal
year 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Base Salary History at June&nbsp;30, 2009</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Base Salary</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Increase Date</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Increase</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">% Increase</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">New Base Salary</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">545,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">272,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">218,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11/10/08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">218,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">189,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n/a</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n/a</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">189,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the C&#038;CG Committee considered the existing base salaries of the named executive
officers to be within a reasonable range based on their perception of existing market conditions,
it also felt that an adjustment was warranted. In general, the C&#038;CG Committee was pleased with the
progress management made in quality balance sheet growth and capital deployment. It felt that our
growth, while adhering to strict quality and profitability standards, was exemplary. The
measurement period for this conclusion was primarily the fiscal year ended June&nbsp;30, 2008. The C&#038;CG
Committee awarded 9% base salary increases to the named executive officers that they felt were most
responsible for these achievements. In the instance of Mr.&nbsp;Wyks, the C&#038;CG Committee decided that
no increase in base salary was appropriate at this time as they felt his current salary was
sufficient when considered in conjunction with his current responsibilities. The C&#038;CG Committee
considered the ending base salaries of all of the named executive officers to be appropriate and
reasonable considering, their responsibilities, in comparison to their peers.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Annual Cash Incentives. </B>Annual cash incentive opportunities are provided to the named
executive officers as an incentive to achieve annual goals and objectives. For fiscal 2009 the
C&#038;CG Committee determined each named executive officer&#146;s bonus based on a retrospective review of a
variety of corporate performance factors and each individual&#146;s contribution to us, taking in to
account the operating environment existing during the year. This review is in addition to our
actual performance against its operating budget, which is adopted at the beginning of the year
along with strategic objectives and projects to be accomplished during the year. At the November
21, 2008 Annual Meeting of Stockholders of Oritani Financial Corp., stockholders approved the
Executive Officer Annual Incentive Plan. This plan became effective at that time and formalized
the process of annual cash incentives for named executive officers. Prospective annual cash
incentives, if any, will be awarded in accordance with this plan.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payments for the named executive officers were based on the achievement of certain goals
on a Bank-wide basis as well as individual performance goals. Bank-wide goals included financial
performance of Oritani Bank measured on a return-on-assets (ROA)&nbsp;and Efficiency Ratio basis as
compared to a peer group. The C&#038;CG Committee held management to a &#147;meet or beat peers&#148; standard.
The peer group selected by the C&#038;CG Committee consisted of area banks with a mutual holding company
structure. The specific group selected was:</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Kearny Federal Savings Bank
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Roma Bank</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Investors Savings Bank
</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B> Northfield Bank</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Clifton Savings Bank</DIV></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->155<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peer group results were determined using the FDIC Website for Statistics on Depository
Institutions. Peer data regarding ROA and Efficiency Ratio were obtained for the quarterly periods
ending September&nbsp;30, 2008; June&nbsp;30, 2008; March&nbsp;31, 2008 and December&nbsp;31, 2008. The twelve month
period ended September&nbsp;30, 2008 was utilized as this was the most recent period of data available
when the cash incentives were being determined. The peer results were averaged and compared to the
average results for Oritani Bank (from the same source) for the same periods. Oritani&#146;s ROA was
0.58%, versus the peer result of 0.53%. Oritani Bank&#146;s Efficiency Ratio was 53.99%, versus the
peer result of 65.15% (a lower efficiency ratio is desired). Accordingly, the C&#038;CG Committee felt
that management had met the goal for financial performance. The other bank-wide goals considered
were loan portfolio growth, delinquency levels, deployment of excess capital, staffing changes,
facility renovations, and new branch openings. In the opinion of the C&#038;CG Committee, all the
bank-wide goals had been attained. In addition, the C&#038;CG Committee also felt that the individual
performance goals were attained for all of the named executive officers. The C&#038;CG Committee
determined that Mr.&nbsp;Lynch had the primary responsibility for the attainment of our Company-wide
goals. The C&#038;CG Committee awarded Mr.&nbsp;Lynch an annual cash incentive equal to 50% of his base
salary in recognition of his accomplishments. A base annual cash incentive equal to 35% of their
respective base salaries was awarded to each of Messrs.&nbsp;DeBernardi, Fields and Guinan. The base
award for Mr.&nbsp;Guinan was increased to 40% due to his specific contributions regarding loan
originations and loan portfolio growth. The base award for Mr.&nbsp;DeBernardi was pro-rated to 26.25%
as he was not a full-time employee for the entire measurement period. The C&#038;CG Committee awarded
Mr.&nbsp;Wyks an annual cash incentive equal to 20% of his base salary, primarily due to attainment of
his individual performance goals.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee approved awards totaling $503,425 to our named executive officers during
the fiscal year ended June&nbsp;30, 2009. The specific amount awarded to each named executive officer
for the fiscal year ended June&nbsp;30, 2009 is set forth in the Bonus column of the table in the
&#147;&#151;Executive Officer Compensation&#151;Summary Compensation Table.&#148;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Equity Incentives. </B>We did not have stock issued to the public prior to our initial public
offering which was consummated in 2007. In connection with the initial public offering, Oritani
Financial Corp. established an employee stock ownership plan that purchased 3.92% of the total
shares issued in the offering (including shares issued to Oritani Financial Corp., MHC and to the
OritaniBank Charitable Foundation) for the benefit of employees of Oritani Bank. The employee
stock ownership plan is a qualified retirement plan. Additionally, at a special meeting of
stockholders in April&nbsp;2008, our stockholders approved our 2007 Equity Incentive Plan (&#147;the Equity
Plan&#148;) which authorized the issuance of up to 2,781,878 shares of our common stock pursuant to
grants of incentive and non-statutory stock options, stock appreciation rights, and restricted
stock awards. The Equity Plan provides our officers, employees and directors with additional
incentives to promote growth and performance. The Equity Plan provides that individuals may
receive awards of common stock and grants of options to purchase common stock. The C&#038;CG Committee
believes that officer stock ownership provides a significant incentive in building stockholder
value by aligning the interests of the officers, employees and directors with those of our
shareholders. In addition, stock option grants and stock awards vest over five years, thereby
aiding retention. We granted no awards to any named executive officer under the Equity Plan during
fiscal 2009. As of June&nbsp;30, 2009, a total of 2,653,173 stock options and restricted stock awards
had been granted under the Equity Plan, representing 95.4% of the shares available.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other</B>. Additionally, we provide certain fringe benefits, including retirement plans,
termination benefits, and perquisites. The retirement plans consist of:</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A multi-employer defined benefit plan (a qualified plan). The plan was frozen as of
December&nbsp;31, 2008. All employees who attained the age of 21 and completed one year of
service were eligible to participate in the plan.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->156<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified savings incentive plan covering employees whose salary deferrals to the
savings incentive plan are limited.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified Benefit Equalization Plan which provides benefits to employees who are
disallowed certain benefits under our qualified benefit plans.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified Post Retirement Medical Plan for directors and certain eligible
employees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A nonqualified Executive Supplemental Retirement Income Agreement for our President and
Chief Executive Officer.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The C&#038;CG Committee considered these items when contemplating the overall compensation package
awarded to the named executive officers. The C&#038;CG Committee felt that these items were appropriate
given the level of responsibility for each named executive officer and that no changes to the
programs were warranted at the time.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Matters</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Corporate Income Tax Considerations. </B>Section&nbsp;162(m) of the Internal Revenue Code imposes a
$1,000,000 annual limit, per executive officer, on a company&#146;s federal tax deduction for certain
types of compensation paid to executive officers. Compensation that is &#147;performance-based&#148; under
the Internal Revenue Code&#146;s definition is exempt from this limit. Stock option grants are intended
to qualify as performance-based compensation. It has been the C&#038;CG Committee&#146;s practice to
structure the compensation and benefit programs offered to the named executive officers in order to
maximize the tax deductibility of amounts paid. However, in structuring the compensation programs
and in reaching compensation decisions, the C&#038;CG Committee considers a variety of factors,
including the Company&#146;s tax position, the materiality of the payments and tax deductions involved,
and the need for flexibility to address unforeseen circumstances. After considering these factors,
the C&#038;CG Committee may decide to authorize compensation payments, all or part of which would be
nondeductible for federal tax purposes.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4999 of the Code imposes a 20% excise tax on certain &#147;excess parachute payments&#148; made
to &#147;disqualified individuals.&#148; Under Sections&nbsp;280G of the Code, such excess parachute payments are
also nondeductible to us. If payments that are contingent on a change of control to a disqualified
individual (which includes the named executive officers) exceed three times the individual&#146;s &#147;base
amount,&#148; they constitute &#147;excess parachute payments&#148; to the extent they exceed one time the
individual&#146;s base amount.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance payments to the named executive officers pursuant to their employment agreements
that are paid in connection with termination following a Change in Control are subject to reduction
in order to avoid an excess parachute payment under Section&nbsp;280G of the Code.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Accounting Considerations. </B>The C&#038;CG Committee is informed of the financial statement
implications of the elements of the named executive officers&#146; compensation. However, the probable
contribution of a compensation element to the objectives of our named executive officers
compensation program and its projected economic cost, which may or may not be reflected on our
financial statements, are the primary determining factors of the named executive officers&#146;
compensation decisions.</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->157<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Officer Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Summary Compensation Table.</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the fiscal years ended June&nbsp;30, 2009, 2008 and 2007 certain
information as to the total remuneration paid to Mr.&nbsp;Lynch, who serves as Chief Executive Officer,
Mr.&nbsp;Fields, who serves as Chief Financial Officer, and the three other most highly compensated
executive officers of Oritani Financial Corp. or Oritani Bank other than Messrs.&nbsp;Lynch and Fields,
who received total compensation in excess of $100,000. Each of the individuals listed in the table
below is referred to as a &#147;named executive officer.&#148;</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Change in pension</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>value and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>non-qualified</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>deferred</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Awards ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>compensation ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and principal position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Salary ($)(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Bonus ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock Awards ($)(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>earnings ($) (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(5)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">550,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">621,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">273,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,648,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,455,504</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">530,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">919,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,960,730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,460,043</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">864,318</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President and Chief Operating Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">852,336</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">419,952</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">and Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,836</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">905,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,735</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">438,546</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">and Chief Lending Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,873</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,198</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Vice President and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">389,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Secretary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,967</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes $23,058 and $2,181 of payments made in 2009 to Messrs.&nbsp;Lynch and Wyks, respectively,
for unused vacation days.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal years ended June&nbsp;30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the
Equity Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.&#146;s audited financial statements for the fiscal year ended June&nbsp;30, 2009
included herein.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes, for the fiscal years ended June&nbsp;30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity
Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.&#146;s audited financial statements for the fiscal year ended June&nbsp;30, 2009
included herein.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column reflect the actuarial increase in the present value at June&nbsp;30,
2009 compared to June&nbsp;30, 2008, of the named executive officer&#146;s benefits under the Defined
Benefit Plan and Benefit Equalization Plan and, in the case of Mr.&nbsp;Lynch, an Executive
Supplement Retirement Income Agreement and the Directors&#146; Retirement Plan maintained by
Oritani Bank, and, in the case of Mr.&nbsp;DeBernardi, the Directors&#146; Retirement Plan maintained by
Oritani Bank, determined using interest rate and mortality rate assumptions consistent with
those used in Oritani Financial Corp.&#146;s financial statements and includes amounts for which
the named executive officer may not currently be entitled to receive because such amounts are
not vested. This column also includes $69,874, $73, $7,435, $2,091, and $5,799 of
preferential or above-market earnings on non tax-qualified deferred compensation for
non-qualified defined contribution plans for Messrs.&nbsp;Lynch, DeBernardi, Fields, Guinan and
Wyks, respectively, as well as $21,025 for Mr.&nbsp;DeBernardi of preferential earnings on a
similar plan for deferred director fees.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts in this column represent the total of all perquisites (non-cash benefits and
perquisites such as the use of employer-owned automobiles, membership dues and other personal
benefits), employee benefits (employer cost of life insurance and health insurance), and
employer contributions to defined contribution plans (the 401(k) Plan, the ESOP and the
Benefit Equalization Plan). Amounts are reported separately under the &#147;All Other
Compensation&#148; table below.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->158<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>All Other Compensation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Contribution on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Medical, Dental,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Contribution to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Benefit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Disability and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>ESOP and 401(k)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Equalization Plan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Insurance Benefits</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Automobile</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Plan Match</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Match Contribution</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Country Club Dues</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Allowance ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Contribution ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,512</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,356</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,249</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,649</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,776</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,826</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,078</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,239</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,649</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,098</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Plan-Based Awards. </B>The following table sets forth the threshold, target and maximum
award amounts that could be earned by the named executive officers during fiscal 2010 that were
established during fiscal 2009 under our Executive Officer Annual Incentive Plan. There were no
grants made to the named executive officers during fiscal 2009 under our Stock Based Incentive
Plan.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Grants of Plan-Based Awards for the Fiscal Year Ended June&nbsp;30, 2009</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>Estimated Possible Payouts Under</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Non-Equity Incentive Plan Awards (1)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Threshold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
<TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
<TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
<TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,525</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes full achievement of individual component of award total.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->159<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Outstanding Equity Awards at Year End. </B>The following table sets forth information with
respect to outstanding equity awards as of June&nbsp;30, 2009 for the named executive officers.</DIV>

<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>OUTSTANDING EQUITY AWARDS AT JUNE 30, 2009</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Option Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Stock Awards</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Market Value of</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares or Units of</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares or</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock That Have Not</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercised Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercised Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Option Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Option Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Units of Stock That</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Vested ($)</B></TD>
</TR>
<TR style="font-size: 6pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#) Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#) Unexercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Price ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Have Not Vested (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">317,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,179,410</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,046,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">05/05/18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">164,520</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Stock options expire 10&nbsp;years after the grant date.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount is based on the per share fair market value of Oritani Financial Corp.&#146;s common
stock on June&nbsp;30, 2009 of $13.71.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Option Exercises And Stock Vested. </B>None of the Company&#146;s named executive officers
exercised any stock options during the fiscal year ended June&nbsp;30, 2009. During fiscal 2009, 20% of
the total number of shares of each officers&#146; restricted shares vested.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Pension Benefits. </B>The following table sets forth information with respect to pension benefits
at and for the fiscal year ended June&nbsp;30, 2009 for the named executive officers. See &#147;Defined
Benefit Plan,&#148; &#147;Director&#146;s Retirement Plan,&#148; &#147;Benefit Equalization Plan&#148; and &#147;Executive
Supplemental Retirement Income Agreement&#148; for a discussion of the plans referenced in this table.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="15" style="border-bottom: 0px solid #000000"><B>Pension Benefits at and for the Fiscal Year Ended June 30, 2009</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Present Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Payments During</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Credited Service</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Accumulated Benefit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Last Fiscal Year</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Plan Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">531,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors&#146; Retirement Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,473,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Supplemental Income Agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,314,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors&#146; Retirement Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">303,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Benefit Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">701,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Equalization Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The figures shown are determined as of the plan&#146;s measurement date of
June&nbsp;30, 2009 for purposes of Oritani Financial Corp.&#146;s audited
financial statements. For mortality, discount rate and other
assumptions used for this purpose, please refer to note 13 in the
audited financial statements included herein.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->160<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Nonqualified Deferred Compensation.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information with respect to the portion of the Benefit
Equalization Plan that supplements the 401(k) Plan and the employee stock ownership plan at and for
the fiscal year ended June&nbsp;30, 2009 for the named executive officers.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 0px solid #000000"><B>Nonqualified Deferred Compensation at and for the Fiscal Year Ended June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Registrant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Executive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contributions in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate Earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate Balance at</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contributions in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Last Fiscal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Last Fiscal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Withdrawals/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Last Fiscal Year End</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Last Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year<SUP style="font-size: 85%; vertical-align: text-top"> (1)</SUP></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Distributions($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,318,161</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,209</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts reported in this column were also reported as compensation under &#147;All Other
Compensation&#148; in the Summary Compensation Table.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>For Messrs.&nbsp;Lynch, DeBernardi, Fields, Guinan and Wyks, $69,874, $73, $7,436, $2,092 and
$5,800 respectively, were reported as preferential or above-market earnings for each
individual under &#147;Change in pension value and non-qualified deferred compensation earnings&#148; in
the Summary Compensation Table.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefit Plans and Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employment Agreements. </I></B>Oritani Bank entered into an employment agreement with Kevin J. Lynch
effective as of January&nbsp;1, 2003. The agreement had an initial term of three years. Unless notice
of non-renewal is provided, the agreement renews annually. Under the agreement, the current base
salary is $545,000. The base salary is reviewed at least annually and may be increased, but not
decreased. In addition to base salary, the agreement provides for, among other things,
participation in bonus programs and other employee pension benefit and fringe benefit plans
applicable to executive employees, use of an automobile and reimbursement of expenses associated
with the use of such automobile. The executive is also entitled to reimbursement of business
expenses, including fees for membership in a country club, a health club, and such other clubs and
organizations as appropriate for business purposes. Upon retirement at age 70 (or at an earlier
age in accordance with any retirement arrangement established with the executive&#146;s consent) the
executive and his spouse would be entitled to continuing health care insurance coverage until the
death of the executive and his spouse.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The executive is entitled to severance payments and benefits in the event of his termination
of employment under specified circumstances. In the event the executive&#146;s employment is terminated
for reasons other than just cause, disability, death, retirement or a change in control, or in the
event the executive resigns during the term of the agreement following (1)&nbsp;the failure to elect or
reelect or to appoint or reappoint executive to his executive position, (2)&nbsp;a material change in
the executive&#146;s functions, duties, or responsibilities, which change would cause executive&#146;s
position to become one of lesser responsibility, importance or scope, (3)&nbsp;a relocation of the
executive&#146;s principal place of employment by more than 30 miles from its location at the effective
date of the employment agreement or a material reduction in the benefits and perquisites from those
being provided to the executive as of the effective date of the employment agreement, (4)&nbsp;the
liquidation or dissolution of Oritani Bank, or (5)&nbsp;a breach of the employment agreement by Oritani
Bank, the executive (or, in the event of the executive&#146;s death, his beneficiary) would be entitled
to a severance payment equal to three times the sum of the executive&#146;s highest base salary and
highest rate of bonus, and the executive would be entitled to the continuation of life, medical,
and dental coverage for 36&nbsp;months or as provided in the Oritani Bank nonqualified senior officers
medical benefit plan. In the event of a termination following a change in control of Oritani
Financial Corp., the executive (or, in the event of the executive&#146;s death, his beneficiary) would
be entitled to a severance payment equal to three times the sum of the executive&#146;s highest base
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">salary and highest rate of bonus paid to him during the term of the employment agreement, plus
continuation of insurance coverage for 36&nbsp;months. In the event the severance payment provisions of
the employment agreement are triggered, the executive would be entitled to a cash severance benefit
in the amount of approximately $2.4&nbsp;million, which amount is subject to reduction in order to avoid
an excess parachute payment under Section&nbsp;280G of the Internal Revenue Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of the executive&#146;s employment other than in connection with a change in
control, the executive agrees not to compete with Oritani Bank for one year following termination
of employment in any city, town or county in which Oritani Bank has an office or has filed an
application for regulatory approval to establish an office. Should the executive become disabled,
Oritani Bank would continue to pay the executive his base salary, bonuses and other cash
compensation for the longer of the remaining term of the employment agreement or one year, provided
that any amount paid to the executive pursuant to any disability insurance would reduce the
compensation he would receive. In the event the executive dies while employed by Oritani Bank, the
executive&#146;s beneficiary or estate will be paid the executive&#146;s base salary for the remaining term
of the employment agreement and the executive&#146;s family will be entitled to continuation of medical
and dental benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Bank has entered into employment agreements with Messrs.&nbsp;DeBernardi, Fields, Guinan
and Wyks that are substantially similar to the employment agreement of Mr.&nbsp;Lynch, except that each
of these agreements has a term of two years and entitles the executive to a severance payment equal
to two times the sum of the executive&#146;s highest base salary and highest rate of bonus and to the
continuation of life, medical, and dental coverage for 24&nbsp;months or as provided in the Oritani Bank
nonqualified senior officers medical benefit plan. In the event of a termination following a
change in control of Oritani Financial Corp., the executive (or, in the event of the executive&#146;s
death, his beneficiary) would be entitled to a severance payment equal to two times the sum of the
executive&#146;s highest base salary and highest rate of bonus paid to him or her during the term of the
employment agreement, plus continuation of insurance coverage for 24&nbsp;months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Benefit Equalization Plan. </I></B>Oritani Bank has adopted the 2005 Benefit Equalization Plan to
provide certain executives with benefits to which they would otherwise be entitled under Oritani
Bank&#146;s Defined Benefit Pension Plan, 401(k) Plan and Employee Stock Ownership Plan, but for the
limitations imposed by the Internal Revenue Code. The 2005 Benefit Equalization Plan was adopted
to incorporate the required provisions of Code Section&nbsp;409A and was amended and restated in January
2008 in order to incorporate the final Department of Treasury regulations issued under Code Section
409A. Oritani Bank&#146;s prior Benefit Equalization Plan was frozen effective as of December&nbsp;31, 2004.
The 2005 Benefit Equalization Plan is materially similar to the frozen Benefit Equalization Plan,
except that a participant&#146;s elections regarding distributions under the tax-qualified 401(k) Plan,
the Employee Stock Ownership Plan and Defined Benefit Pension Plan control the form and timing of
distributions of a participant&#146;s account in the frozen Benefit Equalization Plan. This provision
is no longer permitted with respect to deferrals or accruals subject to Code Section&nbsp;409A and is
not included in the 2005 Benefit Equalization Plan. Employees who are president, executive vice
president, senior vice president and vice president of Oritani Bank are eligible to participate in
the plan. During fiscal 2009, eleven current employees and one retired employee participated in the
2005 Benefit Equalization Plan. A committee appointed by the Oritani Bank Board of Directors
administers the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 401(k) portion of the 2005 Benefit Equalization Plan, participants may make annual
deferrals of compensation in an amount up to the difference between the maximum amount the
participant would be permitted to contribute to Oritani Bank&#146;s 401(k) plan for the given year but
for the limitations of the Internal Revenue Code and the deferrals actually made to the 401(k) plan
by the participant for the plan year. Oritani Bank will establish a supplemental 401(k) plan
account for each participant and credit the account with such contributions. In addition, the
participant&#146;s account will be credited monthly with
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">earnings at a rate equivalent to the greater of (i)&nbsp;the Citibank Prime Rate, or (ii)&nbsp;nine
percent (9%), plus matching contributions. For fiscal 2009, a total of $146,000 in interest was
credited to the accounts of current employees under this plan. Upon termination of service due to
any reason other than death, the supplemental 401(k) plan benefit will be payable either in a lump
sum or in up to 5 annual installments, as elected by the participant pursuant to his initial
deferral election. Upon termination of service due to death, the supplemental 401(k) plan benefit
under the 2005 Benefit Equalization Plan will be payable to the participant&#146;s beneficiary either in
a lump sum or in annual installments, pursuant to the participant&#146;s initial deferral election.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of service due to any reason other than death, a participant will also be
entitled to a benefit equal to the difference between the actuarial present value of the
participant&#146;s normal retirement benefit under Oritani Bank&#146;s defined benefit plan and the actuarial
present value of his normal retirement benefit calculated pursuant to the terms of the defined
benefit plan, without the application of the limitations imposed by the Internal Revenue Code,
which amount will be reduced and offset by the corresponding benefit amount payable to the
participant under the frozen Benefit Equalization Plan. The supplemental defined benefit plan
benefit under the 2005 Benefit Equalization Plan will be payable to the participant in monthly
installments for the longer of 120&nbsp;months or the remainder of the participant&#146;s life. In the event
of the participant&#146;s death before 120 installments have been paid, the participant&#146;s beneficiary
will receive the present value of the remaining monthly installments in a lump sum. Alternatively,
the participant may also make, prior to commencement of the supplemental defined benefit plan
benefit, a one-time irrevocable election to receive his benefit under the plan in the form of a
100% joint and survivor annuity or a 50% joint and survivor annuity. Upon termination of service
due to death, the supplemental defined benefit plan benefit under the 2005 Benefit Equalization
Plan will be payable to the participant&#146;s beneficiary either in a lump sum or in annual
installments, pursuant to the participant&#146;s initial deferral election. A participant&#146;s supplemental
defined benefit plan amount payable under the 2005 Benefit Equalization Plan will be reduced and
offset by the corresponding supplemental defined benefit plan amount payable under the frozen
Benefit Equalization Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The supplemental employee stock ownership plan benefit under the 2005 Benefit Equalization
Plan is denominated in shares of phantom stock equal to the difference between the number of shares
of Oritani Financial Corp. common stock that would have been allocated to the participant under the
employee stock ownership plan, but for the limitations imposed by the Internal Revenue Code, and
the actual number of shares of Oritani Financial Corp. common stock allocated to the participant
under the Oritani Bank employee stock ownership plan for the relevant plan year, plus earnings on
the phantom shares deemed allocated to the participant&#146;s supplemental employee stock ownership plan
account, based on the fair market value of Oritani Financial Corp. stock on such date. Upon
termination of service due to any reason other than death, the supplemental employee stock
ownership plan benefit will be payable either in a lump sum or in up to five annual installments,
as elected by the participant pursuant to his initial deferral election. Upon termination of
service due to death, the supplemental employee stock ownership plan benefit under the 2005 Benefit
Equalization Plan will be payable to the participant&#146;s beneficiary either in a lump sum or in
annual installments, pursuant to the participant&#146;s initial deferral election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of a change in control of Oritani Bank or Oritani Financial Corp., the
participant&#146;s supplemental 401(k) plan benefit, supplemental employee stock ownership plan benefit,
and supplemental defined benefit plan will be paid to the participants in a lump sum at the time of
the change in control, unless a participant has selected an alternative form of distribution upon a
change in control. Such an election, if made, was required to be made by a participant not later
than December&nbsp;31, 2008, or with respect to new plan participants within thirty days after the
participant first becomes eligible to participate in the 2005 Benefit Equalization Plan.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Executive Supplemental Retirement Income Agreement</I></B>. Oritani Bank entered into an Executive
Supplemental Retirement Income Agreement (the &#147;Agreement&#148;) for Kevin J. Lynch (the &#147;Executive&#148;)
effective as of January&nbsp;1, 2005. The Agreement was amended and restated during 2008 for the final
Department of Treasury regulations issued under Code Section&nbsp;409A.The Agreement provides for the
payment of a supplemental retirement income benefit equal to 70% of the Executive&#146;s highest average
annual base salary and bonus (over a 36-consecutive month period within the last 120 consecutive
months of employment), reduced by the sum of the Executive&#146;s annuitized value of the benefits
payable from Oritani Bank&#146;s Defined Benefit Pension Plan, the annuitized value of the benefits
payable under the defined benefit portion of Oritani Bank&#146;s frozen Benefit Equalization Plan and
2005 Benefit Equalization Plan and the annuitized value of one-half of the Executive&#146;s Social
Security benefits attributable to Social Security taxes paid by Oritani Bank on behalf of the
Executive, reduced by the Social Security offset under the Oritani Bank&#146;s Defined Benefit Pension
Plan. In the event the Executive dies prior to termination of employment or after termination of
employment but prior to the payment of any portion of the supplemental retirement income benefit,
the Executive&#146;s beneficiary will be entitled to a survivor&#146;s benefit, payable in 240&nbsp;monthly
installments, and equal to the greater of the annual amount of $327,446 reduced by the annuitized
value of the benefit payable under the Benefit Equalization Plan, or the supplemental retirement
income benefit determined as if the Executive retired on the day before his death and commenced
receiving benefits at such time. In the event the Executive dies while receiving benefits under
the Agreement, the unpaid balance of benefits will be paid to the Executive&#146;s beneficiary for the
remainder of the 240 installments. Upon the Executive&#146;s retirement, the Executive will be entitled
to a supplemental retirement income benefit payable in monthly installments over the longer of 240
months or the Executive&#146;s lifetime. In the event the Executive is a &#147;specified employee,&#148; payments
will commence the first day of the 7<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> month following the Executive&#146;s retirement, but
only to the extent necessary to comply with Code Section&nbsp;409A. Upon attainment of age 60, the
Executive may elect to retire and receive an early retirement benefit equal to the supplemental
retirement income benefit reduced by 5% per year for each year prior to the Executive&#146;s
65<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> birthday, payable monthly for the longer of 240&nbsp;months or the Executive&#146;s lifetime.
In the event the Executive becomes disabled, he will be entitled to a supplemental disability
benefit equal to the supplemental retirement income benefit calculated as if the Executive retired
on the date of his termination of employment due to disability, reduced by 5% per year for each
year that such disability occurs prior to the Executive&#146;s 65<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> birthday. In the event
of the Executive&#146;s termination of employment within 3&nbsp;years following a change in control, other
than due to termination for cause, the Executive will be entitled to a full supplemental retirement
income benefit calculated as if the Executive had retired following his normal retirement date.
Payments to the Executive in the event of a change in control generally will be made in 240&nbsp;monthly
installments. During 2008 the Agreement was amended to permit the Executive to elect a lump sum
distribution on a change in control, provided that such election was made prior to December&nbsp;31,
2008. Oritani Bank may establish a rabbi trust to fund its obligations under the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Senior Officers and Directors Post-Retirement Medical Coverage</I></B>. Directors who qualify for
benefits under the Directors&#146; Retirement Plan, and senior officers designated by the Board of
Directors who have attained age 52 and have at least five years of service, are eligible to
participate in the senior officers and directors post-retirement medical coverage program. If a
participant dies after becoming eligible for coverage but prior to retirement, the individual will
be deemed to have retired on the day before the individual died. Coverage will begin at the time
of retirement and continue at the same level as before retirement. Retirees who are eligible for
Medicare benefits will have benefits under the program coordinated with Medicare benefits. The
spouse of a senior officer or director covered under the program will be entitled to medical
coverage for life. Oritani Bank&#146;s contribution to the program will be limited to two times the
medical insurance premium at the time of the individual&#146;s retirement. During fiscal 2009, eight
current employees were eligible for participation in the Senior Officers and Directors
Post-Retirement Medical Coverage, and the total cost to Oritani Bank during fiscal 2009 was
$247,000.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Group Life Insurance Retirement Plan. </I></B>In conjunction with its investment in Bank Owned Life
Insurance, Oritani Bank implemented this plan which provides selected employees and directors with
post-retirement life insurance. Coverage under this plan is only applicable to selected employees
and directors who retire from Oritani Bank under this plan (unless their termination is due to
disability or change in control). The post-retirement coverage provided under this plan is equal
to: two times annual base salary for vice presidents and above; one time annual base salary for
assistant vice presidents and below; and $50,000 for directors. This coverage was obtained in
conjunction with Oritani Financial Corp.&#146;s purchase of Bank Owned Life Insurance. Oritani
Financial Corp. incurs no additional cost to provide the coverage, however, there is an expense
accrual associated with the benefit. This accrual totaled $99,000 during fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>4</I></B><B><I>01(k)</I></B><B><I> Plan</I></B>. Oritani Bank participates in the Pentegra Defined Contribution Plan for
Financial Institutions, a multiple-employer 401(k) plan, for the benefit of its employees.
Employees who have completed 1,000 hours of service during a 12-consecutive-month period are
eligible to participate in the plan. Participants may contribute up to 50% of their plan salary to
the plan. Oritani Bank will provide matching contributions at the rate of 50% of the participant&#146;s
contributions, up to 6% of each participant&#146;s monthly plan salary. Employee and employer
contributions are 100% vested at all times. In general, under federal tax law limits, the annual
contributions made to the plan may not exceed the lesser of 100% of the participant&#146;s total
compensation or $49,000 for calendar 2009. For this purpose, contributions include employer
contributions, participant 401(k) contributions and participant after-tax contributions.
Participants who have attained age 50 before the end of a calendar year will be eligible to make
catch-up contributions in accordance with Section 414(v) of the Internal Revenue Code. The maximum
catch-up contribution level for 2009 is $5,500. This amount is periodically adjusted for inflation.
Contributions are invested at the participant&#146;s direction in one or more of the investment funds
provided under the plan. A loan program is available to plan participants. In general,
participants may make only one withdrawal from their accounts per calendar year while they are
employed, subject to certain limitations; upon termination of employment, they may make withdrawals
from their accounts at any time. Participants who become disabled may withdraw from their vested
account balance as if they had terminated employment. In the event of a participant&#146;s death, the
participant&#146;s beneficiary will be entitled to the value of the participant&#146;s account. In
connection with the minority stock offering, Oritani Bank withdrew from the Pentegra plan and
established an individually designed 401(k) plan with terms substantially similar to the Pentegra
plan. In addition, an employer stock fund will be created within the 401(k) plan in order to
permit participants in the 401(k) plan to purchase shares of employer stock for their accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Defined Benefit Plan</I></B>. Oritani Bank participates in the Financial Institutions Retirement
Fund, a multiple-employer defined benefit plan, for the benefit of its employees. Employees of
Oritani Bank who are age 21 or older and who have completed 12&nbsp;months of employment are eligible to
participate in the plan. Participants become vested in their retirement benefit upon completion of
5&nbsp;years of employment, provided that participants who have reached age 65 automatically become 100%
vested, regardless of the number of completed years of employment. Payments of benefits under the
plan are made in the form of a life annuity with 120 payments guaranteed unless one of the optional
forms of distribution has been selected. Upon termination of employment at or after age 65, a
participant will be entitled to an annual normal retirement benefit equal to 1.25% multiplied by
the number of years of benefit service, multiplied by the participant&#146;s average annual salary, up
to the covered compensation limits, for the 5 highest paid consecutive years of benefit service.
In addition, the participant will be entitled to an annual retirement benefit equal to 1.75%
multiplied by the number of years of benefit service, multiplied by the participant&#146;s average
annual salary in excess of the covered compensation limits, for the 5 highest paid consecutive
years. The covered compensation limit is the average of the maximum wage subject to FICA taxes
(i.e., the social security wage base) for the 35-year period preceding social security retirement
age. In the event a participant has more than 35&nbsp;years of service, the benefit attributable to
benefit service completed in excess of 35&nbsp;years will be calculated by using a 1.75% accrual rate
for the portion of a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">participant&#146;s high-5&nbsp;year average salary below the covered compensation limit. Participants who
terminate employment prior to age 65 will be entitled to a reduced retirement benefit calculated by
applying an early retirement factor based on the participant&#146;s age when payments begin. The
earliest age at which a participant may receive retirement benefits is age 55. Normal and early
retirement benefits are payable over the longer of the lifetime of the retiree or 120&nbsp;monthly
installments. In the event a retiree dies before 120&nbsp;monthly installments have been paid, the
retiree&#146;s beneficiary will be entitled to the value of such unpaid installments paid in a lump sum.
The participant or beneficiary may elect to have benefits paid in the form of installments. In
the event a participant dies while in active service, his beneficiary will be entitled to a lump
sum death benefit equal to 100% of the participant&#146;s last 12&nbsp;months&#146; salary, plus an additional
10.0% of such salary for each year of benefit service until a maximum of 300% of such salary is
reached for 20 or more years, plus refund of the participant&#146;s contributions, if any, with
interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This plan was frozen as of January&nbsp;1, 2009. Existing participants remain eligible to receive
their accrued benefit as of that date, however, no new benefits will accrue under the plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Benefit Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employee Stock Ownership Plan and Trust</I></B>. The employee stock ownership plan was adopted in
connection with our initial stock offering. Employees who are at least 21&nbsp;years old with at least
one year of employment with Oritani Bank are eligible to participate. The employee stock ownership
plan trust borrowed funds from Oritani Financial Corp. and used those funds to purchase a shares of
our common stock equal to 3.92% of the outstanding shares of common stock, including shares of
common stock issued to Oritani Financial Corp., MHC and to the OritaniBank Charitable Foundation.
Collateral for the loan is the common stock purchased by the employee stock ownership plan. The
loan will be repaid principally from Oritani Bank discretionary contributions to the employee stock
ownership plan over a period of not more than 20&nbsp;years. The loan documents provide that the loan
may be repaid over a shorter period, without penalty for prepayments. The interest rate for the
loan is a floating rate equal to the prime rate. Shares purchased by the employee stock ownership
plan are held in a suspense account for allocation among participants as the loan is repaid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions to the employee stock ownership plan and shares released from the suspense
account in an amount proportional to the repayment of the employee stock ownership plan loan are
allocated among employee stock ownership plan participants on the basis of compensation in the year
of allocation. Benefits under the plan become vested at the rate of 20% per year, starting upon
completion of two years of credited service, and are fully vested upon completion of six years of
credited service, with credit given to participants for up to three years of credited service with
Oritani Bank mutual predecessor prior to the adoption of the plan. A participant&#146;s interest in his
account under the plan will also fully vest in the event of termination of service due to a
participant&#146;s early or normal retirement, death, disability, or upon a change in control (as
defined in the plan). Vested benefits will be payable generally in the form of common stock, or to
the extent participants&#146; accounts contain cash, benefits will be paid in cash. Oritani Bank&#146;s
contributions to the employee stock ownership plan are discretionary, subject to the loan terms and
tax law limits. Therefore, benefits payable under the employee stock ownership plan cannot be
estimated. Pursuant to SOP 93-6, we are required to record compensation expense each year in an
amount equal to the fair market value of the shares released from the suspense account. In the
event of a change in control, the employee stock ownership plan will terminate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock-Based Incentive Plan</I></B>. We adopted the 2007 Equity Incentive Plan to provide our
officers, employees and directors with additional incentives to promote our growth and performance.
Stockholders approved the Equity Plan on April&nbsp;22, 2008. Subject to permitted adjustments for
certain corporate transactions, the Equity Plan authorizes the issuance of up to 2,781,878 shares
of our common stock
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->166<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pursuant to grants of incentive and non-statutory stock options, stock appreciation rights, and
restricted stock awards. No more than 794,823 shares may be issued as restricted stock awards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees and outside directors of Oritani Financial Corp. or its subsidiaries are eligible to
receive awards under the Equity Plan, except that non-employees may not be granted incentive stock
options. Awards may be granted in a combination of incentive and non-statutory stock options, stock
appreciation rights or restricted stock awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Potential Payments Under Termination or Change in Control Agreements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables below reflect the amount of compensation to each of the named executive officers
pursuant to such individual&#146;s employment agreement in the event of termination of such executive&#146;s
employment. No payments are required due to a voluntary termination under the employment
agreements (prior to a change in control). The amount of compensation payable to each Named
Executive Officer upon involuntary not-for-cause termination, termination following a change of
control and in the event of disability or death is shown below. The amounts shown assume that such
termination was effective as of June&nbsp;30, 2009, and thus include amounts earned through such time
and are estimates of the amounts which would be paid out to the executives upon their termination.
The actual amounts to be paid out can only be determined at the time of such executive&#146;s separation
from Oritani Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Termination Payments</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Involuntary Termination after Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Involuntary Termination</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>in Control</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Retirement</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Disability</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Death</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Kevin J. Lynch</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,435,537</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,037,789</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,314,719</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,303,546</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Supplemental Retirement Income Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,966,900</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  2,314,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">2,314,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  1,966,900</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  1,966,900</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  1,473,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005 Directors&#146; Retirement Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  407,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">  &#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  2,179,410</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  2,179,410</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  2,179,410</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Michael A. DeBernardi</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">705,857</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">384,986</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">382,801</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">  &#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD nowrap align="right"> &#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005 Directors&#146; Retirement Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">  &#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">170,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;  </TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>John M. Fields, Jr.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">602,455</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(18)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">306,669</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(19)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(20)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">309,845</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(21)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">308,295</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(22)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  27,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(23)</SUP>  </TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;  </TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;  </TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(24)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Thomas G. Guinan</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">620,336</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(25)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">272,881</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(26)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(27)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">308,425</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(28)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">306,875</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(29)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  8,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(30)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;  </TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">1,046,114</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(31)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Philip M. Wyks</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employment Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">487,358</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(32)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">487,358</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(33)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(34)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">275,878</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(35)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">274,427</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(36)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit Equalization Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(37)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007 Equity Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD nowrap align="right">&#151;  </TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$&nbsp;</TD>
    <TD align="right">  164,520</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
<TD align="right">&#151;</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">164,520</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">164,520</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(38)</SUP></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 3 times the sum of (i)&nbsp;Mr.&nbsp;Lynch&#146;s highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Oritani Bank contributions to continued life, medical, dental and
disability insurance for 36&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;Lynch under
his employment agreement without incurring an &#147;excess parachute payment&#148; under Code Section
280G. Severance payments and other benefits provided to Mr.&nbsp;Lynch as a result of the change
in control are reduced by $1,397,749 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Lynch is entitled to no payments or benefits under his employment agreement as a result
of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><I>&nbsp;</I></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>(footnotes continued on next
page)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 </I></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->167<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Lynch would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Lynch&#146;s base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Lynch&#146;s beneficiary would be entitled to receive Mr.&nbsp;Lynch&#146;s
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the present value of Mr.&nbsp;Lynch&#146;s accumulated benefit under his
Executive Supplemental Retirement Income Agreement. Under his Executive Supplemental
Retirement Income Agreement, Mr.&nbsp;Lynch is entitled to receive an annual supplemental
retirement benefit commencing at age 65 equal to 70% of his highest annual base salary and
bonus over the consecutive 36&nbsp;month period within the last 120 consecutive calendar months of
employment, reduced by the sum of (i)&nbsp;the annuitized value of his benefits under the bank&#146;s
pension plan, (ii)&nbsp;the annuitized value of his benefits under the &#147;defined benefit&#148; portion of
the Bank&#146;s Benefit Equalization Plan, and (iii)&nbsp;the annuitized value of one-half of his Social
Security benefits attributable to taxes paid by the bank on his behalf. Upon a change in
control, Mr.&nbsp;Lynch is entitled to the full supplemental retirement income benefit as if he
worked through age 65. In the event of Mr.&nbsp;Lynch&#146;s death, disability, or termination prior to
reaching age 65, Mr.&nbsp;Lynch is entitled to his early retirement benefit equal to 85% of his
supplemental retirement benefit. Mr.&nbsp;Lynch is fully vested in his early retirement benefit.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Lynch&#146;s separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the present value of Mr.&nbsp;Lynch&#146;s accumulated benefit under the 2005
Directors Retirement Plan. Under the 2005 Director s&#146; Retirement Plan, Mr.&nbsp;Lynch is entitled
to receive an annual retirement benefit equal to 50% of the aggregate compensation paid to him
during the year of his retirement. Mr.&nbsp;Lynch is currently 100% vested in his annual
retirement benefit under the plan, and his benefits under the plan will commence following his
date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Lynch&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Lynch&#146;s involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;DeBernardi&#146;s highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;DeBernardi
under his employment agreement without incurring an &#147;excess parachute payment&#148; under Code
Section&nbsp;280G. Severance payments and other benefits provided to Mr.&nbsp;DeBernardi as a result of
the change in control are reduced by $705,857 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;DeBernardi is entitled to no payments or benefits under his employment agreement as a
result of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;DeBernardi would receive his base salary and continued
health care coverage for the longer of the remaining term of his employment agreement, or one
year, less amounts payable under any disability programs. This amount represents Mr.
DeBernardi&#146;s base salary and continued life, medical, dental and disability insurance for the
remaining term of the agreement, without any reduction for payments under Bank sponsored
disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(14)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;DeBernardi&#146;s beneficiary would be entitled to receive Mr.
DeBernardi&#146;s base salary and medical, dental, family and other benefits for the remaining term
of the employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(15)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;DeBernardi has not accumulated any benefits under the Benefit Equalization Plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(16)</TD>
    <TD>&nbsp;</TD>
    <TD>Under the 2005 Director s&#146; Retirement Plan, Mr.&nbsp;DeBernardi is entitled to receive an annual
retirement benefit equal to 50% of the aggregate compensation paid to Mr.&nbsp;DeBernardi during
the year of his retirement. Mr.&nbsp;DeBernardi is not currently vested in his annual retirement
benefit under the plan, which will occur when Mr.&nbsp;DeBernardi attains age 65. Upon a change in
control, Mr.&nbsp;DeBernardi will be entitled to receive his annual retirement benefit regardless
of his actual age.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(17)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;DeBernardi&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;DeBernardi&#146;s involuntary termination or retirement,
his unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(18)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Fields&#146; highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(19)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;Fields under
his employment agreement without incurring an &#147;excess parachute payment&#148; under Code Section
280G. Severance payments and other benefits to Mr.&nbsp;Fields as a result of the change in
control are reduced by $295,786 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(20)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Fields is entitled to no payments or benefits under his employment agreement as a result
of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(21)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Fields would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Fields&#146; base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(22)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Fields&#146; beneficiary would be entitled to receive Mr.&nbsp;Fields&#146;
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(23)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Fields&#146; separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(24)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Fields&#146; involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Fields&#146; involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(25)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Guinan&#146;s highest base salary plus (ii)
highest bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(26)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the maximum severance payments and other benefits to Mr.&nbsp;Guinan under
his employment agreement without incurring an &#147;excess parachute payment&#148; under Code Section
280G. Severance payments and other benefits to Mr.&nbsp;Guinan as a result of the change in
control are reduced by $347,455 in order to avoid an &#147;excess parachute payment.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(27)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Guinan is entitled to no payments or benefits under his employment agreement as a result
of his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(28)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Guinan would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Guinan&#146;s base
salary and continued</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->168<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>life, medical, dental and disability insurance for the remaining term of the agreement, without any
reduction for payments under Bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(29)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Guinan beneficiary would be entitled to receive Mr.&nbsp;Guinan&#146;s
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(30)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Guinan&#146;s separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(31)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Guinan&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Guinan&#146;s involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(32)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Wyks&#146; highest base salary plus (ii)&nbsp;highest
bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following termination of employment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(33)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents 2 times the sum of (i)&nbsp;Mr.&nbsp;Wyks&#146; highest base salary plus (ii)&nbsp;highest
bonus, and (iii)&nbsp;Bank contributions to continued life, medical, dental and disability
insurance for 24&nbsp;months following his termination of employment in connection with a change in
control.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(34)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Wyks is entitled to no payments or benefits under his employment agreement as a result of
his retirement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(35)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his disability, Mr.&nbsp;Wyks would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr.&nbsp;Wyks&#146;s base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(36)</TD>
    <TD>&nbsp;</TD>
    <TD>In the event of his death, Mr.&nbsp;Wyks beneficiary would be entitled to receive Mr.&nbsp;Wyks&#146;s base
salary and medical, dental, family and other benefits for the remaining term of the employment
agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(37)</TD>
    <TD>&nbsp;</TD>
    <TD>Following Mr.&nbsp;Wyks&#146;s separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(38)</TD>
    <TD>&nbsp;</TD>
    <TD>This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr.&nbsp;Wyks&#146;s involuntary termination after a change in control,
disability, or death. In the event of Mr.&nbsp;Wyks&#146;s involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left:4%"><B>Director Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the individuals who serves as a director of Oritani Financial Corp. also serves as a
director of Oritani Bank and earns director fees in each capacity. Each non-employee director is
currently paid a fee of $1,750 for each Oritani Financial Corp. meeting attended and a fee of
$1,750 for each Oritani Bank meeting attended. There are no separate fees paid for committee
meetings attended. Additionally, each director receives a monthly retainer of $1,750 from each of
Oritani Financial Corp. and Oritani Bank. Additional annual retainers are paid to the Lead
Director/Chairman of the Audit Committee ($21,000) and the Chairmen of the other Board of Director
committees ($11,000). The Lead Director/Chairman of the Audit Committee is Director Antonaccio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the total fees received by the non-management directors during
fiscal year 2009. The amounts reported under the Stock Awards and Option Awards columns were
granted on May&nbsp;5, 2008 pursuant to the 2007 Equity Incentive Plan approved by stockholders on April
22, 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Change in Pension</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Nonqualified</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fees Earned or Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Deferred</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Cash</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock Awards ($) (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Option Awards ($) (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Earnings ($) (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicholas Antonaccio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">98,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">170,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">513,257</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James J. Doyle</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">88,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">132,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">465,036</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert S. Hekemian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">88,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">55,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">388,377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John J. Skelly, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">88,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">161,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">82,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">134,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">467,005</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> The amounts in this column reflect the dollar amount recognized for financial
statement reporting purposes for the fiscal year ended June&nbsp;30, 2009, in accordance with FAS
123(R) and its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the
Equity Plan that were made in 2008, which vest over five years. Assumptions used in the
calculation of these amounts are included in footnote 14 to Oritani Financial Corp.&#146;s audited
financial statements for the fiscal year ended June&nbsp;30, 2009 included in Oritani Financial
Corp.&#146;s Annual Report on Form 10-K.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> The amounts in this column reflect the dollar amount recognized for financial
statement reporting purposes for the fiscal year ended June&nbsp;30, 2009, in accordance with FAS
123(R) and its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity
Plan that were made in 2008. Stock options vest over five years. Assumptions used in the
calculation of these amounts are included in footnote 14 to Oritani Financial Corp.&#146;s audited
financial statements for the fiscal year ended June&nbsp;30, 2009 included in Oritani Financial
Corp.&#146;s Annual Report on Form 10-K.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->169<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> The amounts in this column reflect the actuarial increase in the present value at
June&nbsp;30, 2009 compared to June&nbsp;30, 2008, of the directors&#146; benefits under the Directors&#146;
Retirement Plan maintained by Oritani Bank, determined using interest rate and mortality rate
assumptions consistent with those used in Oritani Financial Corp.&#146;s financial statements and
include amounts for which the director may not currently be entitled to receive because such
amounts are not vested. Also includes $32,775, $31,554, $22,895 and $22,522 of preferential
or above-market earnings on non tax-qualified deferred compensation for Directors Antonaccio,
Doyle, Hekemian and Skelly, respectively, under the Directors&#146; Deferred Fee Plan.</TD>
</TR>

</TABLE>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no grants of restricted stock or of stock options to non-executive directors
during fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Directors Deferred Fee Plans</I></B>. Oritani Bank adopted the 2005 Directors Deferred Fee Plan,
effective as of January&nbsp;1, 2005, in order to include the provisions required by Section&nbsp;409A of the
Internal Revenue Code. Contributions to Oritani Bank&#146;s prior Directors Deferred Fee Plan were
frozen, effective as of December&nbsp;31, 2004. Each month, Oritani Bank credits a director&#146;s account
under the 2005 Directors Deferred Fee Plan with the amount such director elects to defer. The
director&#146;s deferral election must generally be submitted to Oritani Bank prior to January 1 of the
plan year in which the fees to be deferred are otherwise payable to the director and is irrevocable
with respect to the fees covered by such election. Each director&#146;s account under the plans is
credited every month with interest at a rate equal to the greater of the Citibank Prime Rate or a
9% annualized rate. A committee appointed by the Oritani Bank Board of Directors administers the
plan. The committee may in its discretion permit a director to request that his deferred fee
account(s) be invested in an alternative investment such as equity securities, fixed income
securities, money market accounts and cash. The account of a director who has selected an
alternative investment is credited with earnings or losses based on the investment selected. A
director is 100% vested at all times in his deferred fee account(s). Upon retirement, the director
will receive the value of his benefit in a lump sum or in up to 10 annual installments, as elected
by the director in his deferral election form. In the event the director becomes a &#147;specified
employee,&#148; payments under the plan will commence no earlier than the first day of the 7th month
following the director&#146;s separation from service. Following a director&#146;s cessation of service
prior to retirement or death, Oritani Bank will pay the director&#146;s benefit in a lump sum or in up
to 10 annual installments, as elected by the director in his deferral election form. A director
may elect to receive an in-service distribution, provided that such distribution will be no earlier
than the January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of the calendar year that is at least two years following the year
for which the deferral election is made. Payment will be made in a lump sum or in up to 10 annual
installments, as elected by the director at the time the election to defer was made. A director
may elect to receive amounts in his deferred account(s) upon his disability or upon a change in
control of Oritani Bank either in the form of a lump sum or in annual installments over a period of
up to 10&nbsp;years. A director may elect to delay payment of his benefits or to change the form of
payment from a lump sum to installments within the limits of Code Section&nbsp;409A requirements and
Treasury Regulations issued thereunder. In the event of a director&#146;s death prior to commencement
of benefit payments, payments will be made to the director&#146;s beneficiary, as elected by the
director in his deferral election form. In the event of a director&#146;s death after commencement of
benefit payments, the remaining balance of benefit payments will be paid to the director&#146;s
beneficiary in the manner and at the time elected by the director in his deferral election form.
In the event a director incurs a financial hardship, the director may request a financial hardship
benefit. If approved, the financial hardship payment will be made in a lump sum. During fiscal
year 2009, Oritani Bank credited $220,000 in interest to directors&#146; accounts under the Directors
Deferred Fee Plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Director&#146;s Retirement Plan</I></B>. Oritani Bank maintains the 2005 Director&#146;s Retirement Plan that
was adopted as a restatement of the Directors Retirement Plan and is intended to comply with
section 409A of the Internal Revenue Code. Oritani Bank&#146;s prior Director&#146;s Retirement Plan was
frozen, effective as of December&nbsp;31, 2004. Benefits payable under the 2005 Director&#146;s Retirement
Plan are reduced by the amount of the retirement benefits payable to the director under the frozen
director retirement plan. The 2005 Director&#146;s Retirement Plan provides retirement, medical and
death benefits to directors, including directors who are also employees, who have at least five
years of service and retire
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->170<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">after attaining age 65, or who, after attaining age 60 retire, die or become disabled. Upon
retirement on or after attaining age 65 with at least ten years of cumulative service, an eligible
director&#146;s annual retirement benefit is equal to 50% of the director&#146;s aggregate annual
compensation with respect to his final year of service, including fees paid to the director for
attendance at regular monthly meetings and annual meetings of Oritani Bank and Oritani Financial
Corp., monthly retainers, and any additional annual retainers paid to the director for service as a
committee chair, lead director or otherwise. If, after attaining age 60, a director retires, dies
or becomes disabled, and such director has more than five years of service the director or his
beneficiary will be entitled to the following percentage of benefit: 50% if the director has 5 to 6
years of service, 60% if the director has 6 to 7&nbsp;years of service, 70% if the director has 7 to 8
years of service, 80% if the director has 8 to 9&nbsp;years of service, 90% if the director has 9 to 10
years of service and 100% if the director has more than 10&nbsp;years of service. In the event of a
change in control, each director will be deemed to have 10&nbsp;years of service and attained age 65 for
the purpose of calculating his benefit under the plan. A director who retires prior to age 60 for
any reason shall receive no benefit under the plan. Each director was entitled to elect prior to
December&nbsp;31, 2006 to receive a lump sum payment upon a change in control in an amount equal to the
present value of his plan benefits. Benefits under the plan are generally payable in monthly
installments for the director&#146;s lifetime or as a joint and survivor form of benefit depending on
the director&#146;s marital status at the time of the payment triggering event. Notwithstanding the
foregoing, a director was permitted to elect prior to December&nbsp;31, 2008, to receive his plan
benefits in the form of a lump sum payment in the event of his disability prior to termination of
service. In the event a director who has served on the Board of Directors for at least five years
dies while in service, the director&#146;s spouse will be entitled to a benefit calculated as if the
director had continued service until age 65. The amount of the survivor&#146;s benefit will be based on
the number of years the director would have served on the Board of Directors assuming the director
served on the Board of Directors until age 65. The benefit will be payable to the director&#146;s
spouse for the remainder of the spouse&#146;s life, along with medical benefits. As also described
under &#147;Senior Officers and Directors Post-Retirement Medical Coverage,&#148; medical benefits provided
to directors and their spouses prior to the date of their retirement will continue to be provided
to retired directors and their spouses, as long as the director lives, or, in the event the
director dies while in office, the medical benefits will continue to be provided to the director&#146;s
spouse for his or her lifetime. In the event the cost of medical benefits provided under the plan
exceeds 200% of the cost of such benefits to Oritani Bank immediately prior to the director&#146;s
retirement, the cost in excess of 200% will be paid by the retired director or his or her spouse.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Benefits to be Considered Following Completion of the Conversion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion. Stockholder approval of this plan will be required. If
implemented 12&nbsp;months or more following completion of the conversion, the stock-based incentive
plan will reserve a number of shares equal to 4.0% of the shares of common stock sold in the
offering, or 2,063,100 shares of common stock at the maximum as adjusted of the offering range, for
awards of restricted stock to key employees and directors, at no cost to the recipients. If the
shares of restricted stock awarded under the stock-based incentive plan come from authorized but
unissued shares of common stock, stockholders would experience dilution of up to approximately
2.89% in their ownership interest in Oritani. If implemented 12&nbsp;months or more following the
completion of the conversion, the stock-based incentive plan will also reserve a number of shares
equal to 10.0% of the shares of common stock sold in the offering, or 5,157,750 shares of common
stock at the maximum as adjusted of the offering range, for issuance pursuant to grants of stock
options to key employees and directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may fund our plans through open market purchases, as opposed to issuing common stock;
however, if any options previously granted under our existing stock option plans are exercised
during the first year following completion of the offering, they will be funded with newly-issued
shares as OTS regulations do not permit us to repurchase our shares during the first year following
the completion of this
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->171<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">offering except to fund the grants of restricted stock under the stock-based incentive plan or
under extraordinary circumstances. The OTS has previously advised that the exercise of outstanding
options and cancellation of treasury shares in the conversion will not constitute an extraordinary
circumstance or a compelling business purpose for satisfying this test. The stock-based incentive
plan will not be established sooner than six months after the stock offering and if adopted within
one year after the stock offering would require the approval by stockholders owning a majority of
the outstanding shares of Oritani common stock eligible to be cast. If the stock-based incentive
plan is established after one year after the stock offering, it would require the approval of our
stockholders by a majority of votes cast. The following additional restrictions would apply to our
stock-based incentive plan only if the plan is adopted within one year after the stock offering:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>non-employee directors in the aggregate may not receive more than 30% of
the options and restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any one non-employee director may not receive more than 5% of the options
and restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any officer or employee may not receive more than 25% of the options and
restricted stock awards authorized under the plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any tax-qualified employee stock benefit plans and management stock award
plans, in the aggregate, may not hold more than 10.0% of the shares sold in the
offering, unless Oritani Bank has tangible capital of 10.0% or more, in which case any
tax-qualified employee stock benefit plans and management stock award plans, may be
increased to up to 12% of the shares sold in the offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stock options and restricted stock awards may not vest more rapidly than
20% per year, beginning on the first anniversary of the grant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>accelerated vesting is not permitted except for death, disability or upon
a change in control of Oritani Bank or Oritani; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our executive officers or directors must exercise or forfeit their options
in the event that Oritani Bank becomes critically undercapitalized, is subject to
enforcement action or receives a capital directive.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event either federal or state regulators change their regulations or policies regarding
stock-based incentive plans, including any regulations or policies restricting the size of awards
and vesting of benefits as described above, the restrictions described above may not be applicable.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->172<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons and groups who beneficially own in excess of 5% of our shares of common stock are
required to file certain reports with the Securities and Exchange Commission regarding such
ownership pursuant to the Securities Exchange Act of 1934. The following table sets forth, as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010, the shares of our common stock beneficially owned by each person known to us who
was the beneficial owner of more than 5% of the outstanding shares of our common stock.
Percentages are based on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares outstanding.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Owned and Nature</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent of Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and Address of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Beneficial</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Common Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Beneficial Owners</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ownership (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oritani Financial Corp., MHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">74.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>370 Pascack Road<BR>

Township of Washington, New Jersey 07676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oritani Financial Corp., MHC,<BR>
and all directors and executive
officers of Oritani Financial Corp.
and Oritani Bank as a group
(__ directors and officers) (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>In accordance with Rule&nbsp;13d-3 under the Securities Exchange Act of 1934, a person is deemed
to be the beneficial owner for purposes of this table, of any shares of common stock if he has
shared voting or investment power with respect to such security, or has a right to acquire
beneficial ownership at any time within 60&nbsp;days from the date as of which beneficial ownership
is being determined. As used herein, &#147;voting power&#148; is the power to vote or direct the voting
of shares and &#147;investment power&#148; is the power to dispose or direct the disposition of shares,
and includes all shares held directly as well as by spouses and minor children, in trust and
other indirect ownership, over which shares the named individuals effectively exercise sole or
shared voting or investment power.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shares of common stock held by Oritani Financial Corp., MHC, of which our directors
are also trustees. Excluding shares of common stock held by Oritani Financial Corp., MHC,
directors and executive officers of Oritani Financial Corp. and Oritani Bank owned 791,600
shares of common stock, or 1.6% of the outstanding shares.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides the beneficial ownership of our common stock held by our
directors and executive officers, individually and as a group, as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010. The number
of shares beneficially owned by all directors and executive officers as a group totaled 1.6% of our
outstanding common stock as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010. Each director and named executive officer owned
less than 1% of our outstanding common stock as of that date. Percentages are based on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares outstanding.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Options Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Stock Held (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Within 60 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Directors:</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>Nicholas Antonaccio <BR>

Michael A. DeBernardi
<BR>
James J. Doyle, Jr.
<BR>
Robert S. Hekemian, Jr.
<BR>
Kevin J. Lynch
<BR>
John J. Skelly, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Named Executive Officers:</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>John M. Fields
<BR>
Thomas G. Guinan
<BR>
Philip M. Wyks</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Directors and
Executive
Officers as a
Group (__ Persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The mailing address for each person listed is 370 Pascack Road, Township of Washington, New
Jersey 07676-2353.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>In accordance with Rule&nbsp;13d-3 under the Securities Exchange Act of 1934, a person is deemed
to be the beneficial owner for purposes of this table, of any shares of common stock if he has
shared voting or investment power with respect to such security, or has a right to acquire
beneficial ownership at any time within 60&nbsp;days from the date as of which beneficial ownership
is being determined. As used herein, &#147;voting power&#148; is the power to vote or direct the voting
of shares and &#147;investment power&#148; is the power to dispose or direct the disposition of shares,
and includes all shares held directly as well as by spouses and minor children, in trust and
other indirect ownership, over which shares the named individuals effectively exercise sole or
shared voting or investment power.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->173<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth, for each of Oritani&#146;s directors and executive officers and for all
of the directors and executive officers as a group, the following information:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of exchange shares to be held upon consummation of the conversion,
based upon their beneficial ownership of Oritani Financial Corp. common stock as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the proposed purchases of subscription shares, assuming sufficient shares of
common stock are available to satisfy their subscriptions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the total amount of Oritani common stock to be held upon consummation of the
conversion.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In each case, it is assumed that subscription shares are sold at the midpoint of the offering
range. See &#147;The Conversion and Offering&#151;Additional Limitations on Common Stock Purchases.&#148;
Regulations of the OTS prohibit our directors and officers from selling the shares they purchase in
the offering for one year after the date of purchase. Subscriptions by management through our
401(k) plan will be counted as part of the maximum number of shares such individuals may subscribe
for in the stock offering.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Proposed Purchases of Stock in the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Offering (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total Common Stock to be Held</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap><B>Exchange Shares to</B></TD>


    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="center" style="border-bottom: 1px solid #000000"><B>be Held (2)</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding (2)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Directors:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicholas Antonaccio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. DeBernardi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James J. Doyle, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert S. Hekemian, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Lynch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John J. Skelly, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Executive Officers:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John M. Fields, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas G. Guinan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Philip M. Wyks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total for Directors and
Executive Officers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes proposed subscriptions, if any, through the director or officer&#146;s 401(k) account and
by associates.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes an exchange ratio of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares for each share of Oritani Financial Corp. and that
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shares are outstanding after the conversion. Includes shares that may be acquired
upon the exercise of stock options.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->174<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPARISON OF STOCKHOLDERS&#146; RIGHTS FOR EXISTING<BR>
STOCKHOLDERS OF ORITANI FINANCIAL CORP.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General. </I></B>As a result of the conversion, existing stockholders of Oritani Financial Corp. will
become stockholders of Oritani. There are differences in the rights of stockholders of Oritani
Financial Corp. and stockholders of Oritani caused by differences between federal and Delaware law
and regulations and differences in Oritani Financial Corp.&#146;s federal stock charter and bylaws and
Oritani Financial Corp.&#146;s Delaware certificate of incorporation and bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion is not intended to be a complete statement of the differences affecting the
rights of stockholders, but rather summarizes the material differences and similarities affecting
the rights of stockholders. See &#147;Where You Can Find Additional Information&#148; for procedures for
obtaining a copy of Oritani&#146;s certificate of incorporation and bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Authorized Capital Stock. </I></B>The authorized capital stock of Oritani Financial Corp. consists of
80,000,000 shares of common stock, $0.01 par value per share, and 10,000,000 shares of preferred
stock, par value $0.01 per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The authorized capital stock of Oritani consists of 150,000,000 shares of common stock, $0.01
par value per share, and 25,000,000 shares of preferred stock, $0.01par value per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Delaware General Corporation Law and Oritani&#146;s certificate of incorporation, the
Board of Directors may increase or decrease the number of authorized shares without stockholder
approval. Stockholder approval is required to increase or decrease the number of authorized shares
of Oritani Financial Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s charter and Oritani Financial Corp.&#146;s certificate of incorporation
both authorize the Board of Directors to establish one or more series of preferred stock and, for
any series of preferred stock, to determine the terms and rights of the series, including voting
rights, dividend rights, conversion and redemption rates and liquidation preferences. As a result
of the ability to fix voting rights for a series of preferred stock, our Board of Directors has the
power, to the extent consistent with its fiduciary duty, to issue a series of preferred stock to
persons friendly to management in order to attempt to block a hostile tender offer, merger or other
transaction by which a third party seeks control. We currently have no plans for the issuance of
additional shares for such purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Issuance of Capital Stock. </I></B>Pursuant to applicable laws and regulations, Oritani Financial
Corp., MHC is required to own not less than a majority of the outstanding shares of Oritani
Financial Corp. common stock. Oritani Financial Corp., MHC will no longer exist following
consummation of the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp. Inc.&#146;s certificate of incorporation does not contain restrictions on
the issuance of shares of capital stock to directors, officers or controlling persons, whereas
Oritani Financial Corp.&#146;s stock charter restricts such issuances to general public offerings, or to
directors for qualifying shares, unless the share issuance or the plan under which they would
generally be issued has been approved by a majority of the total votes eligible to be cast at a
legal stockholders&#146; meeting. However, stock-based compensation plans, such as stock option plans
and restricted stock plans, would have to be submitted for approval by Oritani stockholders due to
requirements of the Nasdaq Stock Market and in order to qualify stock options for favorable federal
income tax treatment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Rights. </I></B>Neither Oritani Financial Corp.&#146;s stock charter or bylaws nor Oritani&#146;s
certificate of incorporation or bylaws provide for cumulative voting for the election of directors.
For additional
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->175<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">information regarding voting rights, see &#147;&#151;Limitations on Voting Rights of Greater-than-10%
Stockholders&#148; below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment of Dividends. </I></B>Oritani Financial Corp.&#146;s ability to pay dividends depends, to a large
extent, upon Oritani Bank&#146;s ability to pay dividends to Oritani Financial Corp. The New Jersey
Banking Code states, in part, that dividends may be declared and paid by Oritani Bank only out of
accumulated net earnings. A dividend may not be declared or paid unless the surplus, prior to the
transfer of net earnings, would not be reduced by the payment of such dividend. Dividends may also
not be declared or paid if Oritani Bank is in default in payment of any assessment due to the FDIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The same restrictions will apply to Oritani Bank&#146;s payment of dividends to Oritani. In
addition, Delaware law generally provides that Oritani is limited to paying dividends in an amount
equal to its capital surplus over payments that would be owed upon dissolution to stockholders
whose preferential rights upon dissolution are superior to those receiving the dividend, and to an
amount that would not make it insolvent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Board of Directors</I></B><B>. </B>Oritani Financial Corp.&#146;s bylaws and Oritani Financial Corp.&#146;s certificate
of incorporation and bylaws require the Board of Directors to be divided into three classes and
that the members of each class shall be elected for a term of three years and until their
successors are elected and qualified, with one class being elected annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Oritani Financial Corp.&#146;s bylaws, any vacancies on the Board of Directors of Oritani
Financial Corp. may be filled by the affirmative vote of a majority of the remaining directors
although less than a quorum of the Board of Directors. Persons elected by the Board of Directors of
Oritani Financial Corp. to fill vacancies may only serve until the next annual meeting of
stockholders. Under Oritani&#146;s bylaws, any vacancy occurring on the Board of Directors, including
any vacancy created by reason of an increase in the number of directors, may be filled only by a
majority of the remaining directors, and any director so chosen shall hold office for the remainder
of the term to which the director has been elected and until his or her successor is elected and
qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Oritani Financial Corp.&#146;s bylaws, any director may be removed for cause by the holders
of a majority of the outstanding voting shares. Oritani Financial Corp.&#146;s certificate of
incorporation provide that any director may be removed for cause by the holders of at least a
majority of the outstanding voting shares of Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitations on Liability. </I></B>The charter and bylaws of Oritani Financial Corp. does not limit the
personal liability of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s certificate of incorporation provides that directors will not be personally liable
for monetary damages to Oritani for certain actions as directors, except for (i)&nbsp;receipt of an
improper personal benefit from their positions as directors, (ii)&nbsp;actions or omissions that are
determined to have involved active and deliberate dishonesty, or (iii)&nbsp;to the extent allowed by
Delaware law. These provisions might, in certain instances, discourage or deter stockholders or
management from bringing a lawsuit against directors for a breach of their duties even though such
an action, if successful, might benefit Oritani.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Indemnification of Directors, Officers, Employees and Agents. </I></B>Under current OTS regulations,
Oritani Financial Corp. shall indemnify its directors, officers and employees for any costs
incurred in connection with any litigation involving such person&#146;s activities as a director,
officer or employee if such person obtains a final judgment on the merits in his or her favor. In
addition, indemnification is permitted in the case of a settlement, a final judgment against such
person, or final judgment other than on the merits, if a majority of disinterested directors
determines that such person was acting in good faith within
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the scope of his or her employment as he or she could reasonably have perceived it under the
circumstances and for a purpose he or she could reasonably have believed under the circumstances
was in the best interests of Oritani Financial Corp. or its stockholders. Oritani Financial Corp.
also is permitted to pay ongoing expenses incurred by a director, officer or employee if a majority
of disinterested directors concludes that such person may ultimately be entitled to
indemnification. Before making any indemnification payment, Oritani Financial Corp. is required to
notify the OTS of its intention, and such payment cannot be made if the OTS objects to such
payment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate of incorporation of Oritani provides that it shall indemnify its current and
former directors and officers to the fullest extent required or permitted by Delaware law,
including the advancement of expenses. Delaware law allows Oritani to indemnify any person for
expenses, liabilities, settlements, judgments and fines in suits in which such person has been made
a party by reason of the fact that he or she is or was a director, officer or employee of Oritani.
No such indemnification may be given if the acts or omissions of the person are adjudged to be in
bad faith and material to the matter giving rise to the proceeding, if such person is liable to the
corporation for an unlawful distribution, or if such person personally received a benefit to which
he or she was not entitled. The right to indemnification includes the right to be paid the
expenses incurred in advance of final disposition of a proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Special Meetings of Stockholders. </I></B>Oritani Financial Corp.&#146;s bylaws provide that special
meetings of Oritani Financial Corp.&#146;s stockholders may be called by the Chairman, the president, a
majority of the members of the Board of Directors or the holders of not less than one-tenth of the
outstanding capital stock of Oritani Financial Corp. entitled to vote at the meeting. Oritani&#146;s
bylaws provide that special meetings of the stockholders of Oritani may be called by the president,
by a majority vote of the total authorized directors, or upon the written request of stockholders
entitled to cast at least a majority of all votes entitled to vote at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder Nominations and Proposals. </I></B>Oritani Financial Corp.&#146;s bylaws generally provide that
stockholders may submit nominations for election of directors at an annual meeting of stockholders
and may propose any new business to be taken up at such a meeting by filing the proposal in writing
with Oritani Financial Corp. at least five days before the date of any such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s bylaws generally provide that any stockholder desiring to make a nomination for the
election of directors or a proposal for new business at a meeting of stockholders must submit
written notice to Oritani at least 80&nbsp;days prior and not earlier than 90&nbsp;days prior to such
meeting. However, if less than 90&nbsp;days&#146; notice or prior public disclosure of the date of the
meeting is given to stockholders, such written notice must be submitted by a stockholder not later
than the tenth day following the day on which notice of the meeting was mailed to stockholders or
such public disclosure was made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that it is in the best interests of Oritani and its stockholders to
provide sufficient time to enable management to disclose to stockholders information about a
dissident slate of nominations for directors. This advance notice requirement may also give
management time to solicit its own proxies in an attempt to defeat any dissident slate of
nominations, should management determine that doing so is in the best interests of stockholders
generally. Similarly, adequate advance notice of stockholder proposals will give management time to
study such proposals and to determine whether to recommend to the stockholders that such proposals
be adopted. In certain instances, such provisions could make it more difficult to oppose
management&#146;s nominees or proposals, even if stockholders believe such nominees or proposals are in
their best interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder Action Without a Meeting. </I></B>The bylaws of Oritani Financial Corp. provide that any
action to be taken or which may be taken at any annual or special meeting of stockholders may be
taken if a consent in writing, setting forth the actions so taken, is given by the holders of all
outstanding shares
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">entitled to vote. The bylaws of Oritani do not provide for action to be taken by stockholders
without a meeting. Under Delaware law, action may be taken by stockholders without a meeting if all
stockholders entitled to vote on the action consent to taking such action without a meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stockholder&#146;s Right to Examine Books and Records. </I></B>A federal regulation, which is applicable to
Oritani Financial Corp., provides that stockholders may inspect and copy specified books and
records after proper written notice for a proper purpose. Delaware law provides that a stockholder
may inspect a company&#146;s bylaws, stockholder minutes, annual statement of affairs and any voting
trust agreements. However, only a stockholder or group of stockholders who together, for at least
six months, hold at least 5% of the company&#146;s total shares, have the right to inspect a company&#146;s
stock ledger, list of stockholders and books of accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitations on Voting Rights of Greater-than-10% Stockholders. </I></B>Oritani&#146;s certificate of
incorporation provides that no beneficial owner, directly or indirectly, of more than 10.0% of the
outstanding shares of common stock will be permitted to vote any shares in excess of such 10.0%
limit. Oritani Financial Corp.&#146;s charter does not provide such a limit on voting common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, OTS regulations provide that for a period of three years following the date of
the completion of the offering, no person, acting singly or together with associates in a group of
persons acting in concert, may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10.0% of a class of Oritani&#146;s equity securities without the prior written
approval of the OTS. Where any person acquires beneficial ownership of more than 10.0% of a class
of Oritani&#146;s equity securities without the prior written approval of the OTS, the securities
beneficially owned by such person in excess of 10.0% may not be voted by any person or counted as
voting shares in connection with any matter submitted to the stockholders for a vote, and will not
be counted as outstanding for purposes of determining the affirmative vote necessary to approve any
matter submitted to the stockholders for a vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mergers, Consolidations and Sales of Assets. </I></B>A federal regulation applicable to Oritani
Financial Corp. generally requires the approval of two-thirds of the Board of Directors of Oritani
Financial Corp. and the holders of two-thirds of the outstanding stock of Oritani Financial Corp.
entitled to vote thereon for mergers, consolidations and sales of all or substantially all of
Oritani Financial Corp.&#146;s assets. Such regulation permits Oritani Financial Corp. to merge with
another corporation without obtaining the approval of its stockholders if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it does not involve an interim savings institution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp.&#146;s federal stock charter is not changed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each share of Oritani Financial Corp.&#146;s stock outstanding immediately prior to
the effective date of the transaction will be an identical outstanding share or a
treasury share of Oritani Financial Corp. after such effective date; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no shares of voting stock of Oritani Financial Corp. and no
securities convertible into such stock are to be issued or delivered under the
plan of combination; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the authorized but unissued shares or the treasury shares of
voting stock of Oritani Financial Corp. to be issued or delivered under the
plan of combination, plus those initially issuable upon conversion of any
securities to be issued or delivered under such plan, do not exceed 15% of the
total shares of voting stock of Oritani Financial Corp. outstanding immediately
prior to the effective date of the transaction.</TD>
</TR>




</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, &#147;business combinations&#148; between Oritani and an interested stockholder or
an affiliate of an interested stockholder are prohibited for five years after the most recent date
on which the interested stockholder becomes an interested stockholder. These business combinations
include a merger, consolidation, statutory share exchange or, in circumstances specified in the
statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and
reclassifications involving interested stockholders and their affiliates or issuance or
reclassification of equity securities. Delaware law defines an interested stockholder as: (i)&nbsp;any
person who beneficially owns 10.0% or more of the voting power of Oritani&#146;s voting stock after the
date on which Oritani had 100 or more beneficial owners of its stock; or (ii)&nbsp;an affiliate or
associate of Oritani at any time after the date on which Oritani had 100 or more beneficial owners
of its stock who, within the two-year period prior to the date in question, was the beneficial
owner of 10.0% or more of the voting power of the then-outstanding voting stock of Oritani. A
person is not an interested stockholder under the statute if the Board of Directors approved in
advance the transaction by which the person otherwise would have become an interested stockholder.
However, in approving a transaction, the Board of Directors may provide that its approval is
subject to compliance, at or after the time of approval, with any terms and conditions determined
by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i)&nbsp;80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani, and (ii)&nbsp;two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani&#146;s common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Evaluation of Offers. </I></B>The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic effect, both immediate and long-term, upon Oritani&#146;s stockholders,
including stockholders, if any, who do not participate in the transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether a more favorable price could be obtained for Oritani&#146;s stock or other
securities in the future;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;</TD>
</TR>


</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any antitrust or other legal and regulatory issues that are raised by the proposal;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp.&#146;s charter and bylaws do not contain a similar provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dissenters&#146; Rights of Appraisal</I></B><B>. </B>OTS regulations generally provide that a stockholder of a
federally chartered corporation that engages in a merger, consolidation or sale of all or
substantially all of its assets shall have the right to demand from such institution payment of the
fair or appraised value of his or her stock in the corporation, subject to specified procedural
requirements. The regulations also provide, however, that a stockholder of a federally chartered
corporation whose shares are listed on a national securities exchange or quoted on the Nasdaq stock
market are not entitled to dissenters&#146; rights in connection with a merger if the stockholder is
required to accept only &#147;qualified consideration&#148; for his or her stock, which is defined to include
cash, shares of stock of any institution or corporation that at the effective date of the merger
will be listed on a national securities exchange or quoted on the Nasdaq stock market, or any
combination of such shares of stock and cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, stockholders of Oritani will not have dissenters&#146; appraisal rights in
connection with a plan of merger or consolidation to which Oritani is a party as long as the common
stock of Oritani trades on the Nasdaq Global Market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Amendment of Governing Instruments</I></B><B>. </B>No amendment of Oritani Financial Corp.&#146;s stock charter
may be made unless it is first proposed by the Board of Directors of Oritani Financial Corp., then
preliminarily approved by the OTS, and thereafter approved by the holders of a majority of the
total votes eligible to be cast at a legal meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s certificate of incorporation may be amended, upon the submission of an amendment by
the Board of Directors to a vote of the stockholders, by the affirmative vote of at least
two-thirds of the outstanding shares of common stock, or by the affirmative vote of a majority of
the outstanding shares of common stock if at least two-thirds of the members of the whole Board of
Directors approves such amendment; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend the following provisions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The limitation on voting rights of persons who directly or indirectly
beneficially own more than 10.0% of the outstanding shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The division of the Board of Directors into three staggered classes;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the Board of Directors to fill vacancies on the board;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The requirement that at least a majority of the votes eligible to be cast by
stockholders must vote to remove directors, and can only remove directors for cause;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the Board of Directors to amend and repeal the bylaws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ability of the Board of Directors to evaluate a variety of factors in
evaluating offers to purchase or otherwise acquire Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The authority of the Board of Directors to provide for the issuance of
preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The validity and effectiveness of any action lawfully authorized by the affirmative
vote of the holders of a majority of the total number of outstanding shares of common
stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of stockholders constituting a quorum or required for stockholder
consent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The indemnification of current and former directors and officers, as well as
employees and other agents, by Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The limitation of liability of officers and directors to Oritani for money damages;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The inability of stockholders to cumulate their votes in the election of directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xiii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The advance notice requirements for stockholder proposals and nominations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(xiv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provision of the certificate of incorporation requiring approval of at
least 80% of the outstanding voting stock to amend the provisions of the certificate of
incorporation provided in (i)&nbsp;through (xiii)&nbsp;of this list.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate of incorporation also provides that the bylaws may be amended by the
affirmative vote of a majority of our directors or by the stockholders by the affirmative vote of
at least 80% of the total votes eligible to be voted at a duly constituted meeting of stockholders.
Any amendment of this super-majority requirement for amendment of the bylaws would also require
the approval of 80% of the outstanding voting stock.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RESTRICTIONS ON ACQUISITION OF ORITANI</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Board of Directors of Oritani is not aware of any effort that might be made to
obtain control of Oritani after the conversion, the Board of Directors believes that it is
appropriate to include certain provisions as part of Oritani&#146;s certificate of incorporation to
protect the interests of Oritani and its stockholders from takeovers which our Board of Directors
might conclude are not in the best interests of Oritani Bank, Oritani or Oritani&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a general summary of the material provisions of Oritani&#146;s
certificate of incorporation and bylaws, Oritani Bank&#146;s charter and bylaws and certain other
regulatory provisions that may be deemed to have an &#147;anti-takeover&#148; effect. The following
description of certain of these provisions is necessarily general and is not intended to be a
complete description of the document or regulatory provision in question. Oritani&#146;s certificate of
incorporation and bylaws are included as part of Oritani Financial Corp., MHC&#146;s application for
conversion filed with the OTS and Oritani&#146;s registration statement filed with the Securities and
Exchange Commission. See &#147;Where You Can Find Additional Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certificate of Incorporation and Bylaws of Oritani</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani&#146;s certificate of incorporation and bylaws contain a number of provisions relating to
corporate governance and rights of stockholders that may discourage future takeover attempts. As a
result, stockholders who might desire to participate in such transactions may not have an
opportunity to do so. In addition, these provisions will also render the removal of the Board of
Directors or management of Oritani more difficult.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Directors</I></B><I>. </I>The Board of Directors will be divided into three classes. The members of each
class will be elected for a term of three years and only one class of directors will be elected
annually. Thus, it would take at least two annual elections to replace a majority of our Board of
Directors. Further, the bylaws impose notice and information requirements in connection with the
nomination by stockholders of candidates for election to the Board of Directors or the proposal by
stockholders of business to be acted upon at an annual meeting of stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Call of Special Meetings</I></B><I>. </I>The certificate of incorporation and bylaws provide
that special meetings of stockholders can be called by the President, by a majority of the whole
Board of Directors or upon the written request of stockholders entitled to cast at least a majority
of all votes entitled to vote at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Prohibition of Cumulative Voting</I></B><I>. </I>The certificate of incorporation prohibits cumulative
voting for the election of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitation of Voting Rights</I></B><I>. </I>The certificate of incorporation provides that in no event will
any person who beneficially owns more than 10.0% of the then-outstanding shares of common stock, be
entitled or permitted to vote any of the shares of common stock held in excess of the 10.0% limit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Removing Directors from Office</I></B><I>. </I>The certificate of incorporation provides
that directors may be removed only for cause, and only by the affirmative vote of the holders of at
least a majority of the voting power of all of our then-outstanding common stock entitled to vote
(after giving effect to the limitation on voting rights discussed above in &#147;&#151;Limitation of Voting
Rights.&#148;)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Authorized but Unissued Shares</I></B>. After the conversion, Oritani will have authorized but
unissued shares of common and preferred stock. See &#147;Description of Capital Stock of Oritani
Following
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Conversion.&#148; The certificate of incorporation authorizes 25,000,000 shares of serial
preferred stock. Oritani is authorized to issue preferred stock from time to time in one or more
series subject to applicable provisions of law, and the Board of Directors is authorized to fix the
designations, and relative preferences, limitations, voting rights, if any, including without
limitation, offering rights of such shares (which could be multiple or as a separate class). In
the event of a proposed merger, tender offer or other attempt to gain control of Oritani that the
Board of Directors does not approve, it might be possible for the Board of Directors to authorize
the issuance of a series of preferred stock with rights and preferences that would impede the
completion of the transaction. An effect of the possible issuance of preferred stock therefore may
be to deter a future attempt to gain control of Oritani. The Board of Directors has no present
plan or understanding to issue any preferred stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Amendments to Certificate of Incorporation and Bylaws. </I></B>Amendments to the certificate of
incorporation must be approved by our Board of Directors and also by at least a majority of the
outstanding shares of our voting stock; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend certain provisions. A list of these
provisions is provided under &#147;Comparison of Stockholders&#146; Rights For Existing Stockholders of
Oritani Financial Corp.&#151;Amendment of Governing Instruments&#148; above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate of incorporation also provide that the bylaws may be amended by the
affirmative vote of a majority of Oritani&#146;s directors or by the stockholders by the affirmative
vote of at least 80% of the total votes eligible to be voted at a duly constituted meeting of
stockholders. Any amendment of this super-majority requirement for amendment of the bylaws would
also require the approval of 80% of the outstanding voting stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Business Combinations with Interested Stockholders</I></B><I>. </I>Under Delaware law, &#147;business
combinations&#148; between Oritani and an interested stockholder or an affiliate of an interested
stockholder are prohibited for five years after the most recent date on which the interested
stockholder becomes an interested stockholder. These business combinations include a merger,
consolidation, statutory share exchange or, in circumstances specified in the statute, certain
transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications
involving interested stockholders and their affiliates or issuance or reclassification of equity
securities. Delaware law defines an interested stockholder as: (i)&nbsp;any person who beneficially owns
10.0% or more of the voting power of Oritani&#146;s voting stock after the date on which Oritani had 100
or more beneficial owners of its stock; or (ii)&nbsp;an affiliate or associate of Oritani at any time
after the date on which Oritani had 100 or more beneficial owners of its stock who, within the
two-year period prior to the date in question, was the beneficial owner of 10.0% or more of the
voting power of the then-outstanding voting stock of Oritani. A person is not an interested
stockholder under the statute if the Board of Directors approved in advance the transaction by
which the person otherwise would have become an interested stockholder. However, in approving a
transaction, the Board of Directors may provide that its approval is subject to compliance, at or
after the time of approval, with any terms and conditions determined by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i)&nbsp;80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani and (ii)&nbsp;two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani&#146;s common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->183<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Evaluation of Offers. </I></B>The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economic effect, both immediate and long-term, upon Oritani&#146;s stockholders,
including stockholders, if any, who do not participate in the transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether a more favorable price could be obtained for Oritani&#146;s stock or other
securities in the future;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any antitrust or other legal and regulatory issues that are raised by the proposal;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Purpose and Anti-Takeover Effects of Oritani&#146;s Certificate of Incorporation and Bylaws</I></B><B>. </B>Our
Board of Directors believes that the provisions described above are prudent and will reduce our
vulnerability to takeover attempts and certain other transactions that have not been negotiated
with and approved by our Board of Directors. These provisions also will assist us in the orderly
deployment of the offering proceeds into productive assets during the initial period after the
conversion. Our Board of Directors believes these provisions are in the best interests of Oritani
and its stockholders. Our Board of Directors believes that it will be in the best position to
determine the true value of Oritani and to negotiate more effectively for what may be in the best
interests of its stockholders. Accordingly, our Board of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Directors believes that it is in the best interests of Oritani and its stockholders to
encourage potential acquirers to negotiate directly with the Board of Directors and that these
provisions will encourage such negotiations and discourage hostile takeover attempts. It is also
the view of our Board of Directors that these provisions should not discourage persons from
proposing a merger or other transaction at a price reflective of the true value of Oritani and that
is in the best interests of all stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Takeover attempts that have not been negotiated with and approved by our Board of Directors
present the risk of a takeover on terms that may be less favorable than might otherwise be
available. A transaction that is negotiated and approved by our Board of Directors, on the other
hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value
of Oritani for our stockholders, with due consideration given to matters such as the management and
business of the acquiring corporation and maximum strategic development of Oritani&#146;s assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although a tender offer or other takeover attempt may be made at a price substantially above
the current market price, such offers are sometimes made for less than all of the outstanding
shares of a target company. As a result, stockholders may be presented with the alternative of
partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be
similar to those of the remaining stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite our belief as to the benefits to stockholders of these provisions of Oritani&#146;s
certificate of incorporation and bylaws, these provisions may also have the effect of discouraging
a future takeover attempt that would not be approved by our Board of Directors, but pursuant to
which stockholders may receive a substantial premium for their shares over then current market
prices. As a result, stockholders who might desire to participate in such a transaction may not
have any opportunity to do so. Such provisions will also make it more difficult to remove our Board
of Directors and management. Our Board of Directors, however, has concluded that the potential
benefits outweigh the possible disadvantages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the conversion, pursuant to applicable law and, if required, following the approval
by stockholders, we may adopt additional anti-takeover provisions in our certificate of
incorporation or other devices regarding the acquisition of our equity securities that would be
permitted for a Delaware business corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cumulative effect of the restrictions on acquisition of Oritani contained in our
certificate of incorporation and bylaws and in Delaware law may be to discourage potential takeover
attempts and perpetuate incumbent management, even though certain stockholders of Oritani may deem
a potential acquisition to be in their best interests, or deem existing management not to be acting
in their best interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conversion Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTS regulations prohibit any person from making an offer, announcing an intent to make an
offer or participating in any other arrangement to purchase stock or acquiring stock or
subscription rights in a converting institution or its holding company from another person prior to
completion of its conversion. Further, without the prior written approval of the OTS, no person may
make an offer or announcement of an offer to purchase shares or actually acquire shares of an OTS
regulated holding company of a converted institution for a period of three years from the date of
the completion of the conversion if, upon the completion of such offer, announcement or
acquisition, the person would become the beneficial owner of more than 10.0% of the outstanding
stock of the holding company. The OTS has defined &#147;person&#148; to include any individual, group acting
in concert, corporation, partnership, association, joint stock company, trust, unincorporated
organization or similar company, a syndicate or any other group formed
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for the purpose of acquiring, holding or disposing of securities of an insured institution.
However, offers made exclusively to a bank or its holding company, or an underwriter or member of a
selling group acting on the converting institution&#146;s or its holding company&#146;s behalf for resale to
the general public are excepted. The regulation also provides civil penalties for willful violation
or assistance in any such violation of the regulation by any person connected with the management
of the converting institution or its holding company or who controls more than 10.0% of the
outstanding shares or voting rights of a converted institution or its holding company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Change in Control Regulations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Change in Bank Control Act, no person may acquire control of an insured federal
savings bank or its parent holding company unless the OTS has been given 60&nbsp;days&#146; prior written
notice and has not issued a notice disapproving the proposed acquisition. In addition, OTS
regulations provide that no company may acquire control of a savings bank without the prior
approval of the OTS. Any company that acquires such control becomes a &#147;savings and loan holding
company&#148; subject to registration, examination and regulation by the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control, as defined under federal law, means ownership, control of or holding irrevocable
proxies representing more than 25% of any class of voting stock, control in any manner of the
election of a majority of the institution&#146;s directors, or a determination by the OTS that the
acquiror has the power to direct, or directly or indirectly to exercise a controlling influence
over, the management or policies of the institution. Acquisition of more than 10.0% of any class of
a savings bank&#146;s voting stock, if the acquiror is also subject to any one of eight &#147;control
factors,&#148; constitutes a rebuttable determination of control under the regulations. Such control
factors include the acquiror being one of the two largest stockholders. The determination of
control may be rebutted by submission to the OTS, prior to the acquisition of stock or the
occurrence of any other circumstances giving rise to such determination, of a statement setting
forth facts and circumstances which would support a finding that no control relationship will exist
and containing certain undertakings. The regulations provide that persons or companies which
acquire beneficial ownership exceeding 10.0% or more of any class of a savings bank&#146;s stock who do
not intend to participate in or seek to exercise control over a savings bank&#146;s management or
policies may qualify for a safe harbor by filing with the OTS a certification form that states,
among other things, that the holder is not in control of such institution, is not subject to a
rebuttable determination of control and will take no action which would result in a determination
or rebuttable determination of control without prior notice to or approval of the OTS, as
applicable. There are also rebuttable presumptions in the regulations concerning whether a group
&#147;acting in concert&#148; exists, including presumed action in concert among members of an &#147;immediate
family.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The OTS may prohibit an acquisition of control if it finds, among other things, that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the acquisition would result in a monopoly or substantially lessen competition;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the financial condition of the acquiring person might jeopardize the financial
stability of the institution; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the competence, experience or integrity of the acquiring person indicates that
it would not be in the interest of the depositors or the public to permit the
acquisition of control by such person.</TD>
</TR>






</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani is authorized to issue 150,000,000 shares of common stock, par value of $0.01 per
share, and 25,000,000 shares of preferred stock, par value $0.01 per share. Oritani currently
expects to issue in the offering up to 44,850,000 shares of common stock, subject to adjustment,
and up to 51,577,500 shares, subject to adjustment, in exchange for the publicly held shares of
Oritani Financial Corp. Oritani will not issue shares of preferred stock in the conversion. Each
share of common stock will have the same relative rights as, and will be identical in all respects
to, each other share of common stock. Upon payment of the subscription price for the common stock,
in accordance with the plan of conversion and reorganization, all of the shares of common stock
will be duly authorized, fully paid and nonassessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock of Oritani will represent nonwithdrawable capital, will not be an
account of an insurable type, and will not be insured by the FDIC or any other government agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dividends</I></B><I>. </I>Oritani may pay dividends to an amount equal to the excess of our capital surplus
over payments that would be owed upon dissolution to stockholders whose preferential rights upon
dissolution are superior to those receiving the dividend, and to an amount that would not make us
insolvent, as and when declared by our Board of Directors. The payment of dividends by Oritani is
subject to limitations that are imposed by law and applicable regulation. The holders of common
stock of Oritani will be entitled to receive and share equally in dividends as may be declared by
our Board of Directors out of funds legally available therefor. If Oritani issues shares of
preferred stock, the holders thereof may have a priority over the holders of the common stock with
respect to dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Rights</I></B><I>. </I>Upon consummation of the conversion, the holders of common stock of Oritani
will have exclusive voting rights in Oritani. They will elect Oritani&#146;s Board of Directors and act
on other matters as are required to be presented to them under Delaware law or as are otherwise
presented to them by the Board of Directors. Generally, each holder of common stock will be
entitled to one vote per share and will not have any right to cumulate votes in the election of
directors. Any person who beneficially owns more than 10.0% of the then-outstanding shares of
Oritani&#146;s common stock, however, will not be entitled or permitted to vote any shares of common
stock held in excess of the 10.0% limit. If Oritani issues shares of preferred stock, holders of
the preferred stock may also possess voting rights. Certain matters require an 80% stockholder
vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a Delaware stock savings bank, corporate powers and control of Oritani Bank are vested in
its Board of Directors, who elect the officers of Oritani Bank and who fill any vacancies on the
Board of Directors. Voting rights of Oritani Bank are vested exclusively in the owners of the
shares of capital stock of Oritani Bank, which will be Oritani, and voted at the direction of
Oritani&#146;s Board of Directors. Consequently, the holders of the common stock of Oritani will not
have direct control of Oritani Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidation</I></B><I>. </I>In the event of any liquidation, dissolution or winding up of Oritani Bank,
Oritani, as the holder of 100% of Oritani Bank&#146;s capital stock, would be entitled to receive all
assets of Oritani Bank available for distribution, after payment or provision for payment of all
debts and liabilities of Oritani Bank, including all deposit accounts and accrued interest thereon,
and after distribution of the balance in the liquidation account to Eligible Account Holders and
Supplemental Eligible Account Holders. In the event of liquidation, dissolution or winding up of
Oritani, the holders of its common stock would be entitled to receive, after payment or provision
for payment of all its debts and liabilities, all of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->187<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the assets of Oritani available for distribution. If preferred stock is issued, the holders
thereof may have a priority over the holders of the common stock in the event of liquidation or
dissolution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Preemptive Rights</I></B><I>. </I>Holders of the common stock of Oritani will not be entitled to preemptive
rights with respect to any shares that may be issued. The common stock is not subject to
redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the shares of Oritani&#146;s authorized preferred stock will be issued as part of the
offering or the conversion. Preferred stock may be issued with preferences and designations as our
Board of Directors may from time to time determine. Our Board of Directors may, without stockholder
approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights
that could dilute the voting strength of the holders of the common stock and may assist management
in impeding an unfriendly takeover or attempted change in control.
</DIV>
<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TRANSFER AGENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer agent and registrar for Oritani&#146;s common stock is Registrar and Transfer Company,
Cranford, New Jersey.
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>

    <TD colspan="2">The consolidated financial statements of Oritani Financial Corp. and subsidiaries as of
June&nbsp;30, 2009 and 2008, and for each of the years in the three-year period ended June&nbsp;30, 2009,
have been included herein in reliance upon the report of KPMG LLP, independent registered public
accounting firm, which is included herein and upon the authority of said firm as experts in
accounting and auditing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussions related to state income taxes included under &#147;The Conversion and
Offering&#151;Material Income Tax Consequences&#148; were prepared for us by KPMG LLP, independent
registered public accounting firm, and have been included herein upon the authority of said firm as
experts in tax matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RP Financial, LC. has consented to the publication herein of the summary of its report to
Oritani setting forth its opinion as to the estimated pro forma market value of the shares of
common stock upon completion of the offering and its letter with respect to subscription rights.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->188<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luse Gorman Pomerenk &#038; Schick, P.C., Washington, D.C., counsel to Oritani, Oritani Financial
Corp., MHC, Oritani Financial Corp. and Oritani Bank, will issue to Oritani its opinion regarding
the legality of the common stock and the federal income tax consequences of the conversion.
Certain legal matters will be passed upon for Stifel, Nicolaus &#038; Company, Incorporated by
Sonnenschein Nath &#038; Rosenthal LLP, Washington, D.C.
</DIV>
<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani has filed with the Securities and Exchange Commission a registration statement under
the Securities Act of 1933 with respect to the shares of common stock offered hereby. As permitted
by the rules and regulations of the Securities and Exchange Commission, this prospectus does not
contain all the information set forth in the registration statement. Such information, including
the appraisal report which is an exhibit to the registration statement, can be examined without
charge at the public reference facilities of the Securities and Exchange Commission located at 100
F Street, N.E., Washington, D.C. 20549, and copies of such material can be obtained from the
Securities and Exchange Commission at prescribed rates. The Securities and Exchange Commission
telephone number is 1-800-SEC-0330. In addition, the Securities and Exchange Commission maintains
a web site (<U>http://www.sec.gov</U>) that contains reports, proxy and information statements and
other information regarding registrants that file electronically with the Securities and Exchange
Commission, including Oritani. The statements contained in this prospectus as to the contents of
any contract or other document filed as an exhibit to the registration statement are, of necessity,
brief descriptions of the material terms of, and should be read in conjunction with, such contract
or document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oritani Financial Corp., MHC has filed with the OTS an Application on Form&nbsp;AC with respect to
the conversion. This prospectus omits certain information contained in the application. The
application may be examined at the principal office of the OTS, 1700 G Street, N.W., Washington,
D.C. 20552, and at the Northeast Regional Office of the OTS, Harborside Financial Center Plaza
Five, Suite&nbsp;1600, Jersey City, New Jersey 07311. Our plan of conversion and reorganization is
available, upon request, at each of our banking offices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>In connection with the offering, Oritani will register its common stock under </B><B>Section 12(b)</B><B> of
the Securities Exchange Act of 1934 and, upon such registration, Oritani and the holders of its
common stock will become subject to the proxy solicitation rules, reporting requirements and
restrictions on common stock purchases and sales by directors, officers and greater than 10%
stockholders, the annual and periodic reporting and certain other requirements of the Securities
Exchange Act of 1934. Under the plan of conversion and reorganization, Oritani has undertaken that
it will not terminate such registration for a period of at least three years following the
offering.</B>
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this document, the Board of Directors is not aware of any business to come
before the special meeting other than the matters described above in the proxy
statement/prospectus. However, if any matters should properly come before the special meeting, it
is intended that the holders of the proxies will act in accordance with their best judgment.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->189<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>PART II:</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;13.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Other Expenses of Issuance and Distribution</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><u>Amount</u></TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">

    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registrant&#146;s Legal Fees and Expenses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registrant&#146;s Accounting Fees and Expenses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marketing and Records Management Fees (1) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,315,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marketing Agent Expenses (Including Legal Fees and Expenses) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Appraisal Fees and Expenses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Plan Fees and Expenses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing, Edgar and Mailing Fees (Excluding Postage) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Postage </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Filing Fees (FINRA, Nasdaq, SEC, OTS) </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proxy Solicitation </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer Agent and registrar fees and expenses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">*</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,072,440</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Oritani Financial Corp. has retained Stifel, Nicolaus &#038; Company, Incorporated to assist in
the sale of common stock on a best efforts basis in the offerings, and to serve as records
management agent in connection with the conversion and offering. Fees are estimated at the
maximum, as adjusted, of the offering range.</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;14.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Indemnification of Directors and Officers</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Articles 9 and 10 of the Certificate of Incorporation of Oritani Financial Corp. (the
&#147;Corporation&#148;) set forth circumstances under which directors, officers, employees and agents of the
Corporation may be insured or indemnified against liability which they incur in their capacities as
such:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NINETH</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each person who was or is made a party or is threatened to be made a party to or is
otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or
investigative (hereinafter a &#147;proceeding&#148;), by reason of the fact that he or she is or was a
Director or an Officer of the Corporation or is or was serving at the request of the Corporation as
a Director, Officer, employee or agent of another corporation or of a partnership, joint venture,
trust or other enterprise, including service with respect to an employee benefit plan (hereinafter
an &#147;indemnitee&#148;), whether the basis of such proceeding is alleged action in an official capacity as
a Director, Officer, employee or agent or in any other capacity while serving as a Director,
Officer, employee or agent, shall be indemnified and held harmless by the Corporation to the
fullest extent authorized by the Delaware General Corporation Law, as the same exists or may
hereafter be amended (but, in the case of any such amendment, only to the extent that such
amendment permits the Corporation to provide broader indemnification rights than such law permitted
the Corporation to provide prior to such amendment), against all expense, liability and loss
(including attorneys&#146; fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in
settlement) reasonably incurred or suffered by such indemnitee in connection therewith; provided,
however, that, except as provided in Section&nbsp;C hereof with respect to proceedings to enforce rights
to indemnification, the Corporation shall indemnify any such indemnitee in connection with a
proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof)
was authorized by the Board of Directors of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The right to indemnification conferred in Section&nbsp;A of this Article&nbsp;NINETH shall include
the right to be paid by the Corporation the expenses incurred in defending any such proceeding in
advance of its final disposition (hereinafter an &#147;advancement of expenses&#148;); provided, however,
that, if the Delaware General Corporation Law requires an advancement of expenses incurred by an
indemnitee in his or her capacity as a Director of Officer (and not in any other capacity in which
service was or is rendered by such indemnitee, including, without
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">limitation, service to an employee benefit plan) shall be made only upon delivery to the
Corporation of an undertaking (hereinafter an &#147;undertaking&#148;), by or on behalf of such indemnitee,
to repay all amounts so advanced if it shall ultimately be determined by final judicial decision
from which there is no further right to appeal (hereinafter a &#147;final adjudication&#148;) that such
indemnitee is not entitled to be indemnified for such expenses under this Section or otherwise.
The rights to indemnification and to the advancement of expenses conferred in Sections&nbsp;A and B of
this Article&nbsp;NINETH shall be contract rights and such rights shall continue as to an indemnitee who
has ceased to be a Director, Officer, employee or agent and shall inure to the benefit of the
indemnitee&#146;s heirs, executors and administrators.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a claim under Section&nbsp;A or B of this Article&nbsp;NINETH is not paid in full by the
Corporation within sixty days after a written claim has been received by the Corporation, except in
the case of a claim for an advancement of expenses, in which case the applicable period shall be
twenty days, the indemnitee may at any time thereafter bring suit against the Corporation to
recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in
a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an
undertaking, the indemnitee also shall be entitled to be paid the expense of prosecuting or
defending such suit. In (i)&nbsp;any suit brought by the indemnitee to enforce a right to
indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an
advancement of expenses) it shall be a defense that, and (ii)&nbsp;in any suit by the Corporation to
recover an advancement of expenses pursuant to the terms of an undertaking the Corporation shall be
entitled to recover such expenses upon a final adjudication that, the indemnitee has not met any
applicable standard for indemnification set forth in the Delaware General Corporation Law. Neither
the failure of the Corporation (including its Board of Directors, independent legal counsel, or its
stockholders) to have made a determination prior to the commencement of such suit that
indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the
applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual
determination by the Corporation (including its Board of Directors, independent legal counsel, or
its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create
a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of
such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the
indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or by
the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the
burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of
expenses, under this Article&nbsp;NINTH or otherwise shall be on the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights to indemnification and to the advancement of expenses conferred in this Article
NINETH shall not be exclusive of any other right which any person may have or hereafter acquire
under any statute, the Corporation&#146;s Certificate of Incorporation, Bylaws, agreement, vote of
stockholders or disinterested Directors or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation may maintain insurance, at its expense, to protect itself and any Director,
Officer, employee or agent of the Corporation or another corporation, partnership, joint venture,
trust or other enterprise against any expense, liability or loss, whether or not the Corporation
would have the power to indemnify such person against such expense, liability or loss under the
Delaware General Corporation Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation may, to the extent authorized from time to time by the Board of Directors,
grant rights to indemnification and to the advancement of expenses to any employee or agent of the
Corporation to the fullest extent of the provisions of this Article&nbsp;NINTH with respect to the
indemnification and advancement of expenses of Directors and Officers of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TENTH</B>: A Director of this Corporation shall not be personally liable to the Corporation or
its stockholders for monetary damages for breach of fiduciary duty as a Director, except for
liability (i)&nbsp;for any breach of the Director&#146;s duty of loyalty to the Corporation or its
stockholders, (ii)&nbsp;for acts or omissions not in good faith or which involve intentional misconduct
or a knowing violation of law, (iii)&nbsp;under Section&nbsp;174 of the Delaware General Corporation Law, or
(iv)&nbsp;for any transaction from which the Director derived an improper personal benefit. If the
Delaware General Corporation Law is amended to authorize corporate action further eliminating or
limiting the personal liability of Directors, then the liability of a Director of the Corporation
shall be eliminated or limited to the fullest extent permitted by the Delaware General Corporation
Law, as so amended.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation
shall not adversely affect any right or protection of a Director of the Corporation existing at the
time of such repeal or modification.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;15.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Recent Sales of Unregistered Securities</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;16.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Exhibits and Financial Statement Schedules:</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exhibits and financial statement schedules filed as part of this registration statement are as follows:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="right"><DIV style="margin-left:0px; text-indent:-0px"><B>(a)</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>List of Exhibits</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Engagement Letter between Oritani Financial Corp. and Oritani Financial Corp., MHC and Stifel,
Nicolaus &#038; Company, Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Agency Agreement between Oritani Financial Corp. and Stifel, Nicolaus &#038; Company,
Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp., MHC Plan of Conversion and Reorganization (Incorporated by reference
to Exhibit&nbsp;2.1 to the Registrant&#146;s Current Report on Form 8-K filed with the SEC on February
22, 2010).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certificate of Incorporation of Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bylaws of Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Common Stock Certificate of Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Opinion of Luse Gorman Pomerenk &#038; Schick regarding legality of securities being registered</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Federal Tax Opinion of Luse Gorman Pomerenk &#038; Schick</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employment Agreement between Oritani Financial Corp. and Kevin J. Lynch**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Employment Agreement between Oritani Financial Corp. and executive officers**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank Director Retirement Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank Benefit Equalization Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank Executive Supplemental Retirement Income Agreement**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Employee Stock Ownership Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Director Deferred Fee Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp. 2007 Equity Incentive Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">21</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subsidiaries of Registrant (Incorporated by reference to Exhibit&nbsp;21 to the Registrant&#146;s
Annual Report on Form 10-K filed with the SEC on September&nbsp;11, 2009).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of Luse Gorman Pomerenk &#038; Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of KPMG LLP</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of RP Financial, LC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">24</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Power of Attorney (set forth on signature page)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appraisal Agreement between Oritani Bank and RP Financial, LC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business Plan Agreement by and among Oritani Bank, Oritani Financial Corp. and FinPro, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appraisal Report of RP Financial, LC.***</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letter of RP Financial, LC. with respect to subscription rights</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letter of RP Financial, LC with respect to liquidation rights</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Marketing Materials*</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Order and Acknowledgment Form*</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed supplementally or by amendment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial
Corp. (file no. 333-137309), originally filed with the Securities and Exchange Commission on
September&nbsp;14, 2006.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">***</TD>
    <TD>&nbsp;</TD>
    <TD>Supporting financial schedules filed in paper format only pursuant to Rule&nbsp;202 of Regulation
S-T. Available for inspection, during business hours, at the principal offices of the SEC in
Washington, D.C.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statement Schedules</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No financial statement schedules are filed because the required information is not applicable
or is included in the consolidated financial statements or related notes.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;17.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Undertakings</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned Registrant hereby undertakes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section&nbsp;10(a)(3) of the
Securities Act of 1933;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may be reflected in the form
of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than a 20&nbsp;percent change in the
maximum aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148;
table in the effective registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such
information in the registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;That, for purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule&nbsp;430A and contained in a form of prospectus filed by the registrant pursuant to
Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933,
each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;That, for the purpose of determining liability of the registrant under the Securities
Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned
registrant undertakes that in a primary offering of securities of the undersigned registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the
securities to the purchaser, if the securities are offered or sold to such purchaser by means of
any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant
relating to the offering required to be filed pursuant to Rule&nbsp;424 (&#167;230.424 of this
chapter);
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the offering prepared by or on behalf
of the undersigned registrant or used or referred to by the undersigned registrant;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the
undersigned registrant to the purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;The undersigned registrant hereby undertakes to provide to the underwriter at the closing
specified in the underwriting agreement certificates in such denominations and registered in such
names as required by the underwriter to permit prompt delivery to each purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the Township of Washington, State of New Jersey on March&nbsp;5, 2010.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>ORITANI FINANCIAL CORP.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Kevin J. Lynch
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Kevin J. Lynch&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chairman, President and Chief Executive Officer<br>
(Duly Authorized Representative)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We, the undersigned directors and officers of Oritani Financial Corp. (the &#147;Company&#148;) hereby
severally constitute and appoint Kevin J. Lynch as our true and lawful attorney and agent, to do
any and all things in our names in the capacities indicated below which said Kevin J. Lynch may
deem necessary or advisable to enable the Company to comply with the Securities Act of 1933, and
any rules, regulations and requirements of the Securities and Exchange Commission, in connection
with the registration statement on Form S-1 relating to the offering of the Company&#146;s common stock,
including specifically, but not limited to, power and authority to sign for us in our names in the
capacities indicated below the registration statement and any and all amendments (including
post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said Kevin
J. Lynch shall do or cause to be done by virtue thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="41%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Signatures</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Kevin J. Lynch
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Kevin J. Lynch</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Chairman of the Board,
President<br> and Chief
Executive Officer<br>
(Principal Executive
Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ John M. Fields
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
John M. Fields, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Executive Vice President
and <br>Chief Financial
Officer<br>(Principal
Financial and Accounting
Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Michael A. DeBernardi
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Michael A. DeBernardi</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director, Executive Vice
President and<br> Chief
Operating Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Nicholas Antonaccio
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Nicholas Antonaccio</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ James J. Doyle, Jr.
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
James J. Doyle, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Robert S. Hekemian, Jr.
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Robert S. Hekemian, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ John J. Skelly, Jr.
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
John J. Skelly, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 5, 2010</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on March___, 2010</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Registration No.&nbsp;333-________</B>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt; margin-top: 2pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>







<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>_____________________________________</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 8pt"><B>_____________________________________</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EXHIBITS<BR>
TO<BR>
REGISTRATION STATEMENT<BR>
ON<BR>
FORM S-1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><B>Oritani Financial Corp.<BR>
Township of Washington, New Jersey</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt">&nbsp;
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Engagement Letter between Oritani Financial Corp. and Oritani Financial Corp., MHC and Stifel,
Nicolaus &#038; Company, Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Agency Agreement between Oritani Financial Corp. and Stifel, Nicolaus &#038; Company,
Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp., MHC Plan of Conversion and Reorganization (Incorporated by reference
to Exhibit&nbsp;2.1 to the Registrant&#146;s Current Report on Form 8-K filed with the SEC on February
22, 2010).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certificate of Incorporation of Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bylaws of Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Common Stock Certificate of Oritani Financial Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Opinion of Luse Gorman Pomerenk &#038; Schick regarding legality of securities being registered</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Federal Tax Opinion of Luse Gorman Pomerenk &#038; Schick</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employment Agreement between Oritani Financial Corp. and Kevin J. Lynch**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Employment Agreement between Oritani Financial Corp. and executive officers**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank Director Retirement Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank Benefit Equalization Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Bank Executive Supplemental Retirement Income Agreement**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Employee Stock Ownership Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Director Deferred Fee Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oritani Financial Corp. 2007 Equity Incentive Plan**</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">21</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subsidiaries of Registrant (Incorporated by reference to Exhibit&nbsp;21 to the Registrant&#146;s
Annual Report on Form 10-K filed with the SEC on September&nbsp;11, 2009).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of Luse Gorman Pomerenk &#038; Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of KPMG LLP</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of RP Financial, LC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">24</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Power of Attorney (set forth on signature page)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appraisal Agreement between Oritani Bank and RP Financial, LC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business Plan Agreement by and among Oritani Bank, Oritani Financial Corp. and FinPro, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appraisal Report of RP Financial, LC.***</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letter of RP Financial, LC. with respect to subscription rights</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letter of RP Financial, LC with respect to liquidation rights</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Marketing Materials*</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Order and Acknowledgment Form*</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed supplementally or by amendment.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial
Corp. (file no. 333-137309), originally filed with the Securities and Exchange Commission on
September&nbsp;14, 2006.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">***</TD>
    <TD>&nbsp;</TD>
    <TD>Supporting financial schedules filed in paper format only pursuant to Rule&nbsp;202 of Regulation
S-T. Available for inspection, during business hours, at the principal offices of the SEC in
Washington, D.C.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
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sv1
Table of Contents
As filed with the Securities and Exchange Commission on March 5, 2010
Registration No. 333-________
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
ORITANI FINANCIAL CORP. AND
ORITANI BANK 401(K) PLAN
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
6712
(Primary Standard Industrial
Classification Code Number)
Being Applied For
(I.R.S. Employer
Identification Number)
370 Pascack Road
Township of Washington, New Jersey 07676
(201) 664-5400
(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Registrant's Principal Executive Offices)
Kevin J. Lynch
President and Chief Executive Officer
370 Pascack Road
Township of Washington, New Jersey 07676
(201) 664-5400
(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Agent for Service)
Copies to:
John J. Gorman, Esq.
Marc P. Levy, Esq.
Luse Gorman Pomerenk & Schick, P.C.
5335 Wisconsin Avenue, N.W., Suite 780
Washington, D.C. 20015
(202) 274-2000
Approximate date of commencement of proposed sale to the public:
As soon as practicable after this
registration statement becomes effective.
If any of the securities being registered on this Form are to be offered on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act of 1933, check the following box:
x
If this Form is filed to register additional shares for an offering pursuant to Rule 462(b) under
the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering:
o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:
o
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated
filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
(Check one):
Large accelerated filer
o
Accelerated filer
x
Non-accelerated filer
o
Smaller reporting company
o
(Do not check if a smaller reporting company)
CALCULATION OF REGISTRATION FEE
Proposed maximum
Proposed maximum
Title of each class of
Amount to be
offering price
aggregate
Amount of
securities to be registered
registered
per share
offering price
registration fee
Common Stock, $0.01 par value per share
69,282,277 shares
$
10.00
$692,822,770(1)
$49,399
Participation Interests
570,000 interests
(2)
(1)
Estimated solely for the purpose of calculating the registration fee.
(2)
The securities of Oritani Financial Corp. to be purchased by the Oritani Bank 401(k) Plan are
included in the amount shown for common stock. However, pursuant to Rule 457(h) of the
Securities Act of 1933, as amended, no separate fee is required for the participation
interests. Pursuant to such rule, the amount being registered has been calculated on the
basis of the number of shares of common stock that may be purchased with the current assets of
such plan.
The registrant hereby amends this registration statement on such date or dates as may be necessary
to delay its effective date until the registrant shall file a further amendment which specifically
states that this registration shall thereafter become effective in accordance with
Section 8(a)
of
the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section
8(a)
, may determine.
Table of Contents
Prospectus Supplement
Interests in
ORITANI BANK
EMPLOYEES' SAVINGS & PROFIT SHARING PLAN AND TRUST
Offering of Participation Interests in up to 570,000 Shares of
ORITANI FINANCIAL CORP.
Common Stock
In connection with the conversion of Oritani Financial Corp., MHC from the mutual to stock
form of organization, Oritani Financial Corp. is allowing participants in the Oritani Bank
Employees' Savings & Profit Sharing Plan and Trust (the "Plan") to invest all or a portion of their
accounts in the common stock of Oritani Financial Corp., the newly formed Delaware corporation
(other than amounts the participants presently have invested in the common stock of Oritani
Financial Corp., the federally chartered stock holding company of Oritani Bank). Based upon the
value of the Plan assets at February 25, 2010, Oritani Financial Corp. has registered a number of
participation interests through the Plan in order to enable the trustee of the Plan to purchase or
acquire approximately 570,000 shares of common stock at $10 per share. This prospectus supplement
relates to the election of Plan participants to direct the trustee of the Plan to invest all or a
portion of their Plan accounts in stock units representing an ownership interest in the Oritani
Financial Corp. Stock Fund (the "New Employer Stock Fund") at the time of the stock offering.
The prospectus of Oritani Financial Corp., dated
, 2010, accompanies this
prospectus supplement. It contains detailed information regarding the conversion and stock
offering of Oritani Financial Corp. and the financial condition, results of operations and business
of Oritani Financial Corp. and Oritani Bank. You should read this prospectus supplement, which
provides information with respect to the Plan, together with the prospectus.
For a discussion of risks that you should consider before making an investment decision, see
"Risk Factors" beginning on page ___ of the prospectus.
The interests in the Plan and the common stock being offered have not been approved or
disapproved by the Office of Thrift Supervision, the Securities and Exchange Commission or any
other federal or state agency. Any representation to the contrary is a criminal offense.
The securities offered in this prospectus supplement are not deposits or accounts and are not
insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any other government
agency.
Table of Contents
This prospectus supplement may be used only in connection with offers and sales by Oritani
Financial Corp., of participation interests in the Plan consisting of shares of common stock of
Oritani Financial Corp. No one may use this prospectus supplement to reoffer or resell interests
or shares of common stock acquired through the Plan.
You should rely only on the information contained in this prospectus supplement and the
prospectus. Oritani Financial Corp., Oritani Bank and the Plan have not authorized anyone to
provide you with information that is different.
This prospectus supplement does not constitute an offer to sell or solicitation of an offer to
buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer or
solicitation in that jurisdiction. Neither the delivery of this prospectus supplement and the
prospectus nor any sale of common stock or stock units representing an ownership interest in common
stock shall under any circumstances imply that there has been no change in the affairs of Oritani
Financial Corp., Oritani Bank or the Plan since the date of this prospectus supplement, or that the
information contained in this prospectus supplement or incorporated by reference is correct as of
any time after the date of this prospectus supplement.
The date of this prospectus supplement is
, 2010.
TABLE OF CONTENTS
THE OFFERING
1
Securities Offered and Purchase Price
1
Election to Purchase Common Stock in the Offering: Priorities
1
Shares Currently Held in the Plan
3
Composition of and Purpose of Stock Units
3
Value of Plan Assets
4
Transferring Funds to Purchase Stock
4
How to Order
4
Order Deadline
6
Irrevocability of Transfer Direction
6
Other Purchases in your Account during the Offering Period
6
Direction to Purchase Common Stock after the Offering
7
Purchase Price of Common Stock
7
Nature of a Participant's Interest in the Common Stock
7
Voting Rights of Common Stock
7
DESCRIPTION OF THE PLAN
8
Introduction
8
Eligibility and Participation
8
Contributions under the Plan
8
Limitations on Contributions
9
Benefits under the Plan
10
Withdrawals and Distributions from the Plan
10
Investment of Contributions and Account Balances
10
Performance History
12
Administration of the Plan
18
Amendment and Termination
18
Merger, Consolidation or Transfer
18
Federal Income Tax Consequences
19
Notice of Your Rights Concerning Employer Securities
20
Additional ERISA Considerations
21
Securities and Exchange Commission Reporting and Short-Swing Profit Liability
21
Financial Information Regarding Plan Assets
22
LEGAL OPINION
22
EX-1.1
EX-1.2
EX-3.1
EX-3.2
EX-4
EX-5
EX-8
EX-23.2
EX-23.3
EX-99.1
EX-99.2
EX-99.3
EX-99.4
EX-99.5
Table of Contents
THE OFFERING
Securities Offered and Purchase
Price
Oritani Financial Corp. is offering
participants in the Plan the
opportunity to elect to purchase
stock units in the Oritani Bank
401(k) Plan (the "Plan"). The stock
units offered under the Plan
represent indirect ownership of
Oritani Financial Corp.'s common
stock through a new employer stock
fund being established under the Plan
in connection with the stock offering
("New Employer Stock Fund"). At
February 25, 2010, there were
sufficient funds in the Plan to
purchase or acquire approximately
570,000 shares of Oritani Financial
Corp. common stock at $10.00 per
share. The shares of common stock
currently held in the Plan will
automatically be exchanged for shares
of Oritani Financial Corp., a new
Delaware corporation ("OFC-Delaware)
pursuant to an exchange ratio, as is
more fully discussed in the
prospectus. Only employees of
Oritani Bank may become participants
in the Plan. Your investment in the
shares of OFC-Delaware through the
Plan in the offering is subject to
the purchase priorities listed below.
Information with regard to the Plan
is contained in this prospectus
supplement and information with
regard to the financial condition,
results of operations and business of
OFC-Delaware and information about
the common stock offering are
contained in the accompanying
prospectus. The address of the
principal executive office of
OFC-Delaware and Oritani Bank is 370
Pascack Road, Township of Washington,
New Jersey 07676.
All questions about completing the
Special Investment Election Form
should be addressed to Anne E.
Mooradian; telephone number(201)
664-5400, ext. 240; email:
amooradian@oritani.com.
Questions about the common stock
being offered or about the prospectus
may be directed to the Stock
Information Center at
.
Election to Purchase Common Stock
in the Offering: Priorities
In connection with the conversion and
stock offering, you may elect to
transfer all or part of your account
balances in the Plan (other than the
amounts you currently have invested
in the Oritani Financial Corp. Stock
Fund (the "Old Employer Stock Fund")
to the New Employer Stock Fund, to be
used to purchase stock units
representing an ownership interest in
the common stock issued in the stock
offering. The trustee of the Plan
will purchase common stock in
accordance with your directions and
such stock will be held in the New
Employer Stock Fund. However, such
directions are subject to the
purchase priorities set forth in the
plan of conversion and reorganization
of Oritani Financial Corp., MHC.
Table of Contents
The shares of common stock are being
offered at $10.00 per share in a
Subscription Offering and Community
Offering. In the offering, the
purchase priorities are as follows
and apply in case more shares are
ordered than are available for sale.
Subscription Offering:
(1)   Depositors of Oritani Bank with
$50 or more as of close of business
on December 31, 2008 get first
priority.
(2)   Tax-qualified employee benefit
plans of Oritani Bank and its
affiliates, including the 401(k)
Plan, get second priority.
(3)   Depositors of Oritani Bank with
$50 or more as of close of business
on
,
get third
priority.
(4)   Depositors of Oritani Bank at the
close of business on
,
get
fourth priority.
Community Offering:
If all shares are not subscribed for
in the Subscription Offering,
OFC-Delaware may offer shares of
common stock for sale in a Community
Offering, to members of the general
public, with a preference given in
the following order:
Persons residing in the New Jersey
counties of Bergen, Passaic, Sussex,
Hudson, Essex, Morris, Warren, Union,
Somerset, Hunterdon, Middlesex and
Mercer; borrowers of Oritani Bank
with an outstanding loan or line of
credit as of December 31, 2009 that
are meeting all of the terms and
conditions of their loan agreements
with Oritani Bank as of December 31,
2009 and as of the date of purchase
of the common stock (as determined
solely in the discretion of Oritani
Bank). Public stockholders of
Oritani Financial Corp. as of
, and thereafter, the
general public.
Additionally, or instead of placing
an order outside of the Plan through
a Stock Order Form, as a participant
in the Plan, you may place an order
for the purchase of stock units of
OFC-Delaware common stock through the
Plan, using the enclosed Special
Investment Election Form, to be
completed and submitted in the manner
described on the next page.
No later than
,
,
the Subscription and Community
Offering period ending date, the
portion of each investment fund you
designated will be sold and the
proceeds will be removed from your
existing account and transferred to
an interest-bearing account, pending
the consummation of the offering.
Several weeks later, upon
consummation of the conversion and
stock offering, and subject to a
determination of whether all or any
2
Table of Contents
portion of your order may be filled
(based on your purchase priority in
the event that the offering is
oversubscribed), all or a portion of
the amount that you have transferred
will be used to purchase stock units
in the stock offering. The stock
will be placed in the New Employer
Stock Fund and allocated to your Plan
account. Interest earned on your
account will be deposited into
, which you may
reinvest at your discretion.
In the event the offering is
cancelled or oversubscribed,
i.e.,
there are more orders for common
stock than shares available for sale
in the offering, and the trustee is
unable to use the full amount
allocated by you to purchase stock
units in the offering, the amount
that cannot be invested in stock
units, and any interest earned, will
be reinvested in the other investment
funds in accordance with your then
existing investment election (in
proportion to your investment
direction for future contributions).
If you choose not to direct the
investment of your account balances
towards the purchase of stock units
in the New Employer Stock Fund in
connection with the stock offering,
your account balances will remain in
the investment funds of the Plan as
previously directed by you.
Shares Currently Held in the Plan
All shares of Oritani Financial Corp.
held in the Plan upon consummation of
the conversion and offering (
i.e.
,
several weeks after the deadline for
submitting your Special Investment
Election Form), will automatically be
converted into shares of
OFC-Delaware, using the exchange
ratio set forth in the prospectus.
No fractional shares of OFC-Delaware
will be issued. Rather, cash equal
to the value of the fractional share
interest, using the $10.00 per share
offering purchase price per share,
will be paid to the holder. All
shares of Oritani Financial Corp.
that are converted to shares of
OFC-Delaware will be held in the Old
Employer Stock Fund and shares of
OFC-Delaware that are acquired during
the stock offering will be held in
the New Employer Stock Fund. Cash
for any fractional shares will be
credited to the
,
to be reinvested by you in your
discretion. As soon as practicable
after the closing of the stock
offering, the Old Employer Stock Fund
will be merged into the New Employer
Stock Fund.
Composition of and Purpose of Stock
Units
The New Employer Stock Fund, which is
being established in the Plan, will
invest in stock units of the common
stock of OFC-Delaware. Following the
stock offering, the New Employer
Stock Fund will maintain a cash
component for liquidity purposes.
Liquidity is required in order to
facilitate daily transactions such as
investment transfers or distributions
from the New Employer Stock Fund.
For purchases in the offering, there
will be no cash
3
Table of Contents
component. A stock
unit will be valued at $10.00. After
the offering, newly issued stock
units will consist of a percentage
interest in both the common stock and
cash held in the New Employer Stock
Fund. Unit values (similar to the
stock's share price) and the number
of units (similar to number of
shares) will be used to communicate
the dollar value of a participant's
account. Following the stock
offering, each day, the stock unit
value of the New Employer Stock Fund
will be determined by dividing the
total market value of the fund at the
end of the day by the total number of
units held in the fund by all
participants as of the previous day's
end. The change in stock unit value
reflects the day's change in stock
price, any cash dividends accrued and
the interest earned on the cash
component of the fund, less any
investment management fees. The
market value and unit holdings of
your account in the New Employer
Stock Fund will be reported to you on
your quarterly statements.
Value of Plan Assets
As of February 25, 2010, the market
value of the assets of the Plan was
approximately $5,700,000. The Plan
administrator informed each
participant of the value of his or
her account balance under the Plan as of
,
.
Transferring Funds to Purchase Stock
Enclosed is a Special Investment
Election Form on which you can elect
to transfer all or a portion of your
account balance in the Plan to the
New Employer Stock Fund for the
purchase of stock units in connection
with the stock offering (other than
amounts you currently have invested
in the Old Employer Stock Fund). If
you wish to use all or part of your
account balance in the Plan to
purchase stock units of common stock
issued in the offering (other than
amount you currently have invested in
the Old Employer Stock Fund), you
should indicate that decision on the
Special Investment Election Form.
If
you do not wish to purchase
OFC-Delaware common stock in the
offering through the Plan, you must
still fill out the Special Investment
Election Form and check the box for
"No Election" in Section D of the
form. The form is then to be
returned to
Anne E. Mooradian as
indicated on the Special investment
Election Form.
How to Order
You can elect to transfer all or a
portion of each investment fund in
your account balance in the Plan
(other than amounts in the Old
Employer Stock Fund) to the New
Employer Stock Fund for the purchase
of stock units in the offering. This
is done by following the procedures
described below. Please note the
following stipulations concerning
this election:
•
You can direct all
or a portion of your current account
balance to the New Employer Stock
Fund.
4
Table of Contents
•
Your election is
subject to a minimum purchase of 25
shares, which equates to $250.00.
•
Your election, plus
any order you placed outside the
Plan, are together subject to a
maximum purchase of 50,000 shares,
which equates to $500,000.
•
The election period
closes at
pm, Eastern time, on
,
,
2010.
•
During the stock
offering period, you will continue to
have the ability to transfer amounts
that are
not
held in either the Old
Employer Stock Fund or the New
Employer Stock Fund among all the
other investment funds. However, you
will
not
be permitted to change the
investment of amounts that you
designated to be transferred to the
New Employer Stock Fund on your
Special Investment Election Form.
•
After the election
period ends, the percentages you
designated will be transferred to the
New Employer Stock Fund.
•
The amount
transferred to the New Employer Stock
Fund will be held separately until
the offering closes. Therefore, this
money is not available for
distributions, loans or withdrawals
until the transaction is completed,
which is after the closing of the
subscription offering period.
You are allowed only one election to
transfer funds to the New Employer
Stock Fund. Follow these steps to
make your election to use all or part
of your account balance in the Plan
to purchase stock units in the stock
offering:
•
You can only purchase in the
offering through the Plan by
returning your Special Investment
Election Form to Anne E. Mooradian by
the due date. You cannot purchase in
the offering by means of telephone
transfers or the internet. That
portion of your Plan account balance
that you elect to apply towards the
purchase of stock in the offering
will be irrevocably committed to such
purchases.
•
Use the enclosed Special
Investment Election Form to transfer
all or a portion of your account
balance to the New Employer Stock
Fund to purchase stock units in the
offering. Indicate next to each fund
in which you have invested, the
percentage from that fund you wish to
transfer to the New Employer Stock
Fund.
•
Please print your name and
social security number on the
5
Table of Contents
Special
Investment Election Form.
•
Please complete
 Section D of
the Special Investment Election Form—
Purchaser Information —
indicating
your individual purchase priority and
provide the information requested on
your accounts in Oritani Bank.
•
Sign and date the Special
Investment Election Form and return
it to Anne E. Mooradian by hand
delivery, regular mail, overnight
delivery, or fax (to
201-497-1215) by the order date
stated below. A pre-addressed,
postage-paid envelope has been
provided with these documents for
your convenience. Overnight delivery
should be addressed to: Anne E.
Mooradian, Oritani Bank, 370 Pascack
Road, Township of Washington, New
Jersey 07676.
Order Deadline
If you wish to purchase stock units
of common stock of OFC-Delaware with
all or part of your Plan account
balance, your Special Investment
Election Form must be received by
Anne E. Mooradian, Senior Vice
President and Human Resources
Officer, Oritani Bank, 370 Pascack
Road, Township of Washington, New
Jersey 07676, fax number (201)
497-1215, no later than
p.m.

Eastern Time on
,
, 2010. You may send
your Special Investment Election Form
by hand delivery, regular mail,
overnight delivery, or fax. If you have any questions
with respect to the Special
Investment Election Form, please
contact Anne Mooradian at (201) 664-5400, ext. 240.
Irrevocability of Transfer Direction
You may not revoke your Special
Investment Election Form once it has
been delivered to Anne Mooradian.
You will, however, continue to have
the ability to transfer amounts not
directed towards the purchase of
stock units in the offering among all
of the other investment funds,
including the Old Employer Stock, on
a daily basis.
Other Purchases in your Account
during the Offering Period.
Whether or not you choose to purchase
stock units in the offering through
the Plan, you will at all times have
complete access to those amounts in
your account that you do
not
apply
towards purchases in the offering.
For example, you will be able to
purchase Oritani Financial Corp.
common stock through the Old Employer
Stock Fund and also invest in other
funds within the Plan with that
portion of your account balance that
you do not apply towards purchases in
the offering during the offering
period. Such purchases will be made
at the prevailing market price in the
same manner as you make such
purchases now,
i.e
., through
telephone transfers and internet
access to your account.
6
Table of Contents
Direction to Purchase Common Stock
after the Offering
After the offering, you will again
have complete access to any amounts
that you directed towards the
investment in the New Employer Stock
Fund during the offering period. You
may direct that your future
contributions or your account balance
in the Plan be transferred to the New
Employer Stock Fund. After the stock
offering, you will also have the
ability to sell all or a portion of
your interest in the New Employer
Stock Fund.
Special restrictions may apply to
transfers directed to and from the
New Employer Stock Fund by the
participants who are subject to the
provisions of Section 16(b) of the
Securities Exchange Act of 1934, as
amended, relating to the purchase and
sale of securities by officers,
directors and principal shareholders
of OFC-Delaware.
Purchase Price of Common Stock
During the stock offering, the
trustee will pay $10.00 per share,
which will be the same price paid by
all other persons for a share of
OFC-Delaware common stock in the
stock offering.
After the stock offering, the trustee
of the Plan will acquire common stock
in open market transactions at the
prevailing price, which may be less
than or more than $10.00 per share.
Nature of a Participant's Interest
in the Common Stock
The trustee will hold the common
stock, in trust, for the participants
of the Plan. Stock units acquired by
the trustee at your direction will be
allocated to your account.
Therefore, investment decisions of
other participants should not affect
the earnings allocated to your
account.
Voting Rights of Common Stock
The Plan provides that you may direct
the trustee how to vote any shares of
OFC-Delaware Common Stock held by the
New Employer Stock Fund, and the
interest in such shares that is
credited to your account. If the
trustee does not receive your voting
instructions, the Plan administrator
will exercise these rights as it
determines in its discretion and will
direct the trustee accordingly. All
voting instructions will be kept
confidential.
7
Table of Contents
DESCRIPTION OF THE PLAN
Introduction
Oritani Bank maintains the Oritani Bank 401(k) Plan (the "Plan"), which is a single employer
prototype plan sponsored by Pentegra. The Plan is a tax-qualified plan, with a cash or deferred
compensation feature, established in accordance with the requirements under Section 401(a) and
Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Code"). Oritani Bank intends
that the Plan, in operation, will comply with the requirements under Code Sections 401(a) and
401(k). Oritani Bank will adopt any amendments to the Plan that may be necessary to ensure the
continuing qualified status of the Plan under the Code and applicable Treasury Regulations.
Employee
 Retirement Income Security Act ("ERISA").
The Plan is an "individual account plan"
other than a "money purchase pension plan" within the meaning of ERISA. As such, the Plan is
subject to all of the provisions of Title I (Protection of Employee Benefit Rights) and Title II
(Amendments to the Code Relating to Retirement Plans) of ERISA, except to the funding requirements
contained in Part 3 of Title I of ERISA which, by their terms, do not apply to an individual
account plan (other than a money purchase plan). The Plan is not subject to Title IV (Plan
Termination Insurance) of ERISA. The funding requirements contained in Title IV of ERISA are not
applicable to participants or beneficiaries under the Plan.
Reference to
Full Text of Plan.
The following portions of this prospectus supplement summarize
certain provisions of the Plan. They are not complete and are qualified in their entirety by the
full text of the Plan. Copies of the Plan are available to all
employees by filing a request with Anne E. Mooradian, Senior Vice President and Human Resources Officer, at Oritani Bank, 370
Pascack Road, Township of Washington, New Jersey 07676. You are urged to read carefully the full
text of the Plan.
Eligibility and Participation
Employees
of Oritani Bank are eligible to enter the Plan on the first day of the month
coincident with or next following the date on which they have completed 12 consecutive months of
service. The Plan year is January 1 to December 31 (the "Plan Year").
As of
February 19, 2010, there were approximately 170 employees eligible to participate in the
Plan and 117 participating by making salary deferral contributions. There are also 10 former
employees with account balances in the Plan as of February 25, 2010.
Contributions under the Plan
4
01(k)
Plan
Contributions.
You are permitted to defer on a pre-tax basis between 1% and 50%
of your compensation (expressed in terms of whole percentages) for each payroll period, subject to
certain restrictions imposed by the Internal Revenue Code, and to have that amount contributed to
the Plan on your behalf. For purposes of the Plan, "compensation" means your compensation subject
to income tax withholding at the source, as reported on your Form W-2 (excluding any compensation
deferred from a prior year), plus deferred income
8
Table of Contents
attributable to any compensation reduction
 agreement in connection with the Plan or
compensation reduction in connection with a Section 125 plan or Internal Revenue Code Section
132(f) benefit. In 2010, the annual compensation of each participant taken into account under the
Plan is limited to $245,000. (Limits established by the Internal Revenue Service are subject to
increase pursuant to an annual cost-of-living adjustment, as permitted by the Internal Revenue
Code). You may elect to change the rate at which you are contributing to the Plan as of the first
day of any month by filing a new elective deferral agreement with Anne E. Mooradian, Senior Vice
President and Human Resources Officer at Oritani Bank, at least two weeks prior to the beginning of
such month. You may also elect to apply a special salary deferral election with respect to up to
100% of your bonus payments. In addition, you may allocate a rollover contribution to the Plan
prior to satisfying the eligibility requirements.
Employer
 Matching Contributions.
Oritani Bank will make matching contributions to the Plan in
an amount equal to 50% of your elective deferrals, consisting of up to the first 6% of your monthly
compensation. Accordingly, the maximum matching contribution Oritani Bank could make on your
behalf would be 3% of your monthly compensation. If you stop making elective deferrals for any
period, Oritani Bank will also stop making matching contributions for the same period. Matching
contributions will be reviewed from time to time and may be modified by the employer on a
discretionary basis.
Limitations on Contributions
Limitations
on Employee Salary Deferrals.
For the Plan Year beginning January 1, 2010, the
amount of your before-tax contributions may not exceed $16,500 per calendar year. This amount may
be adjusted periodically by law, based on changes in the cost of living. In addition, if you are
age 50 or older in 2010, you will be able to make a "catch-up" contribution of up to $5,500, in
addition to the $16,500 limit. The "catch-up" contribution limit may be adjusted periodically by
law, based on changes in the cost of living. Contributions in excess of these limits, as
applicable to you, are known as excess deferrals. If you defer amounts in excess of these
limitations, as applicable to you, your gross income for federal income tax purposes will include
the excess in the year of the deferral. In addition, unless the excess deferral is distributed
before April 15 of the following year, it will be taxed again in the year distributed. Income on
the excess deferral distributed by April 15 of the immediately succeeding year will be treated, for
federal income tax purposes, as earned and received by you in the tax year in which the
contribution is made.
Limitation
 on Plan Contributions for Highly Compensated Employees.
Special provisions of the
Internal Revenue Code limit the amount of elective deferrals and employer non-matching
contributions that may be made to the Plan in any year on behalf of highly compensated employees,
in relation to the amount of elective deferrals and employer non-matching contributions made by or
on behalf of all other employees eligible to participate in the Plan. A highly compensated
employee includes any employee who (1) was a 5% owner of Oritani Financial Corp. at any time during
the current or preceding year, or (2) had compensation for the preceding year of more than
$110,000. The dollar amounts in the foregoing sentence may be adjusted annually to reflect
increases in the cost of living. If these limitations are exceeded, the level of deferrals by
highly compensated employees may have to be adjusted.
9
Table of Contents
Benefits under the Plan
Vesting.
At all times,
you have a fully vested, nonforfeitable interest in the elective
deferrals you have made under the Plan and in the employer matching contributions credited to your
account.
Withdrawals and Distributions from the Plan
In-service withdrawals
from your 401(k) account are not permitted under the Plan until you
attain age 59
1
/
2
. However, in the
 event of certain types of financial hardship, participants may
make withdrawals. In general, employer contributions credited on your behalf will not be available
for in-service withdrawal until such employer contributions have been invested in the Plan for at
least two years or you have been a participant in the Plan for at least 5 years, or the attainment
of age 59
1
/
2
.
Withdrawal upon
Termination of Employment.
You may leave your account with the Plan and defer
commencement of receipt of your account balance until April 1 of the calendar year following the
calendar year in which you attain age 70
1
/
2
, except to the extent that
 your account balance is less
than $500, in which case your interest in the Plan will be cashed out and distributed to you. If
you leave your account with the Plan and your account balance is less than $20,000, you account
will be assessed an annual administrative fee of $24.00. If your account balance is equal to or
exceeds $20,000, no annual administrative fee will be assessed to your account. You may make
withdrawals from your account at any time after you terminate employment. If your account balance
equals or exceeds $500, you may elect, in lieu of a lump sum payment, to be paid in annual
installments with the right to take your account balance in a lump sum at any time during such
payment period. You may also elect to have your distributions made in kind of employer stock.
Distribution
due to Disability or Death.
If you are disabled (as defined under the Plan), you
will be entitled to the same withdrawal rights as if you had terminated your employment. If you
die while you are a participant in the Plan, the value of your account will be payable to your
beneficiary. Payment will be made in a lump sum, unless the payment would exceed $500 and you had
elected payment in annual installments over a period not to exceed 5 years (10 years if your spouse
is your beneficiary). If you have not made such an election, your beneficiary may elect to receive
the benefit in the form of annual installments over a period not to exceed 5 years (10 years if
your spouse is your beneficiary) or make withdrawals as often as once per year, except that any
balance remaining must be withdrawn by the 5
th
anniversary (10
th
anniversary
if your spouse is your beneficiary) of your death.
Plan participants may also obtain loans from their accounts.
Investment of Contributions and Account Balances
All amounts credited to your accounts under the Plan are held in the Plan trust (the "Trust")
which is administered by the trustee appointed by Oritani Bank's Board of Directors.
10
Table of Contents
Prior to the effective date of the offering, you were provided the opportunity to direct the
investment of your account into one or more of the following funds:
•
International Stock Fund
•
Nasdaq 100 Stock Fund
•
Russell 2000 Stock Fund
•
S&P MidCap Stock Fund
•
S&P Growth Stock Fund
•
S&P Value Stock Fund
•
S&P 500 Stock Fund
•
US REIT Index Fund
•
Long Treasury Index Fund
•
Aggregate Bond Index Fund
•
Stable Value Fund
•
Short Term Investment Fund (Money Market Fund)
•
Income Plus Asset Allocation Fund
•
Growth & Income Asset Allocation Fund
•
Growth Asset Allocation Fund
•
Target Date Retirement 2015 Fund
•
Target Date Retirement 2025 Fund
•
Target Date Retirement 2035 Fund
•
Target Date Retirement 2045 Fund
•
Old Employer Stock Fund
In connection with the offering, the Plan now provides that in addition to the funds specified
above, you may direct the trustee, or its representative, to invest all or a portion of your
account in the New Employer Stock Fund. You may elect to have both past contributions and
earnings, as well as future contributions to your account invested among the funds listed above.
If you fail to provide an effective investment direction, your contributions will be invested in
the Money Market Fund until such time as you provide an effective investment direction. You may
apply different investment instructions to amounts already accumulated as opposed to future
contributions. You may change your investment directions at any time by telephone or electronic
medium.
11
Table of Contents
Performance History
The following table provides performance data with respect to the investment funds available
under the Plan through December 31, 2009:
FUND RETURNS THROUGH DECEMBER 31, 2009
5 Calendar
10 Calendar
Monthly
Year to
Last 12
Years
Years
Return
Date
Months
Annualized
Annualized
Stock Funds
INTERNATIONAL STOCK FUND
1,2
1.37
%
31.39
%
31.39
%
3.08
%
0.33
%
NASDAQ 100 STOCK FUND
3
5.21
%
53.86
%
53.86
%
2.44
%
-7.03
%
RUSSELL 2000 STOCK FUND
4
8.02
%
26.75
%
26.75
%
0.08
%
3.04
%
S&P MIDCAP STOCK FUND
5
6.21
%
36.47
%
36.47
%
2.68
%
5.81
%
S&P GROWTH STOCK FUND
4
2.45
%
31.81
%
31.81
%
1.28
%
-3.29
%
S&P VALUE STOCK FUND
4
1.70
%
20.53
%
20.53
%
-1.45
%
0.19
%
S&P 500 STOCK FUND
5
1.87
%
25.91
%
25.91
%
-0.14
%
-1.48
%
US REIT INDEX FUND
6
6.92
%
26.79
%
26.79
%
-0.99
n.a.
Bond/Fixed Income Funds
LONG TREASURY INDEX FUND
5
-5.66
%
-13.14
%
-13.14
%
4.91
%
7.31
%
AGGREGATE BOND INDEX FUND
9
-1.62
%
5.49
%
5.49
%
4.40
%
5.75
%
STABLE VALUE FUND
7
0.17
%
2.14
%
2.14
%
3.25
%
4.08
%
SHORT TERM INVESTMENT FUND (money
market)
5
-0.01
%
0.13
%
0.13
%
2.92
%
2.82
%
Asset Allocation Funds
2,8
INCOME PLUS
-0.54
%
11.19
%
11.19
%
3.99
%
3.89
%
GROWTH & INCOME
0.74
%
18.15
%
18.15
%
2.89
%
2.15
%
GROWTH
2.03
%
25.05
%
25.05
%
1.47
%
-0.37
%
Target Retirement Funds
10
TARGET RETIREMENT 2015 FUND
0.26
%
17.04
%
17.04
%
n.a.
n.a.
TARGET RETIREMENT 2025 FUND
1.13
%
20.67
%
20.67
%
n.a.
n.a.
TARGET RETIREMENT 2035 FUND
2.10
%
25.75
%
25.75
%
n.a.
n.a.
TARGET RETIREMENT 2045 FUND
2.21
%
26.27
%
26.27
%
n.a.
n.a.
Effective November 4, 2005, State Street Global Advisors ("SSgA") assumed Investment Manager
responsibilities for all Funds from Barclays Global Investors ("BGI") and became the provider of
benchmark index returns. Historical returns of the index funds reflect BGI management prior to
November 4, 2005, and SSgA's management thereafter. Unit values are determined as of the last
business day of each month. Investment fund returns are shown net of fees. Benchmark indices are
not investment funds and have no fees. Dividends and interest are automatically reinvested. Total
expenses charged to each fund, as a percentage of each fund's estimated average assets per year,
are for investment management services, trustee services, recordkeeping and administration and are
as follows: As of January 1, 2008, they are as follows: International Stock Fund 0.624%; Nasdaq
100 Stock Fund 0.624%; Russell 2000 Stock Fund 0.624%; S&P MidCap Stock Fund 0.624%; S&P Growth
Stock Fund 0.624%; S&P Value Stock Fund 0.624%; S&P 500 Stock Fund 0.624%; Long Treasury Index Fund
0.624%; Aggregate Bond Index Fund 0.624%; REIT Fund 0.624%; Stable Value Fund 0.624%; Short Term
Investment Fund 0.460%; Target Retirement Funds 0.930%; Asset Allocation Fund 0.930%.
All funds except Nasdaq 100 Stock Fund, US REIT Index Fund, and Short Term Investment Fund may
engage in securities lending.
Effective October 2008, the Lehman Brothers indexes were rebranded under the Barclays Capital name.
Past performance is no guarantee of future performance. See following notes.
12
Table of Contents
1
Prior to September 30, 1999, this Fund was limited to no more than 25% exposure to
Japan.
2
The Asset Allocation Funds and the International Stock Fund were first offered July 2,
1997. Returns prior to inception are simulated using the returns of market indices for, or
actual funds of, the Fund's investment components, and are net of fees.
3
The Nasdaq 100 Stock Fund was first offered on May 1, 2002, while BGI's underlying
Nasdaq 100 Fund was initially offered on August 7, 2000. Returns shown for periods prior
to May 1, 2002 are based on returns of the then-existing BGI funds (when available), and on
the (hypothetical) returns of the Nasdaq 100 Index for periods prior to the inception date
of the BGI fund. All returns are net of fees.
4
The Russell 2000, S&P Growth and S&P Value Stock Funds were first offered on January 4,
2000. Returns prior to January 4, 2000 are hypothetical and are based on the returns of
the then-existing BGI funds, and are net of fees. Effective December 16, 2005, the S&P
500/Barra Growth and S&P 500/Barra Value indexes were reconstituted as the S&P
500/Citigroup Growth and S&P 500/Citigroup Value Indexes. Additional information can be
found at www.styleindices.standardandpoors.com.
5
The S&P MidCap, S&P 500, Long Treasury Index, and Short Term Investment Funds were
first offered on June 17, 1997. Results prior to that date are hypothetical, based on
previous investment returns of the then-existing BGI funds, and are net of fees.
6
The US REIT Index Fund was first offered on January 1, 2005. Returns shown for periods
prior to that date are hypothetical and are based on the returns of the then-existing BGI
fund for the MSCI US REIT Index, and are net of fees.
7
The Stable Value Fund is a separately managed account; historical return data
represents its actual performance.
8
The Asset Allocation Funds are designed investment vehicles utilizing various asset
classes represented by index funds and, under BGI management, were managed on an exclusive
basis. Only hypothetical results are available from January, 1992 to July 2, 1997 (the
inception date of the Asset Allocation Funds). Note that SSgA changed certain allocations
and underlying indexes (see fund descriptions for information on same).
9
The Aggregate Bond Index Fund became available effective April 30, 2006. Results prior
to that date are based on historical investment returns of the then-existing SSgA fund, and
are net of PSI fees which would have been levied.
10
The Target Retirement Funds became available effective August 1, 2007. Results prior
to that date are based on historical investment returns of the then-existing SSgA fund, and
are net of PSI fees which would have been levied.
11
The Government Short Term Investment Fund became available effective November 1, 2007.
Results prior to that date are based on historical investment returns of the then-existing
SSgA fund, and are net of all relevant fees which would have been levied.
12
The Treasury Inflation Protected Securities Fund became available effective October 1,
2009. Results prior to that date are based on historical investment returns on the
then-existing SSgA fund, and are net of all relevant fees which would have been levied.
The following is a description of each of the Plan's investment funds:
International Stock Fund.
This fund seeks to match the performance of the Morgan Stanley Capital
International, Europe, Australia, Far East (MSCI EAFE) Index while providing daily liquidity. The
fund typically invests in all the stocks in the MSCI EAFE Index in proportion to
13
Table of Contents
their weighting in the index. The MSCI EAFE Index is a float-adjusted developed markets
international equity index which covers approximately 85% of each industry within each represented
country and measures the performance of over 1,000 companies in 21 countries outside North and
South America. The strategy of investing in the same stocks as the MSCI EAFE Index minimizes the
need for trading and therefore results in lower expenses. As an international stock fund, this
fund may be appropriate for those investors who have a medium to longer investment time frame or
are seeking maximum growth potential and are willing to accept potentially large fluctuations in
value that often accompany international investing.
Nasdaq 100 Stock Fund.
This fund seeks to match the performance of the NASDAQ 100 Index. The fund
invests in all of the stocks in the NASDAQ 100 Index in proportion to their weighting in the index.
The NASDAQ 100 Index consists of 100 of the largest non-financial companies, both domestic and
international, listed on the NASDAQ exchange. The size of the companies is determined by market
cap. All major industry groups are included, with the exception of financial and investment
companies. The fund may use futures or other derivatives. The strategy of investing in the same
stocks as the NASDAQ 100 Index minimizes the need for trading and therefore results in lower
expenses. As a stock fund, this fund may be appropriate for those investors who have a medium to
longer investment time frame and are willing to ride out stock market fluctuations in the short
term in exchange for the potential for high long-term returns.
Russell 2000 Stock Fund.
This fund seeks to match the performance of the Russell 2000 Index. The
fund attempts to invest in all 2,000 stocks in the Russell 2000 Index in proportion to their
weighting in the index. The Russell 2000 Index is a float-adjusted small cap equity index which
covers approximately 8% of the U.S. equity market and measures the performance of the 2,000
smallest companies in the broad market Russell 3000 Index based on total market capitalization. The
fund may use futures or other derivatives. The strategy of investing in the same stocks as the
Russell 2000 Index minimizes the need for trading and therefore results in lower expenses. As a
stock fund, this fund may be appropriate for those investors who have a medium to longer investment
time frame or are seeking high total return from the potential growth of small companies and are
willing to ride out the potentially volatile market fluctuations.
S&P MidCap Stock Fund.
This fund seeks to match the performance of the S&P MidCap 400 Index. The
fund invests in all 400 stocks in the S&P MidCap 400 Index in proportion to their weighting in the
index. The S&P MidCap 400 Index is a float-adjusted mid-cap equity index which covers
approximately 7% of U.S. equity market and measures the performance of 400 leading companies in
leading industries within the mid cap segment of the market. The fund may use futures or other
derivatives. The strategy of investing in the same stocks as the S&P MidCap 400 Index minimizes
the need for trading and therefore results in lower expenses. As a stock fund, this fund may be
appropriate for those investors who have a medium to longer investment time frame and are willing
to ride out stock market fluctuations in the short term in exchange for the potential for high
long-term returns.
S&P Growth Stock Fund.
This fund seeks to match the performance of the Standard & Poor's
500/Citigroup Growth Index. The fund invests in all of the stocks in the S&P 500/Citigroup Growth
Index in proportion to their weighting in the index. The S&P
14
Table of Contents
500/Citigroup Growth Index is constructed by including those stocks from the S&P 500 Index with
higher price to book ratios. The fund may use futures or other derivatives. The strategy of
investing in the same stocks as the index minimizes the need for trading and therefore results in
lower expenses. As a stock fund, this fund may be appropriate for those investors who have a
medium to longer investment time frame and are willing to ride out stock market fluctuations in the
short term in exchange for the potential for high long-term returns.
S&P Value Stock Fund.
This fund invests in all of the stocks in the S&P 500/Citigroup Value Index
in proportion to their weighting in the index. The S&P 500/Citigroup Value Index is constructed by
including those stocks from the S&P 500 Index with lower price to book ratios. The fund may use
futures or other derivatives. The strategy of investing in the same stocks as the S&P
500/Citigroup Value Index minimizes the need for trading and therefore results in lower expenses.
As a stock fund, this fund may be appropriate for those investors who have a medium to longer
investment time frame and are willing to ride out stock market fluctuations in the short term in
exchange for the potential for high long-term returns.
S&P 500 Stock Fund.
This fund seeks to match the performance of the Standard & Poor's 500 Index.
The fund invests in all 500 stocks in the S&P 500 Index in proportion to their weighting in the
index. The S&P 500 Index is a float-adjusted large-cap equity index which covers approximately 75%
of U.S. equity market and measures the performance of 500 leading companies in leading industries
within the large cap segment of the market. The fund may use futures or other derivatives. The
strategy of investing in the same stocks as the S&P 500 Index minimizes the need for trading and
therefore results in lower expenses. As a stock fund, this fund may be appropriate if you have a
medium to longer investment time frame and are willing to ride out stock market fluctuations in the
short term in exchange for the potential for high long-term returns.
US REIT Index Fund
. This fund seeks to match the performance of the Dow Jones/Wilshire REIT Index
while providing daily liquidity. The Dow Jones/Wilshire REIT Index is a market capitalization
weighted index which is comprised of approximately 80 publicly traded real estate investment trusts
(REITs). To be included in the index, a company must be an equity owner and operator of commercial
or residential real estate and must generate as least 75% of its revenue from such assets. The
fund invests primarily in equity shares of REITs. REITs invest in loans secured by real estate and
invest directly in real estate properties such as apartments, office buildings, and shopping malls.
REITs generate income from rentals or lease payments and offer the potential for growth from
property appreciation and the potential for capital gains from the sale of properties. As a stock
fund, this fund may be appropriate for investors with a medium to longer investment time frame who
are willing to ride out stock market fluctuations in the short term in exchange for the potential
for high long-term returns.
Long Treasury Index Fund.
This fund seeks to match the returns of the Barclays Capital U.S. Long
Treasury Bond Index. This fund invests primarily in U.S. Treasury securities with a maturity of 10
years or longer. The fund invests in a well diversified portfolio that is representative of the US
Long Treasury bond market. The fund buys and holds securities, trading only when there is a change
to the composition of the index or when cash flow activity occurs in the fund. This process
minimizes turnover and costs while maintaining accurate tracking. As a bond fund, this fund may be
appropriate for those investors who have a short to
15
Table of Contents
medium investment time frame or who are looking to generate income and maintain the principal of
their portfolios as they near retirement.
Aggregate Bond Index Fund
. This fund seeks to match the returns of the Barclays Capital U.S
Aggregate Bond Index. The fund invests primarily in government, corporate, mortgage-backed and
asset-backed securities. The fund invests in a well-diversified portfolio that is representative
of the broad domestic bond market. As a bond fund, this fund may be appropriate for investors with
a short to medium investment time frame or for investors who are looking to generate income and add
stability of principal to their portfolios as they near retirement.
Stable Value Fund.
This fund seeks to preserve the principal amount of the investors'
contributions while maintaining a rate of return comparable to other fixed income instruments. The
fund invests in investment contracts issued by insurance companies, banks, and other financial
institutions, as well as enhanced short-term investment products. Each issuer must meet the credit
quality criteria in order to be approved by the investment manager. As a fixed income fund, this
fund may be appropriate if you are looking for an investment that offers a conservative rate of
return but preserves your principal investment.
Short Term Investment Fund.
This fund seeks to maximize current income while preserving capital
and liquidity through investing in a diversified portfolio of short-term securities. The fund's
yield reflects short-term interest rates. The fund seeks to maintain a diversified portfolio of
short-term securities by investing in high-quality money market securities and other short-term
debt investments. Most of the investments in the fund will generally have a range of maturity from
overnight to 90 days. As a fixed income fund, this fund may be appropriate for those investors who
have a short investment time frame or are looking to generate income and add stability of principal
to their portfolios as they near retirement.
Income Plus Asset Allocation Fund.
This fund seeks to provide income from fixed income securities
and some growth of principal from stock funds. The fund's risk profile is somewhat conservative
due to an emphasis on bond holdings. The fund has a target asset allocation of 25% equities and
75% fixed income achieved by investing in a mix of other funds as follows: S&P 500 Index Fund: 15%;
Russell Small Cap Completeness Index Fund: 5%; Daily EAFE Fund: 5%; and Bond Market Index Fund:
75%. This fund is a pre-mixed portfolio of both stock and bond funds and therefore is appropriate
for those investors less comfortable with investing and who are looking for assistance in the asset
allocation process. The fund may be appropriate for investors who have a short to medium
investment time frame or are looking for a single investment that provides the opportunity for
stable income with controlled risk in addition to some growth.
Growth & Income Asset Allocation Fund.
This fund seeks to provide income from fixed income
securities and growth of principal from stock funds. The fund's risk profile is moderate due to
the presence of well-diversified stock and bond holdings. The fund has a target asset allocation
of 55% equities and 45% fixed income achieved by investing in a mix of other funds as follows: S&P
500 Index Fund: 35%; Russell Small Cap Completeness Index Fund: 10%; Daily EAFE Fund: 10%; and Bond
Market Index Fund: 45%. This fund is a pre-mixed portfolio of both stock and bond funds and
therefore is appropriate for those investors
16
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less comfortable with investing and who are looking for assistance in the asset allocation process.
The fund may be appropriate for investors who have a longer investment time frame or are looking
for a single investment that balances the opportunity for stable income with the opportunity for
long-term growth.
Growth Asset Allocation Fund.
This fund seeks to provide growth of principal from stock funds and
some income from fixed income securities. The fund's risk profile is somewhat aggressive due to
its emphasis on stock holdings. The fund has a target asset allocation of 85% equities and 15%
fixed income, achieved by investing in a mix of other funds as follows: S&P 500 Index Fund: 55%;
Russell Small Cap Completeness Index Fund: 15%; Daily EAFE Fund: 15%; and Bond Market Index Fund:
15%. This fund is a pre-mixed portfolio of both stock and bond funds and therefore is appropriate
for those investors less comfortable with investing and who are looking for assistance in the asset
allocation process. The fund may be appropriate for those investors who have a longer investment
time frame or are looking for a single investment that provides the opportunity for long-term
growth.
Target Retirement Funds (2015, 2025, 2035, 2045, Target Income).
The funds (other than the Target
Income Fund) are managed to a specific retirement year (target date) included in its name. Over
time, the allocation to asset classes and funds change according to a predetermined "glide path"
(the glide path does not apply to the Target Income Fund). Each fund's asset allocation will become
more conservative as it approaches its target retirement date. Target allocations range from 52%
equities and 48% fixed income for the Target Retirement 2015 Fund to 90% equities and 10% fixed
income for the Target Retirement 2045 Fund. Each fund attempts to closely match
characteristics and returns of its custom benchmark as opposed to any attempt to outperform this
benchmark. Once a fund reaches its retirement date, it will begin a five-year transition to the
Target Income fund resulting in an allocation to stocks that will remain fixed at about 35% of
assets. The remainder of the fund will be invested in U.S. fixed income securities.
Old Employer Stock Fund.
The Old Employer Stock Fund consists primarily of common stock of Oritani
Financial Corp, is a federally chartered majority-owned subsidiary of Oritani Financial Corp., MHC,
a mutual holding company. Investments in the Old Employer Stock Fund involves special risks common
to investments in the shares of common stock of Oritani Financial Corp. Following the offering,
Oritani Financial Corp., a federal corporation, will cease to exist, but will be succeeded by a new
Maryland corporation, Oritani Financial Corp. ("OFC-Delaware"), which will be 100% owned by its
public shareholders. Shares of Oritani Financial Corp. which were held in the Old Employer Stock
Fund prior to the conversion and offering will be converted into new shares of common stock of
OFC-Delaware, in accordance with the exchange ratio. As soon as practicable after the closing of
the stock offering, the Old Employer Stock Fund will be merged into the New Employer Stock Fund.
New Employer Stock Fund.
In connection with the stock offering, you may, in the manner described
earlier, direct the trustee to invest all or a portion of your Plan account in the New Employer
Stock Fund, which consists primarily of common stock of OFC-Delaware. Subsequent to the stock
offering, you may elect to invest all or a portion of your contributions in the New Employer Stock
Fund; you may also elect to transfer into the New Employer Stock Fund all or a portion of your
accounts currently invested in other funds under the Plan. After the offering, the
17
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trustee will, to the extent practicable, use all amounts held by it in the New Employer Stock Fund
to purchase shares of common stock of OFC-Delaware. It is expected that all purchases will be made
at prevailing market prices. Performance of the New Employer Stock Fund depends on a number of
factors, including the financial condition and profitability of OFC-Delaware and the Employer and
market conditions for shares of OFC-Delaware common stock generally. Investments in the New
Employer Stock Fund involves special risks common to investments in the shares of common stock of
OFC-Delaware.
For a discussion of material risks you should consider, see "Risk Factors" section of the attached
prospectus and the Section of the Prospectus Supplement called "Notice of Your Rights Concerning
Employer Securities" (see below).
Administration of the Plan
The Trustee
.
The trustee of the Plan is Reliance Trust Company.
Plan Administrator
.
Pursuant to the terms of the Plan, the Plan is administered by Oritani
Bank. The address of the Plan Administrator is 370 Pascack Road, Township of Washington, NJ 07676,
telephone number (201) 664-5400. The Plan Administrator is responsible for the administration of
the Plan, interpretation of the provisions of the Plan, prescribing procedures for filing
applications for benefits, preparation and distribution of information explaining the Plan,
maintenance of Plan records, books of account and all other data necessary for the proper
administration of the Plan, preparation and filing of all returns and reports relating to the Plan
which are required to be filed with the U.S. Department of Labor and the Internal Revenue Service,
and for all disclosures required to be made to participants, beneficiaries and others under
Sections 104 and 105 of ERISA.
Reports to Plan Participants
. The Plan Administrator will furnish you a statement at least
quarterly showing the balance in your account as of the end of that period, the amount of
contributions allocated to your account for that period, and any adjustments to your account to
reflect earnings or losses (if any).
Amendment and Termination
It is the intention of Oritani Bank to continue the Plan indefinitely. Nevertheless, Oritani
Bank may terminate the Plan at any time. If the Plan is terminated in whole or in part, then
regardless of other provisions in the Plan, you will have a fully vested interest in your accounts.
Oritani Bank reserves the right to make any amendment or amendments to the Plan which do not cause
any part of the trust to be used for, or diverted to, any purpose other than the exclusive benefit
of participants or their beneficiaries; provided, however, that Oritani Bank may make any amendment
it determines necessary or desirable, with or without retroactive effect, to comply with ERISA.
Merger, Consolidation or Transfer
In the event of the merger or consolidation of the Plan with another plan, or the transfer of
the trust assets to another plan, you would, if either the Plan or the other plan terminates,
18
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receive a benefit immediately after the merger, consolidation or transfer that is equal to the
benefit that you would have been entitled to receive immediately before the merger, consolidation
or transfer.
Federal Income Tax Consequences
The following is a brief summary of the material federal income tax aspects of the Plan. You
should not rely on this summary as a complete or definitive description of the material federal
income tax consequences relating to the Plan. Statutory provisions change, as do their
interpretations, and their application may vary in individual circumstances. Finally, the
consequences under applicable state and local income tax laws may not be the same as under the
federal income tax laws. You are advised to consult your tax advisor with respect to any
distribution from the Plan and transactions involving the Plan.
As a "tax-qualified retirement plan," the Code affords the Plan special tax treatment,
including:
(1) the sponsoring employer is allowed an immediate tax deduction for the amount contributed
to the Plan each year;
(2) participants pay no current income tax on amounts contributed by the employer on their
behalf; and
(3) earnings of the Plan are tax-deferred, thereby permitting the tax-free accumulation of
income and gains on investments.
Lump-Sum Distribution
. A distribution from the Plan to a participant or the beneficiary of a
participant will qualify as a lump-sum distribution if it is made within one taxable year, on
account of the participant's death, disability or separation from service, and consists of the
balance credited to participants under the Plan. The portion of any lump-sum distribution required
to be included in the participant's or beneficiary's taxable income for federal income tax purposes
consists of the entire amount of the lump-sum distribution.
Employer Common Stock Included in Lump-Sum Distribution
. If a lump-sum distribution includes
employer common stock, the distribution generally will be taxed in the manner described above,
except that the total taxable amount may be reduced by the amount of any net unrealized
appreciation with respect to employer common stock; that is, the excess of the value of employer
common stock at the time of the distribution over its cost of the securities to the trust. The tax
basis of employer common stock to the participant or beneficiary, for purposes of computing gain or
loss on its subsequent sale, equals the value of employer common stock at the time of distribution,
less the amount of net unrealized appreciation. Any gain on a subsequent sale or other taxable
disposition of employer common stock, to the extent of the amount of net unrealized appreciation at
the time of distribution, will constitute long-term capital gain, regardless of the holding period
of employer common stock. Any gain in excess of the amount of net unrealized appreciation at the
time of distribution will be considered long-term capital gain, provided the sale or taxable
disposition occurs more than one year after the distribution.
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The recipient of a lump-sum distribution may elect to include the amount of any net unrealized
appreciation in the taxable gross income on the date of the distribution,
Distributions: Rollovers and Direct Transfers to Another Qualified Plan or to an IRA
. You may
roll over virtually all distributions from the Plan to another qualified plan or to an individual
retirement account that accepts rollovers in accordance with the terms of the other plan or
account, provided, however, that if your distribution includes employer common stock, another
qualified plan or individual retirement account may or may not accept an in-kind rollover or direct
transfer of common stock.
Notice of Your Rights Concerning Employer Securities.
Federal law provides specific rights concerning investments in employer securities. Because
you may in the future have investments in the New Employer Stock Fund under the Plan, you should
take the time to read the following information carefully.
Your Rights Concerning Employer Securities
. The Plan must allow you to elect to move any
portion of your account that is invested in the Old Employer Stock Fund and New Employer Stock Fund
from that investment into other investment alternatives under the Plan. You may contact the Plan
Administrator shown above for specific information regarding this right, including how to make this
election. In deciding whether to exercise this right, you will want to give careful consideration
to the information below that describes the importance of diversification. All of the investment
options under the Plan are available to you if you decide to diversify out of either the Old
Employer Stock Fund or the New Employer Stock Fund.
The Importance of Diversifying Your Retirement Savings
. To help achieve long-term retirement
security, you should give careful consideration to the benefits of a well-balanced and diversified
investment portfolio. Spreading your assets among different types of investments can help you
achieve a favorable rate of return, while minimizing your overall risk of losing money. This is
because market or other economic conditions that cause one category of assets, or one particular
security, to perform very well often cause another asset category, or another particular security,
to perform poorly. If you invest more than 20% of your retirement savings in any one company or
industry, your savings may not be properly diversified. Although diversification is not a
guarantee against loss, it is an effective strategy to help you manage investment risk.
In deciding how to invest your retirement savings, you should take into account all of your
assets, including any retirement savings outside of the Plan. No single approach is right for
everyone because, among other factors, individuals have different financial goals, different time
horizons for meeting their goals, and different tolerance for risk. Therefore, you should
carefully consider the rights described here and how these rights affect the amount of money that
you invest in employer common stock through the Plan.
It is also important to periodically review your investment portfolio, your investment
objectives, and the investment options under the Plan to help ensure that your retirement savings
will meet your retirement goals.
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Additional ERISA Considerations
As noted above, the Plan is subject to certain provisions of ERISA, including special
provisions relating to control over the Plan's assets by participants and beneficiaries. The
Plan's feature that allows you to direct the investment of your account balances is intended to
satisfy the requirements of section 404(c) of ERISA relating to control over plan assets by a
participant or beneficiary. The effect of this is two-fold. First, you will not be deemed a
"fiduciary" because of your exercise of investment discretion. Second, no person who otherwise is
a fiduciary, such as the Plan administrator or the Plan's trustee, is liable under the fiduciary
responsibility provision of ERISA for any loss which results from your exercise of control over the
assets in your Plan account.
Because you will be entitled to invest all or a portion of your account balance in the Plan in
employer common stock, the regulations under Section 404(c) of ERISA require that the Plan
establish procedures that ensure the confidentiality of your decision to purchase, hold, or sell
employer securities, except to the extent that disclosure of such information is necessary to
comply with federal or state laws not preempted by ERISA. These regulations also require that your
exercise of voting and similar rights with respect to the common stock be conducted in a way that
ensures the confidentiality of your exercise of these rights.
Securities and Exchange Commission Reporting and Short-Swing Profit Liability
Section 16 of the Securities Exchange Act of 1934 imposes reporting and liability requirements
on officers, directors, and persons beneficially owning more than 10% of public companies such as
OFC-Delaware. Section 16(a) of the Securities Exchange Act of 1934 requires the filing of reports
of beneficial ownership. Within 10 days of becoming an officer, director or person beneficially
owning more than 10% of the shares of OFC-Delaware, a Form 3 reporting initial beneficial ownership
must be filed with the Securities and Exchange Commission. Changes in beneficial ownership, such
as purchases, sales and gifts generally must be reported periodically, either on a Form 4 within
two business days after the date on which a change occurs, or annually on a Form 5 within 45 days
after the close of OFC-Delaware's fiscal year. Discretionary transactions in and beneficial
ownership of the common stock through the New Employer Stock Fund by officers, directors and
persons beneficially owning more than 10% of the common stock of OFC-Delaware generally must be
reported to the Securities and Exchange Commission by such individuals within two business days
after the date on which the discretionary transactions occur.
In addition to the reporting requirements described above, Section 16(b) of the Securities
Exchange Act of 1934 provides for the recovery by OFC-Delaware of profits realized by an officer,
director or any person beneficially owning more than 10% of OFC-Delaware's common stock resulting
from non-exempt purchases and sales of OFC-Delaware common stock within any six-month period.
The Securities and Exchange Commission has adopted rules that provide exemptions from the
profit recovery provisions of Section 16(b) for all transactions in employer securities within an
employee benefit plan, provided certain requirements are met. These requirements
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generally involve restrictions upon the timing of elections to acquire or dispose of employer
securities for the accounts of Section 16(b) persons.
Except for distributions of common stock due to death, disability, retirement, termination of
employment or under a qualified domestic relations order, persons affected by Section 16(b) are
required to hold shares of common stock distributed from the Plan for six months following such
distribution and are prohibited from directing additional purchases of units within the New
Employer Stock Fund for six months after receiving such a distribution.
Financial Information Regarding Plan Assets
Financial information representing the assets available for Plan benefits are available upon
written request to the Plan Administrator at the address shown above.
LEGAL OPINION
The validity of the issuance of the common stock has been passed upon by Luse Gorman Pomerenk
& Schick, P.C., Washington, D.C., which firm acted as special counsel to OFC-Delaware in connection
with OFC-Delaware's stock offering.
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PROSPECTUS
ORITANI FINANCIAL CORP.
(Proposed Holding Company for Oritani Bank)
Up to 44,850,000 Shares of Common Stock
(Subject to Increase to up to 51,577,500 Shares)
Oritani Financial Corp., a Delaware corporation, is offering shares of common stock for sale
at $10.00 per share in connection with the conversion of Oritani Financial Corp., MHC from the
mutual to the stock form of organization. The shares of common stock we are offering represent the
ownership interest in Oritani Financial Corp. currently owned by Oritani Financial Corp., MHC. In
addition, at the conclusion of the offering, existing shares of Oritani Financial Corp. common
stock currently held by the public will be exchanged for shares of common stock of Oritani.
Oritani Financial Corp.'s common stock is currently traded on the Nasdaq Global Market under the
trading symbol "ORIT." We expect that Oritani's shares of common stock will trade on the Nasdaq
Global Market under the trading symbol "ORITD" for a period of 20 trading days after the completion
of this stock offering. Thereafter, Oritani's trading symbol will revert to "ORIT." We will refer
to Oritani Financial Corp., a Delaware corporation formed for this stock offering, as "Oritani" and
Oritani Financial Corp., the existing federal corporation, as "Oritani Financial Corp." in this
document.
We are offering the shares of common stock to eligible depositors of Oritani Bank in a
"subscription offering." Depositors of Oritani Bank with aggregate account balances of at least
$50 as of the close of business on December 31, 2008 will have first priority rights to buy our
shares of common stock. Shares of common stock not purchased in the subscription offering are
expected to be offered for sale in a "community offering," which will be limited to persons
residing in New Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren, Union,
Somerset, Hunterdon, Middlesex and Mercer, certain borrowers as of December 31, 2009 and the
stockholders of Oritani Financial Corp as of [voting record date]. We also may offer for sale to
the general public shares of common stock not purchased in the subscription offering or community
offering through a "syndicated community offering" managed by Stifel, Nicolaus & Company,
Incorporated.
We are offering up to 44,850,000 shares of common stock for sale on a best efforts basis. We
may sell up to 51,577,500 shares of common stock because of demand for the shares of common stock,
as a result of regulatory considerations, or due to changes in the market for financial
institutions stock, without resoliciting purchasers. In addition to the shares we are selling in
the offering, we also will simultaneously issue up to 15,395,458 shares of common stock to existing
public stockholders of Oritani Financial Corp. in exchange for their existing shares. The number
of shares to be issued in the exchange may be increased to up to 17,704,777 shares of common stock,
if we sell 51,577,500 shares of common stock in the offering. We must sell a minimum of 33,150,000
shares in the offering and issue 11,379,252 shares in the exchange in order to complete the
offering and the exchange of existing shares of common stock.
The minimum order is 25 shares. The offering is expected to expire at 2:00 p.m., Eastern
Time, on [expiration date]. We may extend this expiration date without notice to you until
[extension date], unless the Office of Thrift Supervision approves a later date, which may not be
beyond [final expiration date]. Once submitted, orders are irrevocable unless the offering is
terminated or is extended beyond [extension date], or the number of shares of common stock to be
sold is increased to more than 51,577,500 shares or decreased to less than 33,150,000 shares. If
the subscription and community offerings are terminated, purchasers will have their funds returned
promptly, with interest. If, with Office of Thrift Supervision approval, the offering is extended
beyond [extension date] or there is a change in the offering range, we will resolicit purchasers,
who will have the opportunity to maintain, change or cancel your order. If you do not provide us
with a written indication of your intent, your order will be canceled and your funds will be
returned to you, with interest. Funds received prior to the completion of the offering will be held
in a segregated account at Oritani Bank or, at our discretion, at another federally insured
depository institution, and will earn interest at Oritani Bank's passbook savings rate, which is
currently 0.25%. Stifel, Nicolaus & Company, Incorporated will assist us in selling our shares of
common stock on a best efforts basis in the subscription and community offerings. We may also offer
shares of common stock not subscribed for in the subscription and community offerings in a
syndicated community offering through a syndicate of selected dealers with Stifel, Nicolaus &
Company, Incorporated serving as sole book running manager. Stifel, Nicolaus & Company,
Incorporated is not required to purchase any shares of common stock that are being offered for
sale.
OFFERING SUMMARY
Price: $10.00 per share
Minimum
Midpoint
Maximum
Adjusted Maximum
Number of shares
33,150,000
39,000,000
44,850,000
51,577,500
Gross offering proceeds
$
331,500,000
$
390,000,000
$
448,500,000
$
515,775,000
Estimated offering expenses excluding selling agent commissions and expenses
$
1,762,400
$
1,762,400
$
1,762,400
$
1,762,400
Estimated selling agent commissions and expenses(1)
$
11,368,400
$
13,334,000
$
15,299,600
$
17,560,040
Net proceeds
$
318,369,200
$
374,903,600
$
431,438,000
$
496,452,560
Net proceeds per share
$
9.60
$
9.61
$
9.62
$
9.63
(1)
For information regarding compensation to be received by Stifel, Nicolaus & Company,
Incorporated and the other broker-dealers that may participate in the syndicated community
offering, including the assumptions regarding the number of shares that may be sold in the
subscription and community offerings and the syndicated community offering to determine the
estimated offering expenses, see "Pro Forma Data" on page 45 and "The Conversion and
Offering—Marketing Arrangements" on page 157.
This investment involves a degree of risk, including the possible loss of principal.
Please read "Risk Factors" beginning on page 25.
Table of Contents
These securities are not deposits or savings accounts and are not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency. None of the
Securities and Exchange Commission, the Office of Thrift Supervision, the Federal Deposit Insurance
Corporation, the New Jersey Department of Banking and Insurance, or any state securities regulator
has approved or disapproved of these securities or determined if this prospectus is accurate or
complete. Any representation to the contrary is a criminal offense.
STIFEL NICOLAUS
For assistance, please contact the Stock Information Center, toll-free, at 1 (877) ___-___.
The date of this prospectus is [Prospectus Date].
Table of Contents
[MAP SHOWING ORITANI BANK'S MARKET AREA APPEARS ON INSIDE FRONT COVER]
i
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Page
SUMMARY
1
RISK FACTORS
25
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
35
FORWARD-LOOKING STATEMENTS
37
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
39
OUR POLICY REGARDING DIVIDENDS
40
MARKET FOR THE COMMON STOCK
41
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
43
CAPITALIZATION
44
PRO FORMA DATA
45
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
51
BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK
73
SUPERVISION AND REGULATION
99
FEDERAL AND STATE TAXATION
111
MANAGEMENT
113
SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
140
THE CONVERSION AND OFFERING
141
COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING STOCKHOLDERS OF ORITANI FINANCIAL CORP.
168
RESTRICTIONS ON ACQUISITION OF ORITANI
175
DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION
180
TRANSFER AGENT
181
EXPERTS
181
LEGAL MATTERS
181
WHERE YOU CAN FIND ADDITIONAL INFORMATION
181
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF ORITANI
FINANCIAL CORP. AND ITS SUBSIDIARIES
F-1
i
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SUMMARY
The following summary explains the material aspects of the conversion, the offering and the
exchange of existing shares of Oritani Financial Corp. common stock for new shares of Oritani
common stock. It may not contain all of the information that is important to you. For additional
information before making an investment decision, you should read this prospectus carefully,
including the consolidated financial statements, the notes to the consolidated financial
statements, and the section entitled "Risk Factors."
The Companies
Oritani Financial Corp., a Delaware corporation
Oritani Financial Corp., is a newly-formed Delaware corporation that was incorporated in
February 2010 to be the successor corporation to Oritani Financial Corp. upon completion of the
conversion. Oritani Financial Corp., a Delaware Corporation ("Oritani") will own all of the
outstanding shares of common stock of Oritani Bank upon completion of the conversion.
Oritani's executive offices are located at 370 Pascack Road, Township of Washington, New
Jersey 07676. Our telephone number at this address is (201) 664-5400.
Oritani Financial Corp., MHC
Oritani Financial Corp., MHC is the federally chartered mutual holding company of Oritani
Financial Corp. Oritani Financial Corp., MHC's principal business activity is the ownership of
27,575,476 shares of common stock of Oritani Financial Corp., or 74.4% of the issued and
outstanding shares as of the date of this prospectus. The remaining 9,465,710 shares of Oritani
Financial Corp. common stock outstanding as of the date of this prospectus were held by the public.
After the completion of the conversion, Oritani Financial Corp., MHC will cease to exist.
Oritani Financial Corp., a Federal corporation
Oritani Financial Corp. is a federally chartered stock holding company that owns all of the
outstanding common stock of Oritani Bank. At December 31, 2009, Oritani Financial Corp. had
consolidated assets of $2.01 billion, deposits of $1.21 billion and stockholders' equity of $248.0
million. After the completion of the conversion, Oritani Financial Corp. will cease to exist, and
will be succeeded by Oritani, a new Delaware corporation. As of the date of this prospectus,
Oritani Financial Corp. had 40,552,162 shares of common stock issued and 37,041,184 shares of
common stock outstanding, of which 27,575,476 shares were owned by Oritani Financial Corp., MHC.
Oritani Bank
Oritani Bank is a New Jersey-chartered stock savings bank headquartered in Township of
Washington, New Jersey, and the wholly-owned subsidiary of Oritani Financial Corp., a federal
corporation. Oritani Bank was originally founded in 1911 as a mutual (meaning no stockholders)
organization and converted to stock form in 1997 as part of Oritani Bank's mutual holding company
reorganization. Oritani Bank became a wholly-owned subsidiary of Oritani Financial Corp. in 2007.
1
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Our Business
We are a full service retail banking institution. Our primary business lines involve
generating funds from deposits or borrowings and investing such funds in loans and investment
securities.
Oritani Bank conducts business from its main office located at 370 Pascack Road, in the
Township of Washington, New Jersey 07676, and its 21 branch offices located in the New Jersey
counties of Bergen, Hudson and Passaic. Oritani Bank was formerly known as Oritani Savings Bank.
Effective September 8, 2008, the name was changed to Oritani Bank.
Our principal business consists of attracting retail and commercial deposits from the general
public in the areas surrounding our main office in the Township of Washington, New Jersey and our
branch offices located in the New Jersey counties of Bergen (16 branches, including our main
office), Hudson (five branches) and Passaic (one branch), and investing those deposits, together
with funds generated from operations, in multi-family and commercial real estate loans, one- to
four-family residential mortgage loans as well as in second mortgage and equity loans, construction
loans, business loans, other consumer loans, and investment securities. We originate loans
primarily for investment and hold such loans in our portfolio. Occasionally, we will also enter
into loan participations. Our revenues are derived principally from interest on loans and
securities as well as our investments in real estate and real estate joint ventures. We also
generate revenues from fees and service charges and other income. Our primary sources of funds are
deposits, borrowings and principal and interest payments on loans and securities.
Market Area
From our headquarters in the Township of Washington, New Jersey, we operate 22 full service
branches, including our main office. We operate branches in three counties in New Jersey: Bergen,
Hudson and Passaic. The majority of our branches (sixteen) and deposits are located in Bergen
County. In addition, we operate five branches in Hudson County and one branch in Passaic County.
Our market area for lending is broader and includes the state of New Jersey, the broader New York
metropolitan area, eastern Pennsylvania, and southern Connecticut.
In terms of population, Bergen County ranks as the largest county in New Jersey (out of
twenty-one counties) while Hudson County ranks fifth and Passaic County ranks ninth. The economy
in our primary market area has benefited from being varied and diverse. It is largely urban and
suburban with a broad economic base. As one of the wealthiest states in the nation, New Jersey,
with a population of 8.7 million, is considered one of the most attractive banking markets in the
United States. As of December 2009, the unemployment rate for New Jersey increased to 10.1%, which
was slightly higher than the national rate of 10.0%. Despite the recent downturn, a total of 3.9
million New Jersey residents remain employed as of December 2009. Bergen County is considered part
of the New York metropolitan area. Its county seat is Hackensack. Bergen County ranks 16th among
the highest-income counties in the United States in 2009 in terms of per-capita income. Some of
Bergen County's major employers are: Hackensack University Medical Center; New Jersey Sports and
Expo Authority; Merck-Medco Managed Care; AT&T Wireless Services, Inc.; Becton Dickinson & Company;
Mellon Investor Services; Marcal Paper Mills; Mercedes-Benz of North America, Inc.; KPMG, LLP and
United States Postal Service.
Bergen County is bordered by Rockland County, New York to the north, the Hudson River to the
east, Hudson County to the south, a small border with Essex County also to the south and Passaic
County to the west.
Passaic County is bordered by Orange County, New York to the north, Rockland County, New York
to the northeast, Bergen County to the east, Essex County to the south, Morris County to the
southwest and Sussex County to the west.
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Hudson County's only land border is with Bergen County to the north and west. It is bordered
by the Hudson River and Upper New York Bay to the east; Kill van Kull (which connects Newark Bay
with Upper New York Bay) to the south and Newark Bay and the Hackensack River or the Passaic River
to the west.
Competition
We face intense competition within our market area both in making loans and attracting
deposits. Our market area has a high concentration of financial institutions including large money
center and regional banks, community banks and credit unions. Some of our competitors offer
products and services that we currently do not offer, such as trust services and private banking.
As of June 30, 2009, the latest date for which statistics are available, our market share of
deposits was approximately 2.6% in Bergen County, and less than 1.0% in each of Hudson and Passaic
Counties.
Our competition for loans and deposits comes principally from commercial banks, savings
institutions, mortgage banking firms, insurance companies and credit unions. We face additional
competition for deposits from short-term money market funds, brokerage firms, mutual funds and
insurance companies. Our primary focus is to build and develop profitable customer relationships
across all lines of business while maintaining our role as a community bank.
Our Business Strategy
We intend to continue to operate as a well-capitalized and profitable financial institution
dedicated to understanding the banking needs of both our individual and business customers, and
tailoring our products and services accordingly. This approach enables us to be more flexible and
responsive to our customers and to provide an exceptional level of personal service.
Highlights of our business strategy are discussed below:
Continue our focus on multi-family and commercial real estate lending
. Unlike many
traditional thrifts, we have focused on the origination of multi-family and commercial real estate
loans. Such loans comprise 66.9% of our total loan portfolio at December 31, 2009. We have
focused on this type of lending because the interest rates earned for such loans are higher than
the prevailing rates for residential loans, resulting in a greater level of interest income
potential. We are also able to generate significantly higher fee income on such loans. In
addition, the repayment terms usually expose us to less interest rate risk than fixed-rate
residential loans. While our actual origination volume will depend on market conditions, we intend
to continue our emphasis on multi-family and commercial real estate lending.
We have experienced substantial growth in our combined multi-family and commercial real estate
loan portfolio in recent years. The growth rate of the portfolio has been 20.27%; 40.62%; 32.37%;
18.97% and 39.71% for the six months ended December 31, 2009 (annualized) and years ended June 30,
2009, 2008, 2007 and 2006, respectively. In addition, despite our more stringent underwriting
standards discussed below, we believe that the exit of many larger banks and conduit lenders from
the commercial real estate lending market due to the financial crisis has enabled us, as a
community bank, to increase the number and size of the commercial real estate loans that we
originate while lending to a higher quality of borrower.
We have been involved in multi-family lending for over thirty years. Over the past seven
years, we have assembled a department exclusively devoted to the origination and administration of
multi-family and commercial real estate loans. Over the past two years, we have established a
separate credit department to review all such originations and ensure compliance with our
underwriting standards. There are presently eight loan officers as well as support staff in the
origination department and three officers as well as support staff in the credit department. Our
business plan projects continued growth of the portfolio and continued additions to our staff to
support such growth. In addition, due to current
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economic conditions and related risks, management has been applying stricter underwriting
guidelines, including requiring higher debt service coverage ratios and lower loan to value ratios,
to these loans. We have also focused our multi-family and commercial real estate lending on more
seasoned and experienced developers.
Reduce problem assets and aggressively remedy delinquent loans
. One of management's primary
objectives is to reduce our level of problem assets. While no assurances can be provided regarding
results, management will focus a significant amount of its time on the resolution of problem
assets. Management's tactics toward delinquent borrowers are considered aggressive. We have
commenced legal action against virtually all borrowers who are more than 45 days delinquent. We
have generally refused to extend the maturity date of any construction loan, even if the interest
payments are current, unless the borrower agrees to reduce our exposure through additional
principal payments and/or additional collateral, and agrees to an additional fee if the loan is not
paid in full on or before the new maturity date. We realize that such actions contribute to the
high level of delinquencies but believe this is the most prudent path to addressing delinquent
loans. Since June 30, 2009 our level of non-performing assets to total assets has declined from
2.74% to 2.62% at December 31, 2009. Additionally, $13.9 million of our delinquent loans are
expected to be resolved in the coming months as the underlying collateral are under contracts for
sale.
Increase core deposits
. During the past two years, we have devoted significant internal
attention to growing our deposits. We hired key, experienced personnel and have implemented an
incentive program that rewards branch personnel for attracting core deposit relationships. We have
also begun to emphasize obtaining deposits from our commercial borrowers, reexamined our pricing
strategies and promoted our status as a local community bank. As a result of these efforts, we
have recently experienced a period of unprecedented deposit growth. Our deposit balances grew
61.3% from June 30, 2008 to June 30, 2009. The growth has continued as our annualized growth for
the six month period ended December 31, 2009 was 14.7%. Much of the increase came in the areas of
certificates of deposit and money market accounts. Our ongoing focus will be to build upon this
success, with a particular emphasis on growing core commercial and retails deposits. In addition
to continuing to attract new customers to Oritani Bank, we will also focus on cross-selling core
deposit accounts to customers who have limited deposit services with Oritani Bank and seeking to
further develop the relationship by providing quality customer service.
Expand our market share within our primary market area.
Our deposit growth significantly
boosted our market penetration in Bergen County, the primary county of our operations. We
increased our percentage of Bergen County deposits from 1.8%, or the 14
th
highest
financial institution, at June 30, 2008 to 2.6%, or the 9
th
highest financial
institution, at June 30, 2009. In October 2008, Oritani Bank opened two de novo branches. These
branches had combined deposit totals of $49.6 million at December 31, 2009. In February 2010, we
opened a de novo branch in Bergenfield, New Jersey. We intend to continue the strategy of
opportunistic de novo branching. We typically seek de novo branch locations in under-banked areas
that are either a contiguous extension or fill-in of our existing branch network. We also have
budgeted monies for infrastructure improvements in our existing branches. We may also consider the
acquisition of branches from other financial institutions in our market area. We believe these
strategies, along with continued growth, will help us achieve our goal of deposit growth and market
expansion.
Continue to emphasize operating efficiencies and cost control
. One of the hallmarks of our
operations has been expense control as evidenced by an efficiency ratio of 46.5% for the six months
ended December 31, 2009. Our efficiency ratio as well as numerous other expense measurement
ratios, have consistently outperformed peers. We intend to maintain our posture on expense control
while continuing to make prudent investments in our operations by effectively managing costs in
relation to revenues. We realize that our expense ratios will be challenged in the future with the
intended implementation of stock benefit plans. However, we have recently been able to generate
favorable peer comparisons with such plans in place.
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Remain true to our core competencies
. We are very proud of the institution we have helped to
build. We realize many of our peers have ventured into other areas of banking operations, such as
C&I lending, leasing and sales of alternative investment products. While these areas may be
profitable, they also have inherent risks and require significant expertise separate from our core
lending and deposit gathering operations. For the foreseeable future, we do not intend to utilize
our capital to enter into new types of lending or other areas of operations that we consider to be
risky. We believe that we possess expertise in our current types of lending and operations and
intend to rely on this existing expertise for future growth and profitability.
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
OF
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
The summary financial information presented below is derived in part from the consolidated
financial statements of Oritani Financial Corp. and subsidiaries. The following is only a summary
and you should read it in conjunction with the consolidated financial statements and notes
beginning on page F-1. The information at June 30, 2009 and 2008 and for the fiscal years ended
June 30, 2009, 2008 and 2007 is derived in part from the audited consolidated financial statements
of Oritani Financial Corp. that appear in this prospectus. The information at and for the years
ended June 30, 2007, 2006 and 2005 is derived in part from audited consolidated financial
statements that do not appear in this prospectus. The operating data for the three months and six
months ended December 31, 2009 and 2008 and the financial condition data at December 31, 2009 were
not audited. However, in the opinion of management of Oritani Financial Corp., all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of the results of
operations for the unaudited periods have been made. No adjustments were made other than normal
recurring entries. The results of operations for the three months and six months ended December
31, 2009 are not necessarily indicative of the results of operations that may be expected for the
entire year.
At
At June 30,
December
2009
2008
2007
2006
2005
31, 2009
(In thousands)
Selected Financial Condition Data:
Total assets
$
2,006,874
$
1,913,521
$
1,443,294
$
1,194,443
$
1,031,421
$
1,051,702
Loans, net
1,357,157
1,278,623
1,007,077
758,542
643,064
493,554
Securities available for sale, at market value
320,439
144,419
22,285
35,443
10,499
60,924
Securities held to maturity
—
—
—
5,415
13,415
25,500
Mortgage-backed securities held to maturity
86,182
118,817
163,950
217,406
274,695
372,104
Mortgage-backed securities available for sale, at market value
98,513
128,603
149,209
38,793
17,426
25,659
Bank owned life insurance
29,973
29,385
26,425
25,365
24,381
18,988
Federal Home Loan Bank of New York stock, at cost
25,481
25,549
21,547
10,619
9,367
9,088
Accrued interest receivable
8,786
7,967
5,646
4,973
3,910
3,405
Investments in real estate joint ventures, net
5,836
5,767
5,564
6,200
6,233
5,438
Real estate held for investment
1,222
1,338
3,681
2,492
2,223
1,425
Deposits
1,210,507
1,127,630
698,932
695,757
688,646
702,980
Borrowings
507,439
508,991
433,672
196,661
169,780
182,129
Stockholders' equity
247,950
240,098
278,975
272,570
150,135
141,796
For the Three Months Ended
For the Six Months Ended
December 31,
December 31,
2009
2008
2009
2008
(Dollars in thousands, except per share amounts)
Selected Operating Data:
Total interest income
$
25,467
$
21,862
$
51,246
$
42,519
Total interest expense
11,057
11,169
22,617
21,056
Net interest income
14,410
10,693
28,629
21,463
Provision for loan losses
2,500
3,500
5,050
5,375
Net interest income after provision for loan losses
11,910
7,193
23,579
16,088
Other income
1,067
(565
)
3,613
668
Other expense
8,166
6,542
14,994
12,416
Income before income tax expense
4,811
86
12,198
4,340
Income tax expense
1,882
47
4,786
1,795
Net income
$
2,929
$
39
$
7,412
$
2,545
Earnings per share:
Basic
$
0.08
$
0.00
$
0.20
$
0.07
Diluted
$
0.08
$
0.00
$
0.20
$
0.07
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For the Year Ended June 30,
2009
2008
2007
2006
2005
Selected Operating Data:
Interest income
$
88,429
$
71,591
$
63,349
$
51,276
$
46,439
Interest expense
44,500
37,208
32,829
23,522
18,349
Net interest income
43,929
34,383
30,520
27,754
28,090
Provision for loan losses
9,880
4,650
1,210
1,500
800
Net interest income after provision for loan losses
34,049
29,733
29,310
26,254
27,290
Other income
2,780
4,936
5,309
4,560
1,663
Other expense
27,257
19,491
25,249
17,524
14,800
Income before income tax expense
9,572
15,178
9,370
13,290
14,153
Income tax expense (benefit)
4,020
6,218
(1,664
)
4,827
5,193
Net income
$
5,552
$
8,960
$
11,034
$
8,463
$
8,960
At or for the Six Months
Ended December 31,
(1)
At or For the Year Ended June 30,
2009
2008
2009
2008
2007
2006
2005
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on assets
(2)
0.75
%
0.42
%
0.33
%
0.68
%
0.94
%
0.81
%
0.86
%
Return on equity
(3)
6.08
%
4.14
%
2.20
%
3.21
%
5.48
%
5.77
%
6.51
%
Net interest rate spread
(4)
2.75
%
2.42
%
2.36
%
2.06
%
2.23
%
2.42
%
2.54
%
Net interest margin
(5)
3.03
%
2.90
%
2.77
%
2.77
%
2.73
%
2.77
%
2.80
%
Efficiency ratio
(6)
46.50
%
56.10
%
58.35
%
49.59
%
70.47
%
54.23
%
49.74
%
Non-interest expense to average total assets
1.52
%
1.59
%
1.63
%
1.49
%
2.14
%
1.68
%
1.43
%
Average interest-earning assets to average
interest-bearing liabilities
111.59
%
117.16
%
114.47
%
123.59
%
117.00
%
115.05
%
114.42
%
Asset Quality Ratios:
Non-performing assets to total assets
2.62
%
2.66
%
2.74
%
0.98
%
—
%
0.04
%
0.02
%
Non-performing loans to total loans
3.75
%
3.60
%
4.03
%
1.39
%
—
%
0.07
%
0.04
%
Allowance for loan losses to total loans
1.60
%
1.54
%
1.59
%
1.32
%
1.15
%
1.18
%
1.23
%
Allowance for loan losses to nonperforming loans
42.70
%
42.91
%
39.42
%
5.23
%
N/M
N/M
N/M
Net charge-offs to average loans
0.50
%
—
%
0.23
%
—
%
—
%
—
%
—
%
Capital Ratios:
(7)
Total stockholders' equity to assets
12.36
%
14.94
%
12.55
%
19.33
%
22.82
%
14.56
%
13.48
%
Total capital (to risk-weighted assets)
18.42
%
21.30
%
19.15
%
27.78
%
34.87
%
26.98
%
30.80
%
Tier I capital (to risk-weighted assets)
17.16
%
20.04
%
17.90
%
26.53
%
33.77
%
25.73
%
29.55
%
Tier I capital (to average assets)
12.36
%
15.23
%
14.31
%
19.71
%
23.10
%
14.39
%
13.62
%
Other Data:
Number of full service offices
21
19
21
19
19
19
21
Full time equivalent employees
177
158
174
155
144
143
138
(1)
Ratios are annualized where appropriate.
(2)
Represents net income divided by average total assets.
(3)
Represents net income divided by average equity.
(4)
Represents average yield on interest-owning assets less average cost of interest-bearing
liabilities.
(5)
Represents net interest income as a percent of average interest-earning assets.
(6)
Represents non-interest expense divided by the sum of net interest income before provision
for loan losses and non-interest income.
(7)
Represents consolidated ratios.
N/M Not meaningful.
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Table of Contents
Our Current Organizational Structure
Oritani Financial Corp. completed its initial public stock offering on January 23, 2007.
Oritani Financial Corp. sold 12,165,649 shares, or 30.0% of its outstanding common stock, to
subscribers in the offering, including 1,589,644 shares purchased by the Oritani Bank Employee
Stock Ownership Plan. Proceeds from the offering, including the value of shares issued to the
charitable foundation but net of expenses, were $127.6 million. Oritani Financial Corp.
contributed $59.7 million of the proceeds to Oritani Bank. At December 31, 2009, Oritani Financial
Corp., MHC owned 74.4% of the Oritani Financial Corp.'s outstanding common stock.
Pursuant to the terms of Oritani Financial Corp., MHC's plan of conversion and reorganization,
Oritani Financial Corp., MHC will convert from the mutual holding company to the stock holding
company corporate structure. As part of the conversion, we are offering for sale in a subscription
offering, a community offering and possibly a syndicated community offering, the ownership interest
of Oritani Financial Corp. that is currently owned by Oritani Financial Corp., MHC. Upon the
completion of the conversion, Oritani Financial Corp., MHC will cease to exist, and we will
complete the transition from partial to full public stock ownership. In addition, as part of the
conversion existing public stockholders of Oritani Financial Corp. will receive shares of common
stock of Oritani in exchange for their shares of Oritani Financial Corp. common stock pursuant to
an exchange ratio that maintains the same percentage ownership in Oritani (excluding any new shares
purchased by them in the offering and their receipt of cash in lieu of fractional exchange shares)
that existing stockholders had in Oritani Financial Corp. immediately prior to the completion of
the conversion and offering.
The following diagram shows our current organizational structure:
8
Table of Contents
Our Organizational Structure Following the Conversion
After the conversion and offering are completed, we will be organized as a fully public stock
holding company, as follows:
Reasons for the Conversion and the Offering
Our primary reasons for converting and raising additional capital through the offering are:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the Federal Deposit Insurance
Corporation (the "FDIC") or the New Jersey Department of Banking and Insurance to raise
capital); and
•
to use the additional capital for other general corporate purposes.
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Table of Contents
Terms of the Offering
Pursuant to Oritani Financial Corp., MHC's plan of conversion and reorganization, our
organization will convert from the partially public mutual holding company form to the fully public
stock holding company structure. In connection with the conversion, we are selling shares of
common stock that represent the ownership interest in Oritani Financial Corp. currently held by
Oritani Financial Corp., MHC.
We are offering between 33,150,000 and 44,850,000 shares of common stock to eligible
depositors of Oritani Bank, to our tax-qualified employee benefit plans, including our employee
stock ownership plan, and, to the extent shares remain available, to persons residing in the New
Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren, Union, Somerset,
Hunterdon, Middlesex and Mercer; certain borrowers as of December 31, 2009, and to our existing
public stockholders as of [voting record date]. The number of shares of common stock to be sold
may be increased to up to 51,577,500 as a result of regulatory considerations, demand for our
shares, or changes in the market for financial institution stocks. Unless the number of shares of
common stock to be offered is increased to more than 51,577,500 shares or decreased to fewer than
33,150,000 shares, or the offering is extended beyond [extension date], purchasers will not have
the opportunity to modify or cancel their stock orders once submitted. If the number of shares of
common stock to be sold is increased to more than 51,577,500 shares or decreased to fewer than
33,150,000 shares, or if the offering is extended beyond [extension date], purchasers will have the
opportunity to maintain, cancel or change their orders for shares of common stock during a
designated resolicitation period or have their funds returned promptly with interest. If you do
not provide us with written indication of your intent, your stock order will be canceled, your
funds will be returned to you with interest calculated at Oritani Bank's passbook savings rate and
any deposit account withdrawal authorizations will be canceled.
The purchase price of each share of common stock to be offered for sale in the offering is
$10.00. All investors will pay the same purchase price per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. Stifel, Nicolaus & Company,
Incorporated, our conversion advisor and marketing agent in the offering, will use its best efforts
to assist us in selling shares of our common stock. Stifel, Nicolaus & Company, Incorporated is
not obligated to purchase any shares of common stock in the offering.
We may also offer for sale to the general public in a syndicated community offering through a
syndicate of selected dealers shares of our common stock not purchased in the subscription offering
or the community offering. We may begin the syndicated community offering at any time following the
commencement of the subscription offering. Stifel, Nicolaus & Company, Incorporated is acting as
sole book-running manager and [co-managers] are acting as co-managers for the syndicated community
offering, which is also being conducted on a best efforts basis. Neither Stifel, Nicolaus &
Company, Incorporated nor any other member of the syndicate is required to purchase any shares in
the syndicated community offering. Alternatively, we may sell remaining shares in an underwritten
public offering, which would be conducted on a firm commitment basis.
How We Determined the Offering Range, the Exchange Ratio and the $10.00 Per Share Stock Price
The offering range and exchange ratio are based on an independent appraisal of the estimated
market value of Oritani, assuming the conversion, the exchange and the offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisals of financial institutions, has
estimated that, as of February 19, 2010, this estimated pro forma market value ranged from $445.3
million to a maximum of $602.5 million, with a midpoint of $523.8 million and an adjusted maximum
of $692.8 million. Based on this valuation, the 74.4% ownership interest held by Oritani Financial
Corp., MHC being sold in the
10
Table of Contents
offering and the $10.00 per share price, the number of shares of common stock being offered
for sale by us will range from 33,150,000 shares to 44,850,000 shares. The $10.00 per share price
was selected primarily because it is the price most commonly used in mutual-to-stock conversions of
financial institutions. The exchange ratio will range from 1.2022 shares at the minimum of the
offering range to 1.6264 shares at the maximum of the offering range in order to approximately
preserve the existing percentage ownership of public stockholders of Oritani Financial Corp.
(excluding any new shares purchased by them in the offering and their receipt of cash in lieu of
fractional exchange shares). If demand for shares or market conditions warrant, the appraisal can
be increased by 15%. At this adjusted maximum of the offering range, the estimated pro forma
market value is $692.8 million, the number of shares of common stock offered for sale will be
69,282,277 and the exchange ratio will be 1.8704 shares.
The independent appraisal is based in part on Oritani Financial Corp.'s financial condition
and results of operations, the pro forma impact of the additional capital raised by the sale of
shares of common stock in the offering, and an analysis of a peer group of 10 publicly traded
savings bank and thrift holding companies that RP Financial, LC. considered comparable to Oritani
Financial Corp.
The appraisal peer group consists of the following companies. Total assets are as of December
31, 2009, unless otherwise indicated.
Company Name and Ticker Symbol
Exchange
Headquarters
Total Assets
(in millions)
Beacon Federal Bancorp (BFED)
NASDAQ
East Syracuse, NY
$
1,070
(1)
Brookline Bancorp, Inc. (BRKL)
NASDAQ
Brookline, MA
$
2,616
Danvers Bancorp, Inc. (DNBK)
NASDAQ
Danvers, MA
$
2,500
ESB Financial Corp. (ESBF)
NASDAQ
Ellwood City, PA
$
1,979
(1)
ESSA Bancorp, Inc. (ESSA)
NASDAQ
Stroudsburg, PA
$
1,034
OceanFirst Financial Corp. (OCFC)
NASDAQ
Toms River, NJ
$
1,989
Parkvale Financial Corp. (PVSA)
NASDAQ
Monroeville, PA
$
1,916
Provident NY Bancorp (PBNY)
NASDAQ
Montebello, NY
$
2,918
United Financial Bancorp, Inc. (UBNK)
NASDAQ
West Springfield, MA
$
1,247
(1)
Westfield Financial, Inc. (WFD)
AMEX
Westfield, MA
$
1,191
(1)
As of September 30, 2009.
The independent appraisal does not indicate actual market value. Do not assume or expect
that the estimated pro forma market value as indicated above means that, after the offering, the
shares of our common stock will trade at or above the $10.00 purchase price.
The following table presents a summary of selected pricing ratios for the peer group companies
and Oritani (on a pro forma basis). The pricing ratios are based on earnings and other information
as of and for the six months ended December 31, 2009, stock price information as of February 19,
2010, as reflected in RP Financial, LC.'s appraisal report, dated February 19, 2010, and the number
of shares outstanding as described in "Pro Forma Data." Compared to the average pricing of the
peer group, our pro forma pricing ratios at the maximum of the offering range indicated a premium
of 6.5% on a price-to-book value basis, a discount of 6.4% on a price-to-tangible book value basis,
and a premium of 183.1% on a price-to-earnings basis.
11
Table of Contents
Price-to-earnings multiple
Price-to-book
Price-to-tangible
(1)
value ratio
book value ratio
Oritani (on a pro
forma basis,
assuming completion
of the conversion)
Minimum
39.21
x
82.44
%
82.44
%
Midpoint
45.45
x
88.50
%
88.50
%
Maximum
51.50
x
93.63
%
93.63
%
Maximum, as adjusted
58.25
x
98.52
%
98.52
%
Valuation of peer
group companies, as
of
February 19, 2010
Averages
18.19
x
87.90
%
100.03
%
Medians
14.00
x
95.34
%
103.58
%
(1)
Information is derived from the RP Financial appraisal report and are based upon
estimated earnings for the twelve months ended December 31, 2009. These ratios are
different from the ratios in "Pro Forma Data."
Our Board of Directors, in reviewing and approving the independent appraisal, considered
the range of price-to- earnings multiples, the range of price-to-book value and price-to-tangible
book value ratios at the different ranges of shares of common stock to be sold in the offering, and
did not consider one valuation approach to be more important than the other. Instead, in approving
the independent appraisal, the Board of Directors concluded that these ranges represented the
appropriate balance of the three approaches to establishing our estimated valuation range, and the
number of shares of common stock to be sold, in comparison to the peer group institutions.
Specifically, in approving the independent appraisal, the Board of Directors believed that we would
not be able to sell our shares at a price-to-book value and price-to-tangible book value that was
in line with the peer group without unreasonably exceeding the peer group on a price-to-earnings
basis. The estimated appraised value and the resulting discounts took into consideration the
potential financial impact of the offering as well as the trading price of Oritani Financial Corp.
common stock, which closed at $13.80 per share on February 19, 2010, the date of the independent
appraisal.
RP Financial, LC. will update the independent appraisal prior to the completion of the
conversion. If the estimated appraised value, including offering shares and exchange shares,
changes to either below $445.3 million or above $692.8 million, we will resolicit persons who
submitted stock orders. See "The Conversion and Offering—Stock Pricing and Number of Shares to be
Issued."
The Exchange of Existing Shares of Oritani Financial Corp. Common Stock
At the conclusion of the conversion, shares held by existing stockholders of Oritani Financial
Corp. will be canceled and exchanged for shares of common stock of Oritani. The number of shares
of common stock received will be based on an exchange ratio determined as of the conclusion of the
conversion and offering, which will depend upon our final appraised value. The number of shares
received will not be based on the market price of our currently outstanding shares. Instead, the
exchange ratio will ensure that existing public stockholders of Oritani Financial Corp. will retain
the same percentage ownership of our organization after the offering, exclusive of their purchase
of any additional shares of common stock in the offering or their receipt of cash in lieu of
fractional exchange shares. In addition, if options to purchase shares of Oritani Financial Corp.
common stock are exercised before consummation of the conversion, there will be an increase in the
percentage of shares of Oritani Financial Corp. held by public stockholders, an increase in the
number of shares of common stock issued to public stockholders in the share exchange and a decrease
in the exchange ratio.
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Table of Contents
The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows the number of whole shares of Oritani common stock a
hypothetical owner of Oritani Financial Corp. common stock would receive in exchange for 100 shares
of Oritani Financial Corp. common stock owned at the completion of the conversion, depending on the
number of shares of common stock sold in the offering.
New Shares to be
Total Shares of
New Shares That
Exchanged for Existing
Common Stock to be
Equivalent Per
Would be Received
New Shares to be Sold
Shares of Oritani
Outstanding After
Share Current
for 100 Existing
in This Offering
Financial Corp.
the Offering
Exchange Ratio
Market Value (1)
Shares
Amount
Percent
Amount
Percent
Minimum
33,150,000
74.45
%
11,379,252
25.55
%
44,529,252
1.2022
$
12.02
120
Midpoint
39,000,000
74.45
%
13,387,355
25.55
%
52,387,355
1.4143
$
14.14
141
Maximum
44,850,000
74.45
%
15,395,458
25.55
%
60,245,458
1.6264
$
16.26
162
Adjusted Maximum
51,577,500
74.45
%
17,704,777
25.55
%
69,282,277
1.8704
$
18.70
187
(1)
Represents the value of shares of Oritani common stock received in the conversion by a
holder of one share of Oritani Financial Corp. at the exchange ratio, assuming the market
price of $10.00 per share.
No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. For each fractional share that would otherwise be issued, Oritani will pay
in cash an amount equal to the product obtained by multiplying the fractional share interest to
which the holder would otherwise be entitled by the $10.00 per share purchase price of the common
stock in the offering.
Outstanding options to purchase shares of Oritani Financial Corp. common stock also will
convert into and become options to purchase new shares of Oritani common stock. The number of
shares of common stock to be received upon exercise of these options and the exercise price per
share to be adjusted based upon the exchange ratio so that the aggregate exercise price and the
duration of such options remain unchanged. All such options will vest upon completion of the
conversion. Oritani Financial Corp. anticipates the pre-tax expense of such accelerated vesting as
well as the accelerated vesting for outstanding stock awards will be approximately $11.3 million,
with such expense to be incurred during the fiscal quarter in which the stock offering is
completed. At December 31, 2009, there were 1,841,725 outstanding options to purchase
shares of Oritani Financial Corp. common stock, 368,345 of which have vested. Such
options will be converted into options to purchase 2,214,122 shares of common stock at the minimum
of the offering range and 3,444,762 shares of common stock at the maximum of the offering range.
How We Intend to Use the Proceeds From the Offering
Assuming we sell 44,850,000 shares of common stock in the stock offering, and we have net
proceeds of $431.4 million, we intend to distribute the net proceeds as follows:
•
$215.7 million (50.0% of the net proceeds) will be invested in Oritani Bank;
•
$17.9 million (4.2% of the net proceeds) will be loaned by Oritani to the employee
stock ownership plan to fund its purchase of our shares of common stock; and
•
$197.8 million (45.8% of the net proceeds) will be retained by Oritani.
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We may use the remaining funds we receive for investments, to pay cash dividends, to
repurchase shares of common stock and for other general corporate purposes. Oritani Bank may use
the proceeds it receives to support increased lending and other products and services. The net
proceeds retained also may be used for future business expansion through opening or acquiring
branch offices and the acquisition of banks, thrifts and other financial services companies. We
have no current arrangements or agreements with respect to any such acquisitions. Initially, a
substantial portion of the net proceeds be invested in short-term investments and mortgage-backed
securities consistent with our investment policy.
Please see "How We Intend to Use the Proceeds from the Offering" for more information on the
proposed use of the proceeds from the offering.
Our Dividend Policy
As of December 31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. Oritani expects the annual dividends to equal
$0.30 per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering
range, respectively, which represents an annual dividend yield of 3.0%, at each of the minimum,
midpoint, maximum and adjusted maximum of the offering range, respectively, based upon a price of
$10.00 per share. The amount of dividends that we intend to pay after the conversion will preserve
the dividend rate that Oritani Financial Corp. stockholders currently receive, however, total
dividends received will be positively adjusted to reflect the exchange ratio. The dividend rate and
the continued payment of dividends will depend on a number of factors, including our capital
requirements, our financial condition and results of operations, tax considerations, statutory and
regulatory limitations, and general economic conditions. No assurance can be given that we will
continue to pay dividends or that they will not be reduced or eliminated in the future.
See "Selected Consolidated Financial and Other Data" and "Market for the Common Stock" for
information regarding our historical dividend payments.
Purchases and Ownership by our Officers and Directors
We expect our directors, executive officers and their associates, to purchase 150,000 shares
of common stock in the offering. The purchase price paid by them will be the same $10.00 per share
price paid by all other persons who purchase shares of common stock in the offering. After the
conversion, as a result of purchases in the offering and the shares they will receive in exchange
for shares of Oritani Financial Corp. that they currently own, our directors and executive
officers, together with their associates, are expected to beneficially own approximately ___
and ___ shares of common stock, or ___% and ___% of our total outstanding shares of common
stock, at the minimum and the maximum of the offering range, respectively.
Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion
Employee Stock Ownership Plan
. Our tax-qualified employee stock ownership plan may purchase
up to 4.0% of the shares of common stock we sell in the offering, or 2,063,100 shares of common
stock, assuming we sell the maximum, as adjusted, number of shares proposed to be sold which, when
combined with the existing employee stock ownership plan, will be less than 8% of the shares
outstanding following the conversion. If we receive orders for more shares of common stock than
the maximum of the offering range, the employee stock ownership plan will have first priority to
purchase shares over this maximum, up to a total of 4.0% of the shares of common stock sold in the
offering. We reserve the right to purchase shares of common stock in the open market following the
offering in order to
14
Table of Contents
fund all or a portion of the employee stock ownership plan. Assuming the employee stock
ownership plan purchases 1,560,000 shares in the offering, the midpoint of the offering range, we
will recognize additional compensation expense of approximately $780,000 annually (or approximately
$476,000 after tax) over a 20-year period, assuming the loan to the employee stock ownership plan
has a 20-year term and an interest rate equal to the prime rate as published in
The Wall Street
Journal
, and the shares of common stock have a fair market value of $10.00 per share for the full
20-year period. If, in the future, the shares of common stock have a fair market value greater or
less than $10.00, the compensation expense will increase or decrease accordingly. We also reserve
the right to have the employee stock ownership plan purchase more than 4.0% of the shares of common
stock sold in the offering if necessary to complete the offering at the minimum of the offering
range.
Stock-Based Incentive Plan
. Our current intention is to implement a new stock-based incentive
plan no earlier than twelve months after completion of the conversion. Stockholder approval of
this plan will be required. If implemented 12 months or more following completion of the
conversion, the stock-based incentive plan will reserve a number of shares equal to 4.0% of the
shares of common stock sold in the offering, or 2,063,100 shares of common stock at the maximum as
adjusted of the offering range, for awards of restricted stock to key employees and directors, at
no cost to the recipients. If the shares of restricted stock awarded under the stock-based
incentive plan come from authorized but unissued shares of common stock, stockholders would
experience dilution of up to approximately 2.89% in their ownership interest in Oritani. If
implemented 12 months or more following the completion of the conversion, the stock-based incentive
plan will also reserve a number of shares equal to 10.0% of the shares of common stock sold in the
offering, or 5,157,750 shares of common stock at the maximum as adjusted of the offering range, for
issuance pursuant to grants of stock options to key employees and directors. For a description of
our current stock-based incentive plans, see "Management—Compensation Discussion and Analysis."
The following table summarizes the number of shares of common stock and the aggregate dollar
value of grants that are expected under the new stock-based incentive plan as a result of the
conversion. The table also shows the dilution to stockholders if all such shares are issued from
authorized but unissued shares, instead of shares purchased in the open market. A portion of the
stock grants shown in the table below may be made to non-management employees.
Number of Shares to be Granted or Purchased (1)
Dilution Resulting
Value of Grants (2)
As a Percentage of
From Issuance of
(Dollars in thousands)
At Maximum as
Common Stock to be
Shares for
At Maximum as
At Minimum of
adjusted of
Sold in the
Stock-Based
At Minimum of
adjusted of Offering
Offering Range
Offering Range
Offering
Incentive Plans (3)
Offering Range
Range
Employee stock ownership plan
1,326,000
2,063,100
4.0
%
—
%
$
13,260
$
20,631
Restricted stock awards
1,326,000
2,063,100
(1)
4.0
2.89
13,260
20,631
Stock options
3,315,000
5,157,750
(2)
10.0
6.93
11,370
17,691
Total
5,967,000
9,283,950
18.0
%
9.44
%
$
37,890
$
58,953
(1)
The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12 months of
the completion of the conversion, the number of shares that may be reserved for grants of
restricted stock cannot exceed 4% of the total number of shares to be outstanding upon
completion of the conversion, less the number of shares of restricted stock (adjusted for the
exchange ratio) reserved under previously adopted benefit plans.
(2)
The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12 months of
the completion of the conversion, the number of shares that may be reserved for grants of
stock options cannot exceed 10% of the total number of shares to be outstanding upon
completion of the conversion, less the number of option shares (adjusted for the exchange
ratio) reserved under previously adopted benefit plans.
(3)
The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value for stock awards is
assumed to be the same as the offering price of $10.00 per share. The fair value of stock
options has been estimated at $3.43 per option using the Black-Scholes option pricing model
with the following assumptions: a grant-date share price
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Table of Contents
and option exercise price of $10.00; an expected option life of ten years; a dividend yield of
3.0%; an interest rate of 3.85%; and a volatility rate of 36.45% based on an index of publicly
traded thrift institutions. The actual value of option grants will be determined by the
grant-date fair value of the options, which will depend on a number of factors, including the
valuation assumptions used in the option pricing model ultimately adopted.
(4)
Represents the dilution of stock ownership interest. No dilution is reflected for the
employee stock ownership plan because such shares are assumed to be purchased in the offering.
We may fund our plans through open market purchases, as opposed to new issuances of
common stock; however, if any options previously granted under our existing stock option plans are
exercised during the first year following completion of the offering, they will be funded with
newly-issued shares as Office of Thrift Supervision (the "OTS") regulations do not permit us to
repurchase our shares during the first year following the completion of this offering except to
fund the grants of restricted stock under the stock-based incentive plan or, with prior regulatory
approval, under extraordinary circumstances. The OTS has previously advised that the exercise of
outstanding options and cancellation of treasury shares in the conversion will not constitute an
extraordinary circumstance or a compelling business purpose for satisfying this test.
The following table presents information as of December 31, 2009 regarding our existing
employee stock ownership plan, our existing stock option plans, our existing recognition and
retention plan, our proposed employee stock ownership plan purchases and our proposed stock-based
incentive plan, all assuming an exchange ratio of 1.6264. The table below assumes that 60,245,458
shares are outstanding after the offering, which includes the sale of 44,850,000 shares in the
offering at the maximum of the offering range, and the issuance of 15,395,458 shares in exchange
for shares of Oritani Financial Corp. using an exchange ratio of 1.6264. It also assumes that the
value of the stock is $10.00 per share.
Percentage of
Shares Outstanding
E
xisting and New Stock-Based
Estimated Value of
After the
Incentive Plans
Participants
Shares
Shares
Conversion
(Dollars in thousands)
Existing employee stock ownership plan
Employees
2,585,397
(1)
$
25,854
4.29
%
New employee stock ownership plan
Employees
1,794,000
17,940
2.98
%
Total employee stock ownership plan
Employees
4,379,397
43,794
7.27
%
Existing shares of restricted stock
Directors, Officers and Employees
1,292,700
(2)
12,927
(3)
2.15
%
New shares of restricted stock
Directors, Officers and Employees
1,794,000
17,940
2.98
%
Total shares of restricted stock
Directors, Officers and Employees
3,086,700
30,867
5.13
%
Existing stock options
Directors, Officers and  Employees
3,231,746
(4)
11,117
5.36
%
New stock options
Directors, Officers and  Employees
4,485,000
15,384
(5)
7.44
%
Total stock options
Directors, Officers and   Employees
7,716,746
26,501
12.80
%
Total of stock-based incentive plans
15,182,843
$
101,162
25.20
%
(1)
As of December 31, 2009, Oritani Financial Corp.'s existing employee stock ownership plan
held 1,588,649 shares, 237,451 of which have been allocated.
(2)
Represents shares of restricted stock authorized for grant under our existing recognition and
retention plans.
(3)
The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value is assumed to be the same
as the offering price of $10.00 per share.
(4)
Represents shares authorized for grant under our existing stock option plans.
(5)
The fair value of stock options to be granted under the new stock-based incentive plan has
been estimated based on an index of publicly traded thrift institutions at $3.43 per option
using the Black-Scholes option pricing model with the following assumptions; exercise price,
$10.00; trading price on date of grant, $10.00; dividend yield, 3.0%; expected life, ten
years; expected volatility, 36.45%; and interest rate, 3.85%.
(6)
The number of shares of restricted stock and stock options set forth in the table would
exceed regulatory limits if a stock-based incentive plan was adopted within one year of the
completion of the conversion and offering. Accordingly, the number of new shares of
restricted
16
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stock and stock options set forth in the table would have to be reduced such that the aggregate
amount of outstanding stock awards would be 4.0% or less and outstanding stock options would be
10.0% or less, unless we obtain a waiver from the OTS, or we implement the incentive plan after
twelve months following the completion of the conversion and offering. Our current intention is
to implement a new stock-based incentive plan no earlier than twelve months after completion of
the conversion and offering.
The value of the restricted shares awarded under the stock-based incentive plan will be
based on the market value of our common stock at the time the shares are awarded. The stock-based
incentive plan is subject to stockholder approval, and cannot be implemented until at least six
months after completion of the offering. The following table presents the total value of all
shares of restricted stock that would be available for award and issuance under the new stock-based
incentive plan, assuming the new stock-based incentive plan is adopted more than one year after
completion of the conversion, the shares are awarded when the market price of our common stock
ranges from $8.00 per share to $14.00 per share.
2,063,100 Shares
1,362,000 Shares
1,560,000 Shares
1,794,000 Shares
Awarded at Maximum
Awarded at Minimum
Awarded at Midpoint
Awarded at Maximum
of Range, As
Share Price
of Range
of Range
of Range
Adjusted
(Dollars in thousands, except per share data)
$8.00
$
10,608
$
12,480
$
14,352
$
16,505
10.00
13,260
15,600
17,940
20,631
12.00
15,912
18,720
21,528
24,757
14.00
18,564
21,840
25,116
28,883
The grant-date fair value of the options granted under the new stock-based incentive plan
will be based in part on the price of shares of common stock of Oritani at the time the options are
granted. The value will also depend on the various assumptions used in the option pricing model
ultimately adopted. The following table presents the total estimated value of the options to be
available for grant under the stock-based incentive plan, assuming the new stock-based incentive
plan is adopted more than one year after completion of the conversion, the market price and
exercise price for the stock options are equal and the range of market prices for the shares is
$8.00 per share to $14.00 per share.
3,900,000 Options
5,157,750 Options
Grant-Date Fair
3,315,000 Options
at Midpoint of
4,485,000 Options
at Maximum of
Exercise Price
Value Per Option
at Minimum of Range
Range
at Maximum of Range
Range, As Adjusted
(Dollars in thousands, except per share data))
$8.00
$
2.74
$
9,083
$
10,686
$
12,289
$
14,132
10.00
3.43
11,370
13,377
15,384
17,691
12.00
4.12
13,658
16,068
18,478
21,250
14.00
4.80
15,912
18,720
21,528
24,757
The tables presented above are provided for informational purposes only. Our shares of
common stock may trade below $10.00 per share. Before you make an investment decision, we urge you
to read this entire prospectus carefully, including, but not limited to, the section entitled "Risk
Factors" beginning on page 25.
Limits on How Much Common Stock You May Purchase
The minimum number of shares of common stock that may be purchased in the offering is 25.
The amount of shares of common stock that may be purchased by a person, or persons exercising
subscription rights through a single qualifying deposit account held jointly, is $500,000 (50,000
shares). If any of the following persons purchase shares of common stock, their purchases, in all
categories of the offering combined, when aggregated with your purchases, cannot exceed $1.0
million (100,000 shares) of common stock:
•
your spouse or relatives of you or your spouse living in your house;
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Table of Contents
•
companies, trusts or other entities in which you are a trustee, have a
controlling beneficial interest or hold a senior position; or
•
other persons who may be your associates or persons acting in concert with
you.
Unless we determine otherwise, persons and persons exercising subscription rights through a
single qualifying deposit account held jointly will be subject to the overall purchase limitation
of $1.0 million (100,000 shares) of common stock in all categories of the offering combined.
In addition to the above purchase limitations, there is an ownership limitation for
stockholders other than our employee stock ownership plan. Shares of common stock that you
purchase in the offering individually and together with persons described above,
plus
any shares
you and they receive in exchange for existing shares of Oritani Financial Corp. common stock, may
not exceed 5% of the total shares of common stock to be issued and outstanding after the completion
of the conversion and offering.
Subject to OTS approval, we may increase or decrease the purchase and ownership limitations at
any time. In the event that the maximum purchase limitation is increased to 5% of the shares sold
in the offering, such limitation may be further increased to 9.99%, provided that orders for shares
of common stock exceeding 5% of the shares sold in the offering shall not exceed in the aggregate
10.0% of the total shares sold in the offering.
See the detailed description of purchase limitations and definitions of "acting in concert"
and "associate" in "The Conversion and Offering—Additional Limitations on Common Stock Purchases."
Steps We May Take if We Do Not Receive Orders for the Minimum Number of Shares
If we do not receive orders for at least 33,150,000 shares of common stock in the
subscription, community and/or syndicated community offering, we may take several steps in order to
issue the minimum number of shares of common stock in the offering range. Specifically, we may:
•
increase the purchase and ownership limitations; and/or
•
seek regulatory approval to extend the offering beyond [extension date],
provided that any such extension will require us to resolicit subscriptions received in
the offering.
Alternatively, we may terminate the offering, return funds with interest and cancel deposit account
withdrawal authorizations.
Conditions to Completion of the Conversion
The OTS has conditionally approved the plan of conversion and reorganization; however, such
approval does not constitute recommendations or endorsements of the plan of conversion and
reorganization by that agency.
We cannot complete the conversion unless:
•
The plan of conversion and reorganization is approved by at least
a
majority of votes eligible
to be cast by members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) as of [depositor record date];
•
The plan of conversion and reorganization is approved by a vote of at
least
two-thirds of the outstanding shares
of common stock of Oritani Financial Corp.
as of [stockholder
18
Table of Contents
record date], including shares held by Oritani Financial Corp., MHC (because Oritani
Financial Corp., MHC owns 74.4% of the outstanding shares of Oritani Financial Corp.
common stock, we expect that Oritani Financial Corp., MHC and our directors and
executive officers will control the outcome of this vote);
•
The plan of conversion and reorganization is approved by a vote of at
least
a majority of the outstanding shares
of common stock of Oritani Financial Corp.
as of [stockholder record date], excluding those shares held by Oritani Financial
Corp., MHC;
•
We sell at least the minimum number of shares of common stock offered; and
•
We receive the final approval of the OTS to complete the conversion;
however, such approval does not constitute a recommendation or endorsement of the plan
of conversion and reorganization by that agency.
Oritani Financial Corp., MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At [stockholder record date], Oritani Financial Corp., MHC owned
74.4% of the outstanding shares of common stock of Oritani Financial Corp. The directors and
executive officers of Oritani Financial Corp. and their affiliates
owned _______ shares of Oritani
Financial Corp., or ___% of the outstanding shares of common stock as of [stockholder record date].
They have indicated their intention to vote those shares in favor of the plan of conversion and
reorganization.
Market for the Common Stock
Shares of Oritani Financial Corp.'s common stock currently trade on the Nasdaq Global Market
under the symbol "ORIT." Upon completion of the conversion, the shares of common stock of Oritani
will replace Oritani Financial Corp.'s existing shares. We expect that Oritani's shares
of common stock will trade on the Nasdaq Global Market under the trading symbol "ORITD" for a
period of 20 trading days after the completion of the offering. Thereafter, Oritani's trading
symbol will revert to "ORIT." In order to list our common stock on the Nasdaq Global Market, we
are required to have at least three broker-dealers who will make a market in our common stock.
Oritani Financial Corp. currently has ___ registered market makers. Persons purchasing shares of
common stock in the offering may not be able to sell their shares at or above the $10.00 price per
share.
Tax Consequences
As a general matter, the conversion will not be a taxable transaction for federal or state
income tax purposes to Oritani Financial Corp., MHC, Oritani Financial Corp., Oritani Bank,
Oritani, persons eligible to subscribe in the subscription offering, or existing stockholders of
Oritani Financial Corp. Existing stockholders of Oritani Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oritani common stock will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
Persons Who May Order Shares of Common Stock in the Subscription and Community Offerings
Subscription rights to purchase shares of common stock in a "subscription offering" have been
granted in the following descending order of priority:
(i)
First, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on December 31, 2008.
(ii)
Second, to our tax-qualified employee benefit plans, including our employee
stock ownership plan and 401(k) plan, which will receive nontransferable subscription
rights to
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purchase in the aggregate up to 10.0% of the shares of common stock sold in the
offering. We expect our employee stock ownership plan to purchase up
to 4.0% of the shares of common stock sold in the offering.
(iii)
Third, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on [supplemental eligibility record date].
(iv)
Fourth, to depositors of Oritani Bank at the close of business on [depositor
record date].
Shares of common stock not purchased in the subscription offering may be offered for sale in a
"community offering" with a preference given first to natural persons residing in the New Jersey
counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren, Union, Somerset, Hunterdon,
Middlesex and Mercer; then to eligible borrowers of Oritani Bank with an outstanding loan or line
of credit as of December 31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December 31, 2009 and the date of purchase of the common stock
(as determined solely in the discretion of Oritani Bank); and then to Oritani Financial Corp.
public stockholders as of [stockholder record date], in a "community offering." The community
offering, if held, may begin concurrently with, during or promptly after the subscription offering,
as we may determine at any time.
If we receive orders for more shares than we are offering, we may not be able to fully or
partially fill your order. Shares will be allocated first to categories in the subscription
offering in accordance with Oritani Financial Corp., MHC's plan of conversion and reorganization.
A detailed description of share allocation procedures can be found in the section of this
prospectus entitled "The Conversion and Offering."
We are also offering any shares of our common stock not purchased in the subscription offering
or community offering for sale to the general public in a syndicated community offering through a
syndicate of selected dealers. We may begin the syndicated community offering at any time following
the commencement of the subscription offering. Stifel, Nicolaus & Company, Incorporated is acting
as sole book-running manager and [co-managers] are acting as co-managers for the syndicated
community offering, which is also being conducted on a best efforts basis. The syndicated
community offering will terminate no later than 45 days after the expiration of the subscription
offering, unless extended by us with approval of the OTS. Neither Stifel, Nicolaus & Company,
Incorporated nor any other member of the syndicate is required to purchase any shares in the
syndicated community offering. Alternatively, we may sell any remaining shares in an underwritten
public offering, which would be conducted on a firm commitment basis. See "The Conversion and
Offering—Syndicated Community Offering."
How You May Purchase Shares of Common Stock
In the subscription and community offerings, you may pay for your shares only by:
(i)
personal check, bank check or money order made payable directly to Oritani
Bank; or
(ii)
authorizing us to withdraw funds from the types of Oritani Bank deposit
accounts designated on the stock order form.
Oritani Bank is not permitted to lend funds to anyone for the purpose of purchasing shares of
common stock in the offering. Additionally, you may not use a Oritani Bank line of credit check or
any type of third party check or wire transfer to pay for shares of common stock. Please do not
submit cash.
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You may purchase shares of common stock in the offering by delivering a signed and completed
original stock order form, together with full payment payable to Oritani or authorization to
withdraw funds from one or more of your Oritani Bank deposit accounts, provided that the stock
order form is
received
before 2:00 p.m., Eastern Time, on [expiration date], which is the end of
the offering period. Checks and money orders will be immediately deposited in a segregated account
with Oritani Bank or another insured depository institution upon receipt. We will pay interest
calculated at Oritani Bank's passbook savings rate from the date funds are processed until
completion of the conversion, at which time a subscriber will be issued a check for interest
earned. On your stock order form, you may not authorize direct withdrawal from an Oritani Bank
retirement account. If you wish to use funds in an individual or other retirement account to
purchase shares of our common stock, please see "—Using Retirement Account Funds to Purchase
Shares" below. You also may not designate on your stock order form a withdrawal from Oritani Bank
accounts with check-writing privileges. Please provide a check instead. If you request direct
withdrawal, we reserve the right to interpret that as your authorization to treat those funds as if
we had received a check for the designated amount, and we will immediately withdraw the amount from
your checking account.
Withdrawals from certificates of deposit to purchase shares of common stock in the offering
may be made without incurring an early withdrawal penalty. If a withdrawal results in a
certificate of deposit account with a balance less than the applicable minimum balance requirement,
the certificate of deposit will be canceled at the time of withdrawal without penalty and the
remaining balance will earn interest at the current passbook savings rate subsequent to the
withdrawal. All funds authorized for withdrawal from deposit accounts at Oritani Bank must be
available in the accounts at the time the stock order is received. A hold will be placed on those
funds when your stock order is received, making the designated funds unavailable to you during the
offering period. Funds will not be withdrawn from an account until the completion of the
conversion and offering and will earn interest within the account at the applicable deposit account
rate until that time.
We are not required to accept copies or facsimiles of stock order forms. By signing the stock
order form, you are acknowledging both the receipt of this prospectus and that the shares of common
stock are not federally insured deposits or savings accounts or otherwise guaranteed by Oritani
Bank, Oritani or the federal or state governments.
Submitting Your Order in the Subscription and Community Offerings
You may submit your stock order form by mail using the stock order reply envelope provided, by
overnight courier to the indicated address on the stock order form, or by hand-delivery to our
Stock Information Center, which is located at Oritani Bank's main office, 370 Pascack Road,
Township of Washington, New Jersey 07676. Stock order forms may not be delivered to other Oritani
Bank offices. Once submitted, your order is irrevocable unless the offering is terminated or
extended beyond [extension date], or the number of shares of common stock to be sold is increased
to more than 51,577,500 shares or decreased to fewer than 33,150,000 shares.
Deadline for Orders of Common Stock in the Subscription or Community Offerings
If you wish to purchase shares of common stock, a properly completed and signed original stock
order form, together with full payment for the shares of common stock, must be received (not
postmarked) no later than 2:00 p.m., Eastern Time, on [expiration date].
Once submitted, your order is irrevocable unless the offering is terminated or extended or the
number of shares to be issued increases to more than 51,577,500 shares or decreases to less than
33,150,000 shares. We may extend the [expiration date] expiration date, without notice to
you, until
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[extension date]. If the offering is extended beyond [extension date] or if the offering
range is increased or decreased, we will be required to resolicit purchasers before proceeding with
the offering. In either of these cases, purchasers will have the right to maintain, change or
cancel their orders. If we do not receive a written response from a purchaser regarding any
resolicitation, the purchaser's order will be canceled and all funds received will be returned
promptly with interest, and deposit account withdrawal authorizations will be canceled. No
extension may last longer than 90 days. All extensions, in the aggregate, may not last beyond
[final expiration date].
Although we will make reasonable attempts to provide this prospectus and offering materials to
holders of subscription rights, the subscription offering and all subscription rights will expire
at 2:00 p.m., Eastern Time, on [expiration date], whether or not we have been able to locate each
person entitled to subscription rights.
TO ENSURE THAT EACH PERSON RECEIVES A PROSPECTUS AT LEAST 48 HOURS PRIOR TO THE
EXPIRATION DATE OF THE OFFERING IN ACCORDANCE WITH FEDERAL LAW, NO PROSPECTUS WILL BE MAILED ANY
LATER THAN FIVE DAYS PRIOR TO THE OFFERING EXPIRATION DATE OR HAND-DELIVERED ANY LATER THAN TWO
DAYS PRIOR TO THE OFFERING EXPIRATION DATE.
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Using Retirement Account Funds to Purchase Shares
Persons interested in purchasing common stock using funds currently in an individual
retirement account ("IRA") or any other retirement account, whether held through Oritani Bank or
elsewhere, should contact our Stock Information Center for guidance. Please contact the Stock
Information Center as soon as possible, preferably at least two weeks prior to the [expiration
date] offering deadline, because processing such transactions takes additional time, and whether
such funds can be used may depend on limitations imposed by the institution where the funds are
currently held. Additionally, if such funds are not currently held in a self-directed retirement
account, then before placing your stock order, you will need to establish one with an independent
trustee or custodian, such as a brokerage firm. The new trustee or custodian will hold the shares
of common stock in a self-directed account in the same manner as we now hold retirement account
funds. An annual administrative fee may be payable to the new trustee or custodian. Assistance on
how to transfer such retirement accounts can be obtained from the Stock Information Center.
Oritani Bank cannot offer self-directed retirement accounts. If you wish to use some or all
of your funds that are currently held in an Oritani Bank, IRA or other retirement account, you may
not designate on the stock order form that you wish funds to be withdrawn from the account(s) for
the purchase of common stock. Before you place your stock order, the funds you wish to use must be
transferred from those accounts to a self-directed retirement account at an independent trustee or
custodian, as described above.
Delivery of Stock Certificates
Certificates representing shares of common stock sold in the subscription and community
offerings will be mailed by regular mail to the persons entitled thereto at the certificate
registration address noted on the stock order form, as soon as practicable following consummation
of the offering and receipt of all necessary regulatory approvals as described above in
"—Conditions to Completion of the Conversion."
It is possible that, until certificates for the
common stock are delivered, purchasers may not be able to sell the shares of common stock that they
ordered, even though the common stock will have begun trading.
Your ability to sell shares of
common stock before you receive stock certificates will depend upon the arrangements you may make
with your brokerage firm. If you are currently a stockholder of Oritani Financial Corp., see "The
Conversion and Offering—Exchange of Existing Stockholders' Stock Certificates."
You May Not Sell or Transfer Your Subscription Rights
OTS regulations prohibit you from transferring your subscription rights. If you order shares
of common stock in the subscription offering, you will be required to state that you are purchasing
the common stock for yourself and that you have no agreement or understanding to sell or transfer
your subscription rights. We intend to take legal action, including reporting persons to federal
agencies, against anyone who we believe has sold or transferred his or her subscription rights. We
will not accept your order if we have reason to believe that you have sold or transferred your
subscription rights. On the stock order form, you may not add the names of others for joint stock
registration who do not have subscription rights or who qualify only in a lower subscription
offering priority than you do. You may add only those who were eligible to purchase shares of
common stock in the subscription offering at your date of eligibility. In addition, the stock
order form requires that you list all deposit accounts, giving all names on each account and the
account number at the applicable eligibility date.
Failure to provide this information, or
providing incomplete or incorrect information, may result in a loss of part or all of your share
allocation, in the event of an oversubscription
.
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How You Can Obtain Additional Information — Stock Information Center
Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call or visit
our Stock Information Center, located at Oritani Bank's main office, 370 Pascack Road, Township of
Washington, New Jersey 07676. The Stock Information Center is open Monday through Friday between
10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed weekends and
bank holidays. Other Oritani Bank offices will not have offering materials and will not accept
stock order forms or proxy cards. The Stock Information Center's toll-free telephone number is
1-877-
.
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RISK FACTORS
You should consider carefully the following risk factors in evaluating an investment in the
shares of common stock.
Risks Related to Our Business
Our Continued Emphasis On Multi-Family and Commercial Real Estate Lending Could Expose Us To
Increased Lending Risks.
Our business strategy centers on continuing our emphasis on multi-family and commercial real
estate lending. We have grown our loan portfolio in recent years with respect to these types of
loans and intend to continue to emphasize these types of lending. At December 31, 2009, $296.3
million, or 21.4%, of our total loan portfolio consisted of multi-family loans and $628.5 million,
or 45.5%, of our total loan portfolio consisted of commercial real estate loans. As a result, our
credit risk profile will be higher than traditional thrift institutions that have higher
concentrations of one- to four-family residential loans. Loans secured by multi-family and
commercial real estate generally expose a lender to greater risk of non-payment and loss than one-
to four-family residential mortgage loans because repayment of the loans often depends on the
successful operation of the property and the income stream of the underlying property.
Additionally, such loans typically involve larger loan balances to single borrowers or groups of
related borrowers compared to one- to four-family residential mortgage loans. Accordingly, an
adverse development with respect to one loan or one credit relationship can expose us to greater
risk of loss compared to an adverse development with respect to a one- to four-family residential
mortgage loan. We seek to minimize these risks through our underwriting policies, which require
such loans to be qualified on the basis of the property's collateral value, net income and debt
service ratio; however, there is no assurance that our underwriting policies will protect us from
credit-related losses. Finally, if we foreclose on multi-family and commercial real estate loans,
our holding period for the collateral typically is longer than one-to four- family residential
mortgage loans because there are fewer potential purchasers of the collateral. As discussed in
"Business of Oritani Financial Corp., MHC, Oritani Financial Corp. and Oritani Bank—Lending
Activities," we have recently been utilizing stricter underwriting standards for these types of
loans, and have curtailed our construction lending.
The largest commercial real estate loan in our portfolio at December 31, 2009 was a $21.0
million loan secured by a shopping mall located in Ocean County, New Jersey. Our largest
commercial real estate relationship consisted of properties located mainly in our primary market
area with a real estate investor. The aggregate outstanding loan balance for this relationship is
$47.6 million.
If Our Allowance for Loan Losses is Not Sufficient to Cover Actual Loan Losses, Our Earnings Will
Decrease.
We make various assumptions and judgments about the collectability of our loan portfolio,
including the creditworthiness of our borrowers and the value of the real estate and other assets
serving as collateral for the repayment of many of our loans. In determining the amount of the
allowance for loan losses, we review our loans and our loss and delinquency experience, and we
evaluate economic conditions. If our assumptions are incorrect, our allowance for loan losses may
not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to our
allowance. Our delinquent and nonaccrual loans have risen significantly over the past 24 months,
and this growth increases the possibility that our allowance for loan losses may be insufficient in
the future. In addition, the majority of our loan growth since June 30, 2005 has been in
commercial real estate loans. According to Real Estate Econometrics, a property research firm,
default rates on commercial loans climbed to a 16 year high during the quarter ended September 30,
2009. Real Estate Econometrics projects that the default rate will
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peak in 2011, before falling back. While our allowance for loan losses was 1.60% of total
loans at December 31, 2009, material additions to our allowance could materially decrease our net
income.
In addition, bank regulators periodically review our allowance for loan losses and may require
us to increase our provision for loan losses or recognize further loan charge-offs. Any increase
in our allowance for loan losses or loan charge-offs as required by these regulatory authorities
might have a material adverse effect on our financial condition and results of operations.
Future Changes in Interest Rates Could Reduce Our Profits.
Our ability to make a profit largely depends on our net interest income, which could be
negatively affected by changes in interest rates. Net interest income is the difference between:
•
the interest income we earn on our interest-earning assets, such as loans and
securities; and
•
the interest expense we pay on our interest-bearing liabilities, such as
deposits and borrowings.
In addition, changes in interest rates can affect the average life of loans and
mortgage-backed and related securities. A reduction in interest rates usually results in increased
prepayments of loans and mortgage-backed and related securities, as borrowers refinance their debt
in order to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we
may not be able to reinvest prepayments at rates that are comparable to the rates we earned on the
original loans or securities. Increases in interest rates may decrease loan demand and/or make it
more difficult for borrowers to repay adjustable rate loans.
Changes in interest rates also affect the current market value of our interest-earning
securities portfolio. Generally, the value of securities moves inversely with changes in interest
rates. At December 31, 2009, the fair value of our securities and mortgage-backed securities
available for sale totaled $419.0 million. Unrealized net gains on these available for sale
securities totaled approximately $2.4 million, net of taxes, at December 31, 2009 and are reported
as a separate component of stockholders' equity. Decreases in the fair value of securities
available for sale in future periods would have an adverse effect on stockholders' equity.
In addition, many of our FHLB-NY advances are callable, often five years from the date of
issuance. To the extent the FHLB-NY calls all or a portion of these advances, we would need to
find another funding source, which might be more expensive to us than these advances.
We evaluate interest rate sensitivity by estimating the change in Oritani Bank's net portfolio
value over a range of interest rate scenarios. Net portfolio value is the discounted present value
of expected cash flows from assets, liabilities and off-balance sheet contracts. At December 31,
2009, in the event of an immediate 200 basis point increase in interest rates, the model projects
that we would experience a $53.6 million, or 20.9%, decrease in net portfolio value. See
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Management
of Market Risk."
Our Direct Investments in Real Estate May Be Riskier than More Traditional Real Estate Loans.
Oritani Financial Corp. and Oritani Bank each have formed companies that have invested
directly in real estate. While these investments have provided us net income during the course of
these investments, they are direct investments and represent a greater risk than loans. With
loans, the borrower
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has an investment interest in the property that partially insulates the loan from the negative
consequences of decreases in the property's value. There is no such protection with a direct real
estate investment. Any decline in performance of these investments may have an adverse effect on
our net income. As detailed in "Business of Oritani Financial Corp., MHC, Oritani Financial Corp.
and Oritani Bank-Subsidiary Activities and Joint Venture Information," we have increased our
investments in these types of assets.
Current Market and Economics Conditions May Significantly Affect Our Operations and Financial
Condition.
Recent negative developments in the national and global credit markets have resulted in
uncertainty in the financial markets and downturn in general economic conditions, including
increased levels of unemployment. The resulting economic pressure on consumers and businesses may
adversely affect our business, financial condition, and results of operations. A worsening of
these conditions would likely exacerbate the adverse effects of these difficult market conditions
on us and others in the financial services industry. In general, loan and investment securities
credit quality has deteriorated at many institutions and the values of real estate collateral
supporting many commercial loans and home mortgages have declined and may continue to decline.
Indications of the deterioration of the value of real estate collateral have been evidenced on a
national level as well as in our market area. These developments could have a significant negative
effect on our borrowers and the values of underlying collateral securing loans, which could
negatively affect our financial performance. Housing market conditions in the New York metro area,
where most of our lending activity occurs, have deteriorated as evidenced by reduced levels of
sales, increasing inventories of houses on the market, declining house prices and an increase in
the length of time houses remain on the market. The S&P/Case-Shiller Home Price Indices, the
leading measure of U.S. home prices, showed that the price of existing single family homes in the
New York metro area at June 30, 2009, suffered a 12.0% decline versus the prior year. RealtyTrac,
a leading online marketplace for foreclosure properties, noted in its 2008 U.S. Foreclosure Market
Report, that New Jersey foreclosures in 2008 had increased 101.2% from 2007, and that the overall
foreclosure rate in New Jersey for 2008 was 1.80%. Foreclosure filings in New Jersey in the first
six months of 2009, increased 31.6% compared to the first half of 2008. Weakening economic
conditions in the residential and commercial real estate sector have adversely affected, and may
continue to adversely affect, our loan portfolio. Total non-performing assets increased from $44.1
million at December 31, 2008 to $52.5 million at December 31, 2009. Total non-performing loans as
a percentage of total assets decreased to 2.59% at December 31, 2009 as compared to 2.66% at
December 31, 2008. If loans that are currently non-performing further deteriorate or loans that
are currently performing become non-performing loans, we may need to increase our allowance for
loan losses, which would have an adverse impact on our financial condition and results of
operations. We would have recognized an additional $1.3 million and $3.7 million in interest
income during the six months ended December 31, 2009 and year ended June 30, 2009, respectively,
had non-performing loans performed in accordance with the original terms.
Our Deposit Growth Has Been a Primary Funding Source. If Deposit Growth Slows, It May Be More
Expensive For Us to Fund Loan Originations.
We have recently experienced a period of unprecedented deposit growth, with a 61.3% increase
in deposit balances from June 30, 2008 to June 30, 2009, and annualized growth for the six month
period ended December 31, 2009 of 14.7%. We will continue to focus on deposit growth, which we use
to fund loan originations and purchase investment securities. If we are unable to continue to
increase our deposit balances, we may be required to utilize alternative sources of funding,
including Federal Home Loan Bank ("FHLB) advances, or increase our deposit rates, each of which
will increase our cost of funds.
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Any future Federal Deposit Insurance Corporation insurance premiums or special assessments will
adversely impact our earnings.
On May 22, 2009, the FDIC adopted a final rule levying a five basis point special assessment
on each insured depository institution's assets minus Tier 1 capital as of June 30, 2009. We
recorded an expense of $846,000 during the quarter ended June 30, 2009, to reflect the special
assessment. Any further special assessments that the FDIC levies will be recorded as an expense
during the appropriate period. In addition, the FDIC increased the general assessment rate and,
therefore, our FDIC general insurance premium expense will increase compared to prior periods.
The FDIC also issued a final rule pursuant to which all insured depository institutions were
required to prepay on December 30, 2009 their estimated assessments for the fourth quarter of 2009,
and for all of 2010, 2011 and 2012. The assessment rate for the fourth quarter of 2009 and for
2010 was based on each institution's total base assessment rate for the third quarter of 2009,
modified to assume that the assessment rate in effect on September 30, 2009 had been in effect for
the entire third quarter, and the assessment rate for 2011 and 2012 would be equal to the modified
third quarter assessment rate plus an additional three basis points. In addition, each
institution's base assessment rate for each period was calculated using its third quarter
assessment base, adjusted quarterly for an estimated 5% annual growth rate in the assessment base
through the end of 2012. We made a payment of $7.6 million to the FDIC on December 30, 2009, and
recorded the payment as a prepaid expense, which will be amortized to expense over three years.
If Our Investment in the Federal Home Loan Bank of New York is Classified as Other-Than-Temporarily
Impaired or as Permanently Impaired, Our Earnings Could Decrease.
We own common stock of the Federal Home Loan Bank of New York (the "FHLB-NY"). We hold the
FHLB-NY common stock to qualify for membership in the Federal Home Loan Bank System and to be
eligible to borrow funds under the FHLB-NY's advance program. The aggregate cost and fair value of
our FHLB-NY common stock as of December 31, 2009 was $25.5 million based on its par value. There
is no market for our FHLB-NY common stock.
Recent published reports indicate that certain member banks of the Federal Home Loan Bank
System may be subject to asset quality-related risks that could result in materially lower
regulatory capital levels. In an extreme situation, it is possible that the capitalization of a
FHLB, including the FHLB-NY, could be substantially diminished or reduced to zero. Consequently,
we believe that there is a risk that our investment in FHLB-NY common stock could be deemed
other-than-temporarily impaired at some time in the future, and if this occurs, it would cause our
earnings to decrease by the after-tax amount of the impairment charge.
Our Inability to Achieve Profitability on New Branches May Negatively Affect Our Earnings.
We have expanded our presence throughout our market area and we intend to pursue further
expansion through de novo branching. The profitability of our expansion strategy will depend on
whether the income that we generate from the new branches will offset the increased expenses
resulting from operating these branches. We expect that it may take a period of time before these
branches can become profitable, especially in areas in which we do not have an established
presence. During this period, the expense of operating these branches may negatively affect our
net income.
Strong Competition Within Our Market Area May Limit Our Growth and Profitability.
Competition in the banking and financial services industry is intense. In our market area, we
compete with numerous commercial banks, savings institutions, mortgage brokerage firms, credit
unions,
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finance companies, mutual funds, insurance companies, and brokerage and investment banking
firms operating locally and elsewhere. Some of our competitors have substantially greater resources
and lending limits than we have, have greater name recognition and market presence that benefit
them in attracting business, and offer certain services that we do not or cannot provide. In
addition, larger competitors may be able to price loans and deposits more aggressively than we do.
Our profitability depends upon our continued ability to successfully compete in our market area.
The greater resources and deposit and loan products offered by some of our competitors may limit
our ability to increase our interest-earning assets.
We Operate in a Highly Regulated Industry, Which Limits the Manner and Scope of Our Business
Activities.
We are subject to extensive supervision, regulation and examination by the New Jersey
Department of Banking and Insurance and by the FDIC. As a result, we are limited in the manner in
which we conduct our business, undertake new investments and activities and obtain financing. This
regulatory structure is designed primarily for the protection of the FDIC's Deposit Insurance Fund
(the "DIF") and our depositors, and not to benefit our stockholders. This regulatory structure
also gives the regulatory authorities extensive discretion in connection with their supervisory and
enforcement activities and examination policies, including policies with respect to capital levels,
the timing and amount of dividend payments, the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes. In addition, we must comply with significant
anti-money laundering and anti-terrorism laws. Government agencies have substantial discretion to
impose significant monetary penalties on institutions which fail to comply with these laws.
A Legislative Proposal Has Been Introduced That Would Require Oritani to Become a Bank Holding
Company.
Legislation has been proposed that would implement sweeping changes to the current bank
regulatory structure. The proposal would, among other things, merge the OTS into the Office of the
Comptroller of the Currency. As discussed further under "Supervision and Regulation—Holding
Company Regulation," federal law allows a state savings bank that qualifies as a Qualified Thrift
Lender, such as Oritani Bank, to elect to be treated as a savings association for purposes of the
savings and loan holding company provisions of the Home Owners' Loan Act of 1933, as amended. Such
election results in the state savings bank's holding company being regulated as a savings and loan
holding company by the OTS rather than as a bank holding company regulated by the Board of
Governors of the Federal Reserve System. If the OTS is eliminated, Oritani would become a bank
holding company subject to regulation and supervision under the Bank Holding Company Act of 1956,
as amended, and the supervision and regulation of the Board of Governors of the Federal Reserve
System, including holding company regulatory capital requirements to which Oritani Financial Corp.
is not currently subject. Such regulatory changes could impact our ability to continue our real
estate investments and joint ventures.
Risks Related to the Offering
The future price of the shares of common stock may be less than the $10.00 purchase price per share
in the offering.
If you purchase shares of common stock in the offering, you may not be able to sell them later
at or above the $10.00 purchase price in the offering. In several cases, shares of common stock
issued by newly converted savings institutions or mutual holding companies have traded below the
initial offering price. The aggregate purchase price of the shares of common stock sold in the
offering will be based on an independent appraisal. The independent appraisal is not intended, and
should not be construed, as a recommendation of any kind as to the advisability of purchasing
shares of common stock. The
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independent appraisal is based on certain estimates, assumptions and projections, all of which
are subject to change from time to time. After our shares begin trading, the trading price of our
common stock will be determined by the marketplace, and may be influenced by many factors,
including prevailing interest rates, the overall performance of the economy, investor perceptions
of Oritani and the outlook for the financial services industry in general. Price fluctuations may
be unrelated to the operating performance of particular companies.
We have broad discretion to deploy our net proceeds. Our failure to timely or effectively deploy
the net proceeds may have an adverse impact on our financial performance and the value of our
common stock.
Oritani intends to contribute between $159.4 million and $215.9 million of the net proceeds of
the offering (or $248.4 million at the adjusted maximum of the offering range) to Oritani Bank.
Oritani may use the remaining net proceeds to invest in short-term investments (which generally
have low interest rates), to repurchase shares of common stock, to pay dividends or for other
general corporate purposes. Oritani also expects to use a portion of the net proceeds it retains
to fund a loan for the purchase of shares of common stock in the offering by the employee stock
ownership plan. Oritani Bank may use the net proceeds it receives to fund new loans, to purchase
investment securities, to acquire financial institutions or financial services companies, build or
acquire new branches, or for other general corporate purposes. With the exception of the loan to
the employee stock ownership plan and some of our branching initiatives, we have not allocated
specific amounts of the net proceeds for any of these purposes, and we will have significant
flexibility in determining the amount of the net proceeds we apply to different uses and the timing
of such applications. We have not established a timetable for reinvesting of the net proceeds, and
we cannot predict how long we will require to reinvest the net proceeds.
Our return on equity initially will be low compared to our historical performance. A lower return
on equity may negatively impact the trading price of our common stock.
Net income divided by average stockholders' equity, known as "return on average equity" is a
ratio many investors use to compare the performance of a financial institution to its peers. Our
return on average equity ratio of 6.08% for the six months ended December 31, 2009, compared to an
average negative return on equity of 0.57% based on trailing twelve-month earnings for all publicly
traded fully converted savings institutions as of February 19, 2010. Although we expect that our
net income will increase following the offering, we expect that our return on average equity will
decrease as a result of the additional capital that we will raise in the offering. For example,
our pro forma return on equity for the six months ended December 31, 2009 is 2.50%, assuming the
sale of shares at the maximum of the offering range. Over time, we intend to use the net proceeds
from the offering to increase earnings per share and book value per share, without assuming undue
risk, with the goal of achieving a return on equity that is comparable to our historical
performance. This goal may take a number of years to achieve, and we cannot assure you that we
will be able to achieve it. Consequently, you should not expect a return on equity similar to our
current return on equity in the near future. Failure to achieve a competitive return on equity may
make an investment in our common stock unattractive to some investors and may cause our common
stock to trade at lower prices than comparable companies with higher returns on equity. See "Pro
Forma Data" for an illustration of the financial impact of the offering.
The ownership interest of management and employees could enable insiders to prevent a merger that
may provide stockholders a premium for their shares.
The shares of common stock that our directors and officers intend to purchase in the offering,
when combined with the shares that they will receive in the exchange for their existing shares of
Oritani Financial Corp. common stock are expected to result in management and the Board of
Directors
30
Table of Contents
controlling approximately ___% of our outstanding shares of common stock at the midpoint of
the offering range. In addition, our employee stock ownership plan is expected to purchase 4.0% of
the shares of common stock sold in the stock offering, and additional stock options and shares of
common stock would be granted to our directors and employees if a stock-based incentive plan is
adopted in the future. This would result in management and employees controlling a significant
percentage of our shares of common stock. If these individuals were to act together, they could
have significant influence over the outcome of any stockholder vote. This voting power may
discourage a potential sale of Oritani that our stockholders may desire.
The implementation of the stock-based incentive plan may dilute your ownership interest.
We intend to adopt a new stock-based incentive plan following the offering, subject to receipt
of stockholder approval. This stock-based incentive plan may be funded either through open market
purchases or from the issuance of authorized but unissued shares of common stock of Oritani. While
our intention is to fund this plan through open market purchases, stockholders would experience an
8.15% reduction in ownership interest at the adjusted maximum of the offering range in the event
newly issued shares of our common stock are used to fund stock options or shares of restricted
common stock under the plan in an amount equal to up to 10.0% and 4.0%, respectively, of the shares
sold in the offering. In the event we adopt the plan within twelve months following the
conversion, shares of common stock reserved for issuance pursuant to awards of restricted stock and
grants of options under the stock-based incentive plan would be limited to 4.0% and 10.0%,
respectively, of the total shares to be outstanding upon completion of the conversion, less the
number of shares of common stock reserved for stock awards and stock options (adjusted by the
exchange ratio) received under previously adopted benefit plans. In the event we adopt the plan
more than one year following the conversion, the plan will not be subject to these limitations.
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion and offering.
Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, historically, the overwhelming majority of stock-based benefit plans adopted by savings
institutions and their holding companies following mutual-to-stock conversions have been approved
by stockholders.
Additional expenses following the conversion from the compensation and benefit expenses associated
with the implementation of the new stock-based incentive benefit plan will adversely affect our
profitability.
We intend to adopt a new stock-based incentive plan after the offering, subject to stockholder
approval, pursuant to which plan participants would be awarded restricted shares of our common
stock (at no cost to them) and options to purchase shares of our common stock. If the stock-based
incentive plan is implemented within twelve months of the completion of the offering, the number of
shares of common stock reserved for issuance for awards of restricted stock or grants of options
under such stock-based incentive plan may not exceed 4.0% and 10.0%, respectively, of the total
shares to be outstanding upon completion of the conversion, less the number of shares of common
stock reserved for stock awards and stock option (adjusted by the exchange ratio) received under
previously adopted benefit plans. If we award restricted shares of common stock or grant options
in excess of these amounts under a stock-based incentive plan adopted more than one year after the
completion of the offering, our costs would increase further. Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after completion of the
offering.
Following the offering, our non-interest expenses are likely to increase as we will recognize
additional annual employee compensation and benefit expenses related to the shares granted to
employees
31
Table of Contents
and executives under our stock-based incentive plan. We cannot predict the actual amount of
these new stock-related compensation and benefit expenses because applicable accounting practices
require that expenses be based on the fair market value of the shares of common stock at specific
points in the future; however, we expect them to be material. In addition, we would recognize
expense for our employee stock ownership plan when shares are committed to be released to
participants' accounts (i.e., as the loan used to acquire these shares is repaid), and we would
recognize expense for restricted stock awards and stock options over the vesting period of awards
made to recipients. The expense in the first year following the offering has been estimated to be
approximately $8.7 million ($6.0 million after tax) at the adjusted maximum of the offering range
as set forth in the pro forma financial information under "Pro Forma Data," assuming the $10.00 per
share purchase price as fair market value. Actual expenses, however, may be higher or lower,
depending on the price of our common stock. In addition, all stock options and stock awards
currently outstanding will vest upon completion of the conversion. We anticipate the pre-tax
expense of such accelerated vesting as well as the accelerated vesting for outstanding stock awards
will be approximately $11.3 million, with such expense to be incurred during the fiscal quarter in
which the stock offering is completed. For further discussion of our proposed stock-based plans,
see "Management—Compensation Discussion and Analysis."
Stock-based incentive plans implemented twelve months following the stock offering may exceed
regulatory restrictions on the size of stock-based incentive plans.
If we implement stock-based incentive plans within twelve months following the completion of
the stock offering, then we may reserve shares of common stock for awards of restricted stock or
grants of stock options under our stock-based incentive plans for up to 4.0% and 10.0%,
respectively, of the shares of stock to be outstanding upon completion of the stock offering, less
the number of shares of restricted stock and option shares (adjusted for the exchange ratio)
reserved under previously adopted benefit plans. The amount of stock awards and stock options
available for grant under the stock-based incentive plans may exceed these amounts, provided the
stock-based incentive plans are implemented twelve months or more following the stock offering.
Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, the determination as to the timing of the implementation of such a plan will be at the
discretion of our Board of Directors. Stock-based incentive plans that provide for awards in excess
of these amounts would increase our costs beyond the amounts estimated in "—Additional expenses
following the conversion from the compensation and benefit expenses associated with the
implementation of the new stock-based incentive benefit plan will adversely affect our
profitability." Stock-based incentive plans that provide for awards in excess of these amounts
could also result in dilution to stockholders in excess of that described in "—The implementation
of the stock-based incentive plan may dilute your ownership interest." Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after the completion of
the conversion. Pro forma data is presented herein assumes the reservation of 4% and 10% of the
outstanding shares of common stock upon completion of the stock offering for awards of estimated
stock or grants of stock options, respectively, and the expenses associated with such amounts.
Various factors may make takeover attempts more difficult to achieve.
Our Board of Directors has no current intention to sell control of Oritani. Provisions of our
certificate of incorporation and bylaws, federal regulations, Delaware law and various other
factors may make it more difficult for companies or persons to acquire control of Oritani without
the consent of our Board of Directors. You may want a takeover attempt to succeed because, for
example, a potential acquirer could offer a premium over the then prevailing price of our common
stock. The factors that may discourage takeover attempts or make them more difficult include:
32
Table of Contents
•
Office of Thrift Supervision Regulations
.
OTS regulations prohibit, for
three years following the completion of a conversion, the direct or indirect
acquisition of more than 10.0% of any class of equity security of a savings institution
or holding company regulated by the OTS regulated holding company of a converted
institution without the prior approval of the OTS.
•
Certificate of incorporation and statutory provisions.
Provisions of the
certificate of incorporation and bylaws of Oritani and Delaware law may make it more
difficult and expensive to pursue a takeover attempt that management opposes, even if
the takeover is favored by a majority of our stockholders. These provisions also would
make it more difficult to remove our current Board of Directors or management, or to
elect new directors. Additional provisions include limitations on voting rights of
beneficial owners of more than 10.0% of our common stock, the election of directors to
staggered terms of three years and not permitting cumulative voting in the election of
directors. Our bylaws also contain provisions regarding the timing and content of
stockholder proposals and nominations and qualification for service on the Board of
Directors.
•
Issuance of stock options and restricted stock
.
We also intend to issue
stock options and shares of restricted stock to key employees and directors that will
require payments to these persons in the event of a change in control of Oritani.
These payments may have the effect of increasing the costs of acquiring Oritani,
thereby discouraging future takeover attempts.
•
Employment agreements
.
Oritani Financial Corp. has employment agreements
with each of its executive officers which will remain in effect following the stock
offering. These agreements may have the effect of increasing the costs of acquiring
Oritani, thereby discouraging future takeover attempts.
There may be a decrease in stockholders' rights for existing stockholders of Oritani Financial
Corp.
As a result of the conversion, existing stockholders of Oritani Financial Corp. will become
stockholders of Oritani. Some rights of stockholders of Oritani will be reduced compared to the
rights stockholders currently have in Oritani Financial Corp. The reduction in stockholder rights
results from differences between the federal and Delaware charters and bylaws, and from
distinctions between federal and Delaware law. Many of the differences in stockholder rights under
the certificate of incorporation and bylaws of Oritani are not mandated by Delaware law but have
been chosen by management as being in the best interests of Oritani and its stockholders. The
certificate of incorporation and bylaws of Oritani include the following provisions: (i) approval
by at least a majority of outstanding shares required to remove a director for cause; (ii) greater
lead time required for stockholders to submit proposals for new business or to nominate directors;
and (iii) approval by at least 80% of outstanding shares of capital stock entitled to vote
generally is required to amend the bylaws and certain provisions of the certificate of
incorporation. See "Comparison of Stockholders' Rights For Existing Stockholders of Oritani
Financial Corp." for a discussion of these differences.
You may not revoke your decision to purchase Oritani common stock in the subscription offering
after you send us your subscription.
Funds submitted or automatic withdrawals authorized in the connection with a purchase of
shares of common stock in the subscription offering will be held by us until the completion or
termination of the conversion and offering, including any extension of the expiration date.
Because completion of the conversion and offering will be subject to regulatory approvals and an
update of the independent appraisal
33
Table of Contents
prepared by RP Financial, LC., among other factors, there may be one or more delays in the
completion of the conversion and offering. Orders submitted in the subscription offering are
irrevocable, and subscribers will have no access to subscription funds unless the offering is
terminated, or extended beyond [extension date], or the number of shares to be sold in the offering
is increased to more than 51,577,500 shares or decreased to less than 33,150,000 shares.
34
Table of Contents
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
The summary financial information presented below is derived in part from the consolidated
financial statements of Oritani Financial Corp. and subsidiaries. The following is only a summary
and you should read it in conjunction with the consolidated financial statements and notes
beginning on page F-1. The information at June 30, 2009 and 2008 and for the years ended June 30,
2008 and 2007 is derived in part from the audited consolidated financial statements of Oritani
Financial Corp. that appear in this prospectus. The operating data for the three months and six
months ended December 31, 2009 and 2008 and the financial condition data at December 31, 2009 were
not audited. However, in the opinion of management of Oritani Financial Corp., all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of the results of
operations for the unaudited periods have been made. No adjustments were made other than normal
recurring entries. The results of operations for the three months and six months ended December
31, 2009 are not necessarily indicative of the results of operations that may be expected for the
entire year.
At December
June 30,
31, 2009
2009
2008
2007
2006
2005
(In thousands)
Selected Financial Condition Data:
Total assets
$
2,006,874
$
1,913,521
$
1,443,294
$
1,194,443
$
1,031,421
$
1,051,702
Loans, net
1,357,157
1,278,623
1,007,077
758,542
643,064
493,554
Securities available for sale, at market value
320,439
144,419
22,285
35,443
10,499
60,924
Securities held to maturity
—
—
—
5,415
13,415
25,500
Mortgage-backed securities held to maturity
86,182
118,817
163,950
217,406
274,695
372,104
Mortgage-backed securities available for sale, at market value
98,513
128,603
149,209
38,793
17,426
25,659
Bank owned life insurance
29,973
29,385
26,425
25,365
24,381
18,988
Federal Home Loan Bank of New York stock, at cost
25,481
25,549
21,547
10,619
9,367
9,088
Accrued interest receivable
8,786
7,967
5,646
4,973
3,910
3,405
Investments in real estate joint ventures, net
5,836
5,767
5,564
6,200
6,233
5,438
Real estate held for investment
1,222
1,338
3,681
2,492
2,223
1,425
Deposits
1,210,507
1,127,630
698,932
695,757
688,646
702,980
Borrowings
507,439
508,991
433,672
196,661
169,780
182,129
Stockholders' equity
247,950
240,098
278,975
272,570
150,135
141,796
For the Three Months Ended
For the Six Months Ended
December 31,
December 31,
2009
2008
2009
2008
(Dollars in thousands, except per share amounts)
Selected Operating Data:
Total interest income
$
25,467
$
21,862
$
51,246
$
42,519
Total interest expense
11,057
11,169
22,617
21,056
Net interest income
14,410
10,693
28,629
21,463
Provision for loan losses
2,500
3,500
5,050
5,375
Net interest income after
provision for loan losses
11,910
7,193
23,579
16,088
Other income
1,067
(565
)
3,613
668
Other expense
8,166
6,542
14,994
12,416
Income before income tax expense
4,811
86
12,198
4,340
Income tax expense
1,882
47
4,786
1,795
Net income
$
2,929
$
39
$
7,412
$
2,545
Earnings per share:
Basic
$
0.08
$
0.00
$
0.20
$
0.07
Diluted
$
0.08
$
0.00
$
0.20
$
0.07
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For the Year Ended June 30,
2009
2008
2007
2006
2005
(In thousands)
Selected Operating Data:
Interest income
$
88,429
$
71,591
$
63,349
$
51,276
$
46,439
Interest expense
44,500
37,208
32,829
23,522
18,349
Net interest income
43,929
34,383
30,520
27,754
28,090
Provision for loan losses
9,880
4,650
1,210
1,500
800
Net interest income after provision for loan losses
34,049
29,733
29,310
26,254
27,290
Other income
2,780
4,936
5,309
4,560
1,663
Other expense
27,257
19,491
25,249
17,524
14,800
Income before income tax expense
9,572
15,178
9,370
13,290
14,153
Income tax expense (benefit)
4,020
6,218
(1,664
)
4,827
5,193
Net income
$
5,552
$
8,960
$
11,034
$
8,463
$
8,960
At or for the Six Months
Ended December 31,
(1)
At or For the Years Ended June 30,
2009
2008
2009
2008
2007
2006
2005
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on assets
(2)
0.75
%
0.42
%
0.33
%
0.68
%
0.94
%
0.81
%
0.86
%
Return on equity
(3)
6.08
%
4.14
%
2.20
%
3.21
%
5.48
%
5.77
%
6.51
%
Net interest rate spread
(4)
2.75
%
2.42
%
2.36
%
2.06
%
2.23
%
2.42
%
2.54
%
Net interest margin
(5)
3.03
%
2.90
%
2.77
%
2.77
%
2.73
%
2.77
%
2.80
%
Efficiency ratio
(6)
46.50
%
56.10
%
58.35
%
49.59
%
70.47
%
54.23
%
49.74
%
Non-interest expense to average total assets
1.52
%
1.59
%
1.63
%
1.49
%
2.14
%
1.68
%
1.43
%
Average interest-earning assets to average
interest-bearing liabilities
111.59
%
117.16
%
114.47
%
123.59
%
117.00
%
115.05
%
114.42
%
Asset Quality Ratios:
Non-performing assets to total assets
2.62
%
2.66
%
2.74
%
0.98
%
—
%
0.04
%
0.02
%
Non-performing loans to total loans
3.75
%
3.60
%
4.03
%
1.39
%
—
%
0.07
%
0.04
%
Allowance for loan losses to total loans
1.60
%
1.54
%
1.59
%
1.32
%
1.15
%
1.18
%
1.23
%
Allowance for loan losses to nonperforming loans
42.70
%
42.91
%
39.42
%
5.23
%
N/M
N/M
N/M
Net charge-offs to average loans
0.50
%
—
%
0.23
%
—
%
—
%
—
%
—
%
Capital Ratios:
Total stockholders' equity to assets
12.36
%
14.94
%
12.55
%
19.33
%
22.82
%
14.56
%
13.48
%
Total capital (to risk-weighted assets)
18.42
%
21.30
%
19.15
%
27.78
%
34.87
%
26.98
%
30.80
%
Tier I capital (to risk-weighted assets)
17.16
%
20.04
%
17.90
%
26.53
%
33.77
%
25.73
%
29.55
%
Tier I capital (to average assets)
12.36
%
15.23
%
14.31
%
19.71
%
23.10
%
14.39
%
13.62
%
Other Data:
Number of full service offices
21
19
21
19
19
19
21
Full time equivalent employees
177
158
174
155
144
143
138
(1)
Ratios are annualized where appropriate.
(2)
Represents net income divided by average total assets.
(3)
Represents net income divided by average equity.
(4)
Represents average yield on interest-owning assets less average cost of interest-bearing
liabilities.
(5)
Represents net interest income as a percent of average interest-earning assets.
(6)
Represents non-interest expense divided by the sum of net interest income before provision for loan losses and non-interest income.
N/M
Not meaningful.
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FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements, which can be identified by the use of
words such as "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect"
and words of similar meaning. These forward-looking statements include, but are not limited to:
•
statements of our goals, intentions and expectations;
•
statements regarding our business plans, prospects, growth and operating
strategies;
•
statements regarding the asset quality of our loan and investment
portfolios; and
•
estimates of our risks and future costs and benefits.
These forward-looking statements are based on current beliefs and expectations of our
management and are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change.
The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements:
•
changes in laws or government regulations or policies affecting financial
institutions, including changes in regulatory fees and capital requirements;
•
general economic conditions, either nationally or in our market areas,
that are worse than expected;
•
competition among depository and other financial institutions;
•
inflation and changes in the interest rate environment that reduce our
margins or reduce the fair value of financial instruments;
•
adverse changes in the securities markets;
•
our ability to enter new markets successfully and capitalize on growth
opportunities;
•
our ability to successfully integrate acquired entities, if any;
•
changes in consumer spending, borrowing and savings habits;
•
changes in our organization, compensation and benefit plans;
•
our ability to continue to increase and manage our commercial and
residential real estate, multi-family, and commercial and industrial loans;
•
possible impairments of securities held by us, including those issued by
government entities and government sponsored enterprises;
37
Table of Contents
•
the level of future deposit premium assessments;
•
the impact of the current recession on our loan portfolio (including cash
flow and collateral values), investment portfolio, customers and capital market
activities;
•
the impact of the current governmental effort to restructure the U.S.
financial and regulatory system;
•
changes in the financial performance and/or condition of our borrowers;
and
•
the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Securities and Exchange Commission,
the Public Company Accounting Oversight Board, the Financial Accounting Standards Board
and other accounting standard setters.
Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. Please see "Risk
Factors" beginning on page ___.
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Table of Contents
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
Although we cannot determine what the actual net proceeds from the sale of the shares of
common stock in the offering will be until the offering is completed, we anticipate that the
aggregate net proceeds will be between $318.4 million and $431.4 million, or $496.5 million if the
offering range is increased by 15%.
We intend to distribute the net proceeds from the stock offering as follows:
Based Upon the Sale at $10.00 Per Share of
33,150,000 Shares
39,000,000 Shares
44,850,000 Shares
51,577,500 Shares (1)
Percent
Percent
Percent
Percent of
of Net
of Net
of Net
Net
Amount
Proceeds
Amount
Proceeds
Amount
Proceeds
Amount
Proceeds
(Dollars in thousands)
Offering proceeds
$
331,500
$
390,000
$
448,500
$
515,775
Less: offering expenses
(13,131
)
(15,096
)
(17,062
)
(19,322
)
Net offering proceeds
$
318,369
100.0
%
$
374,904
100.0
%
$
431,438
100.0
%
$
496,453
100.0
%
Distribution of net proceeds:
To Oritani Bank
$
159,184
50.0
%
$
187,452
50.0
%
$
215,719
50.0
%
$
248,226
50.0
%
To fund the loan to
employee stock ownership
plan
$
13,260
4.2
%
$
15,600
4.2
%
$
17,940
4.2
%
$
20,631
4.2
%
Retained by Oritani
$
145,924
45.8
%
$
171,852
45.8
%
$
197,779
45.8
%
$
227,595
45.8
%
(1)
As adjusted to give effect to an increase in the number of shares which could occur due to a
15% increase in the offering range to reflect demand for the shares or changes in market or
general financial conditions following the commencement of the offering.
Payments for shares of common stock made through withdrawals from existing deposit
accounts will not result in the receipt of new funds for investment but will result in a reduction
of Oritani Bank's deposits. The net proceeds may vary because total expenses relating to the
offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the
subscription and community offerings.
Oritani and Oritani Bank May Use the Proceeds it Retains From the Offering:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
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Table of Contents
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and
•
to use the additional capital for other general corporate purposes.
Under current OTS regulations, we may not repurchase shares of our common stock during the
twelve months following the completion of the conversion, except to fund certain stock-based plans
or, with prior regulatory approval, when extraordinary circumstances exist.
Initially, a substantial portion of the net proceeds will likely be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities. The use of proceeds
may change based on changes in interest rates, equity markets, laws and regulations affecting the
financial services industry, our relative position in the financial services industry, the
attractiveness of potential acquisitions, and overall market conditions. Our business strategy for
the deployment of the net proceeds raised in the offering is discussed in more detail in
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Business
Strategy."
Our return on equity may be relatively low until we are able to effectively reinvest the
additional capital raised in the offering. Until we can deploy our capital until we have a
leverage ratio similar to peers, our return on equity may be below the industry average, which may
negatively affect the value of our common stock. See "Risk Factors—Our return on equity initially
will be low compared to our historical performance. A lower return on equity may negatively impact
the trading price of our common stock."
OUR POLICY REGARDING DIVIDENDS
As of December 31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. We expect the annual dividends to equal $0.30
per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering range,
respectively, which represents an annual dividend yield of 3.0% at each of the minimum, midpoint,
maximum and adjusted maximum of the offering range, respectively, based upon a stock price of
$10.00 per share. The amount of dividends that we intend to pay to our stockholders following the
conversion is intended to preserve the per share dividend rate that Oritani Financial Corp.
stockholders currently receive. The dividend rate and the continued payment of dividends will
depend on a number of factors including our capital requirements, our financial condition and
results of operations, tax considerations, statutory and regulatory limitations, and general
economic conditions. We cannot assure you that we will not reduce or eliminate dividends in the
future.
Under the rules of the OTS, Oritani Bank will not be permitted to pay dividends on its capital
stock to Oritani, its sole stockholder, if Oritani Bank's stockholder's equity would be reduced
below the amount of the liquidation account established in connection with the conversion. In
addition, Oritani Bank will not be permitted to make a capital distribution if, after making such
distribution, it would be undercapitalized. See "The Conversion and Offering—Liquidation Rights."
Unlike Oritani Bank, we are not restricted by OTS regulations on the payment of dividends to
our stockholders, although the source of dividends will depend on the net proceeds retained by us
and earnings and dividends from Oritani Bank. However, we will be subject to state law limitations
on the
40
Table of Contents
payment of dividends. Delaware law generally limits dividends to be paid out of its capital
surplus or, if there is no surplus, out of net profits from the fiscal year in which the dividend
is declared, and the preceding fiscal year, subject to certain limitations.
Finally, pursuant to OTS regulations, during the three-year period following the conversion,
we will not take any action to declare an extraordinary dividend to stockholders that would be
treated by recipients as a tax-free return of capital for federal income tax purposes.
See "Selected Consolidated Financial and Other Data" and "Market for the Common Stock" for
information regarding our historical dividend payments.
MARKET FOR THE COMMON STOCK
Oritani Financial Corp.'s common stock currently trades on the Nasdaq Global Market under the
symbol "ORIT." Upon completion of the offering, the shares of common stock of Oritani will replace
Oritani Financial Corp.'s shares of common stock. We expect that Oritani's shares of
common stock will trade on the Nasdaq Global Market under the trading symbol "ORITD" for a period
of 20 trading days after the completion of the offering. Thereafter, Oritani's trading symbol will
revert to "ORIT." In order to list our common stock on the Nasdaq Global Market, we are required
to have at least three broker-dealers who will make a market in our common stock. Oritani
Financial Corp. currently has ___ registered market makers.
The development of a public market having the desirable characteristics of depth, liquidity
and orderliness depends on the existence of willing buyers and sellers, the presence of which is
not within our control or that of any market maker. The number of active buyers and sellers of our
common stock at any particular time may be limited, which may have an adverse effect on the price
at which our common stock can be sold. You may not be able to sell your shares at or above the
$10.00 price per share in the offering. Purchasers of our common stock should have a long-term
investment intent and should recognize that there may be a limited trading market in our common
stock.
In connection with the conversion and offering, each existing publicly held share of common
stock of Oritani Financial Corp. will be converted into a right to receive a number of shares of
Oritani common stock, based upon the exchange ratio that is described in other sections of this
prospectus. See "The Conversion and Offering—Share Exchange Ratio for Current Stockholders."
Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio. The vesting period of such options
as well as any outstanding stock awards will be accelerated upon the closing of the conversion and
the term of such options will remain unchanged. We anticipate the pre-tax expense of such
accelerated vesting will be approximately $11.3 million, which represents the remaining
amortization for such accelerated options and awards, with such expense to be incurred during the
fiscal quarter in which the stock offering is completed.
Our shares of common stock are traded on the Nasdaq Global Market under the symbol "ORIT". The
approximate number of holders of record of Oritani Financial Corp.'s common stock as of
[shareholder record date] was ___. Certain shares of Oritani Financial Corp. are held in
"nominee" or "street" name and accordingly, the number of beneficial owners of such shares is not
known or included in the foregoing number. The following table presents quarterly market
information for Oritani Financial Corp.'s common stock for the periods indicated.
41
Table of Contents
Fiscal 2010
Dividends per
High
Low
share
First Quarter
$
14.61
$
12.75
$
0.050
Second Quarter
14.50
12.46
0.075
Third Quarter (through _____)
Fiscal 2009
Fiscal 2008
Dividend per
Dividend per
High
Low
share
High
Low
share
First Quarter
$
20.12
$
15.50
$
—
$
15.93
$
12.55
$
—
Second Quarter
17.33
13.25
—
17.23
12.17
—
Third Quarter
17.04
9.56
—
15.25
10.78
—
Fourth Quarter
15.10
12.73
0.05
17.15
14.87
—
The sources of funds for the payment of a cash dividend are the retained proceeds from
the initial sale of shares of common stock and earnings on those proceeds, interest and principal
payments with respect to Oritani Financial Corp.'s loan to the Employee Stock Ownership Plan, and
dividends from Oritani Bank. For a discussion of the limitations applicable to Oritani Bank's
ability to pay dividends, see "Supervision and Regulation—Federal Banking Regulation."
On February 18, 2010, the business day immediately preceding the public announcement of the
conversion, the closing price of Oritani Financial Corp. common stock as reported on the Nasdaq
Global Market was $13.88 per share. At
, the closing price of Oritani Financial
Corp.'s common stock was $
, and there were approximately
stockholders of record.
42
Table of Contents
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
At December 31, 2009, Oritani Bank exceeded all of the applicable regulatory capital
requirements. The table below sets forth the historical equity capital and regulatory capital of
Oritani Bank at December 31, 2009, and the pro forma regulatory capital of Oritani Bank, after
giving effect to the sale of Oritani's shares of common stock at a $10.00 per share purchase price.
Accordingly, the table assumes the receipt by Oritani Bank of at least 50% of the net proceeds.
See "How We Intend to Use the Proceeds from the Offering."
Oritani Bank Historical at
Pro Forma at December 31, 2009 Based Upon the Sale at $10.00 Per Share
December 31, 2009
33,150,000 Shares
39,000,000 Shares
44,850,000 Shares
51,577,500 Shares (1)
Amount
Percent of Assets (2)
Amount
Percent of Assets (2)
Amount
Percent of Assets (2)
Amount
Percent of Assets (2)
Amount
Percent
of Assets (2)
(Dollars in thousands)
Equity capital
$
194,340
9.84
%
$
327,213
15.33
%
$
350,801
16.22
%
$
374,388
17.08
%
$
401,513
18.05
%
Core (leverage) capital
$
193,183
9.76
%
$
326,056
15.25
%
$
349,644
16.14
%
$
373,231
17.01
%
$
400,356
17.98
%
Core (leverage)
requirement (3)
79,144
4.00
%
85,512
4.00
%
86,642
4.00
%
87,773
4.00
%
89,073
4.00
%
Excess
$
114,039
5.76
%
$
240,544
11.25
%
$
263,002
12.14
%
$
285,458
13.01
%
$
311,283
13.98
%
Tier 1 risk-based
capital (4)
$
193,183
13.49
%
$
326,056
22.27
%
$
349,644
23.79
%
$
373,231
25.29
%
$
400,356
27.01
%
Tier 1 requirement (3)
85,943
6.00
%
87,854
6.00
%
88,193
6.00
%
88,532
6.00
%
88,922
6.00
%
Excess
$
107,240
7.49
%
$
238,201
16.27
%
$
261,451
17.79
%
$
284,699
19.29
%
$
311,434
21.01
%
Total risk-based
capital (4)
$
211,236
14.75
%
$
344,109
23.50
%
$
367,697
25.02
%
$
391,284
26.52
%
$
418,409
28.23
%
Risk-based requirement
114,591
8.00
%
117,138
8.00
%
117,590
8.00
%
118,043
8.00
%
118,563
8.00
%
Excess
$
96,645
6.75
%
$
226,971
15.50
%
$
250,107
17.02
%
$
273,241
18.52
%
$
299,846
20.23
%
Reconciliation of
capital infused into
Oritani Bank:
Net proceeds
$
159,184
$
187,452
$
215,719
$
248,226
Less:
Common stock acquired
by employee stock
ownership plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Common stock acquired
by the stock-based
incentive plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Plus:
Assets received from MHC
209
209
209
209
Pro forma increase
in GAAP and
regulatory capital (5)
$
132,873
$
156,461
$
180,048
$
207,173
(1)
As adjusted to give effect to an increase in the number of shares of common stock that
could occur due to a 15% increase in the offering range to reflect demand for the
shares, or changes in market or general financial conditions following the commencement
of the offering.
(2)
Tangible and core capital levels are shown as a percentage of total adjusted assets.
Risk-based capital levels are shown as a percentage of risk-weighted assets.
(3)
Although not adopted in regulation form, the New Jersey Department of Banking and Insurance
utilizes capital standards of 6% leverage capital and 8.0% risk-based capital. In addition,
the FDIC requires a Tier 1 risk-based capital ratio of 4.0% or greater.
(4)
Pro forma capital levels assume that we fund the stock-based incentive plans with purchases
in the open market equal to 4.0% of the shares of common stock sold in the stock offering at a
price equal to the price for which the shares of common stock are sold in the stock offering,
and that the employee stock ownership plan purchases 4.0% of the shares of common stock sold
in the stock offering with funds we lend. Pro forma GAAP and regulatory capital have been
reduced by the amount required to fund both of these plans. See "Management" for a discussion
of the stock-based incentive plan and employee stock ownership plan. We may award shares of
common stock under one or more stock-based incentive plans in excess of this amount if the
stock-based incentive plans are adopted more than one year following the stock offering.
(5)
Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20%
risk weighting.
43
Table of Contents
CAPITALIZATION
The following table presents the historical consolidated capitalization of Oritani Financial
Corp. at December 31, 2009 and the pro forma consolidated capitalization of Oritani after giving
effect to the offering, based upon the assumptions set forth in the "Pro Forma Data" section.
Oritani
Financial
Corp.
Oritani $10.00 Per Share Pro Forma Based on the Sale of
Historical at
33,150,000
39,000,000
44,850,000
51,577,500
December
31, 2009
Shares
Shares
Shares
Shares (1)
(Dollars in thousands)
Deposits (2)
$
1,210,507
$
1,210,507
$
1,210,507
$
1,210,507
$
1,210,507
Borrowed funds
507,439
507,439
507,439
507,439
507,439
Total deposits and borrowed funds
$
1,717,946
$
1,717,946
$
1,717,946
$
1,717,946
$
1,717,946
Stockholders' equity:
Common stock $0.01 par value,
150,000,000 shares authorized
(post-conversion); shares to be
issued as reflected (3) (4)
130
445
524
602
693
Paid-in capital (3)
132,339
450,393
506,849
563,305
628,229
Retained earnings (5)
182,528
182,528
182,528
182,528
182,528
Plus:
Oritani Financial Corp., MHC
capital contribution
—
209
209
209
209
Accumulated other comprehensive
income
1,114
1,114
1,114
1,114
1,114
Less:
Treasury stock
(54,649
)
(54,649
)
(54,649
)
(54,649
)
(54,649
)
Common stock to be acquired by the
ESOP (6)
(13,512
)
(26,772
)
(29,112
)
(31,452
)
(34,143
)
Common stock to be acquired by the
stock-based incentive plan (7)
—
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Total stockholders' equity
$
247,950
$
540,008
$
591,863
$
643,717
$
703,350
Shares outstanding:
Total shares outstanding
44,529,252
52,387,355
60,245,458
69,282,277
Exchange shares issued
11,379,252
13,387,355
15,395,458
17,704,777
Shares offered for sale
33,150,000
39,000,000
44,850,000
51,577,500
Total stockholders' equity as a
percentage of total assets
12.36
%
23.49
%
25.18
%
26.79
%
28.57
%
Tangible equity ratio
12.36
%
23.49
%
25.18
%
26.79
%
28.57
%
(1)
As adjusted to give effect to an increase in the number of shares of common stock that could
occur due to a 15% increase in the offering range to reflect demand for the shares, or changes
in market or general financial conditions following the commencement of the offering.
(2)
Does not reflect withdrawals from deposit accounts for the purchase of shares of common stock
in the offering. These withdrawals would reduce pro forma deposits by the amount of the
withdrawals.
(3)
Oritani Financial Corp. currently has 10,000,000 authorized shares of preferred stock and
80,000,000 authorized shares of common stock, par value $0.01 per share. On a pro forma
basis, Oritani common stock and additional paid-in capital have been revised to reflect the
number of shares of Oritani common stock to be outstanding, which is 44,592,252 shares,
52,387,355 shares, 60,245,458 shares and 69,282,277 shares at the minimum, midpoint, maximum
and adjusted maximum of the offering range, respectively.
(4)
No effect has been given to the issuance of additional shares of Oritani common stock
pursuant to stock options to be granted under a stock-based incentive plan. If this plan is
implemented within one year of the completion of the offering, an amount up to 10.0% of the
shares of Oritani common stock sold in the offering will be reserved for issuance upon the
exercise of options. We may exceed this limit if the plan is implemented more than one year
following the completion of the offering. No effect has been given to the exercise of options
currently outstanding. See "Management—Benefits to be Considered Following Completion of the
Conversion."
(5)
The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See "The Conversion and Offering—Liquidation Rights" and "Supervision and Regulation."
(6)
Assumes that 4.0% of the shares sold in the offering will be acquired by the employee stock
ownership plan financed by a loan from Oritani The loan will have a term of 20 years and an
interest rate equal to the prime rate as published in
The Wall
Street Journal
, and be
repaid principally from Oritani Bank's contributions to the employee stock ownership plan.
Since Oritani will finance the employee stock ownership plan debt, this debt will be
eliminated through consolidation and no liability will be reflected on Oritani's consolidated
financial statements. Accordingly, the amount of shares of common stock acquired by the
employee stock ownership plan is shown in this table as a reduction of total stockholders'
equity.
(7)
Assumes at the minimum, midpoint, the maximum and the maximum as adjusted, of the offering
range that a number of shares of common stock equal to 4.0% of the shares of common stock to
be sold in the offering will be purchased by the stock-based incentive plan in open market
purchases. The stock-based incentive plan will be submitted to a vote of stockholders
following the completion of the offering. Our current intention is to implement a new
stock-based incentive plan no earlier than twelve months after completion of the conversion.
The funds to be used by the stock-based incentive plan to purchase the shares will be provided
by Oritani. The dollar amount of common stock to be purchased is based on the $10.00 per
share offering price and represents unearned compensation. This amount does not reflect
possible increases or decreases in the value of common stock relative to the subscription
price in the offering. As Oritani accrues compensation expense to reflect the vesting of
shares pursuant to the stock-based incentive plan, the credit to capital will be offset by a
charge to operations. Implementation of the stock-based incentive plan will require
stockholder approval.
44
Table of Contents
PRO FORMA DATA
The following tables summarize historical data of Oritani Financial Corp. and pro forma data
at and for the six months ended December 31, 2009 and at and for the year ended June 30, 2009.
This information is based on assumptions set forth below and in the tables, and should not be used
as a basis for projections of market value of the shares of common stock following the offering.
Moreover, pro forma stockholders' equity per share does not give effect to the liquidation account
to be established in the conversion or, in the unlikely event of a liquidation of Oritani Bank, to
the recoverability of intangible assets or the tax effect of the recapture of the bad debt reserve.
See "The Conversion and Offering—Liquidation Rights."
The net proceeds in the tables are based upon the following assumptions:
(i)
forty percent of all shares of common stock will be sold in the subscription
and community offerings, including shares purchased by insiders, with the remaining
 shares to be sold in the syndicated community offering;
(ii)
150,000 shares of common stock will be purchased by our executive officers and
directors, and their associates;
(iii)
our employee stock ownership plan will purchase 4.0% of the shares of common
stock sold in the offering, with a loan from Oritani. The loan will be repaid in
substantially equal payments of principal and interest over a period of 20 years;
(iv)
Stifel, Nicolaus & Company, Incorporated will receive a fee equal to 1% of all
 shares of common stock sold in the subscription and community offerings and a fee equal
to 5% of all shares sold in the syndicated community offering. No fee will be paid
with respect to shares of common stock purchased by our qualified and non-qualified
employee stock benefit plans, or stock purchased by our officers, directors and
employees, and their immediate families; and
(v)
total expenses of the offering, including the marketing fees to be paid to
Stifel, Nicolaus & Company, Incorporated, will be between $13.1 million at the minimum
of the offering range and $19.3 million at the maximum of the offering range, as
adjusted.
We calculated pro forma consolidated net income for the six months ended December 31, 2009 and
the year ended June 30, 2009 as if the estimated net proceeds we received had been invested at the
beginning of each period at an assumed interest rate of 2.69% (1.64% on an after-tax basis) and
2.54% (1.55% on an after-tax basis). This represents the five-year United States Treasury note
yield as of December 31, 2009 and June 30, 2009. We consider the resulting rate to reflect more
accurately the pro forma reinvestment rate than an arithmetic average method in light of current
market interest rates. The effect of withdrawals from deposit accounts for the purchase of shares
of common stock has not been reflected. Historical and pro forma per share amounts have been
calculated by dividing historical and pro forma amounts by the indicated number of shares of common
stock. No effect has been given in the pro forma stockholders' equity calculations for the assumed
earnings on the net proceeds.
The pro forma tables give effect to the implementation of the stock-based incentive plan.
Subject to the receipt of stockholder approval, we have assumed that the stock-based incentive plan
will acquire for restricted stock awards a number of shares of common stock equal to 4.0% of the
shares of common stock sold in the stock offering at the same price for which they were sold in the
stock offering. We
45
Table of Contents
assumed that shares of common stock are granted under the plans in awards that vest over a
five-year period.
We have also assumed that the stock-based incentive plans will grant options to acquire shares
of common stock equal to 10.0% of the shares of common stock sold in the stock offering. In
preparing the tables below, we assumed that stockholder approval was obtained, that the exercise
price of the stock options and the market price of the stock at the date of grant were $10.00 per
share and that the stock options had a term of ten years and vested over five years. We applied
the Black-Scholes option pricing model to estimate a grant-date fair value of $3.43 for each
option. In addition to the terms of the options described above, the Black-Scholes option pricing
model assumed an estimated volatility rate of 36.45% for the shares of common stock, a dividend
yield of 3.0%, an expected option life of eight years and a risk-free interest rate of 3.85%.
We may grant options and award shares of common stock under one or more stock-based incentive
plans in excess of 10.0% and 4.0%, respectively, of the shares of common stock sold in the stock
offering if the stock-based incentive plans are adopted more than twelve months following the stock
offering. Our current intention is to implement a new stock-based incentive plan no earlier than
twelve months after completion of the offering.
As discussed under "How We Intend to Use the Proceeds from the Offering," we intend to
contribute at least 50% of the net proceeds from the stock offering to Oritani Bank, and we will
retain the remainder of the net proceeds from the stock offering. We will use a portion of the
proceeds we retain for the purpose of making a loan to the employee stock ownership plan and retain
the rest of the proceeds for future use.
The pro forma table does not give effect to:
•
withdrawals from deposit accounts for the purpose of purchasing shares of
common stock in the stock offering;
•
our results of operations after the stock offering; or
•
changes in the market price of the shares of common stock after the stock
offering.
The following pro forma information may not represent the financial effects of the stock
offering at the date on which the stock offering actually occurs and you should not use the table
to indicate future results of operations. Pro forma stockholders' equity represents the difference
between the stated amount of our assets and liabilities, computed in accordance with GAAP. We did
not increase or decrease stockholders' equity to reflect the difference between the carrying value
of loans and other assets and their market value. Pro forma stockholders' equity is not intended
to represent the fair market value of the shares of common stock and may be different than the
amounts that would be available for distribution to stockholders if we liquidated. Per share
figures have been calculated based on shares of Oritani Financial Corp. issued and outstanding as
of the date of this prospectus.
46
Table of Contents
At or for the Six Months Ended December 31, 2009
Based Upon the Sale at $10.00 Per Share of
33,150,000
39,000,000
44,850,000
51,577,500
Shares
Shares
Shares
Shares (1)
(Dollars in thousands, except per share amounts)
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Market value of shares issued in the exchange
113,793
133,874
153,955
177,048
Pro forma market capitalization
$
445,293
$
523,874
$
602,455
$
692,823
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Less: Expenses
(13,131
)
(15,096
)
(17,062
)
(19,322
)
Plus: Assets received from MHC
$
209
$
209
$
209
$
209
Estimated net proceeds
$
318,578
$
375,113
$
431,647
$
496,662
Less: Common stock purchased by employee stock ownership plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock purchased by the stock-based incentive
plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Estimated net proceeds, as adjusted
$
292,058
$
343,913
$
395,767
$
455,400
For the Six Months Ended December 31, 2009
Consolidated net income:
Historical
$
7,412
$
7,412
$
7,412
$
7,412
Pro forma adjustments:
Income on adjusted net proceeds
2,395
2,820
3,246
3,735
Employee stock ownership plan (2)
(202
)
(238
)
(274
)
(315
)
Shares granted under the stock-based incentive plan (3)
(809
)
(952
)
(1,095
)
(1,259
)
Options granted under the stock-based incentive plan (4)
(916
)
(1,077
)
(1,239
)
(1,424
)
Pro forma net income
$
7,880
$
7,966
$
8,051
$
8,150
Net income per share (5):
Historical
$
0.17
$
0.14
$
0.12
$
0.11
Pro forma adjustments:
Income on adjusted net proceeds
0.05
0.06
0.06
0.05
Employee stock ownership plan (2)
—
—
—
—
Shares granted under the stock-based incentive plan (3)
(0.02
)
(0.02
)
(0.02
)
(0.02
)
Options granted under the stock-based incentive plan (4)
(0.02
)
(0.02
)
(0.02
)
(0.02
)
Pro forma net income per share (5) (6)
$
0.18
$
0.16
$
0.14
$
0.12
Offering price to pro forma net income per share (annualized)
27.78x
31.25x
35.71x
41.67x
Number of shares used in net income per share calculations
(5)
43,236,402
50,866,355
58,496,308
67,270,754
At December 31, 2009
Stockholders' equity:
Historical
$
247,950
$
247,950
$
247,950
$
247,950
Estimated net proceeds
318,369
374,904
431,438
496,453
Oritani Financial Corp., MHC capital contribution
209
209
209
209
Less: Common stock acquired by employee stock ownership
plan (2)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock acquired by the stock-based incentive
plan (3)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Pro forma tangible stockholders' equity
$
540,008
$
591,863
$
643,717
$
703,350
Stockholders' equity per share (7):
Historical
$
5.57
$
4.73
$
4.11
$
3.58
Estimated net proceeds
7.15
7.16
7.16
7.17
Oritani Financial Corp., MHC capital contribution
0.01
0.01
0.01
0.01
Less: Common stock acquired by employee stock ownership
plan (2)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Less: Common stock acquired by the stock-based incentive
plan (3)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Pro forma tangible stockholders' equity per share (7)
$
12.13
$
11.30
$
10.68
$
10.15
Offering price as percentage of pro forma stockholders'
equity per share
82.44
%
88.50
%
93.63
%
98.52
%
Offering price as percentage of pro forma tangible
stockholders' equity per share
82.44
%
88.50
%
93.63
%
98.52
%
Number of shares outstanding for pro forma book value per
share calculations (8)
44,529,252
52,387,355
60,245,458
69,282,277
47
Table of Contents
(1)
As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market or
financial conditions following the commencement of the offering.
(2)
Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire these
shares are assumed to have been borrowed by the employee stock ownership plan from Oritani.
The loan will have a term of 20 years and an interest rate equal to the prime rate as
published in
The Wall Street Journal
. Oritani Bank intends to make annual contributions to
the employee stock ownership plan in an amount at least equal to the required principal and
interest payments on the debt. Oritani Bank's total annual payments on the employee stock
ownership plan debt are based upon 20 equal annual installments of principal and interest.
Statement of Position 93-6, "Employers' Accounting for Employee Stock Ownership Plans" ("SOP
93-6"), requires that an employer record compensation expense in an amount equal to the fair
value of the shares committed to be released to employees. The pro forma adjustments assume
that: (i) the employee stock ownership plan shares are allocated in equal annual installments
based on the number of loan repayment installments assumed to be paid by Oritani Bank, (ii)
the fair value of the common stock remains equal to the $10.00 subscription price; and (iii)
the employee stock ownership plan expense reflects an effective combined federal and state tax
rate of 39.0%. The unallocated employee stock ownership plan shares are reflected as a
reduction of stockholders' equity. No reinvestment is assumed on proceeds contributed to fund
the employee stock ownership plan. The pro forma net income further assumes that 33,150,
39,000, 44,850 and 51,578 shares were committed to be released during the period at the
minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively, and in
accordance with SOP 93-6, only the employee stock ownership plan shares committed to be
released during the period were considered outstanding for purposes of net income per share
calculations.
(3)
Gives effect to the grant of restricted stock awards pursuant to the stock-based incentive
plan expected to be adopted by following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that at the minimum, midpoint, maximum and maximum as adjusted, of the offering range this
plan acquires a number of shares of restricted common stock equal to 4.0% of the shares sold
in the offering, either through open market purchases, from authorized but unissued shares of
common stock or treasury stock. Funds used by the stock-based incentive plan to purchase the
shares of common stock will be contributed by Oritani. In calculating the pro forma effect of
the stock-based incentive plan, it is assumed that the shares of restricted stock were
acquired by the plan in open market purchases at the beginning of the period presented for a
purchase price equal to the price for which the shares are sold in the offering, and that
10.0% of the amount contributed was an amortized expense (20.0% annually based upon a
five-year vesting period) during the six months ended December 31, 2009. There can be no
assurance that the actual purchase price of the shares of common stock granted under the
stock-based incentive plan will be equal to the $10.00 subscription price. If shares are
acquired from authorized but unissued shares of common stock or from treasury shares, our net
income per share and stockholders' equity per share will decrease. This will also have a
dilutive effect of approximately 2.89% (at the maximum of the offering range) on the ownership
interest of stockholders. The impact on pro forma net income per share and pro forma
stockholders' equity per share is not material.
(4)
Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by Oritani following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that options will be granted to acquire shares of common stock equal to 10.0% of the shares
sold in the offering. In calculating the pro forma effect of the stock options, it is assumed
that the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant-date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i) the trading price on date of grant was $10.00 per share;
(ii) exercise price is equal to the trading price on the date of grant; (iii) dividend yield
of 3.0%; (iv) expected life of ten years; (v) expected volatility of 36.45%; (vi) risk-free
interest rate of 3.85%, and (vii) 50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders' equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.
(5)
The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, and subtracting the
employee stock ownership plan shares which have not been committed for release during the
period in accordance with SOP 93-6. See footnote 2, above.
(6)
The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See "Our Policy Regarding Dividends," "The Conversion and Offering—Liquidation Rights" and
"Supervision and Regulation."
(7)
Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders' equity
per share calculations are based upon the sum of (i) the number of subscription shares assumed
to be sold in the offering; and (ii) shares to be issued in exchange for publicly held shares.
(8)
The number of shares used to calculate pro forma stockholders' equity per share is equal to
the total number of shares to be outstanding upon completion of the offering.
48
Table of Contents
At or for the Year Ended June 30, 2009
Based Upon the Sale at $10.00 Per Share of
33,150,000
39,000,000
44,850,000
51,577,500
Shares
Shares
Shares
Shares (1)
(Dollars in thousands, except per share amounts)
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Market value of shares issued in the exchange
113,793
133,874
153,955
177,048
Pro forma market capitalization
$
445,293
$
523,874
$
602,455
$
692,823
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Less: Expenses
(13,131
)
(15,096
)
(17,062
)
(19,322
)
Plus: Assets received from MHC
209
209
209
209
Estimated net proceeds
$
318,578
$
375,113
$
431,647
$
496,662
Less: Common stock purchased by employee stock ownership plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock purchased by the stock-based incentive
plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Estimated net proceeds, as adjusted
$
292,058
$
343,913
$
395,767
$
455,400
For the Year Ended June 30, 2009
Consolidated net income:
Historical
$
5,552
$
5,552
$
5,552
$
5,552
Pro forma adjustments:
Income on adjusted net proceeds
4,522
5,325
6,129
7,053
Employee stock ownership plan (2)
(404
)
(476
)
(547
)
(629
)
Shares granted under the stock-based incentive plan (3)
(1,618
)
(1,903
)
(2,189
)
(2,517
)
Options granted under the stock-based incentive plan (4)
(1,831
)
(2,154
)
(2,477
)
(2,848
)
Pro forma net income
$
6,221
$
6,344
$
6,468
$
6,611
Net income per share (5):
Historical
$
0.13
$
0.11
$
0.10
$
0.08
Pro forma adjustments:
Income on adjusted net proceeds
0.10
0.10
0.10
0.11
Employee stock ownership plan (2)
(0.01
)
(0.01
)
(0.01
)
(0.01
)
Shares granted under the stock-based incentive plan (3)
(0.04
)
(0.04
)
(0.04
)
(0.04
)
Options granted under the stock-based incentive plan (4)
(0.04
)
(0.04
)
(0.04
)
(0.04
)
Pro forma net income per share (5) (6)
$
0.14
$
0.12
$
0.11
$
0.10
Offering price to pro forma net income per share (annualized)
71.43x
83.33x
90.91x
100.00x
Number of shares used in net income per share calculations
(5)
42,269,552
50,905,355
58,541,158
67,322,332
At June 30, 2009
Stockholders' equity:
Historical
$
240,098
$
240,098
$
240,098
$
240,098
Estimated net proceeds
318,369
374,904
431,438
496,453
Oritani Financial Corp., MHC capital contribution
209
209
209
209
Less: Common stock acquired by employee stock ownership
plan (2)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock acquired by the stock-based incentive
plan (3)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Pro forma tangible stockholders' equity
$
532,156
$
584,011
$
635,865
$
695,498
Stockholders' equity per share (7):
Historical
$
5.39
$
4.58
$
3.98
$
3.46
Estimated net proceeds
7.15
7.16
7.16
7.17
Oritani Financial Corp., MHC capital contribution
0.01
0.01
0.01
0.01
Less: Common stock acquired by employee stock ownership
plan (2)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Less: Common stock acquired by the stock-based incentive
plan (3)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Pro forma tangible stockholders' equity per share (7)
$
11.95
$
11.15
$
10.55
$
10.04
Offering price as percentage of pro forma stockholders'
equity per share
83.68
%
89.69
%
94.79
%
99.60
%
Offering price as percentage of pro forma tangible
stockholders' equity per share
53.68
%
89.69
%
94.79
%
99.60
%
Number of shares outstanding for pro forma book value per
share calculations (8)
44,529,252
52,387,355
60,245,458
69,282,277
49
Table of Contents
(1)
As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market and
financial conditions following the commencement of the offering.
(2)
Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire
these shares are assumed to have been borrowed by the employee stock ownership plan from
Oritani. The loan will have a term of 20 years and an interest rate equal to the prime
rate as published in
The Wall Street Journal
. Oritani Bank intends to make annual
contributions to the employee stock ownership plan in an amount at least equal to the
required principal and interest payments on the debt. Oritani Bank's total annual
payments on the employee stock ownership plan debt are based upon 20 equal annual
installments of principal and interest. SOP 93-6 requires that an employer record
compensation expense in an amount equal to the fair value of the shares committed to be
released to employees. The pro forma adjustments assume that: (i) the employee stock
ownership plan shares are allocated in equal annual installments based on the number of
loan repayment installments assumed to be paid by Oritani Bank; (ii) the fair value of the
common stock remains equal to the $10.00 subscription price and (iii) the employee stock
ownership plan expense reflects an effective combined federal and state tax rate of 39%.
The unallocated employee stock ownership plan shares are reflected as a reduction of
stockholders' equity. No reinvestment is assumed on proceeds contributed to fund the
employee stock ownership plan. The pro forma net income further assumes that 66,300,
78,000, 89,700 and 103,155 shares were committed to be released during the year at the
minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively, and
in accordance with SOP 93-6, only the employee stock ownership plan shares committed to be
released during the year were considered outstanding for purposes of net income per share
calculations.
(3)
Gives effect to the grant of restricted stock awards pursuant to the stock-based
incentive plan expected to be adopted by following the offering and presented to
stockholders for approval not earlier than six months after the completion of the
offering. We have assumed that at the midpoint, maximum and maximum as adjusted, of the
offering range this plan acquires a number of shares of restricted common stock equal to
4.0% of the shares sold in the stock offering, either through open market purchases, from
authorized but unissued shares of common stock or treasury stock. Funds used by the
stock-based incentive plan to purchase the shares of restricted stock will be contributed
by Oritani. In calculating the pro forma effect of the stock-based incentive plan, it is
assumed that the shares of common stock were acquired by the plan in open market purchases
at the beginning of the period presented for a purchase price equal to the price for which
the shares are sold in the offering, and that 20.0% of the amount contributed was an
amortized expense (based upon a five-year vesting period) during the year ended June 30,
2009. There can be no assurance that the actual purchase price of the shares of common
stock granted under the stock-based incentive plan will be equal to the $10.00
subscription price. If shares are acquired from authorized but unissued shares of common
stock or from treasury shares, our net income per share and stockholders' equity per share
will decrease. This will also have a dilutive effect of approximately 2.89% (at the
maximum of the offering range) on the ownership interest of stockholders. The impact on
pro forma net income per share and pro forma stockholders' equity per share is not
material.
(4)
Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by following the offering and presented to stockholders for approval
not earlier than twelve months after the completion of the offering. We have assumed that
options will be granted to acquire shares of common stock equal to 10.0% of the shares sold in
the offering. In calculating the pro forma effect of the stock options, it is assumed that
the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i) the trading price on date of grant was $10.00 per share;
(ii) exercise price is equal to the trading price on the date of grant; (iii) dividend yield
of 3.00%; (iv) expected life of ten years; (v) expected volatility of 36.45%; (vi) risk-free
interest rate of 3.85%, and (vii) 50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant-date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders' equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.
(5)
The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, and subtracting the
employee stock ownership plan shares which have not been committed for release during the
period in accordance with SOP 93-6. See footnote 2, above.
(6)
The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See "Our Policy Regarding Dividends," "The Conversion and Offering—Liquidation Rights" and
"Supervision and Regulation."
(7)
Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders' equity
per share calculations are based upon the sum of (i) the number of subscription shares assumed
to be sold in the offering; and (ii) shares to be issued in exchange for publicly held shares.
The number of subscription shares actually sold and the corresponding number of exchange
shares may be more or less than the assumed amounts.
(8)
The number of shares used to calculate pro forma stockholders' equity per share is equal
to the total number of shares to be outstanding upon completion of the offering.
50
Table of Contents
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This discussion and analysis reflects our consolidated financial statements and other relevant
statistical data. The information in this section has been derived from the audited and unaudited
consolidated financial statements, which appear beginning on page F-1 of this prospectus. You
should read the information in this section in conjunction with the business and financial
information regarding Oritani Financial Corp. provided in this prospectus.
Business Strategy
We intend to continue to operate as a well-capitalized and profitable financial institution
dedicated to understanding the banking needs of both our individual and business customers, and
tailoring our products and services accordingly. This approach enables us to be more flexible and
responsive to our customers and to provide an exceptional level of personal service.
Highlights of our business strategy are discussed below:
Continue our focus on multi-family and commercial real estate lending
. Unlike many
traditional thrifts, we have focused on the origination of multi-family and commercial real estate
loans. Such loans comprise 66.9% of our total loan portfolio at December 31, 2009. We have
focused on this type of lending because the interest rates earned for such loans are higher than
the prevailing rates for residential loans, resulting in a greater level of interest income
potential. We are also able to generate significantly higher fee income on such loans. In
addition, the repayment terms usually expose us to less interest rate risk than fixed-rate
residential loans. While our actual origination volume will depend on market conditions, we intend
to continue our emphasis on multi-family and commercial real estate lending.
We have experienced substantial growth in our combined multi-family and commercial real estate
loan portfolio in recent years. The growth rate of the portfolio has been 20.27%; 40.62%; 32.37%;
18.97% and 39.71% for the six months ended December 31, 2009 (annualized) and years ended June 30,
2009, 2008, 2007 and 2006, respectively. In addition, despite our more stringent underwriting
standards discussed below, we believe that the exit of many larger banks and conduit lenders from
the commercial real estate lending market due to the financial crisis has enabled us, as a
community bank, to increase the number and size of the commercial real estate loans that we
originate while lending to a higher quality of borrower.
We have been involved in multi-family lending for over thirty years. Over the past seven
years, we have assembled a department exclusively devoted to the origination and administration of
multi-family and commercial real estate loans. Over the past two years, we have established a
separate credit department to review all such originations and ensure compliance with our
underwriting standards. There are presently eight loan officers as well as support staff in the
origination department and three officers as well as support staff in the credit department. Our
business plan projects continued growth of the portfolio and continued additions to our staff to
support such growth. In addition, due to current economic conditions and related risks, management
has been applying stricter underwriting guidelines, including requiring higher debt service
coverage ratios and lower loan to value ratios, to these loans. We have also focused our
multi-family and commercial real estate lending on more seasoned and experienced developers.
Reduce problem assets and aggressively remedy delinquent loans
. One of management's primary
objectives is to reduce our level of problem assets. While no assurances can be provided regarding
results, management will focus a significant amount of its time on the resolution of problem
51
Table of Contents
assets. Management's tactics toward delinquent borrowers are considered aggressive. We have
commenced legal action against virtually all borrowers who are more than 45 days delinquent. We
have generally refused to extend the maturity date of any construction loan, even if the interest
payments are current, unless the borrower agrees to reduce our exposure through additional
principal payments and/or additional collateral, and agrees to an additional fee if the loan is not
paid in full on or before the new maturity date. We realize that such actions contribute to the
high level of delinquencies but believe this is the most prudent path to addressing delinquent
loans. Since June 30, 2009 our level of non-performing assets to total assets has declined from
2.74% to 2.62% at December 31, 2009. Additionally, $13.9 million of our delinquent loans are
expected to be resolved in the coming months as the underlying collateral are under contracts for
sale.
Increase core deposits
. During the past two years, we have devoted significant internal
attention to growing our deposits. We hired key, experienced personnel and have implemented an
incentive program that rewards branch personnel for attracting core deposit relationships. We have
also begun to emphasize obtaining deposits from our commercial borrowers, reexamined our pricing
strategies and promoted our status as a local community bank. As a result of these efforts, we
have recently experienced a period of unprecedented deposit growth. Our deposit balances grew
61.3% from June 30, 2008 to June 30, 2009. The growth has continued as our annualized growth for
the six month period ended December 31, 2009 was 14.7%. Much of the increase came in the areas of
certificates of deposit and money market accounts. Our ongoing focus will be to build upon this
success, with a particular emphasis on growing core commercial and retails deposits. In addition
to continuing to attract new customers to Oritani Bank, we will also focus on cross-selling core
deposit accounts to customers who have limited deposit services with Oritani Bank and seeking to
further develop the relationship by providing quality customer service.
Expand our market share within our primary market area.
Our deposit growth significantly
boosted our market penetration in Bergen County, the primary county of our operations. We
increased our percentage of Bergen County deposits from 1.8%, or the 14
th
highest
financial institution, at June 30, 2008 to 2.6%, or the 9
th
highest financial
institution, at June 30, 2009. In October 2008, Oritani Bank opened two de novo branches. These
branches had combined deposit totals of $49.6 million at December 31, 2009. In February 2010, we
opened a de novo branch in Bergenfield, New Jersey. We intend to continue the strategy of
opportunistic de novo branching. We typically seek de novo branch locations in under-banked areas
that are either a contiguous extension or fill-in of our existing branch network. We also have
budgeted monies for infrastructure improvements in our existing branches. We may also consider the
acquisition of branches from other financial institutions in our market area. We believe these
strategies, along with continued growth, will help us achieve our goal of deposit growth and market
expansion.
Continue to emphasize operating efficiencies and cost control
. One of the hallmarks of our
operations has been expense control as evidenced by an efficiency ratio of 46.5% for the six months
ended December 31, 2009. Our efficiency ratio as well as numerous other expense measurement
ratios, have consistently outperformed peers. We intend to maintain our posture on expense control
while continuing to make prudent investments in our operations by effectively managing costs in a
relation to revenues. We realize that our expense ratios will be challenged in the future with the
intended implementation of stock benefit plans. However, we have recently been able to generate
favorable peer comparisons with such plans in place.
Remain true to our core competencies
. We are very proud of the institution we have helped to
build. We realize many of our peers have ventured into other areas of banking operations, such as
C&I lending, leasing and sales of alternative investment products. While these areas may be
profitable, they also have inherent risks and require significant expertise separate from our core
lending and deposit gathering operations. For the foreseeable future, we do not intend to utilize
our capital to enter into new types of lending or other areas of operations that we consider to be
risky. We believe that we possess
52
Table of Contents
expertise in our current types of lending and operations and intend to rely on this existing
expertise for future growth and profitability.
Critical Accounting Policies
We consider accounting policies that require management to exercise significant judgment or
discretion or to make significant assumptions that have, or could have, a material impact on the
carrying value of certain assets or on income, to be critical accounting policies. We consider the
following to be our critical accounting policies.
Allowance for Loan Losses
. The allowance for loan losses is the estimated amount considered
necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The
allowance is established through the provision for loan losses that is charged against income. The
allowance for loan losses is considered a critical accounting policy by management because of the
high degree of judgment involved, the subjectivity of the assumptions used, and the potential for
changes in the economic environment that could result in changes to the amount of the recorded
allowance for loan losses.
The allowance for loan losses has been determined in accordance with U.S. generally accepted
accounting principles, under which we are required to maintain an allowance for probable losses at
the balance sheet date. We are responsible for the timely and periodic determination of the amount
of the allowance required. We believe that our allowance for loan losses is adequate to cover
specifically identifiable losses, as well as estimated losses inherent in our portfolio for which
certain losses are probable but not specifically identifiable.
Management performs a quarterly evaluation of the adequacy of the allowance for loan losses.
The analysis of the allowance for loan losses has two components: specific and general allocations.
Specific allocations may be made for loans that are criticized or impaired. Management will
identify loans that have demonstrated issues that cause concern regarding full collectibility in
the required time frame. Delinquency is a key indicator of such issues. In addition, we utilize
the services of an external loan review firm to review a significant portion of new originations
and the existing portfolio over the course of the year. Their scope is determined by the Audit
Committee. This firm prepares quarterly reports that include recommendations for classification.
Their services assist in identifying loans that should be classified, particularly prior to
delinquency issues. Management summarizes all problem loans and classifies such loans within the
following industry standard categories: Watch; Special Mention; Substandard; Doubtful or Loss. In
addition, a classified loan may be considered impaired. Impairment is measured by determining the
present value of expected future cash flows or, for collateral-dependent loans, the fair value of
the collateral adjusted for market conditions and selling expenses. The general allocation is
determined by segregating the remaining loans by type of loan, and specific collateral category.
We also analyze historical loss experience, delinquency trends, general economic conditions and
geographic concentrations. This analysis establishes factors that are applied to the loan groups
to determine the amount of the general allocation. This evaluation is inherently subjective, as it
requires material estimates that may be susceptible to significant revisions based upon changes in
economic and real estate market conditions. Actual loan losses may be significantly more than the
allowance for loan losses we have established, which could have a material negative effect on our
financial results.
On a quarterly basis, the Chief Financial Officer reviews the current status of various loan
assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation
process, specific loans are analyzed to determine their risk of loss. This process includes all
loans, concentrating on non-accrual and classified loans. Each non-accrual or classified loan is
evaluated for loss exposure. To determine the adequacy of collateral on a particular loan, an
estimate of the fair market value of the collateral is based on the most current appraised value
available. This appraised value is then reduced to
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reflect estimated liquidation expenses. Any shortfall results in a charge to the allowance if
the likelihood of loss is evaluated as probable.
The results of this quarterly process are summarized along with recommendations and presented
to executive management for their review. Based on these recommendations, specific loan loss
reserves are approved by executive management. All supporting documentation with regard to the
evaluation process, loan loss experience, allowance levels and the schedules of classified loans
are maintained by the Chief Financial Officer. A summary of specific loan loss reserves is
presented to the Board of Directors on a quarterly basis.
We have a concentration of loans secured by real property located in New Jersey. As a
substantial amount of our loan portfolio is collateralized by real estate, appraisals of the
underlying value of property securing loans are critical in determining the amount of the allowance
required for specific loans. Assumptions for appraisal valuations are instrumental in determining
the value of properties. Overly optimistic assumptions or negative changes to assumptions could
significantly impact the valuation of a property securing a loan and the related allowance
determined. Only Board-approved appraisers are utilized. The assumptions supporting such
appraisals are carefully reviewed by management to determine that the resulting values reasonably
reflect amounts realizable on the related loans. Based on the composition of our loan portfolio,
we believe the primary risks are increases in interest rates, a decline in the economy generally,
and a decline in real estate market values in New Jersey. Any one or combination of these events
may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and
future levels of loan loss provisions. We consider it important to maintain the ratio of our
allowance for loan losses to total loans at an adequate level. Factors such as current economic
conditions, interest rates, and the composition of the loan portfolio will effect our determination
of the level of this ratio for any particular period.
Our allowance for loan losses in recent years reflects probable future losses resulting from
the actual growth in our loan portfolio. We recognize that our overall delinquencies, impaired
loans and nonaccrual loans have increased significantly over the past two years. We believe the
allowance for loan losses at December 31, 2009 adequately reflects our portfolio credit risk.
Although we believe we have established and maintained the allowance for loan losses at
adequate levels, additions may be necessary if future economic and other conditions differ
substantially from the current operating environment. Although management uses the best
information available, the level of the allowance for loan losses remains an estimate that is
subject to significant judgment and short-term change. In addition, the FDIC and the New Jersey
Department of Banking and Insurance, as an integral part of their examination process, will
periodically review our allowance for loan losses. Such agencies may require us to recognize
adjustments to the allowance based on its judgments about information available to them at the time
of their examination.
Deferred Income Taxes
. We use the asset and liability method of accounting for income taxes.
Under this method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. If current available
information raises doubt as to the realization of the deferred tax assets, a valuation allowance
may be established. We consider the determination of this valuation allowance to be a critical
accounting policy because of the need to exercise significant judgment in evaluating the amount and
timing of recognition of deferred tax liabilities and assets, including projections of future
taxable income. These judgments and estimates are reviewed on a quarterly basis as regulatory and
business factors change. A valuation allowance for deferred tax assets may be required if the
amounts of taxes recoverable through loss carry backs decline, or if we project lower levels of
future
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taxable income. Such a valuation allowance would be established through a charge to income
tax expense that would adversely affect our operating results.
Asset Impairment Judgments
. Some of our assets are carried on our consolidated balance sheets
at cost, fair value or at the lower of cost or fair value. Valuation allowances or write-downs are
established when necessary to recognize impairment of such assets. We periodically perform
analyses to test for impairment of such assets. In addition to the impairment analyses related to
our loans discussed above, another significant impairment analysis is the determination of whether
there has been an other-than-temporary decline in the value of one or more of our securities.
Our available-for-sale securities portfolio is carried at estimated fair value, with any
unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or
loss in stockholders' equity. Our held-to-maturity securities portfolio, consisting of debt
securities for which we have a positive intent and ability to hold to maturity, is carried at
amortized cost. We conduct a periodic review and evaluation of the securities portfolio to
determine if the value of any security has declined below its cost or amortized cost, and whether
such decline is other-than-temporary. If such decline is deemed other-than-temporary, we would
adjust the cost basis of the security by writing down the security to fair market value through a
charge to current period operations.
Stock-Based Compensation
. We recognize the cost of employee services received in exchange for
awards of equity instruments based on the grant-date fair value of those awards in accordance with
SFAS No. 123(R) and its successor, FASB ASC Topic 718.
We estimate the per share fair value of option grants on the date of grant using the
Black-Scholes option pricing model using assumptions for the expected dividend yield, expected
stock price volatility, risk-free interest rate and expected option term. These assumptions are
subjective in nature, involve uncertainties and, therefore, cannot be determined with precision.
The Black-Scholes option pricing model also contains inherent limitations when applied to options
that are not traded on public markets.
The per share fair value of options is highly sensitive to changes in assumptions. In general,
the per share fair value of options will move in the same direction as changes in the expected
stock price volatility, risk-free interest rate and expected option term, and in the opposite
direction as changes in the expected dividend yield. For example, the per share fair value of
options will generally increase as expected stock price volatility increases, risk-free interest
rate increases, expected option term increases and expected dividend yield decreases. The use of
different assumptions or different option pricing models could result in materially different per
share fair values of options.
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Comparison of Financial Condition at December 31, 2009 and June 30, 2009
Balance Sheet Summary
Total Assets.
Total assets increased $93.4 million, or 4.9%, to $2.01 billion at December 31,
2009, from $1.91 billion at June 30, 2009. The increase was due primarily to the growth of loans
and securities AFS.
Cash and Cash Equivalents.
Cash and cash equivalents (which includes fed funds and short term
investments) decreased $109.1 million to $26.3 million at December 31, 2009 from $135.4 million at
June 30, 2009 as excess liquidity was deployed primarily into securities available for sale.
Loans, net.
Net loans increased $78.5 million, or 6.1%, to $1.36 billion at December 31, 2009 from
$1.28 billion at June 30, 2009. We continued our emphasis on loan originations, particularly
multi-family and commercial real estate loans. Loan originations and purchases totaled $192.1
million for the six months ended December 31, 2009.
The allowance for loan losses increased $1.5 million to $22.2 million at December 31, 2009 from
$20.7 million at June 30, 2009. We charged off loans of $3.6 million and recovered $3,000 in
previously charged off loans during the six months ended December 31, 2009. There were no
charge-offs or recoveries during the six months ended December 31, 2008. The delinquency and
nonaccrual totals, along with charge-offs and economic factors, remain the primary contributors to
the current level of provision for loan losses. Loan growth was also a component of the provision
for loan losses.
Delinquency information is provided below:
Delinquency Totals
December 31, 2009
September 30, 2009
June 30, 2009
March 31, 2009
December 31, 2008
(Dollars in thousands)
30 - 59 days past due
$
9,613
$
14,318
$
6,727
$
4,897
4,979
60 - 89 days past due
1,974
1,049
17,825
2,130
5,942
Nonaccrual
51,907
52,557
52,465
52,260
44,067
Total
$
63,494
$
67,924
$
77,017
$
59,287
$
54,988
Total delinquent loans decreased by $13.5 million during the six months ended December
31, 2009 and by $4.4 million over the three months ended December 31, 2009. While the totals
decreased over the 2009 periods, nonaccrual and total delinquent loan totals remain at elevated
levels. The nonaccrual loan total was fairly stable from September 30, 2009 to December 31, 2009.
However, as further described below, $13.9 million of this total is expected to be resolved shortly
as the underlying collateral is currently under contracts for sale. We have been utilizing all
legal remedies reasonably possible to expedite these closings, however, circumstances may occur
that could cause closings to be deferred or not occur at all. The $3.1 million property described
below was originally estimated for a March, 2010 closing, but that has now been postponed until
April. We have continued our aggressive posture toward delinquent borrowers. We have commenced
legal action against virtually all borrowers who are more than 45 days delinquent. The Company has
refused to extend the maturity date of any construction loan, even if the interest payments are
current, unless the borrower agrees to reduce the Company's exposure through additional principal
payments and/or additional collateral, and agrees to an additional fee if the loan is not paid in
full on or before the new maturity date. We realize that such actions contribute to the high level
of delinquencies but believe this is the most prudent path to addressing problem loans.
A discussion of the significant components of the nonaccrual loan total at December 31, 2009
follows. These loans comprise $50.2 million of total nonaccrual loans at December 31, 2009.
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•
Two of these loans are to one borrower and totaled $15.9 million at December 31, 2009. The
loans are secured by a condominium construction project and raw land with all building approvals,
both of which are in Northern New Jersey. The borrower declared bankruptcy and Oritani Bank has
provided debtor in possession financing for the completion of the condominium construction project.
While significant costs and delays have been encountered in finalizing the project and obtaining
certificates of occupancy ("CO") for the residential units, we believe that the final matters
necessary to realize these items are in the final phases of completion. Numerous residential units
remain under contract and new sales are continuing, providing a clear indicator of current value.
These contracts are not included in the $13.9 million of loans described above that are expected to
be resolved shortly through the sale of the underlying collateral. They were not included in this
total due to prior disappointments regarding the attainment of a CO and uncertainty regarding the
ultimate closing dates. Prior charge offs of the construction loan total $4.0 million. During
the quarter ended December 31, 2009, Oritani Bank charged off $661,000 of the land loan. Both
loans are classified as impaired as of December 31, 2009. In addition, specific reserves totaling
$1.7 million have been recorded against these loans.
•
A $7.9 million loan secured by a retail mall in Northern New Jersey is classified as
nonaccrual and impaired at December 31, 2009. The borrower has declared bankruptcy. Foreclosure
proceedings are progressing and the bankruptcy trustee has accepted a contract for sale of this
property. In accordance with the results of the impairment analyses, no reserve was required for
this loan as it was considered to be well collateralized. Foreclosure auction date was scheduled
for February of 2010 but has been postponed until March. Management currently expects that the
current contract will close shortly after the auction date. However, an investor in the original
project is attempting to use legal remedies to postpone or cancel this sale.
•
Three loans to one borrower totaling $5.8 million, secured by various warehouse properties
in Rockland, Nassau and Westchester counties, New York, are classified as nonaccrual and impaired
at December 31, 2009. Oritani Bank is in litigation with the borrower and the guarantor.
Foreclosure auctions have occurred for two of the three properties and, in both instances, the
properties were sold at the auction. These two sales have closed and proceeds have been received
in the current quarter. Foreclosure proceedings are progressing on the third property and a
foreclosure date has been scheduled for April, 2010. During the quarter ended December 31, 2009,
Oritani Bank charged off $785,000 of the loans associated with the properties sold at auction. In
addition, specific reserves totaling $355,000 have been recorded against the loan on the remaining
property.
•
A $14.1 million loan secured by a multi-tenant commercial property in Hudson County, New
Jersey. The borrower has experienced cash flow difficulties. Oritani Bank is in litigation with
this borrower, foreclosure proceedings are progressing and all tenant rent payments are being made
directly to Oritani Bank. The rents received were sufficient to make each of the monthly payments
during the quarter. Specific reserves totaling $1.1 million have been recorded against this loan.
•
A $3.1 million loan secured by a commercial property located in Bergen County, New Jersey.
The borrower and guarantor on this loan have declared bankruptcy. A contract for the sale of the
property has been accepted by the bankruptcy trustee. This contract is currently expected to close
in April, 2010. In accordance with the results of the impairment analysis for this loan, no
reserve was required as the loan is considered to be well collateralized.
•
A $1.1 million multi-family loan located in Hudson County, New Jersey. Oritani Bank and the
borrower have signed a forbearance agreement and the borrower continues to make payments in
accordance with the agreement. The loan was removed from nonaccrual classification in February as
a sufficient history of satisfactory payment under the forbearance agreement has been demonstrated.
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•
A $2.3 million residential construction loan for two luxury homes and an improved lot
located in Essex County, New Jersey. The borrower encountered cash flow difficulties due to an
extended construction and marketing period. An extension request was declined, and we are now
pursuing legal remedies.
Securities Available for Sale ("AFS").
Securities AFS increased $176.0 million to $320.4 million
at December 31, 2009, from $144.4 million at June 30, 2009. As described in the discussion of
total interest income in the "Comparison of Operating Results for the Six Months ended December 31,
2009 and 2008," we believe this investment option currently presents the best risk/reward profile.
Mortgage-Backed Securities ("MBS") Held to Maturity ("HTM").
Mortgage-backed securities held to
maturity decreased $32.6 million, or 27.5%, to $86.2 million at December 31, 2009 from $118.8
million at June 30, 2009. This decrease was primarily due to principal repayments received.
Mortgage-Backed Securities Available for Sale.
Mortgage-backed securities available for sale
decreased $30.1 million, or 23.4%, to $98.5 million at December 31, 2009 from $128.6 million at
June 30, 2009. This decrease was primarily due to principal repayments received.
Deposits.
Deposits increased $82.9 million, or 7.3%, to $1.21 billion at December 31, 2009 from
$1.13 million at June 30, 2009. Oritani Bank has implemented several initiatives designed to
achieve deposit growth. A new branch location opened in February, 2010. Strong deposit growth
remains one of our strategic objectives.
Stockholders' Equity.
Stockholders' equity increased $7.9 million, or 3.3%, to $248.0 million at
December 31, 2009 from $240.1 million at June 30, 2009. The increase was primarily the result of
net income of $7.4 million for the six months ended December 31, 2009. On March 18, 2009, we
announced the commencement of a fourth (967,828 shares) 10.0% repurchase program. As of December
31, 2009, we had repurchased a total of 3,669,937 shares at a total cost of $57.1 million and an
average cost of $15.57 per share.
Comparison of Operating Results for the Six Months Ended December 31, 2009 and 2008
Net Income.
Net income increased $4.9 million to $7.4 million for the six months ended December
31, 2009 from net income of $2.5 million for the corresponding 2008 period. The primary cause of
the increased income in the 2009 period was increased net interest income and decreased impairment
charges related to equity investments. Our annualized return on average assets was .76% for the
six months ended December 31, 2009, and .33% for the corresponding 2008 period. Our annualized
return on average equity was 6.19% for the six months ended December 31, 2009, and 1.94% for the
corresponding 2008 period.
Total Interest Income.
Total interest income increased by $8.7 million, or 20.5%, to $51.2 million
for the six months ended December 31, 2009, from $42.5 million for the six months ended December
31, 2008. The largest increase occurred in interest on loans, which increased $7.4 million or
21.4%, to $42.1 million for the six months ended December 31, 2009, from $34.6 million for the six
months ended December 31, 2008. Over that same period, the average balance of loans increased
$213.4 million and the yield on the portfolio increased 13 basis points. Included in total
interest income for the 2009 period is $1.3 million in interest income, prepayment penalties,
default interest and deferred fee earnings recovered on the resolution of three classified loans.
These recoveries occurred during the quarter ended September 30, 2009. There were also significant
changes to income on securities AFS; MBS HTM and MBS AFS. Over the period, excess liquidity was
generally deployed in securities classified as available
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for sale as management felt such investments provided the best risk/reward profile considering the
current and projected cash needs of the Company. Such investments were typically callable notes of
government sponsored agencies with limited optionality and call features that made the notes likely
to be called when management estimated we would need the liquidity. Management classified the
investments as AFS so they could be sold should unexpected liquidity needs develop. Interest on
securities AFS increased by $3.1 million to $3.7 million for the six months ended December 31,
2009, from $633,000 for the six months ended December 31, 2008. The average balance of securities
AFS increased $231.3 million over that same period. The yield on the portfolio decreased
considerably due to current market rates as well as the conservative structure of the new
investments. Cash flows from other investment categories were redeployed into securities AFS
because, as described above, management felt securities AFS provided the best risk/reward profile
given current economic circumstances and investment options. Interest on MBS HTM decreased by $1.1
million to $1.9 million for the six months ended December 31, 2009, from $3.0 million for the six
months ended December 31, 2008. Interest on MBS AFS decreased by $955,000 to $2.7 million for the
six months ended December 31, 2009, from $3.7 million for the six months ended December 31, 2008.
The combined average balances of the two MBS portfolios decreased $81.7 million over the period.
Total Interest Expense.
Total interest expense increased by $1.6 million, or 7.4%, to $22.6 million
for the six months ended December 31, 2009, from $21.1 million for the six months ended December
31, 2008. Interest expense on deposits increased by $1.0 million, or 9.1%, to $12.1 million for
the six months ended December 31, 2009, from $11.1 million for the six months ended December 31,
2008. The average balance of interest bearing deposits increased $426.7 million while the average
cost of these funds decreased 88 basis points over this period. Market interest rates allowed
Oritani Bank to reprice many maturing time deposits, as well as other interest bearing deposits, at
lower rates, decreasing the cost of funds. Interest expense on borrowings increased by $554,000,
or 5.6%, to $10.5 million for the six months ended December 31, 2009, from $9.9 million for the six
months ended December 31, 2008. The average balance of borrowings increased $5.8 million and the
cost increased 17 basis points over this period. The primary reason for this increased cost was
that we had greater reliance on short term borrowings in the 2008 period. Short term borrowings
are generally lower cost.
Net Interest Income Before Provision for Loan Losses.
Net interest income increased by $7.2
million, or 33.4%, to $28.6 million for the six months ended December 31, 2009, from $21.5 million
for the six months ended December 31, 2008. Our net interest rate spread increased to 2.61%
(normalized) for the six months ended December 31, 2009, from 2.42% for the six months ended
December 31, 2008. The normalized spread calculation does not include the $1.3 million in loan
interest income realized on the resolution of three classified loans in the September 30, 2009
quarter. Our actual net interest rate spread for the six months ended December 31, 2009 was 2.75%.
Our actual and normalized net interest margin for the six months ended December 31, 2009 were
3.03% and 2.89%, respectively, versus 2.90% for the six months ended December 31, 2008. Our net
interest income was reduced by $1.3 million and $1.4 million for the six months ended December 31,
2009 and 2008, respectively, due to the impact of nonaccrual loans.
Provision for Loan Losses.
We recorded provisions for loan losses of $5.1 million for the six
months ended December 31, 2009 as compared to $5.4 million for the six months ended December 31,
2008. See discussion of the allowance for loan losses in "Comparison of Financial Condition at
December 31, 2009 and June 30, 2009" and note 7 of the financial statements.
Other Income.
Other income increased to $3.6 million for the six months ended December 31, 2009
from $668,000 for the six months ended December 31, 2008. The 2008 period was muted by an $1.8
million impairment charge taken regarding equity securities in our AFS portfolio, compared to a
$202,000
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charge in the 2009 period. In addition, in the 2009 period, we realized a $1.0 million gain on the
sale of a commercial office property that had been held and operated as a real estate investment.
Other Expense.
Other expense increased by $2.6 million or 20.8% to $15.0 million for the six
months ended December 31, 2009, from $12.4 million for the six months ended December 31, 2008. The
increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.2
million, or 13.1%, over the period. This increase consisted of various components. There was an
increase of $550,000 directly pertaining to compensation, due to additional staff and merit
increases. Bonus expense increased $356,000 as management met all goals and the maximum bonus
level was achieved in our incentive compensation plan. Payroll taxes increased $115,000, primarily
due to social security tax on the increased pay. Expenses and accruals associated with the
Company's qualified and nonqualified benefit plans increased $67,000. There was also a $66,000
increase in health care insurance expense. Federal deposit insurance premiums increased
significantly over six months ended December 31, 2009 due to an increase in FDIC deposit insurance
rates, an increase in insurable deposits and the depletion of a credit against FDIC deposit
insurance charges. Federal deposit insurance premiums increased $1.1 million, to $1.2 million for
the six months ended December 31, 2009, from $60,000 for the six months ended December 31, 2008.
Other expenses increased by $29,000 during the six months ended December 31, 2009 as compared to
the six months ended December 31, 2008. In the 2009 period, a recovery of legal expenses in
conjunction with the resolution of three classified loans partially offset increased problem asset
expense.
Income Tax Expense
. Income tax expense for the six months ended December 31, 2009, was $4.8
million, due to pre-tax income of $12.2 million, resulting in an effective tax rate of 39.2%. For
the six months ended December 31, 2008, income tax expense was $1.8 million, due to pre-tax income
of $4.3 million, resulting in an effective tax rate of 41.4%.
Comparison of Operating Results for the Years Ended June 30, 2009 and June 30, 2008
Net Income
. Net income decreased $3.4 million, or 38.0%, to $5.6 million for the year ended June
30, 2009, versus $9.0 million for the corresponding 2008 period. The items primarily impacting the
twelve month period ended June 30, 2009 were provision for loan losses totaling $9.9 million, a
pre-tax charge of $2.0 million as a result of an other than temporary impairment in the value of
investment securities available for sale, and increased FDIC expense of $1.7 million. The items
primarily impacting the year ended June 30, 2008 were provision for loan losses totaling $4.7
million, a pre-tax charge of $998,000 as a result of an other than temporary impairment in the
value of investment securities available for sale, and a $1.1 million gain on the sale of a real
estate held for investment property.
Total Interest Income
. For the year ended June 30, 2009, total interest income increased by $16.8
million, or 23.5%, to $88.4 million, from $71.6 million for the year ended June 30, 2008. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $17.1
million, or 31.1%, to $72.2 million for the year ended June 30, 2009, from $55.1 million for the
year ended June 30, 2008. The average balance of loans, net increased $323.2 million while the
yield on the portfolio decreased 31 basis points. The yield on the portfolio in 2009 was
negatively impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest
in nonaccrual loans), the yield remained stable. Interest on federal funds sold and short term
investments decreased by $1.6 million to $73,000 for the year ended June 30, 2009, from $1.7
million for the year ended June 30, 2008. The decrease is related to a $20.3 million decrease in
the average balance and a decrease in yield of 347 basis points. The Federal Open Market Committee
has significantly decreased the federal funds target rate over the period. While the Company seeks
to prudently deploy cash inflows as quickly as possible, the significant growth in deposits has
increased liquidity above an optimal level. Our primary asset investment had been loans. However,
for this period, deposit growth outpaced loan growth. Excess cash flows were initially invested
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in MBS AFS. Over the course of the year, as the risk/reward profiles of the investment options
changed, and our current and projected cash needs changed, the primary investment vehicle for the
excess cash became securities AFS. Interest on MBS AFS increased by $2.3 million to $7.0 million
for the year ended June 30, 2009, from $4.7 million for the year ended June 30, 2008. The average
balance increased $54.7 million while the yield decreased 34 basis points. Interest on the other
investment related captions of securities HTM, securities AFS and MBS HTM decreased by $972,000, or
9.6%, to $9.2 million for the year ended June 30, 2009, from $10.1 million for the year ended June
30, 2008. The decrease was primarily due to a decrease in the combined average balance of $10.8
million and a decreased yield.
Interest Expense.
Total interest expense increased by $7.3 million, or 19.6%, to $44.5 million for
the year ended June 30, 2009, from $37.2 million for the year ended June 30, 2008. The vast
majority of the increase was due to borrowings as interest expense on deposits increased by
$397,000 while interest expense on borrowings increased by $6.9 million. The average balance of
deposits increased 27.0% to $880.8 million for the year ended June 30, 2009 from $693.3 million for
the year ended June 30, 2008. The cost of deposits decreased to 2.75% for the year ended June 30,
2009 from 3.44% for the year ended June 30, 2008. The average balance of borrowings increased to
$505.6 million for the year ended June 30, 2009 from $310.2 million for the year ended June 30,
2008. The cost of borrowings decreased to 4.00% for the year ended June 30, 2009 from 4.30% for the
year ended June 30, 2008.
Net Interest Income.
Net interest income increased by $9.5 million, or 27.8%, to $43.9 million for
the year ended June 30, 2009, from $34.4 million for the year ended June 30, 2008. Our net
interest income and net interest rate spread were both negatively impacted for the year ended June
30, 2009 due to the reversal of accrued interest income on loans delinquent more than 90 days. The
total of such income reversed was $3.7 million for the year ended June 30, 2009 compared to
$521,000 for the year ended June 30, 2008. Our net interest rate spreads for the years ended June
30, 2009 and June 30, 2008 were 2.36% and 2.06%, respectively.
Provision for Loan Losses.
We recorded provisions for loan losses of $9.9 million for the year
ended June 30, 2009 as compared to $4.7 million for the year ended June 30, 2008. We charged off a
total of $2.7 million in loans during the year ended June 30, 2009 related to losses deemed
probable. There were no recoveries in any of the periods. Our allowance for loan losses is
analyzed quarterly and many factors are considered. As in prior periods, loan growth was a
component of the provision for loan losses in the 2009 periods. The delinquency and nonaccrual
totals, however, were the primary contributors to the increased level of provision for loan losses
Delinquency information is provided below:
Delinquency Totals
June 30, 2009
June 30, 2008
June 30, 2007
(In thousands)
30 - 59 days past due
$
6,727
$
27,985
$
555
60 - 89 days past due
17,825
18
39
Nonaccrual
47,839
13,876
—
Total
$
72,391
$
41,879
$
594
Other Income
.
Other income decreased by $2.2 million to $2.8 million for the year ended June
30, 2009, from $4.9 million for the year ended June 30, 2008, primarily due to impairment charges
during the 2009 fiscal year and gain on sale of assets recognized during the 2008 fiscal year. Net
gain on sale of assets decreased $1.1 million for the year ended June 30, 2009, due to the sale of
a multi-family property that had been held and operated as a real estate investment during fiscal
2008. Writedowns due to investment impairments increased by $1.0 million to $2.0 million for the
year ended June 30, 2009, from $1.0 million
61
Table of Contents
for the year ended June 30, 2008. The writedowns in the 2009 period primarily pertain to
impairment charges recorded in relation to equity securities in our AFS portfolio.
Other Expenses.
Other expenses increased by $7.8 million, or 39.8%, to $27.3 million for the year
ended June 30, 2009, from $19.5 million for the year ended June 30, 2008. Compensation, payroll
taxes and fringe benefits increased by $4.7 million to $18.7 million for the year ended June 30,
2009, from $13.9 million for the year ended June 30, 2008. In May 2008, stock and options grants
that had been approved in our 2008 Equity Incentive Plan were awarded. The amortization of the
cost of this plan began in May 2008. The increase in the amortization of the costs of Equity
Incentive Plan costs are greater as an entire 12 months worth of expense is included in the 2009
period. Such expenses totaled $3.8 million for the year ended June 30, 2009, versus $610,000 for
the year ended June 30, 2008. Compensation costs increased $1.0 million primarily due to increased
personnel to assist with implementing the organic growth strategy. Another significant component
of the increase was FDIC insurance premiums increasing $1.7 million to $1.8 million for the year
ended June 30, 2009, versus $92,000 for the year ended June 30, 2008. Other significant factors
contributing to the 2009 increase were an increase of $493,000 in office occupancy expense
primarily due to cost associated with the branch openings in October 2008 and an increase of
$668,000 in other expense primarily due to expenses associated with problem loans, such as legal
costs related to foreclosure actions.
Income Taxes.
For the year ended June 30, 2009, income tax expense of $4.0 million was recognized
against pre-tax income of $9.6 million. For the year ended June 30, 2008, income tax expense of
$6.2 million was recognized against pre-tax income of $15.2 million.
Comparison of Operating Results for the Years Ended June 30, 2008 and June 30, 2007
Net Income
. Net income decreased $2.1 million, or 18.8%, to $9.0 million for the year ended June
30, 2008, versus $11.0 million for the corresponding 2007 period. There were several atypical
items that affected the Company's results of operations in both periods.
The items primarily impacting the twelve month period ended June 30, 2008 were provision for loan
losses totaling $4.7 million, a pre-tax charge of $998,000 as a result of an other than temporary
impairment in the value of investment securities available for sale, and a $1.1 million gain on the
sale of a real estate held for investment property. The items primarily impacting the twelve month
period ended June 30, 2007 were the reversal of a $3.2 million valuation allowance related to
certain New Jersey State deferred tax assets, the reinvestment of the proceeds related to the stock
subscription offering, a gain of $514,000 regarding the sale of our former headquarters, and a $9.1
million pre-tax charitable contribution to the OritaniBank Charitable Foundation.
Total Interest Income
. For the year ended June 30, 2008, total interest income increased by $8.2
million, or 13.0%, to $71.6 million, from $63.3 million for the year ended June 30, 2007. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $10.8
million, or 24.3%, to $55.1 million for the year ended June 30, 2008, from $44.3 million for the
year ended June 30, 2007. The average balance of loans, net increased $164.3 million and the yield
on the portfolio increased 3 basis points. The yield on the portfolio in 2008 was negatively
impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest in
nonaccrual loans), the yield increased 10 basis points. Interest on federal funds sold and short
term investments decreased by $5.1 million to $1.7 million for the year ended June 30, 2008, from
$6.8 million for the year ended June 30, 2007. The decrease is related to an $81.9 million
decrease in the average balance and a decrease in yield of 162 basis points. The federal funds
rate decreased over the year from 5.25% at June 30, 2007 to 2.00% at June 30, 2008. Partially due
to this decreased return, we shifted liquid assets into longer term assets. Interest on MBS AFS
increased by $3.9 million to $4.7 million for the year ended June 30, 2008, from $813,000 for the
year ended June
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30, 2007. The average balance increased $74.9 million and the yield increased 14 basis points.
Interest on the other investment related captions of securities HTM, securities AFS and MBS HTM
decreased by $1.3 million, or 11.3%, to $10.1 million for the year ended June 30, 2008, from $11.4
million for the year ended June 30, 2007. The decrease was primarily due to a decrease in the
combined average balance of $34.8 million.
Interest Expense.
Total interest expense increased by $4.4 million, or 13.3%, to $37.2 million for
the year ended June 30, 2008, from $32.8 million for the year ended June 30, 2007. Interest
expense on deposits and stock subscription proceeds was relatively stable, increasing by $183,000
in fiscal 2008 versus fiscal 2007. Results for the 2007 period were enhanced by the lower rate of
interest paid on stock subscription proceeds. The average balance of deposits decreased $51.5
million and the cost increased 26 basis points. Interest expense on borrowings increased by $4.2
million to $13.3 million for the year ended June 30, 2008, from $9.1 million for the year ended
June 30, 2007. The average balance of borrowings increased by $99.6 million over the period while
the cost decreased 4 basis points.
Net Interest Income.
Net interest income increased by $3.9 million, or 12.7%, to $34.4 million for
the year ended June 30, 2008, from $30.5 million for the year ended June 30, 2007. Our net
interest income and net interest rate spread were both negatively impacted in the three month
period ended June 30, 2008 due to the reversal of accrued interest income on loans delinquent more
than 90 days. Our net interest rate spreads for the years ended June 30, 2008 and June 30, 2007
were 2.06% and 2.23%, respectively. Our net interest rate margins for the years ended June 30,
2008 and June 30, 2007 were 2.77% and 2.73%, respectively.
Provision for Loan Losses.
We recorded provisions for loan losses of $4.7 million for the year
ended June 30, 2008 as compared to $1.2 million for the year ended June 30, 2007. There were no
recoveries or charge-offs in either period. A significant component of the increased 2008
provisions was loan growth during the periods. Loans, net increased $248.5 million during the year
ended June 30, 2008, as compared to growth of $115.5 million during the year ended June 30, 2007.
Another significant component of the increased 2008 provisions was increased delinquent and
impaired loans.
Delinquency information is provided below:
Delinquency
Totals
June 30, 2008
June 30, 2007
(In thousands)
30 - 59 days past due
$
27,985
$
555
60 - 89 days past due
18
39
Nonaccrual
13,876
—
Total
$
41,879
$
594
Other Income
.
Other income decreased by $373,000, or 7.0%, to $4.9 million for the year ended
June 30, 2008, from $5.3 million for the year ended June 30, 2007. Net gain on sale of assets
increased by $582,000 to $1.1 million for the year ended June 30, 2008, from $514,000 for the year
ended June 30, 2007. The 2008 total is due to a $1.1 million gain on the sale of a multi-family
property that had been held and operated as a real estate investment. The 2007 gain pertains to
the sale of our former headquarters in Hackensack, New Jersey. Writedowns due to investment
impairments totaled $998,000 for the year ended June 30, 2008. The writedowns consisted of a
$646,000 impairment charge taken on Oritani Bank's investment in a mutual fund investment as well
as a $352,000 impairment charge related to equity securities that we recorded in the March 31, 2008
period. There were no impairment charges taken in 2007. The mutual fund invests primarily in
agency and private label MBS. The market values of the fund's holdings have been steadily
decreasing which has caused a corresponding decrease in the fund's net asset value. Oritani Bank
has a $7.8 million investment remaining in this asset. The "other" caption within other income
decreased by $257,000 to $146,000 for the year ended June 30, 2008, from
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Table of Contents
$403,000 for the year ended June 30, 2007. The decrease in this caption was primarily due to float
earnings on the oversubscription funds returned to subscribers that was realized in 2007.
Other Expenses.
Other expenses decreased by $5.8 million to $19.5 million for the year ended June
30, 2008, from $25.2 million for the year ended June 30, 2007. The primary reason for the decrease
was the $9.1 million contribution to the OritaniBank Charitable Foundation in the 2007 period.
Compensation, payroll taxes and fringe benefits increased by $2.7 million, or 24.2%, to $13.9
million for the year ended June 30, 2008, from $11.2 million for the year ended June 30, 2007. In
May 2008, stock and options grants that had been approved in our 2007 Equity Incentive Plan were
awarded. The amortization of the cost of this plan began in May 2008 and totaled $610,000 for the
year ended June 30, 2008. Employee stock ownership plan-related expenses increased $758,000 to
$1.4 million for the year ended June 30, 2008 from $607,000 for the twelve months June 30, 2007.
Expenses for the 2007 period were reduced due to a $492,000 refund of a prior period pension
contribution. Other significant factors contributing to the 2008 increase (versus 2007) were an
increase in Director related costs of $218,000; payroll tax expenses of $103,000 and employee
health insurance expenses of $120,000. The balance of the increase is due to increased
compensation costs as we have increased personnel to assist with implementing the organic growth
strategy. Insurance, Legal, Audit and Accounting expenses increased by $477,000 to $1.3 million
for the year ended June 30, 2008, from $779,000 for the year ended June 30, 2007. The increase is
primarily related to increased external auditing fees and costs associated with implementation and
compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
Income Taxes.
For the year ended June 30, 2008, income tax expense of $6.2 million was recognized
against pre-tax income of $15.2 million. For the year ended June 30, 2007, income tax benefit of
$1.7 million was recognized against pre-tax income of $9.4 million. The tax benefit was due to the
$3.2 million valuation allowance reversal as well as a decreased effective tax rate. The
contribution to OritaniBank Charitable Foundation resulted in a decrease in the effective tax rate
for 2007.
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Table of Contents
Average Balances and Yields.
The following tables set forth average balance sheets, average yields
and costs, and certain other information for the periods indicated. No tax-equivalent yield
adjustments were made, as the effect thereof was not material. All average balances are daily
average balances. Non-accrual loans were included in the computation of average balances, but have
been reflected in the table as loans carrying a zero yield. The yields set forth below include the
effect of deferred fees, discounts and premiums that are amortized or accreted to interest income
or expense.
For the Six Months Ended (unaudited)
December 31, 2009
December 31, 2008
Average
Average
Average
Outstanding
Interest
Yield/
Average
Interest
Yield/
Balance
Earned/Paid
Rate
Outstanding Balance
Earned/Paid
Rate
(Dollars in thousands)
Interest-earning assets:
Loans
(1)
$
1,336,861
$
42,065
6.29
%
$
1,123,438
$
34,645
6.17
%
Securities held to maturity
(2)
25,513
717
5.62
24,646
535
4.34
Securities available for sale
260,372
3,738
2.87
29,035
633
4.36
Mortgage-backed securities held to maturity
103,686
1,918
3.70
153,587
3,032
3.95
Mortgage-backed securities available for sale
117,249
2,718
4.64
149,065
3,673
4.93
Federal funds sold and short term investments
48,471
90
0.37
258
1
0.78
Total interest-earning assets
1,892,152
51,246
5.42
1,480,029
42,519
5.75
%
Non-interest-earning assets
86,387
77,036
Total assets
$
1,978,539
$
1,557,065
Interest-bearing liabilities:
Savings accounts
$
146,313
675
0.92
%
$
144,709
1,069
1.48
%
Money market
237,403
2,008
1.69
70,882
1,076
3.04
NOW accounts
101,795
404
0.79
75,084
323
0.86
Time deposits
702,046
9,036
2.57
470,220
8,648
3.68
Total deposits
1,187,557
12,123
2.04
760,895
11,116
2.92
Borrowings
508,145
10,494
4.13
502,393
9,940
3.96
Total interest-bearing liabilities
1,695,702
22,617
2.67
%
1,263,288
21,056
3.33
%
Non-interest-bearing liabilities
39,125
32,051
Total liabilities
1,734,827
1,295,339
Stockholders' equity
243,712
261,726
Total liabilities and stockholders' equity
$
1,978,539
$
1,557,065
Net interest income
$
28,629
$
21,463
Net interest rate spread
(3)
2.75
%
2.42
%
Net interest-earning assets
(4)
$
196,450
$
216,741
Net interest margin
(5)
3.03
%
2.90
%
Average of interest-earning assets to interest-bearing liabilities
111.59
%
117.16
%
(1)
Includes nonaccrual loans.
(2)
Includes FHLB Stock.
(3)
Net interest rate spread represents the difference between the yield on average
interest-earning assets and the cost of average interest-bearing liabilities.
(4)
Net interest-earning assets represents total interest-earning assets less total
interest-bearing liabilities.
(5)
Net interest margin represents net interest income divided by average total interest-earning
assets.
65
Table of Contents
For the Years Ended June 30,
2009
2008
2007
Average
Average
Average
Outstanding
Yield/
Outstanding
Yield/
Outstanding
Yield/
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
(Dollars in thousands)
Interest-earning assets:
Loans, net
(1)
$
1,181,385
$
72,158
6.11
%
$
858,223
$
55,053
6.41
%
$
693,902
$
44,278
6.38
%
Securities available for sale at market value
67,479
2,468
3.66
34,464
1,716
4.98
15,789
868
5.50
Securities held to maturity
24,937
1,069
4.29
19,192
999
5.21
19,093
1,073
5.62
Mortgage-backed securities available for sale at market value
145,713
7,046
4.84
91,060
4,710
5.17
16,147
813
5.03
Mortgage-backed securities held to maturity
142,484
5,615
3.94
192,007
7,409
3.86
245,625
9,475
3.86
Federal Funds sold and short term investments
25,021
73
0.29
45,292
1,704
3.76
127,215
6,842
5.38
Total interest-earning assets
1,587,019
88,429
5.57
1,240,238
71,591
5.77
1,117,771
63,349
5.67
%
Non-interest-earning assets
84,535
69,806
62,293
Total assets
$
1,671,554
$
1,310,044
$
1,180,064
Interest-bearing liabilities:
Savings accounts
$
144,810
1,979
1.37
%
$
151,068
2,427
1.61
%
$
211,397
3,093
1.46
%
Money market deposit accounts
103,932
2,626
2.53
50,263
1,730
3.44
32,673
1,195
3.66
NOW accounts
75,324
628
0.83
71,176
812
1.14
75,153
868
1.15
Time deposits
556,730
19,029
3.42
420,787
18,896
4.49
425,563
18,526
4.35
Total deposits
880,796
24,262
2.75
693,294
23,865
3.44
744,786
23,682
3.18
Borrowings
505,599
20,238
4.00
310,231
13,343
4.30
210,598
9,147
4.34
Total interest-bearing liabilities
1,386,395
44,500
3.21
%
1,003,525
37,208
3.71
%
955,384
32,829
3.44
%
Non-interest-bearing liabilities
33,071
27,438
23,319
Total liabilities
1,419,466
1,030,963
978,703
Stockholders' Equity
252,088
279,081
201,361
Total liabilities and Stockholders' Equity
$
1,671,554
$
1,310,044
$
1,180,064
Net interest income
$
43,929
$
34,383
$
30,520
Net interest rate spread
(2)
2.36
%
2.06
%
2.23
%
Net interest-earning assets
(3)
$
200,624
$
236,713
$
162,387
Net interest margin
(4)
2.77
%
2.77
%
2.73
%
Ratio of interest-earning assets to interest-bearing liabilities
114.47
%
123.59
%
117.00
%
(1)
Includes nonaccrual loans.
(2)
Net interest rate spread represents the difference between the weighted-average yield on
interest-earning assets and the weighted- average cost of interest-bearing liabilities for the
period.
(3)
Net interest-earning assets represents total interest-earning assets less interest-bearing
liabilities.
(4)
Net interest margin represents net interest income as a percent of average interest-earning
assets for the period.
66
Table of Contents
Rate/Volume Analysis
The following table presents the effects of changing rates and volumes on our net interest
income for the periods indicated. The rate column shows the effects attributable to changes in
rate (changes in rate multiplied by prior volume). The volume column shows the effects
attributable to changes in volume (changes in volume multiplied by prior rate). The total increase
(decrease) column represents the sum of the prior columns. For purposes of this table, changes
attributable to both rate and volume which can not be segregated have been allocated to volume.
Six Months Ended December 31,
Years Ended June 30,
Years Ended June 30,
2009 vs. 2008
2009 vs. 2008
2008 vs. 2007
Increase (Decrease)
Total
Increase (Decrease)
Total
Increase (Decrease) Due
Total
Due to
Increase
Due to
Increase
to
Increase
Volume
Rate
(Decrease)
Volume
Rate
(Decrease)
Volume
Rate
(Decrease)
(In thousands)
Interest-earning assets:
Loans, net
$
6,582
$
838
$
7,420
$
20,730
$
(3,625
)
$
17,105
$
10,485
$
290
$
10,775
Securities available for sale
5,043
(1,938
)
3,105
1,644
(892
)
752
1,027
(179
)
848
Securities held to maturity
19
163
182
299
(229
)
70
6
(80
)
(74
)
Mortgage-backed securities available for sale
(784
)
(171
)
(955
)
2,827
(491
)
2,336
3,772
125
3,897
Mortgage-backed securities held to maturity
(985
)
(129
)
(1,114
)
(1,911
)
117
(1,794
)
(2,068
)
2
(2,066
)
Federal Funds sold and short term investments
187
(98
)
89
(763
)
(868
)
(1,631
)
(4,406
)
(732
)
(5,138
)
Total interest-earning assets
10,062
(1,335
)
8,727
22,826
(5,988
)
16,838
8,816
(574
)
8,242
Interest-bearing liabilities:
Savings accounts
12
(406
)
(394
)
(101
)
(347
)
(448
)
(883
)
217
(666
)
Money market
2,528
(1,596
932
1,847
(951
)
896
643
(108
)
535
NOW accounts
115
(34
)
81
47
(231
)
(184
)
(46
)
(10
)
(56
)
Time deposits
4,264
(3,876
)
388
6,105
(5,972
)
133
(208
)
578
370
Total deposits
6,918
(5,911
)
1,007
7,898
(7,501
)
397
(494
)
677
183
Borrowings
114
440
554
8,403
(1,508
)
6,895
4,327
(131
)
4,196
Total interest-bearing liabilities
7,032
(5,471
)
1,561
16,301
(9,009
)
7,292
3,833
546
4,379
Change in net interest income
$
3,030
$
4,136
$
7,166
$
6,525
$
3,021
$
9,546
$
4,983
$
(1,120
)
$
3,863
67
Table of Contents
Management of Market Risk
General
. The majority of our assets and liabilities are monetary in nature. Consequently,
our most significant form of market risk is interest rate risk. Our assets, consisting primarily
of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits.
As a result, a principal part of our business strategy is to manage interest rate risk and reduce
the exposure of our net interest income to changes in market interest rates. Accordingly, our
Board of Directors has the authority and responsibility for managing interest rate risk. Oritani
Bank has established an Asset/Liability Management Committee, comprised of various members of its
senior management, which is responsible for evaluating the interest rate risk inherent in our
assets and liabilities, for recommending to the Board of Directors the level of risk that is
appropriate, given our business strategy, operating environment, capital, liquidity and performance
objectives, and for managing this risk consistent with the guidelines approved by the Board of
Directors. The Asset/Liability Management Committee reports its activities to the Board of
Directors on a monthly basis. An interest rate risk analysis is presented to the Board of
Directors on a quarterly basis.
We have sought to manage our interest rate risk in order to minimize the exposure of our
earnings and capital to changes in interest rates. As part of our ongoing asset-liability
management, we currently use the following strategies to manage our interest rate risk:
(i)
originating multi-family and commercial real estate loans that generally tend
to have shorter interest duration and generally reset at five years;
(ii)
investing in shorter duration securities and mortgage-backed securities; and
(iii)
obtaining general financing through FHLB advances with either a fixed long
term or with call options that are considered unlikely.
Shortening the average maturity of our interest-earning assets by increasing our investments
in shorter-term loans and securities, as well as loans and securities with variable rates of
interest, helps to better match the maturities and interest rates of our assets and liabilities,
thereby reducing the exposure of our net interest income to changes in market interest rates. By
following these strategies, we believe that we are well-positioned to react to increases in market
interest rates. However, in conjunction with the growth of our net interest spread, and net
interest income, we recognize that our interest rate risk has increased. We accept the current
level of interest rate risk.
Net Portfolio Value
.
We compute the amounts by which our net present value of cash flow from
assets, liabilities and off balance sheet items (the institution's net portfolio value or "NPV")
would change in the event of a range of assumed changes in market interest rates. A basis point
equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in
interest rates from 3% to 4.0% would mean, for example, a 100 basis point increase in the "Change
in Interest Rates" column below.
The table below sets forth, as of December 31, 2009, the estimated changes in our net
portfolio value that would result from the designated instantaneous changes in the United States
Treasury yield curve. Computations of prospective effects of hypothetical interest rate changes
are based on numerous assumptions, including relative levels of market interest rates and loan
prepayment and deposit decay rates, and should not be relied upon as indicative of actual results.
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Table of Contents
NPV as a Percentage of Present
Estimated Increase
Value of Assets (3)
(Decrease) in
Increase
Change in Interest
Estimated
NPV
(Decrease)
Rates (basis points) (1)
NPV (2)
Amount
Percent
NPV Ratio (4)
(basis points)
(Dollars in thousands)
+200
203,351
(53,593
)
(20.86
)%
10.59
%
(209
)
0
256,944
—
—
12.68
—
-100
278,886
21,942
8.54
13.42
74
(1)
Assumes an instantaneous uniform change in interest rates at all maturities.
(2)
NPV is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet contracts.
(3)
Present value of assets represents the discounted present value of incoming
cash flows on interest-earning assets.
(4)
NPV Ratio represents NPV divided by the present value of assets.
The table above indicates that at December 31, 2009 in the event of a 100 basis point
decrease in interest rates, we would experience a 8.5% increase in net portfolio value. In the
event of a 200 basis point increase in interest rates, we would experience a 20.9% decrease in net
portfolio value. These changes in net portfolio value are within the limitations established in
our asset and liability management policies. This data does not reflect any future actions we may
take in response to changes in interest rates, such as changing the mix of our assets and
liabilities, which could change the results of the NPV and net interest income calculations.
Certain shortcomings are inherent in the methodology used in the above interest rate risk
measurement. Modeling changes in net portfolio value require making certain assumptions that may
or may not reflect the manner in which actual yields and costs respond to changes in market
interest rates. In this regard, the net portfolio value table presented assumes that the
composition of our interest-sensitive assets and liabilities existing at the beginning of a period
remains constant over the period being measured and assumes that a particular change in interest
rates is reflected uniformly across the yield curve regardless of the duration or repricing of
specific assets and liabilities. Accordingly, although the net portfolio value table provides an
indication of our interest rate risk exposure at a particular point in time, such measurements are
not intended to and do not provide a precise forecast of the effect of changes in market interest
rates on our net interest income and will differ from actual results.
Liquidity and Capital Resources
Liquidity is the ability to meet current and future financial obligations of a short-term
nature. Our primary sources of funds consist of deposit inflows, loan and mortgage-backed security
repayments, maturities and sales of securities and FHLB borrowings. While maturities and scheduled
amortization of loans and securities are predictable sources of funds, deposit flows and mortgage
prepayments are greatly influenced by general interest rates, economic conditions and competition.
Our Asset/Liability Management Committee is responsible for establishing and monitoring our
liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting
the borrowing needs of our customers as well as unanticipated contingencies. Our Asset/Liability
Management Committee focuses on our level of liquid assets as well as our borrowing capacity with
the FHLB. Funds can be obtained from the FHLB on a same day basis, significantly reducing the need
to maintain excess liquid assets to address liquidity concerns.
We regularly adjust our investments in liquid assets based upon our assessment of:
•
expected loan demand;
•
expected deposit flows;
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•
expected payments from the loan and investment portfolios;
•
funds available through borrowings;
•
yields available on interest-earning deposits and securities;
•
yields and structures available on alternate investments; and
•
the objectives of our asset/liability management program
Excess liquid assets are invested generally in interest-earning deposits and short- and
intermediate-term securities.
Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent
on our operating, financing, lending and investing activities during any given period. At December
31, 2009, cash and cash equivalents totaled $26.3 million. Securities and mortgage-backed
securities classified as available for sale, which provide additional sources of liquidity, totaled
$419.0 million at December 31, 2009.
Our cash flows are derived from operating activities, investing activities and financing
activities as reported in our Consolidated Statements of Cash Flows included in our Consolidated
Financial Statements.
In the normal course of business, we routinely enter into various commitments, primarily
relating to the origination of loans. At December 31, 2009, outstanding commitments to originate
loans totaled $47.6 million and outstanding commitments to extend credit totaled $62.3 million. We
expect to have sufficient funds available to meet current commitments in the normal course of
business. Time deposits due within one year of December 31, 2009 totaled $583.8 million, or 48.2%
of total deposits. If these deposits do not remain with us, we will be required to seek other
sources of funds, including other time deposits and FHLB advances. Depending on market conditions,
we may be required to pay higher rates on such deposits or other borrowings than we currently pay
on the time deposits. We believe, however, based on past experience, that a significant portion of
our time deposits will remain with us. We have the ability to attract and retain deposits by
adjusting the interest rates offered.
Our primary investing activity currently is the origination of loans and the purchase of loans
and securities. During the six months ended December 31, 2009, we originated $188.4 million of
loans, purchased $3.7 million of loans and purchased $251.0 million of securities. During the year
ended June 30, 2009, we originated $412.8 million of loans, purchased $37.0 million of loans, and
purchased $174.9 million of securities. During the year ended June 30, 2008, we originated $359.3
million of loans, purchased $11.83 million of loans, and purchased $141.8 million of securities.
Financing activities consist primarily of activity in deposit accounts and FHLB advances. We
experienced a net increase in total deposits of $428.7 million and $3.2 million for the fiscal
years ended June 30, 2009 and 2008, respectively. Deposit flows are affected by the overall level
of interest rates, the interest rates and products offered by us and our local competitors and
other factors.
Liquidity management is both a daily and long-term function of business management. If we
require funds beyond our ability to generate them internally, borrowing agreements exist with the
FHLB-NY, which provide an additional source of funds. FHLB advances reflected a net increase of
$75.3 million and a net increase of $237.0 million during the fiscal years ended June 30, 2009 and
2008, respectively. Our total borrowings at December 31, 2009, consisted of the $507.1 million in
longer term
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borrowings with the FHLB and minor amounts due to Oritani Financial Corp., MHC. FHLB advances
have primarily been used to fund loan demand and provide longer-term sources of funding. At
December 31, 2009, we had a commitment for an overnight line of credit with the FHLB totaling
$200.0 million, of which there were no balances. The line of credit is priced at federal funds
rate plus a spread (generally between 20 and 40 basis points) and re-prices daily. At December 31,
2009, we also had $45.0 million in discount window borrowing capacity through the Federal Reserve
Bank of New York, of which there were no balances.
On September 29, 2009, the FDIC issued a rule pursuant to which all insured depository
institutions would be required to prepay their estimated assessments for the fourth quarter of
2009, and for all of 2010, 2011 and 2012. On December 30, 2009, we paid $8.2 million in estimated
assessments, of which $7.6 million is prepaid for the 2010, 2011and 2012 assessment periods.
Oritani Bank is subject to various regulatory capital requirements, including a risk-based
capital measure. The risk-based capital guidelines include both a definition of capital and a
framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance
sheet items to broad risk categories. As of December 31, 2009, Oritani Bank exceeded all regulatory
capital requirements as follows:
Actual
Required
Amount
Ratio
Amount
Ratio
Total capital (to risk-weighted assets)
$
209,882
15.8
%
$
106,101
8.0
%
Tier I capital (to risk-weighted assets)
193,248
14.6
53,050
4.0
Tier I capital (to average assets)
193,248
10.6
72,963
4.0
On October 14, 2008, the United States Department of the Treasury announced a voluntary
Capital Purchase Program under the Troubled Asset Relief Program to encourage U.S. financial
institutions to build capital and increase financing. We are not participating in this program.
We currently support very strong capital ratios and capital levels have not been, and are not
anticipated to be, a hindrance on our ability to lend. The United States Department of the
Treasury and the FDIC have also announced an insurance guarantee program, whereby all funds in
non-interest bearing transaction deposit account, regardless of their balance, would be covered by
FDIC insurance through June 30, 2010. Oritani Bank is a participant in this program.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Commitments.
As a financial services provider, we routinely are a party to various financial
instruments with off-balance-sheet risks, such as commitments to extend credit, standby letters of
credit and unused lines of credit. While these contractual obligations represent our future cash
requirements, a significant portion of commitments to extend credit may expire without being drawn
upon. Such commitments are subject to the same credit policies and approval process accorded to
loans we make. We consider commitments to extend credit in determining our allowance for loan
losses.
Contractual Obligations.
In the ordinary course of our operations, we enter into certain
contractual obligations. Such obligations include operating leases for premises and equipment.
The following table summarizes our significant fixed and determinable contractual obligations
and other funding needs by payment date at December 31, 2009. The payment amounts represent those
amounts due to the recipient and do not include any unamortized premiums or discounts or other
similar carrying amount adjustments.
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Payments Due by Period
Less than
More than
Contractual Obligations
One Year
One to Three Years
Three to Five Years
Five Years
Total
(In thousands)
Federal Home Loan Bank advances
$
10,341
$
56,413
$
130,685
$
310,000
$
507,439
Operating leases
289
546
375
370
1,580
Total
$
10,630
$
56,959
$
131,060
$
310,370
$
509,019
Commitments to extend credit
$
49,888
$
—
$
1,700
$
—
$
47,588
Unadvanced construction loans
$
27,722
$
—
$
—
$
—
$
27,722
Unused lines of credit
$
34,673
$
—
$
—
$
—
$
34,673
Commitments to purchase securities
$
15,000
$
—
$
—
$
—
$
15,000
The following table summarizes our significant fixed and determinable contractual
obligations and other funding needs by payment date at June 30, 2009. The payment amounts
represent those amounts due to the recipient and do not include any unamortized premiums or
discounts or other similar carrying amount adjustments.
Payments Due by Period
Less than
More than
Contractual Obligations
One Year
One to Three Years
Three to Five Years
Five Years
Total
(In thousands)
Federal Home Loan Bank advances
$
10,372
$
57,934
$
110,685
$
330,000
$
508,991
Operating leases
289
570
418
448
1,725
Total
$
10,661
$
58,504
$
111,103
$
330,448
$
510,716
Commitments to extend credit
$
77,729
$
—
$
—
$
—
$
77,729
Unadvanced construction loans
$
39,708
$
—
$
—
$
—
$
39,708
Unused lines of credit
$
33,800
$
—
$
—
$
—
$
33,800
Commitments to purchase securities
$
20,000
$
—
$
—
$
—
$
20,000
Impact of Inflation and Changing Prices
Our consolidated financial statements and related notes have been prepared in accordance with
U.S. Generally Accepted Accounting Principles ("GAAP"). GAAP generally requires the measurement of
financial position and operating results in terms of historical dollars without consideration for
changes in the relative purchasing power of money over time due to inflation. The impact of
inflation is reflected in the increased cost of our operations. Unlike industrial companies, our
assets and liabilities are primarily monetary in nature. As a result, changes in market interest
rates have a greater impact on performance than the effects of inflation.
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BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK
Oritani Financial Corp., MHC
Oritani Financial Corp., MHC is a federally chartered mutual holding company and currently
owns 74.4% of the outstanding shares of common stock of Oritani Financial Corp. Oritani Financial
Corp., MHC has not engaged in any significant business activity other than owning the common stock
of Oritani Financial Corp., and does not intend to expand its business activities. So long as
Oritani Financial Corp., MHC exists, it is required to own a majority of the voting stock of
Oritani Financial Corp. The executive office of Oritani Financial Corp., MHC, is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp., MHC is subject to comprehensive regulation and examination by
the OTS.
Oritani Financial Corp.
Oritani Financial Corp. is the federally chartered mid-tier stock holding company of Oritani
Bank. Oritani Financial Corp. owns 100% of the outstanding shares of common stock of Oritani Bank.
Since being formed in 1998, Oritani Financial Corp. has engaged primarily in the business of
holding the common stock of Oritani Bank as well as two limited liability companies that own a
variety of real estate investments. Oritani Financial Corp.'s executive office is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp. is subject to comprehensive regulation and examination by the
OTS. At December 31, 2009, Oritani Financial Corp. had consolidated assets of $2.01 billion,
consolidated deposits of $1.21 billion and consolidated stockholders' equity of $248.0 million.
Oritani Bank
General
Oritani Bank is a New Jersey-chartered savings bank headquartered in the Township of
Washington, New Jersey. Oritani Bank was originally founded in 1911, as a New Jersey building and
loan association. Over the years, Oritani Bank has expanded primarily through internal growth. In
1997, Oritani Bank converted to a mutual savings bank charter, and in March 1998, reorganized into
the two-tier mutual holding company structure. Oritani Bank conducts business from its main office
located at 370 Pascack Road, in the Township of Washington, New Jersey 07676, and its 21 branch
offices located in the New Jersey counties of Bergen, Hudson and Passaic. The telephone number at
its main office is (201) 664-5400. Oritani Bank was formerly known as Oritani Savings Bank.
Effective September 8, 2008, the name was changed to Oritani Bank.
Our principal business consists of attracting retail and commercial bank deposits from the
general public in the areas surrounding our main office in the Township of Washington, New Jersey
and our branch offices located in the New Jersey counties of Bergen (16 branches, including our
main office), Hudson (five branches) and Passaic (one branch), and investing those deposits,
together with funds generated from operations, in multi-family and commercial real estate loans,
one- to four-family residential mortgage loans as well as in second mortgage and equity loans,
construction loans, business loans, other consumer loans, and investment securities. We originate
loans primarily for investment and hold such loans in our portfolio. Occasionally, we will also
enter into loan participations. Our revenues are derived principally from interest on loans and
securities as well as our investments in real estate and real estate joint ventures. We also
generate revenues from fees and service charges and other income.
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Our primary sources of funds are deposits, borrowings and principal and interest payments on
loans and securities.
Our website address is
www.oritani.com
. Information on our website should not be
considered a part of this report.
Market Area
From our headquarters in the Township of Washington, New Jersey, we operate 22 full service
branches, including our main office. We operate branches in three separate counties of New Jersey:
Bergen, Hudson and Passaic. The majority of our branches (sixteen) and deposits are located in
Bergen County. In addition, we operate five branches in Hudson County and one branch in Passaic
County. Our market area for lending is broader and includes the state of New Jersey, the broader
New York metropolitan area, eastern Pennsylvania, and southern Connecticut.
In terms of population, Bergen County ranks as the largest county in New Jersey (out of
twenty-one counties) while Hudson County ranks fifth and Passaic County ranks ninth. The economy
in our primary market area has benefited from being varied and diverse. It is largely urban and
suburban with a broad economic base. As one of the wealthiest states in the nation, New Jersey,
with a population of 8.7 million, is considered one of the most attractive banking markets in the
United States. As of December, 2009 the unemployment rate for New Jersey increased to 10.1% which
was slightly higher than the national rate of 10.0%. Despite the recent downturn, a total of 3.9
million New Jersey residents remain employed as of December 2009. Bergen County is considered part
of the New York metropolitan area. Its county seat is Hackensack. Bergen County ranks 16th among
the highest-income counties in the United States in 2009 in terms of per-capita income. Some of
Bergen County's major employers are: Hackensack University Medical Center; New Jersey Sports and
Expo Authority; Merck-Medco Managed Care; AT&T Wireless Services, Inc.; Becton Dickinson & Company;
Mellon Investor Services; Marcal Paper Mills; Mercedes-Benz of North America, Inc.; KPMG, LLP and
United States Postal Service. See "Risk Factors — Current Market and Economic Conditions May
Significantly Affect Our Operations and Financial Condition."
Bergen County is bordered by Rockland County, New York to the north, the Hudson River to the
east, Hudson County to the south, a small border with Essex County also to the south and Passaic
County to the west.
Passaic County is bordered by Orange County, New York to the north, Rockland County, New York
to the northeast, Bergen County to the east, Essex County to the south, Morris County to the
southwest and Sussex County to the west.
Hudson County's only land border is with Bergen County to the north and west. It is bordered
by the Hudson River and Upper New York Bay to the east; Kill van Kull (which connects Newark Bay
with Upper New York Bay) to the south and Newark Bay and the Hackensack River or the Passaic River
to the west.
Competition
We face intense competition within our market area both in making loans and attracting
deposits. Our market area has a high concentration of financial institutions including large money
center and regional banks, community banks and credit unions. Some of our competitors offer
products and services that we currently do not offer, such as trust services and private banking.
As of June 30, 2009, the latest
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date for which statistics are available, our market share of deposits was approximately 2.6%
in Bergen County, and less than 1.0% in each of Hudson and Passaic Counties.
Our competition for loans and deposits comes principally from locally owned and out-of-state
commercial banks, savings institutions, mortgage banking firms, insurance companies and credit
unions. We face additional competition for deposits from short-term money market funds, brokerage
firms, mutual funds and insurance companies. Our primary focus is to build and develop profitable
customer relationships across all lines of business while maintaining our role as a community bank.
Lending Activities
Our principal lending activity is the origination of multi-family loans and commercial real
estate loans as well as residential real estate mortgage loans and construction loans secured by
property located primarily in our market area. Our multi-family loans consist primarily of
mortgage loans secured by apartment buildings. Our commercial real estate loans consist primarily
of mortgage loans secured by commercial offices, retail space, warehouses and mixed-use buildings.
Our residential real estate mortgage loans consist of one- to four-family residential real property
and consumer loans. Construction loans consist primarily of one- to four-family development,
condominiums and commercial development projects. We significantly curtailed construction lending
in 2009 due to current market and economic conditions and expect to maintain this posture for the
foreseeable future. Construction loans are now only approved on an exception basis and are subject
to arduous underwriting requirements. Second mortgage and equity loans consist primarily of home
equity loans and home equity lines of credit. Commercial real estate loans represented $628.5
million, or 45.5%, of our total loan portfolio at December 31, 2009. Multi-family loans represented
$296.3 million, or 21.4%, of our total loan portfolio at December 31, 2009. One- to four-family
residential real estate mortgage loans represented $260.1 million, or 18.8%, of our total loan
portfolio at December 31, 2009. We also offer second mortgages and equity loans. At December 31,
2009, such loans totaled $51.0 million, or 3.7%, of our loan portfolio. At December 31, 2009,
construction and land loans totaled $124.9 million, or 9.0%, of our loan portfolio. At December
31, 2009, other loans, which primarily consist of secured business and to a smaller extent, account
loans, totaled $21.6 million, or 1.6%, of our loan portfolio.
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Table of Contents
Loan Portfolio Composition.
The following table sets forth the composition of our loan portfolio,
by type of loan at the dates indicated.
At December 31,
At June 30,
2009
2009
2008
2007
2006
2005
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
First mortgage loans:
Conventional one- to four-family
$
260,056
18.8
%
$
265,962
20.4
%
$
223,087
21.8
%
$
188,941
24.6
%
$
165,070
25.3
%
$
147,284
29.4
%
Multi-family
296,314
21.4
277,589
21.3
237,490
23.2
210,587
27.4
205,351
31.5
183,118
36.5
Commercial real estate
628,507
45.5
562,139
43.2
359,681
35.2
240,544
31.3
173,857
26.6
88,306
17.6
Second mortgage and equity loans
51,036
3.7
54,768
4.2
59,886
5.8
65,240
8.5
66,198
10.2
55,672
11.1
Construction and land loans
124,898
9.0
130,831
10.0
138,195
13.5
62,704
8.1
38,722
5.9
24,629
4.9
Other loans
21,612
1.6
10,993
0.8
4,880
0.5
1,140
0.1
3,291
0.5
2,321
0.5
Total loans
1,382,423
100.0
%
1,302,282
100.0
%
1,023,219
100.0
%
769,156
100.0
%
652,489
100.0
%
501,330
100.0
%
Other items:
Net deferred loan origination fees
3,102
2,979
2,610
1,732
1,753
1,604
Allowance for loan losses
22,164
20,680
13,532
8,882
7,672
6,172
Total loans, net
$
1,357,157
$
1,278,623
$
1,007,077
$
758,542
$
643,064
$
493,554
Loan Portfolio Maturities and Yields.
The following table summarizes the scheduled
repayments of our loan portfolio at June 30, 2009.
First Mortgage
Second Mortgage
Construction and Land
Other Loans
Total
Weighted Average
Amount
Rate
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Due During the
Years Ending June
30,
2010
$
6,500
6.92
%
$
89
5.04
%
$
103,885
7.21
%
$
7,989
3.87
%
$
118,463
6.97
%
2011
6,140
6.54
340
5.25
24,011
5.41
1,581
6.93
32,072
5.70
2012 to 2013
51,852
6.10
2,215
5.70
—
—
481
7.85
54,548
6.10
2014 to 2018
282,566
6.24
12,172
5.35
2,406
6.52
548
6.85
297,692
6.21
2019 to 2023
284,603
6.12
17,741
5.61
—
—
—
—
302,344
6.09
2024 and beyond
474,028
6.12
22,212
5.89
529
5.09
394
6.28
497,163
6.11
Total
$
1,105,689
6.16
%
$
54,769
5.67
%
$
130,831
6.86
%
$
10,993
4.72
$
1,302,282
6.20
%
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The following table sets forth at June 30, 2009 the dollar amount of all fixed- and
adjustable-rate loans that are contractually due after June 30, 2010.
Due After June 30, 2010
Fixed
Adjustable
Total
(In thousands)
First mortgage loan balances:
Conventional one- to four family
$
219,743
$
46,194
$
265,937
Multi-family
71,789
205,245
277,034
Commercial real estate
291,122
265,096
556,218
Second mortgage and equity loans
46,785
7,895
54,680
Construction and land loans
3,637
23,309
26,946
Other loans
1,626
1,378
3,004
Total loans
$
634,702
549,117
$
1,183,819
First Mortgage Loans:
Conventional One- to Four-Family Residential Loans.
We originate one- to four-family
residential mortgage loans substantially all of which are secured by properties located in our
primary market area. At December 31, 2009, $260.1 million, or 18.8% of our loan portfolio,
consisted of one- to four-family residential mortgage loans. We generally retain for our portfolio
substantially all of these loans that we originate. One- to four-family mortgage loan originations
are generally obtained from existing or past customers, through advertising, and through referrals
from local builders, real estate brokers, and attorneys and are underwritten pursuant to Oritani
Bank's policies and standards. In 2008, we began a program where a fee is paid to a broker for a
loan referral that results in an origination or a purchase of a recently closed loan. Generally,
one- to four-family residential mortgage loans are originated in amounts up to 80% of the lesser of
the appraised value or purchase price of the property, with private mortgage insurance required on
loans with a loan-to-value ratio in excess of 80%. We generally will not make loans with a
loan-to-value ratio in excess of 90%. Fixed rate mortgage loans are originated for terms of up to
40 years. Generally, fixed rate residential mortgage loans are underwritten according to Freddie
Mac guidelines, policies and procedures, with a maximum origination amount of $2.0 million. Our
fixed rate origination volume decreased in calendar 2009. Management felt that the market rates
for such products did not provide adequate compensation for the interest rate risk associated with
the products. Consequently, the pricing of our products were higher than market, causing a
negative impact on origination volumes. This situation is expected to sustain as long as the
market rates for fixed rate residential loans remain at approximately their current levels (or
lower). We do not originate or purchase, and our loan portfolio does not include, any sub-prime
loans.
We also offer adjustable rate mortgage loans for one- to four-family properties, with an
interest rate based on the weekly average yield on U.S. Treasuries adjusted to a constant maturity
of one-year, which adjust either annually or every three years from the outset of the loan or which
adjusts annually after a five-, seven- or ten-year initial fixed rate period. Originations and
purchases of adjustable rate one- to four-family residential loans totaled $27.7 million during the
fiscal year ended June 30, 2009 as compared to total originations and purchases of $89.9 million of
one- to four-family residential loans during the same fiscal year. Our adjustable rate mortgage
loans generally provide for maximum rate adjustments of 2% per adjustment, with a lifetime maximum
adjustment up to 6%, regardless of the initial rate. Our adjustable rate mortgage loans amortize
over terms of up to 30 years.
Adjustable rate mortgage loans decrease the risk associated with changes in market interest
rates by periodically repricing, but involve other risks because, as interest rates increase, the
underlying payments by the borrower increase, thus increasing the potential for default by the
borrower. At the same time, the marketability of the underlying collateral may be adversely
affected by higher interest rates.
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Upward adjustment of the contractual interest rate is also limited by the maximum periodic and
lifetime interest rate adjustments permitted by our loan documents and, therefore, the
effectiveness of adjustable rate mortgage loans may be limited during periods of rapidly rising
interest rates. At June 30, 2009, $46.2 million, or 17.4% of our one- to four-family residential
real estate loans, had adjustable rates of interest.
In an effort to provide financing for first-time homebuyers, we offer our own first-time
homebuyer loan program. This program offers one- to four-family residential mortgage loans to
qualified individuals. These loans are offered with terms and adjustable and fixed rates of
interest similar to our other one- to four-family mortgage loan products. With this program,
borrowers receive a discounted mortgage interest rate and do not pay certain loan origination fees.
Such loans must be secured by an owner-occupied residence. These loans are originated using
similar underwriting guidelines as our other one- to four-family mortgage loans. Such loans are
originated in amounts of up to 90% of the lower of the property's appraised value or the sale
price. Private mortgage insurance is not required for such loans. The maximum amount of such loan
is $275,000.
We also offer our directors, officers and employees who satisfy certain criteria and our
general underwriting standards fixed or adjustable rate loan products with reduced interest rates.
Employee loans adhere to all other terms and conditions contained in the loan policy.
All residential mortgage loans that we originate include "due-on-sale" clauses, which give us
the right to declare a loan immediately due and payable in the event that, among other things, the
borrower sells or otherwise disposes of the real property subject to the mortgage and the loan is
not repaid. Regulations limit the amount that a savings bank may lend relative to the appraised
value of the real estate securing the loan, as determined by an appraisal of the property at the
time the loan is originated. All borrowers are required to obtain title insurance for the benefit
of Oritani Bank. We also require homeowner's insurance and fire and casualty insurance and, where
circumstances warrant, flood insurance on properties securing real estate loans.
Multi-Family and Commercial Real Estate Loans.
We originate non-residential commercial real
estate mortgage loans and loans on multi-family dwellings. At December 31, 2009, $628.5 million,
or 45.5% of our loan portfolio, consisted of commercial real estate loans and $296.3 million, or
21.4% of our loan portfolio, consisted of multi-family loans. Our commercial real estate mortgage
loans are primarily permanent loans secured by improved property such as mixed-use properties,
office buildings, retail stores and commercial warehouses. Our multi-family mortgage loans are
primarily permanent loans secured by apartment buildings. The typical loan has a fixed rate of
interest for the first five years, after which the loan reprices to a market index plus a spread.
The fixed rate period is occasionally extended to as much as ten years. These loans typically
amortize over 25 years and the maximum amortization period is 30 years. We also offer such loans
on a self-amortizing basis with fixed rate terms up to 20 years. Originations with these terms are
monitored and limited. References to commercial real estate loans below refer to multi-family and
commercial real estate.
The terms and conditions of each loan are tailored to the needs of the borrower and based on
the financial strength of the project and any guarantors. In reaching a decision on whether to
make a commercial real estate loan, we consider the net operating income of the property, the
borrower's expertise and credit history and the value of the underlying property. Loan to value
ratios are a very important consideration. Generally, however, commercial real estate loans
originated by us will not exceed 80% of the appraised value or the purchase price of the property,
whichever is less. Other factors we consider, with respect to commercial real estate rental
properties, include the term of the lease(s) and the quality of the tenant(s). We generally
require that the properties securing these real estate loans have
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debt service coverage ratios (the ratio of earnings before debt service to debt service) of at
least 1.2 times. Environmental reports are generally required for commercial real estate loans.
Commercial real estate loans made to corporations, partnerships and other business entities may
require personal guarantees by the principals as warranted. Property inspections are conducted no
less than every three years, or more frequently as warranted. Oritani Bank lending policies allow
lending up to the 80% loan to value level and 1.2 times debt service coverage ratio. Over the
course of 2009, however, we informally reduced our maximum loan to value ratios and increased our
maximum debt service coverage ratio, as well as taking a more conservative approach on other
underwriting issues. We believe these actions have resulted in originations that are more
conservative in nature than Oritani Bank policy allows. We intend to maintain this conservative
posture at least as long as we perceive a heightened economic risk in this type of lending.
A commercial borrower's financial information is monitored on an ongoing basis by requiring
periodic financial statement updates, payment history reviews and periodic face-to-face meetings
with the borrower. We require commercial borrowers to provide annually updated financial
statements and federal tax returns. These requirements also apply to the individual principals of
our commercial borrowers. We also require borrowers with rental investment property to provide an
annual report of income and expenses for the property, including a tenant list and copies of
leases, as applicable. The largest commercial real estate loan in our portfolio at December 31,
2009 was a $21.0 million loan located in Ocean County, New Jersey and secured by a shopping mall.
This loan was performing according to its terms at December 31, 2009. Our largest commercial real
estate relationship consisted of properties located mainly in our primary market area with a real
estate investor. The aggregate outstanding loan balance for this relationship is $47.6 million,
and these loans are all performing in accordance with their terms.
Loans secured by commercial real estate, including multi-family properties, generally involve
larger principal amounts and a greater degree of risk than one- to four-family residential mortgage
loans. Because payments on loans secured by commercial real estate are often dependent on
successful operation or management of the properties, repayment of such loans may be affected by
adverse conditions in the real estate market or the economy.
Second Mortgage and Equity Loans
. We also offer second mortgage and equity loans and home
equity of lines of credit, each of which are secured by one- to four-family residences,
substantially all of which are located in our primary market area. At December 31, 2009, second
mortgage and equity loans totaled $51.0 million, or 3.7% of total loans. Additionally, at December
31, 2009, the unadvanced amounts of home equity lines of credit totaled $17.3 million. The
underwriting standards utilized for home equity loans and equity lines of credit include a
determination of the applicant's credit history, an assessment of the applicant's ability to meet
existing obligations and payments on the proposed loan and the value of the collateral securing the
loan. The combined (first and second mortgage liens) loan-to-value ratio for home equity loans and
equity lines of credit is generally limited to 80%. Home equity loans are offered with fixed and
adjustable rates of interest and with terms of up to 30 years. Our home equity lines of credit
have adjustable rates of interest which are indexed to the prime rate, as reported in
The Wall
Street Journal
.
Equity loans entail greater risk than do residential mortgage loans, particularly if they are
secured by an asset that has a superior security interest. In addition, equity loan collections
depend on the borrower's continuing financial stability, and thus are more likely to be adversely
affected by job loss, divorce, illness or personal bankruptcy.
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Construction Loans.
We originate construction loans for the development of one- to
four-family residential properties located in our primary market area. Residential construction
loans are generally offered to experienced local developers operating in our primary market area
and to individuals for the construction of their personal residences. At December 31, 2009,
residential construction loans amounted to $90.5 million, or 6.6% of total loans.
Our residential construction loans generally provide for the payment of interest only during
the construction phase, but in no event exceeding 24 months. Residential construction loans can be
made with a maximum loan-to-value ratio of 75% of the appraised value of the land and 100% of the
costs associated with the construction. Residential construction loans are generally made on the
same terms as our one- to four-family mortgage loans.
We also make construction loans for commercial development projects. The projects include
multi-family, apartment, retail and office buildings. We generally require that a commitment for
permanent financing be in place prior to closing the construction loan. The maximum loan-to-value
ratio limit applicable to these loans is generally 80%. At December 31, 2009, commercial
construction loans totaled $34.4 million, or 2.5% of total loans. At December 31, 2009, the
largest outstanding commercial construction loan balance was for $13.9 million and is secured by a
condominium project. This loan is one of two loans to the same borrower totaling $15.9 million
that are classified as non-accrual and considered impaired with a specific reserve of $1.7 million
at December 31, 2009. Oritani charged off $4.5 million of the construction loan as of December 31,
2009, as this portion has been determined to be an incurred loss.
Before making a commitment to fund a construction loan, we require an appraisal on the
property by an independent licensed appraiser. We require title insurance and, if applicable, an
environmental survey prior to making a commitment to fund a construction loan. We generally also
review and inspect each property before disbursement of funds during the terms of the construction
loan. Loan proceeds are disbursed after inspection based on the percentage of completion method.
Construction and development financing is generally considered to involve a higher degree of
credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a
construction loan depends largely upon the accuracy of the initial estimate of the value of the
property at completion of construction compared to the estimated cost (including interest) of
construction and other assumptions. If the estimate of construction cost proves to be inaccurate,
we may be required to advance funds beyond the amount originally committed in order to protect the
value of the property. Additionally, if the estimate of value proves to be inaccurate, we may be
confronted with a project, when completed, having a value which is insufficient to assure full
repayment.
We chose to reduce our exposure to construction lending in 2009 due to current market and
economic conditions. Construction originations for the year ended June 30, 2009 were $45.1
million, compared to $99.2 million for the comparable 2008 period. Construction originations for
the six month period ended December 31, 2009 were $7.4 million.
Other Loans.
Other loans totaled $21.6 million, or 1.6% of our total loan portfolio, at
December 31, 2009. Other loans primarily consist of business loans secured by cash or other
business assets, account loans, and commercial line of credit loans. Commercial line of credit
loans totaled $3.1 million at December 31, 2009. In 2009, Oritani decided to limit new line of
credit lending to well-established customers.
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Loan Originations, Purchases, Sales, Participations and Servicing of Loans.
Lending
activities are conducted primarily by our loan personnel operating at our main office. All loans
originated by us are underwritten pursuant to our policies and procedures. We originate both
adjustable rate and fixed rate loans. Our ability to originate fixed or adjustable rate loans is
dependent upon the relative customer demand for such loans, which is affected by the current and
expected future levels of market interest rates.
We retain in our portfolio substantially all loans that we originate, although we have
occasionally sold longer-term, fixed-rate one- to four-family residential mortgage loans into the
secondary market. There were no sales of residential mortgage loans in fiscal 2008 or 2009.
Occasionally, we will also participate in loans, sometimes as the "lead lender." Whether we
are the lead lender or not, we underwrite our participation portion of the loan according to our
own underwriting criteria and procedures. At December 31, 2009, we had $60.5 million in loan
participation interests.
At December 31, 2009, we were servicing loans sold in the amount of $9.9 million. Loan
servicing includes collecting and remitting loan payments, accounting for principal and interest,
contacting delinquent mortgagors, supervising foreclosures and property dispositions in the event
of unremedied defaults, making certain insurance and tax payments on behalf of the borrowers and
generally administering the loans.
During the six months ended December 31, 2009, we originated $27.0 million of fixed- and
adjustable-rate one- to four-family residential mortgage loans, all of which were retained by us.
The fixed-rate loans retained by us consisted primarily of loans with terms of 30 years or less.
Non-performing and Problem Assets
We commence collection efforts for residential loans (excluding multi-family) when a loan
becomes ten days past due with system generated reminder notices. Subsequent late charges and
delinquent notices are issued and the account is monitored on a regular basis thereafter. Personal,
direct contact with the borrower is attempted early in the collection process as a courtesy
reminder and later to determine the reason for the delinquency and to safeguard our collateral.
When a loan is more than 45 days past due, the credit file is reviewed and, if deemed necessary,
information is updated or confirmed and collateral re-evaluated. We make every effort to contact
the borrower and develop a plan of repayment to cure the delinquency. If no repayment plan is in
process and the loan is delinquent at least two payments, the file is referred to counsel for the
commencement of foreclosure or other collection efforts. A very similar process is followed for
non-residential and multi-family loans. However, the direct, personal contact begins earlier in
the process. Contact is attempted as soon as a late charge is incurred. Also, for such loans, a
plan of repayment to cure the delinquency is not necessarily the only remediation process pursued.
In such instances, counsel is consulted and an approach for resolution is determined and
aggressively pursued. A summary report of all loans 30 days or more past due is reported to the
Board of Directors. The status of each of these loans is discussed with the Board of Directors on
a monthly basis.
Loans are placed on non-accrual status when they are more than 90 days delinquent. When loans
are placed on a non-accrual status, unpaid accrued interest is fully reversed. Once the
outstanding principal balance is brought current, income is recognized to the extent it is deemed
collectible. If the deficiencies causing the delinquency are resolved, such loans may be placed on
accrual status once all
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arrearages are resolved. See additional discussion regarding our non-performing assets at
December 31, 2009 in "Management Discussion and Analysis of Financial Condition and Results of
Operations."
Non-Performing Assets
.
The table below sets forth the amounts and categories of our
non-performing assets at the dates indicated. At each date presented, we had no troubled debt
restructurings (loans for which a portion of interest or principal has been forgiven and loans
modified at interest rates materially less than current market rates).
At June 30,
At December 31, 2009
2009
(1)
2008
(2)
2007
2006
2005
(Dollars in thousands)
Non-accrual loans:
First mortgage loan balances:
Conventional
$
1,760
$
98
$
67
$
—
$
458
$
147
Multi-family loans
1,076
6,291
—
—
—
—
Commercial real estate
30,871
25,685
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
44
Construction and land loans
18,200
20,391
14,143
—
—
—
Other loans
—
—
—
—
—
—
Total non-accrual loans
51,907
$
52,465
$
14,210
$
—
$
458
$
191
Loans greater than 90 days delinquent
and still accruing:
First mortgage loan balances:
Conventional
$
—
$
—
$
—
$
—
$
—
$
—
Multi-family loans
—
—
—
—
—
—
Commercial real estate
—
—
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
—
Construction and land loans
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total loans 90 days and still
accruing
—
$
—
$
—
$
—
$
—
$
—
Total non-performing loans
$
51,907
$
52,465
$
14,210
$
—
$
458
$
191
Real estate owned
600
—
—
—
—
—
Total non-performing assets
$
52,507
$
52,465
$
14,210
$
—
$
458
$
191
Ratios:
Non-performing loans to total loans
3.75
%
4.03
%
1.39
%
—
%
0.07
%
0.04
%
Non-performing assets to total assets
2.62
%
2.74
%
0.98
%
—
%
0.04
%
0.02
%
(1)
Two construction loans totaling $4.2 million are less than 60 days delinquent at June 30,
2009 and are classified as non-accrual.
(2)
One construction loan totaling $335,000 was less than 60 days delinquent at June 30, 2008 and
was classified as non-accrual.
As noted in the above table, there were nonaccrual loans of $51.9 million at December 31,
2009, $52.5 million at June 30, 2009 and $14.2 million at June 30, 2008. Additional interest
income of $2.1 million, $3.6 million and $521,000 would have been recorded during the six months
ended December 31, 2009 and the years ended June 30, 2009 and 2008, respectively, if the loans had
performed in accordance with their original terms.
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Delinquent Loans
. The following table sets forth our loan delinquencies by type, by
amount and by percentage of type at the dates indicated.
Loans Delinquent For
60-89 Days
90 Days and Over
Total
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
At December 31, 2009
First mortgage loan balances:
Conventional
1
$
196
3
$
1,341
4
$
1,537
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
3
704
7
31,948
10
32,652
Second mortgage and equity loans
1
62
—
—
1
62
Construction and land loans
1
1,012
4
18,618
5
19,630
Other loans
—
—
—
—
—
—
Total
6
$
1,974
14
$
51,907
20
$
53,881
At June 30, 2009
First mortgage loan balances:
Conventional
1
$
197
2
$
98
3
$
295
Multi-family loans
—
—
2
6,291
2
6,291
Commercial real estate loans
3
17,209
6
25,685
9
42,894
Second mortgage and equity loans
—
—
—
—
—
—
Construction and land loans
1
419
6
20,391
7
20,810
Other loans
—
—
—
—
—
—
Total
5
$
17,825
16
$
47,839
21
$
65,664
At June 30, 2008
First mortgage loan balances:
Conventional
—
$
—
2
$
68
2
$
68
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
—
—
—
—
—
—
Second mortgage and equity loans
1
18
—
—
1
18
Construction and land loans
—
—
2
13,808
2
13,808
Other loans
—
—
—
—
—
—
Total
1
$
18
4
$
13,876
5
$
13,894
At June 30, 2007
First mortgage loan balances:
Conventional
—
$
—
—
$
—
—
$
—
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
Second mortgage and equity loans
1
39
—
—
1
39
Construction and land loans
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total
1
$
39
—
$
—
1
$
39
At June 30, 2006
First mortgage loan balances:
Conventional
5
$
180
2
$
348
7
$
528
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
—
—
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
Construction and land loans
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total
5
$
180
2
$
348
7
$
528
At June 30, 2005
First mortgage loan balances:
Conventional
3
$
139
3
$
140
6
$
279
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
—
—
—
—
—
—
Second mortgage and equity loans
1
29
1
44
2
73
Construction and land loans
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total
4
$
168
4
$
184
8
$
352
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In addition to the delinquent loans listed above, we had loans that were delinquent 90
days or more past due as to principal. Such loans had passed their maturity date but continued
making monthly payments, keeping their interest current. All such loans have subsequently been
paid in full or were extended by us, which negated their past due maturity status. These loans
totaled $2.7 million, $3.1 million, $316,000, and $3.2 million at December 31, 2009, June 30, 2009,
2008 and 2007, respectively.
Real Estate Owned
. Real estate acquired by us as a result of foreclosure or by deed in lieu
of foreclosure is classified as real estate owned until sold. When property is acquired it is
recorded at the lower of cost or fair market value at the date of foreclosure, establishing a new
cost basis. Holding costs and declines in fair value result in charges to expense after
acquisition. At June 30, 2009 and 2008, we had no real estate owned. During the six months ended
December 31, 2009, Oritani Bank obtained title to a property which secured a $877,000
non-performing loan which had been classified as impaired. The property was written down to
$800,000 upon acquisition and was subsequently written down further to $600,000. The property is
currently being marketed for sale.
Classified Assets.
Federal regulations provide that loans and other assets of lesser quality
should be classified as "substandard," "doubtful" or "loss" assets. 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." Assets classified as "loss" are those considered "uncollectible" and
of such little value that their continuance as assets without the establishment of a specific loss
reserve is not warranted.
We are required to establish general allowances for loan losses for loans classified
substandard or doubtful, as well as for other problem loans. General allowances represent loss
allowances which have been established to recognize the inherent losses associated with lending
activities, but which, unlike specific allowances, have not been allocated to particular problem
assets. When we classify problem assets as "loss," we are required either to establish a specific
allowance for losses equal to 100% of the amount of the asset so classified or to charge off such
amount. Our determination as to the classification of our assets and the amount of our valuation
allowances is subject to review by the FDIC and the New Jersey Department of Banking and Insurance
which can order the establishment of additional general or specific loss allowances. Such
examinations typically occur annually. Our last examination was as of March 31, 2009 by the FDIC.
The following table shows the aggregate amounts of our classified assets at the date indicated
for both residential real estate and non-residential real estate loans.
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Classified Assets At
December 31, 2009
June 30, 2009
June 30, 2008
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands
Substandard assets:
First mortgage loan balances:
Conventional
3
$
1,341
2
$
109
3
$
85
—
$
—
Multi-family loans
1
1,076
5
7,602
—
—
—
—
Commercial real estate loans
9
36,199
9
28,827
4
14,375
2
238
Construction and land loans
5
1,012
4
19,273
18,618
—
—
Other loans
1
141
—
—
—
—
—
—
Total
19
$
58,388
20
$
55,811
7
$
14,460
2
$
238
Allowance allocated to total
classified assets
$
4,460
$
3,896
$
1,497
$
24
The loan portfolio is reviewed on a regular basis to determine whether any loans require
classification in accordance with applicable regulations.
We also utilize additional classification for assets that do not meet the definition of any of
the classified assets yet contain an element that warrants a rating that is less than "pass." We
classify an asset as "special mention" if the asset has a potential weakness that warrants
management's close attention. While such assets are not impaired, management has concluded that if
the potential weakness in the asset is not addressed, the value of the asset may deteriorate,
adversely affecting the repayment of the asset. Our assets classified as "special mention" totaled
$9.8 million, $24.2 million, $21.7 million and $9.8 million at December 31, 2009 and June 30, 2009,
2008 and 2007, respectively. Effective September 30, 2009, we began to also utilize the
classification of "watch" for assets where complete current information has not been procured or a
minor weakness is indicated. Our assets classified as "watch" totaled $9.8 million at December 31,
2009.
Impaired Loans
. In accordance with Statement of Financial Accounting Standards 114 ("FAS
114"), we define an impaired loan as a loan for which it is probable, based on current information,
that we will not collect all amounts due under the contractual terms of the loan agreement. We
generally classify qualifying loans as impaired if they exceed 90 days delinquency, as principal
and interest would not be being repaid under the contractual terms in such a situation. Loans we
individually classify as impaired include multi-family, commercial mortgage and construction loans.
Impaired loans are individually assessed to determine that each loan's carrying value is not in
excess of the fair value of the related collateral or the present value of the expected future cash
flows. If the loan's carrying value does exceed the fair value, specific reserves are established
to reduce the loan's carrying value. For classification purposes, impaired loans are typically
classified as substandard. Residential mortgage and consumer loans are deemed smaller balance
homogeneous loans which are evaluated collectively for impairment and are therefore excluded from
the population of impaired loans.
Allowance for Loan Losses
Our allowance for loan losses is maintained at a level necessary to absorb loan losses that
are both probable and reasonably estimable. Management, in determining the allowance for loan
losses, considers the losses inherent in our loan portfolio and changes in the nature and volume of
loan activities, along with the general economic and real estate market conditions. A description
of our methodology in establishing our allowance for loan losses is set forth in the section
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical
Accounting Policies—Allowance for Loan Losses." The allowance for loan losses as of December 31,
2009 was maintained at a level that represents management's best estimate of losses inherent in the
loan portfolio, and such losses were both probable and reasonably estimable. However, this analysis
process is inherently subjective, as it requires
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us to make estimates that are susceptible to revisions as more information becomes available.
Although we believe that we have established the allowance at levels to absorb probable and
estimable losses, future additions may be necessary if economic or other conditions in the future
differ from the current environment.
In addition, as an integral part of their examination process, the FDIC, OTS, and the New
Jersey Department of Banking and Insurance has authority to periodically review our allowance for
loan losses. Such agencies may require that we recognize additions to the allowance based on their
judgments of information available to them at the time of their examination.
Allowance for Loan Losses
.
The following table sets forth activity in our allowance for loan
losses for the fiscal years indicated.
For the Six Months Ended
December 31,
At or For the Years Ended June 30,
2009
2008
2009
2008
2007
2006
2005
(Dollars in thousands)
Balance at beginning of period
$
20,681
$
13,532
$
13,532
$
8,882
$
7,672
$
6,172
$
5,372
Charge-offs:
First mortgage loan balances:
Conventional
—
—
—
—
—
—
—
Multi-family
16
—
260
—
—
—
—
Commercial real estate
785
—
—
Second mortgage and equity loans
—
—
—
—
—
—
—
Construction and land loans
2,726
—
2,250
—
—
—
—
Other loans
43
—
222
—
—
—
—
Total charge-offs
3,570
—
2,732
—
—
—
—
Recoveries:
First mortgage loan balances:
Conventional
—
—
—
—
—
—
—
Multi-family and commercial
real estate
—
—
—
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
—
—
Construction and land loans
3
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
—
Total recoveries
3
—
—
—
—
—
—
Net (charge-offs) recoveries
(3,567
)
—
(2,732
)
—
—
—
—
Provision for loan losses
5,050
5,375
9,880
4,650
1,210
1,500
800
Balance at end of year
$
22,164
$
18,907
$
20,680
$
13,532
$
8,882
$
7,672
$
6,172
Ratios:
Net charge-offs to average loans
outstanding (annualized)
0.53
%
—
%
0.23
%
—
%
—
%
—
%
—
%
Allowance for loan losses to total
loans at end of period
1.60
%
1.54
%
1.59
%
1.32
%
1.15
%
1.18
%
1.23
%
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Allocation of Allowance for Loan Losses.
The following table sets forth the allowance
for loan losses allocated by loan category, the total loan balances by category (including loans
held for sale), and the percent of loans in each category to total loans at the dates indicated.
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.
At December 31,
At June 30,
2009
2009
2008
2007
Percent of Loans
Percent of
Percent of
Percent of Loans in
in Each
Allowance
Loans in Each
Allowance
Loans in Each
Allowance for Loan
Each Category to
Allowance for Loan
Category to
for Loan
Category to
for Loan
Category to
Losses
Total Loans
Losses
Total Loans
Losses
Total Loans
Losses
Total Loans
(Dollars in thousands)
First mortgage loan balances:
Conventional
$
1,167
18.8
%
$
1,012
20.4
%
$
845
21.8
%
$
709
24.6
%
Multi-family
3,073
21.4
2,912
21.3
2,535
23.2
2,254
27.4
Commercial real estate
11,501
45.5
9,683
43.3
5,560
35.2
3,889
31.3
Second mortgage and equity loans
261
3.7
274
4.2
299
5.8
326
8.5
Construction and land loans
4,889
9.0
5,791
10.0
3,883
13.5
979
8.1
Other loans
544
1.6
268
0.8
92
0.5
15
0.1
Unallocated
729
—
740
—
318
—
710
—
Total
$
22,164
100.0
%
$
20,680
100.0
%
$
13,532
100.0
%
$
8,882
100.0
%
At June 30,
2006
2005
Percent of Loans
Percent of
Allowance
in Each
Loans in Each
for Loan
Category to
Allowance for
Category to
Losses
Total Loans
Loan Losses
Total Loans
(Dollars in thousands)
First mortgage loan balances:
Conventional
$
749
25.3
%
$
684
29.4
%
Multi-family
2,243
31.5
2,117
36.5
Commercial real estate
2,591
26.6
1,440
17.6
Second mortgage and equity
loans
312
10.2
512
11.1
Construction and land loans
758
5.9
475
4.9
Other loans
57
0.5
37
0.5
Unallocated
962
—
907
—
Total
$
7,672
100.0
%
$
6,172
100.0
%
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The increase in the allowance for loan losses, and related provision, is primarily due to
the large increases in delinquent and impaired loans at December 31, 2009. Such loans are
discussed in "Management's Discussion and Analysis of Financial Condition and Results of
Operations." In addition, the continued increase in the multi-family and commercial real estate
loan portfolio was also a factor. These types of loans inherently contain more credit risk than
one- to four-family residential loans.
Investments
The Board of Directors is responsible for adopting our investment policy. The investment
policy is reviewed periodically by management and any changes to the policy are recommended to and
subject to the approval of the Board of Directors. Authority to make investments under the
approved investment policy guidelines is delegated to appropriate officers. While general
investment strategies are developed and authorized by the Board of Directors, the execution of
specific actions primarily rests with Oritani Bank's President, Chief Financial Officer and
Asset/Liability Committee, which have responsibility for ensuring that the guidelines and
requirements included in the investment policy are followed and that all securities are considered
prudent for investment. Each of our Chief Financial Officer, President and Asset/Liability
Committee have increasing authority to purchase various types of investments; all individual
investment purchases in excess of $20.0 million and all daily purchases in excess of $30.0 million
must be approved by our Board of Directors. All investment transactions are reviewed and ratified
or approved (as the case may be) at regularly scheduled meetings of the Board of Directors. Any
investment which, subsequent to its purchase, fails to meet the guidelines of the policy is
reported to the Board of Directors at its next meeting where the Board of Directors decides whether
to hold or sell the investment.
New Jersey chartered savings banks have authority to invest in various types of assets,
including U.S. Treasury obligations, securities of various federal agencies, mortgage-backed
securities, certain certificates of deposit of insured financial institutions, overnight and
short-term loans to other banks, corporate debt instruments, and Fannie Mae and Freddie Mac equity
securities. Oritani Financial Corp., as a federally chartered mid-tier stock holding company, may
invest in equity securities subject to certain limitations.
The investment policy requires that all securities transactions be conducted in a safe and
sound manner. Investment decisions must be based upon a thorough analysis of each security
instrument to determine if its quality and inherent risks fit within Oritani Bank's overall
asset/liability management objectives, the effect on its risk-based capital measurement and the
prospects for yield and/or appreciation. The investment policy provides that Oritani Bank may
invest in U.S. treasury notes, U.S. and state agency securities, mortgage-backed securities, and
other conservative investment opportunities. Typical investments are currently in U.S. agency
securities and government sponsored mortgage-backed securities.
Our investment portfolio at December 31, 2009, consisted of $311.2 million in federal agency
obligations, a $5.4 million investment in a mutual fund, $2.1 million of corporate debt instruments
and $1.8 million in equity securities. We also invest in mortgage-backed securities, all of which
are guaranteed by government sponsored enterprises. At December 31, 2009, our mortgage-backed
securities portfolio totaled $184.7 million, or 9.2% of total assets, and consisted of $144.1
million in fixed-rate securities and $40.6 million in adjustable-rate securities, guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. Securities can be classified as held to maturity or
available for sale at the date of purchase.
U.S. Government and Federal Agency Obligations.
At December 31, 2009, our U.S. Government and
federal agency securities portfolio totaled $311.2 million, all of which was classified as
available for sale.
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Corporate Bonds
. At December 31, 2009, our corporate bond portfolio totaled $2.1 million,
which consisted of one security, rated BBB- and was classified as available for sale. The industry
represented by our corporate bond issuer was financial. Although corporate bonds may offer higher
yields than U.S. Treasury or agency securities of comparable duration, corporate bonds also have a
higher risk of default due to possible adverse changes in the credit-worthiness of the issuer.
Mutual Funds.
At December 31, 2009, our mutual fund portfolio totaled $5.4 million, and was
classified as available for sale. The portfolio consisted of an investment in a mutual fund that
holds adjustable-rate mortgage loans and similar securities. During fiscal 2009, the portfolio was
deemed other-than-temporarily impaired and we recorded a non-cash impairment charge to earnings of
$1.7 million for the year ended June 30, 2009. No further impairment charges were required on this
investment.
Equity Securities.
At December 31, 2009, our equity securities portfolio totaled $1.8
million, all of which were classified as available for sale. The portfolio consists of financial
industry common stocks. During fiscal 2009, several of these holdings were deemed
other-than-temporarily impaired and we recorded a non-cash impairment charge to earnings of
$399,000. A further impairment charge totaling $202,000 was recognized regarding these securities
during the quarter ended December 31, 2009. Equity securities are not insured or guaranteed
investments and are affected by market interest rates and stock market fluctuations. Such
investments are carried at their fair value and fluctuations in the fair value of such investments,
including temporary declines in value, directly affect our net capital position.
Mortgage-Backed Securities.
We purchase mortgage-backed securities primarily insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We invest in mortgage-backed securities to
achieve positive interest rate spreads with minimal administrative expense, to lower our credit
risk as a result of the guarantees provided by Freddie Mac, Fannie Mae or Ginnie Mae and to offset
a portion of the interest rate risk inherent in our loan portfolio. Our investment policy also
authorizes the investment in collateralized mortgage obligations ("CMOs"), also insured or issued
by Freddie Mac, Fannie Mae and Ginnie Mae. We limit CMO investments to those classes of CMOs
carrying the most stable cash flows and lowest prepayment risk of any class of CMOs and which pass
the Federal Financial Institutions Examination Council's average life restriction tests at the time
of purchase.
At December 31, 2009, our mortgage-backed securities totaled $184.7 million or 9.2%, of total
assets. At December 31, 2009, 22.0% of the mortgage-backed securities were backed by adjustable
rate mortgage loans and 78.0% were backed by fixed rate mortgage loans. The mortgage-backed
securities portfolio had a weighted average yield of 4.3% at December 31, 2009. The estimated fair
value of our mortgage-backed securities at December 31, 2009 was $186.7 million, which is $5.4
million more than the amortized cost of $181.4 million. Investments in mortgage-backed securities
involve a risk that actual prepayments may differ from estimated prepayments over the life of the
security, which may require adjustments to the amortization of any premium or accretion of any
discount relating to such instruments thereby changing the net yield on such securities. There is
also reinvestment risk associated with the cash flows from such securities or if such securities
are redeemed by the issuer. In addition, the market value of such securities may be adversely
affected by changes in interest rates. All of our mortgage-backed securities are insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
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Securities Portfolios.
The following table sets forth the composition of our investment
securities portfolio at the dates indicated.
Securities and Mortgage-Backed Securities Held to Maturity
At December 31,
At June 30,
2009
2009
2008
2007
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
(In thousands)
United States Government and
federal agency obligations
$
—
$
—
$
—
$
—
$
—
$
—
$
5,415
$
5,347
Mortgage-backed securities:
Freddie Mac
15,740
16,135
18,783
19,063
25,082
24,902
31,365
30,329
Ginnie Mae
2,423
2,426
5,161
5,157
6,055
6,040
8,895
8,907
Fannie Mae
24,589
25,301
31,329
31,943
42,066
42,094
58,479
57,314
Collateralized mortgage obligations
43,430
44,461
63,544
64,218
90,747
89,636
118,667
113,955
Total securities held to maturity
$
86,182
$
88,223
$
118,817
$
120,381
$
163,950
$
162,672
$
222,821
$
215,582
Securities and Mortgage-Backed Securities Available for Sale
At December 31,
At June 30,
2009
2009
2008
2007
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
(In thousands)
United States Government and
federal agency obligations
310,775
311,194
$
134,754
$
134,837
$
10,000
$
9,865
$
25,000
$
25,007
Corporate bonds
2,000
2,083
2,000
2,156
2,000
2,184
2,000
2,024
Mutual funds
5,148
5,361
5,636
5,676
7,782
7,782
8,429
8,412
Equity securities
1,763
1,801
1,965
1,750
2,364
2,454
—
—
Mortgage-backed securities:
Freddie Mac
22,352
23,300
26,979
27,875
28,672
28,837
1,363
1,363
Fannie Mae
20,267
21,245
27,023
27,911
31,084
30,895
5,891
5,918
Ginnie Mae
—
—
2,537
2,557
3,134
3,143
4,502
4,548
Collateralized mortgage
obligations
52,566
53,968
68,571
70,260
85,351
86,334
27,024
26,964
Total securities available for sale
$
414,871
$
418,952
$
269,465
$
273,022
$
170,387
$
171,494
$
74,209
$
74,236
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Portfolio Maturities and Yields.
The composition and maturities of the investment
securities portfolio at December 31, 2009 are summarized in the following table. Maturities are
based on the final contractual payment dates, and do not reflect the impact of prepayments or early
redemptions that may occur.
One Year or Less
More than One Year through Five Years
More than Five Years through Ten Years
More than Ten Years
Total Securities
Weighted Average
Weighted Average
Weighted Average
Weighted Average
Weighted Average
Amortized Cost
Yield
Amortized Cost
Yield
Amortized Cost
Yield
Amortized Cost
Yield
Amortized Cost
Fair Value
Yield
(Dollars in thousands)
Mortgage-backed securities:
Freddie Mac
$
2,341
3.5
%
$
3,423
4.1
%
$
9,976
3.7
%
$
—
—
%
$
15,740
$
16,135
3.8
%
Ginnie Mae
—
—
—
—
2,423
3.0
2,423
2,426
3.0
Fannie Mae
—
—
—
—
24,589
3.8
24,589
25,301
3.8
Collateralized mortgage obligations
—
43,430
4.0
—
—
—
—
43,430
44,361
4.0
Total securities held to maturity
$
2,341
3.5
%
$
43,430
4.0
%
$
9,976
3.7
%
$
27,012
3.7
%
$
86,182
$
88,223
3.9
%
United States Government and federal
agency obligations
$
—
—
%
$
310,775
2.8
%
$
—
—
%
$
—
—
%
$
310,775
$
311,194
2.8
%
Corporate bonds
—
—
2,000
8.1
—
—
—
—
2,000
2,083
8.1
Mutual funds
5,148
3.7
—
—
—
—
—
—
5,148
5,361
3.7
Equity securities
1,763
—
—
—
—
—
—
1,763
1,801
—
Mortgage-backed securities:
Freddie Mac
2,800
3.5
12,274
4.6
—
—
7,278
4.6
22,352
23,300
4.5
Fannie Mae
—
—
—
—
—
—
20,267
4.9
20,267
21,245
4.9
Collateralized mortgage obligations
—
—
52,566
4.9
—
—
—
—
52,566
53,968
4.9
Total securities available for sale
$
9,711
3.0
%
$
377,615
3.1
%
$
—
%
$
27,545
4.8
%
$
414,871
$
418,952
3.3
%
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Sources of Funds
General.
Deposits have traditionally been the primary source of funds for use in lending and
investment activities. We also use borrowings, primarily FHLB advances, to supplement cash flow
needs, to lengthen the maturities of liabilities for interest rate risk management purposes and to
manage the cost of funds. In addition, funds are derived from scheduled loan payments,
mortgaged-backed securities scheduled payments and prepayments, investment maturities, loan
prepayments, retained earnings and income on other earning assets. While scheduled loan payments
and income on earning assets are relatively stable sources of funds, deposit inflows and outflows
can vary widely and are influenced by prevailing interest rates, market conditions and levels of
competition.
Deposits.
Our deposits are generated primarily from residents and businesses within our
primary market area. We offer a selection of deposit accounts, including demand accounts, NOW
accounts, money market deposit accounts, savings accounts, retirement accounts and time deposits.
Deposit account terms vary, with the principal differences being the minimum balance required, the
amount of time the funds must remain on deposit and the interest rate.
Interest rates, maturity terms, service fees and other account features are established on a
periodic basis. Deposit rates and terms are based primarily on current operating strategies and
market rates, liquidity requirements, rates paid by competitors and growth goals. Personalized
customer service, attractive account features, long-standing relationships with customers,
convenient locations, competitive rates of interest and an active marketing program are relied upon
to attract and retain deposits.
The flow of deposits is influenced significantly by general economic conditions, changes in
prevailing interest rates and competition. The variety of deposit accounts offered allows us to be
competitive in obtaining funds and responding to changes in consumer demand while managing interest
rate risk and minimizing interest expense. At December 31, 2009, $685.5 million, or 56.6% of our
deposit accounts were time deposits, of which $583.8 million had maturities of one year or less.
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Table of Contents
The following table sets forth the distribution of total deposits by account type, at the
dates indicated.
At December 31,
At June 30,
At June 30,
2009
2009
2008
Weighted Average
Weighted Average
Weighted Average
Balance
Percent
Ratio
Balance
Percent
Ratio
Balance
Percent
Ratio
(Dollars in thousands)
Deposit type:
NOW accounts
$
106,968
8.82
%
0.75
%
$
88,759
7.87
%
0.90
%
$
73,949
10.58
%
0.89
%
Money market deposit accounts
271,583
22.44
1.43
199,965
17.73
2.07
57,117
8.17
2.92
Savings accounts
146,442
12.10
0.79
147,669
13.10
1.04
149,062
21.33
1.35
Time deposits
685,514
56.64
2.32
691,237
61.30
2.84
418,804
59.92
3.84
Total deposits
$
1,210,507
100.00
%
1.80
%
$
1,127,630
100.00
%
2.32
%
$
698,932
100.00
%
2.92
%
At June 30,
2007
Weighted Average
Balance
Percent
Rate
(Dollars in thousands)
Deposit type:
NOW accounts
$
75,510
10.85
%
1.12
%
Money market deposit accounts
41,029
5.90
4.00
Savings accounts
156,670
22.52
1.56
Time deposits
422,548
60.73
4.75
Total deposits
$
695,757
100.00
%
3.59
%
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Table of Contents
As of December 31, 2009, the aggregate amount of outstanding time deposits in amounts
greater than or equal to $100,000 was approximately $240.3 million. The following table sets forth
the maturity of those deposits as of December 31, 2009.
At
December 31, 2009
(In thousands)
Three months or less
$
99,723
Over three months through six months
58,214
Over six months through one year
46,990
Over one year to three years
32,688
Over three years
2,730
Total
$
240,345
Borrowings.
Our borrowings primarily consist of advances from the FHLB-NY. As of
December 31, 2009, we had total borrowings in the amount of $507.4 million, which represented 28.8%
of total liabilities, with an estimated weighted average maturity of 5.5 years and a weighted
average rate of 3.96%. The weighted average maturity is estimated because several of our
borrowings, under certain circumstances, can be called by the FHLB prior to the scheduled maturity.
If this were to occur, our weighted average maturity would decrease. At December 31, 2009,
advances from the FHLB constituted 99.9% of borrowings. At December 31, 2009, borrowings are
secured by mortgage-backed securities and investment securities with a book value of $352.6 million
and performing mortgage loans with an outstanding balance of $881.7 million.
The following table sets forth information concerning balances and interest rates on our FHLB
advances and other borrowings at and for the periods shown:
At December 31,
At or For the Years Ended June 30,
2009
2009
2008
2007
(Dollars in thousands)
Balance at end of period
$
507,439
$
508,991
$
433,672
$
196,661
Average balance during period
$
508,145
$
505,599
$
310,231
$
210,598
Maximum outstanding at any month end
$
508,708
$
544,238
$
433,672
$
233,797
Weighted average interest rate at
end of period
3.96
%
3.96
%
4.00
%
4.17
%
Average interest rate during period
4.13
%
4.00
%
4.30
%
4.34
%
Subsidiary Activities and Joint Venture Information
Oritani Financial Corp. is the owner of Oritani Bank, Hampshire Financial LLC and Oritani LLC.
Hampshire Financial LLC and Oritani LLC are New Jersey limited liability companies that own real
estate and investments in real estate as described below. In addition, at December 31, 2009,
Oritani Financial Corp., either directly or through one of its subsidiaries, had loans with an
aggregate balance of $29.4 million on 12 of the properties in which it (either directly or through
one of its subsidiaries) had an ownership interest. All such loans are performing in accordance
with their terms.
During the year ended June 30, 2009, we invested in two new joint venture projects. We
invested in an additional project during the six months ended December 31, 2009. All of the new
projects were made through Oritani LLC. We will continue to opportunistically invest in real
estate investments and joint venture projects.
Oritani Bank has the following subsidiaries: Ormon LLC and Oritani Asset Corporation. Ormon
LLC is a New Jersey limited liability company that owns real estate investments in New Jersey as
well as
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Table of Contents
investments in joint ventures that own income-producing commercial and residential rental
properties in New Jersey as described below.
Oritani Asset Corporation is a real estate investment trust formed in 1998 for the sole
purpose of acquiring mortgage loans and mortgage-backed securities from Oritani Bank. Oritani
Asset Corporation's primary objective is to maximize long-term returns on equity. At December 31,
2009, Oritani Asset Corporation had $351.2 million in assets. Oritani Asset Corporation is taxed
and operates in a manner that enables it to qualify as a real estate investment trust under the
Internal Revenue Code of 1986, as amended.
Through these various subsidiaries and pursuant to regulatory authority permitting Oritani
Bank to conduct such activities on a "grandfathered" basis, we maintain investments in real estate
and investment in joint ventures. Detailed below is a summary of these various investments by
subsidiary and by type.
Ormon LLC
Ormon LLC is a wholly-owned subsidiary of Oritani Bank. Ormon LLC maintains the following
investments in real estate and joint ventures:
Investments in Real Estate
Park Lane Associates
— Ormon LLC maintains a 50% undivided ownership interest in Park Lane
Associates. Park Lane Associates is a 142-unit apartment complex located in Little Falls, New
Jersey. Our initial investment was made in March 1980. For the year ended June 30, 2009, we
recognized net income of $396,000 on this investment and received cash distributions of $321,000
during this period. At December 31, 2009, we had a loan to Park Lane Associates totaling $1.9
million.
Park View Apartments
— Ormon LLC maintains a 50% undivided ownership interest in Park View
Apartments. Park View Apartments is a 114-unit apartment complex located in White Hall,
Pennsylvania. We initially invested in Park View in December 1986. For the year ended June 30,
2009, we recognized net income of $82,000 on its investment in Park View and received cash
distributions of $39,000 during this period. At December 31, 2009, we had a loan to Park View
Apartments totaling $1.2 million.
Winstead Village
— Ormon LLC maintains a 50% undivided ownership interest in Winstead Village.
Winstead Village is a 40-unit apartment complex located in Moorestown, New Jersey. We initially
invested in Winstead in December 1986. For the year ended June 30, 2009 we recognized net income
of $50,000 on its investment and also received cash distributions of $67,000 during that period.
At December 31, 2009, we had a loan to Winstead Village totaling $817,000.
Parkway East
— Ormon LLC maintains a 50% undivided ownership interest in Parkway East. Parkway
East is a 43-unit apartment complex located in Caldwell, New Jersey. We initially invested in
Parkway East in July 1981. For the year ended June 30, 2009, we recognized net income of $92,000
on its investment in Parkway East and received cash distributions of $94,000 during this period.
We have no loan to this entity.
Marine View Apartments
— Ormon LLC maintains a 75% undivided ownership interest in Marine View
Apartments. Marine View is an 85-unit apartment complex located in Perth Amboy, New Jersey. We
initially invested in Marine View in October 1993. For the year ended June 30, 2009, we recognized
net
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income of $219,000 on its investment in Marine View and received cash distributions of $203,000
over that period. We have no loans to this entity.
Ormon LLC also wholly owns one property that is held and operated for investment purposes. The
property is a 54-unit mixed-use property (49 residential units and 5 store fronts) located in
Palisades Park, New Jersey. We recognized net income of $457,000 for the year ended June 30, 2009
from the operation of this property.
During the quarter ended September 30, 2009, Ormon LLC sold a 19-unit office building located in
Hillsdale, New Jersey and recognized a net gain of $1.0 million. During the fourth quarter of the
fiscal year ended June 30, 2008, Ormon LLC sold an 18-unit apartment complex located in Englewood,
New Jersey and recognized a net gain of $1.1 million.
Investments in Joint Ventures
Oaklyn Associates
- Oaklyn Associates is a 50% owned joint venture on a 100-unit apartment complex
located in Oaklyn, New Jersey. We initially invested in this joint venture in February 1978. For
the year ended June 30, 2009, we recognized net income of $67,000 on this investment and received
cash distributions of $42,000 over that period. At December 31, 2009, we had a loan to Oaklyn
Associates totaling $873,000.
Madison Associates
- Madison Associates is a 50% owned joint venture on 30-unit apartment complex
located in Madison, New Jersey. We initially invested in this joint venture in January 1989. For
the year ended June 30, 2009, we recognized net income of $77,000 on this investment and received
cash distribution of $80,000 over that period. We have no loans to this entity.
Brighton Court Associates
- Brighton Court Associate is a 50% owned joint venture on a 47-unit
apartment complex located in Bethlehem, Pennsylvania. We initially invested in Brighton Court in
July 1996. For the year ended June 30, 2009, we recognized a net income of $9,000 on this
investment and received cash distributions totaling $37,000 over that period. At December 31,
2009, our loans to Brighton Court Associates totaled $1.5 million.
Plaza 23 Associates
- Plaza 23 Associates is 50% owned joint venture on a shopping center in
Pequannock, New Jersey. We initially invested in Plaza 23 Associates in October 1983. For the
year ended June 30, 2009, we recognized net income of $816,000 related to this investment and
received cash distributions of $1.1 million during that period. We have no loans to Plaza 23
Associates but had $10.3 million loan to its partner in this joint venture, Plains Plaza Ltd. at
December 31, 2009. Plains Plaza Ltd. has pledged its equity interest in Plaza 23 Associates as
collateral for this loan.
Oritani, LLC
Oritani, LLC is a wholly-owned limited liability corporation of Oritani Financial Corp. The
primary business of Oritani, LLC is real estate investments.
Investments in Joint Ventures
Ridge Manor Associates
- Ridge Manor Associates is a 50% owned joint venture on a 44-unit apartment
complex located in Park Ridge, New Jersey. We initially invested in Ridge Manor Associates in May
2004. For the year ended June 30, 2009, we recognized net income of $11,000 related to this
investment, and also received cash distributions of $24,000 during that period. At December 31,
2009, we had a loan to this entity that totaled $4.3 million.
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Van Buren Apartments
- Van Buren Apartments is a 50% owned joint venture on a 32-unit apartment
complex located in River Edge, New Jersey. We initially invested in Van Buren in March 2002. For
the year ended June 30, 2009, we recognized a net income on this investment of $37,000 and received
cash distributions of $49,000 during that period. At December 31, 2009, we had a loan to Van Buren
Apartments that totaled $2.3 million.
10 Landing Lane
- 10 Landing Lane is a 50% owned joint venture on a 143-unit apartment complex
located in New Brunswick, New Jersey. We initially invested in 10 Landing Lane in August 1998.
For the year ended June 30, 2009, we recognized net income of $204,000 related to this investment
and received cash distributions of $62,000 during that period. We have no loans to this entity.
FAO Hasbrouck Heights
- FAO Hasbrouck Heights is a 50% owned joint venture on 93 mixed-use units
(primarily residential) in Hasbrouck Heights, New Jersey. We initially invested in FAO Hasbrouck
Heights in November 2005. For the year ended June 30, 2009, we recognized a net loss of $55,000
related to this investment and received cash distributions of $365,000 over that period. In
February, 2009, the loan to this entity was refinanced and the amount outstanding was increased.
This was the primary reason for the cash distribution despite the net loss. At December 31, 2009,
we had a loan to FAO Hasbrouck Heights that totaled $7.8 million.
FAO Terrace Associates
- FAO Terrace Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hasbrouck Heights, New Jersey. We initially invested in FAO Terrace Associates
in January 2009. For the year ended June 30, 2009, we recognized a net income of $7,000 related to
this investment and received cash distributions of $28,000 over that period. At December 31, 2009,
we had a loan to FAO Terrace Associates that totaled $2.6 million.
FAO Gardens Associates
- FAO Garden Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hackensack, New Jersey. We initially invested in FAO Garden Associates in
February 2009. For the year ended June 30, 2009, we recognized a net income of $1,000 related to
this investment and received cash distributions of $18,000 over that period. At December 31, 2009,
we had a loan to FAO Garden Associates that totaled $2.6 million.
River Villa Mews
- River Villa Mews is a 50% owned joint venture on a 44-unit apartment complex
located in Palmyra, New Jersey. We initially invested in River Villa Mews in August 2009. At
December 31, 2009, we had a loan to River Villa Mews that totaled $624,000.
Hampshire Financial
Hampshire Financial is a wholly-owned subsidiary of Oritani Financial Corp. The primary
business of Hampshire Financial is real estate investments.
Investments in Joint Ventures
Hampshire Realty
- Hampshire Realty is a 50% owned joint venture on an 81-unit apartment complex
located in Allentown, Pennsylvania. We initially invested in Hampshire in June 2002. For the year
ended June 30, 2009, we recognized a net loss of $49,000 related to this investment and received
cash distributions of $6,000 over that period. At December 31, 2009, we had a loan to Hampshire
that totaled $3.0 million.
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The following table presents a summary of our investments in real estate and investments in
joint ventures for the periods presented.
For the Six Months Ended December 31, 2009
Book
Book Value at
Profit/
Distributions
Additional
Value at
Property Name
June 30, 2009
(Loss)
Received
Investment
December 31, 2009
Real Estate Held for Investment
Ormon, LLC — Undivided Interests in Real Estate
Park Lane
$
(428
)
$
184
$
(185
)
$
—
$
(429
)
Park View
(439
)
23
(16
)
—
(432
)
Winstead Village
(228
)
46
(25
)
—
(207
)
Parkway East
(334
)
37
(45
)
—
(342
)
Marine View
869
151
(127
)
—
894
Ormon, LLC — Wholly Owned Properties
Palisades Park
(1)
328
266
—
—
328
Hillsdale
(1)
140
3
—
—
—
Real Estate Held For Investment Summary
Assets
(1)
$
1,337
$
420
$
(127
)
$
—
$
1,222
Liabilities
$
(1,429
)
$
390
$
(271
)
$
—
$
(1,410
)
Investments in Joint Ventures
Ormon, LLC
Oaklyn Associates
$
(203
)
$
55
$
(24
)
$
—
$
(172
)
Madison Associates
(23
)
33
(40
)
—
(30
)
Brighton Court Associates
141
(6
)
(8
)
—
127
Plaza 23 Associates
3,329
375
(681
)
—
3,023
Oritani, LLC
Ridge Manor Associates
554
1
(32
)
—
523
Van Buren Apartments
167
30
(27
)
—
170
10 Landing Lane
18
85
(100
)
—
3
FAO Hasbrouck Heights
436
(17
)
—
—
419
FAO Terrace Associates
579
26
—
—
605
FAO Gardens
443
10
—
—
453
River Villas Mews
—
16
—
387
403
Hampshire Financial
Hampshire Realty
118
—
(6
)
—
114
Investments in Joint Ventures Summary
Assets
$
5,767
$
435
$
(753
)
$
387
$
5,836
Liabilities
$
(208
)
$
173
$
(164
)
$
—
$
(199
)
(1)
The book values for wholly owned properties represent the costs of the fixed assets
associated with the property, less accumulated depreciation.
At December 31, 2009, the net book value of real estate held for investment is $(188,000).
The gross appraised value and equity is $42.0 million and $37.0 million, respectively. Our share
of the equity is $23.9 million, or $24.1 million in excess of the book value. At December 31, 2009,
the net book value of real estate joint ventures is $5.6 million. The gross appraised value and
equity is $96.3 million and $62.3 million, respectively. Our share of the equity is $31.2 million,
or $25.5 million in excess of the book value.
Personnel
As of December 31, 2009, we had 148 full-time employees and 54 part-time employees. Our
employees are not represented by any collective bargaining group. Management believes that we have
good relations with our employees.
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SUPERVISION AND REGULATION
General
Federal law allows a state savings bank, such as Oritani Bank, that qualifies as a "qualified
thrift lender" (discussed below), to elect to be treated as a savings association for purposes of
the savings and loan holding company provisions of the Home Owners' Loan Act, as amended ("HOLA").
Such an election results in the savings bank's holding company being regulated as savings and loan
holding companies by the OTS rather than as bank holding company regulated by the Board of
Governors of the Federal Reserve System. At the time of its reorganization into a holding company
structure, Oritani Bank elected to be treated as a savings association under the applicable
provisions of the HOLA. Accordingly, Oritani Financial Corp. and Oritani Financial Corp., MHC are
savings and loan holding companies and are required to file certain reports with, and are subject
to examination by, and otherwise must comply with the rules and regulations of, the OTS. Oritani
Financial Corp. is also subject to the rules and regulations of the Securities and Exchange
Commission under the federal securities laws.
Oritani Bank is a New Jersey-chartered savings bank, and its deposit accounts are insured up
to applicable limits by the FDIC. Oritani Bank is subject to extensive regulation, examination and
supervision by the Commissioner of the New Jersey Department of Banking and Insurance (the
"Commissioner") as the issuer of its charter, and by the FDIC as the deposit insurer and its
primary federal regulator. Oritani Bank must file reports with the Commissioner and the FDIC
concerning its activities and financial condition, and it must obtain regulatory approval prior to
entering into certain transactions, such as mergers with, or acquisitions of, other depository
institutions and opening or acquiring branch offices. The Commissioner and the FDIC conduct
periodic examinations to assess Oritani Bank's compliance with various regulatory requirements.
This regulation and supervision establishes a comprehensive framework of activities in which a
savings bank may engage and is intended primarily for the protection of the deposit insurance fund
and depositors. The regulatory structure also gives the regulatory authorities extensive
discretion in connection with their supervisory and enforcement activities and examination
policies, including policies with respect to the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes.
Any change in these laws or regulations, whether by the New Jersey Department of Banking and
Insurance, the FDIC, the OTS or the U.S. Congress, could have a material adverse impact on Oritani
Financial Corp., Oritani Bank and their operations.
Certain of the regulatory requirements that are or will be applicable to Oritani Bank, Oritani
Financial Corp. and Oritani Financial Corp., MHC are described below. This description of statutes
and regulations is not intended to be a complete explanation of such statutes and regulations and
their effects on Oritani Bank, Oritani Financial Corp. and Oritani Financial Corp., MHC and is
qualified in its entirety by reference to the actual statutes and regulations.
New Jersey Banking Regulation
Activity Powers.
Oritani Bank derives its lending, investment and other powers primarily from
the applicable provisions of the New Jersey Banking Act and its related regulations. Under these
laws and regulations, savings banks, such as Oritani Bank, generally may invest in:
(1)
real estate mortgages;
(2)
consumer and commercial loans;
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(3)
specific types of debt securities, including certain corporate debt securities
and obligations of federal, state and local governments and agencies;
(4)
certain types of corporate equity securities; and
(5)
certain other assets.
A savings bank may also invest pursuant to a "leeway" power that permits investments not
otherwise permitted by the New Jersey Banking Act. "Leeway" investments must comply with a number
of limitations on the individual and aggregate amounts of "leeway" investments. Under this
"leeway" authority, New Jersey savings banks may exercise those powers, rights, benefits or
privileges authorized for national banks or out-of-state banks or for federal or out-of-state
savings banks or savings associations, provided that before exercising any such power, right,
benefit or privilege, prior approval by the Commissioner by regulation or by specific authorization
is required. A savings bank may also exercise trust powers upon approval of the Commissioner. The
exercise of these lending, investment and activity powers are limited by federal law and the
related regulations. See "—Federal Banking Regulation—Activity Restrictions on State Chartered
Banks" below.
Loans-to-One-Borrower Limitations.
With certain specified exceptions, a New Jersey-chartered
savings bank may not make loans or extend credit to a single borrower or to entities related to the
borrower in an aggregate amount that would exceed 15% of the bank's capital funds. A savings bank
may lend an additional 10.0% of its capital funds if the loan is secured by collateral meeting the
requirements of the New Jersey Banking Act. Oritani Bank currently complies with applicable
loans-to-one-borrower limitations.
Dividends.
Under the New Jersey Banking Act, a stock savings bank may declare and pay a
dividend on its capital stock only to the extent that the payment of the dividend would not impair
the capital stock of the savings bank. In addition, a stock savings bank may not pay a dividend
unless the savings bank would, after the payment of the dividend, have a surplus of not less than
50% of its capital stock, or alternatively, the payment of the dividend would not reduce the
surplus. Federal law may also limit the amount of dividends that may be paid by Oritani Bank. See
"—Federal Banking Regulation—Prompt Corrective Action" below.
Minimum Capital Requirements.
Regulations of the Commissioner impose on New Jersey-chartered
depository institutions, such as Oritani Bank, minimum capital requirements similar to those
imposed by the FDIC on insured state banks. See "—Federal Banking Regulation—Capital
Requirements" Below.
Examination and Enforcement.
The New Jersey Department of Banking and Insurance may examine
Oritani Bank whenever it deems an examination advisable. The New Jersey Department of Banking and
Insurance examines Oritani Bank at least every two years. The Commissioner may order any savings
bank to discontinue any violation of law or unsafe or unsound banking practice, and may direct any
director, officer, attorney or employee of a savings bank engaged in an objectionable activity,
after the Commissioner has ordered the activity to be terminated, to show cause at a hearing before
the Commissioner why such person should not be removed.
Federal Banking Regulation
Capital Requirements.
FDIC regulations require banks to maintain minimum levels of capital.
The FDIC regulations define two tiers, or classes, of capital.
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Tier 1 capital is comprised of the sum of:
•
common stockholders' equity, excluding the unrealized appreciation or
depreciation, net of tax, from available for sale securities;
•
non-cumulative perpetual preferred stock, including any related retained
earnings; and
•
minority interests in consolidated subsidiaries minus all intangible assets,
other than qualifying servicing rights and any net unrealized loss on marketable
equity securities.
The components of Tier 2 capital currently include:
•
cumulative perpetual preferred stock;
•
certain perpetual preferred stock for which the dividend rate may be reset
periodically;
•
hybrid capital instruments, including mandatory convertible securities;
•
term subordinated debt;
•
intermediate term preferred stock;
•
allowance for loan losses; and
•
up to 45% of pretax net unrealized holding gains on available for sale equity
securities with readily determinable fair market values.
The allowance for loan losses includible in Tier 2 capital is limited to a maximum of 1.25% of
risk-weighted assets (as discussed below). Overall, the amount of Tier 2 capital that may be
included in total capital cannot exceed 100% of Tier 1 capital. The FDIC regulations establish a
minimum leverage capital requirement for banks in the strongest financial and managerial condition
of not less than a ratio of 3% of Tier 1 capital to total assets. For all other banks, the minimum
leverage capital requirement is 4%, unless a higher leverage capital ratio is warranted by the
particular circumstances or risk profile of the depository institution.
The FDIC regulations also require that banks meet a risk-based capital standard. The
risk-based capital standard requires the maintenance of a ratio of total capital, which is defined
as the sum of Tier 1 capital and Tier 2 capital, to risk-weighted assets of at least 8% and a ratio
of Tier 1 capital to risk-weighted assets of at least 4%. In determining the amount of
risk-weighted assets, all assets, plus certain off balance sheet items, are multiplied by a
risk-weight of 0% to 100%, based on the risks the FDIC believes are inherent in the type of asset
or item.
The federal banking agencies, including the FDIC, have also adopted regulations to require an
assessment of an institution's exposure to declines in the economic value of a bank's capital due
to changes in interest rates when assessing the bank's capital adequacy. Under such a risk
assessment, examiners evaluate a bank's capital for interest rate risk on a case-by-case basis,
with consideration of both quantitative and qualitative factors. Institutions with significant
interest rate risk may be required to hold additional capital. According to the agencies,
applicable considerations include:
•
the quality of the bank's interest rate risk management process;
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•
the overall financial condition of the bank; and
•
the level of other risks at the bank for which capital is needed.
The following table shows Oritani Bank's Core capital, Tier 1 risk-based capital, and Total
risk-based capital ratios at December 31, 2009:
As of December 31, 2009
Capital
Percent of Assets
(1)
(Dollars in thousands)
Core capital
$
193,183
9.76
%
Tier 1 risk-based capital
193,183
13.49
Total risk-based capital
211,236
14.75
(1)
For purposes of calculating Core capital, assets
are based on adjusted total leverage assets. In calculating Tier 1
risk-based capital and total risk-based capital, assets are based on
total risk-weighted assets.
As the table shows, as of December 31, 2009, Oritani Bank was considered "well
capitalized" under FDIC guidelines.
Prompt Corrective Action.
Federal law requires, among other things, that the federal bank
regulatory authorities take "prompt corrective action" with respect to institutions that do not
meet minimum capital requirements. For these purposes, the law establishes five categories: well
capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and
critically undercapitalized. The FDIC's regulations define the five capital categories as follows:
An institution will be treated as "well capitalized" if:
•
its ratio of total capital to risk-weighted assets is at least 10% ;
•
its ratio of Tier 1 capital to risk-weighted assets is at least 6%; and
•
its ratio of Tier 1 capital to total assets is at least 5%, and it is not
subject to any order or directive by the FDIC to meet a specific capital level.
An institution will be treated as "adequately capitalized" if:
•
its ratio of total capital to risk-weighted assets is at least 8%; or
•
its ratio of Tier 1 capital to risk-weighted assets is at least 4%; and
•
its ratio of Tier 1 capital to total assets is at least 4% (3% if the bank
receives the highest rating under the Uniform Financial Institutions Rating System)
and it is not a well-capitalized institution.
An institution will be treated as "undercapitalized" if:
•
its total risk-based capital is less than 8%; or
•
its Tier 1 risk-based-capital is less than 4%; and
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•
its leverage ratio is less than 4% (or less than 3% if the institution receives
the highest rating under the Uniform Financial Institutions Rating System).
An institution will be treated as "significantly undercapitalized" if:
•
its total risk-based capital is less than 6%;
•
its Tier 1 capital is less than 3%; or
•
its leverage ratio is less than 3%.
An institution that has a tangible capital to total assets ratio equal to or less than 2%
would be deemed to be "critically undercapitalized."
The FDIC is required, with some exceptions, to appoint a receiver or conservator for an
insured state bank if that bank is "critically undercapitalized." For this purpose, "critically
undercapitalized" means having a ratio of tangible capital to total assets of less than 2%. The
FDIC may also appoint a conservator or receiver for a state bank on the basis of the institution's
financial condition or upon the occurrence of certain events, including:
•
insolvency, or when the assets of the bank are less than its liabilities to
depositors and others;
•
substantial dissipation of assets or earnings through violations of law or
unsafe or unsound practices;
•
existence of an unsafe or unsound condition to transact business;
•
likelihood that the bank will be unable to meet the demands of its depositors or
to pay its obligations in the normal course of business; and
•
insufficient capital, or the incurring or likely incurring of losses that will
deplete substantially all of the institution's capital with no reasonable prospect
of replenishment of capital without federal assistance.
Activity Restrictions on State Chartered Banks.
Federal law and FDIC regulations generally
limit the activities and investments of state chartered FDIC insured banks and their subsidiaries
to those permissible for national banks and their subsidiaries, unless such activities and
investments are specifically exempted by law or consented to by the FDIC.
Before making a new investment or engaging in a new activity that is not permissible for a
national bank or otherwise permissible under federal law or FDIC regulations, an insured bank must
seek approval from the FDIC to make such investment or engage in such activity. The FDIC will not
approve the activity unless the bank meets its minimum capital requirements and the FDIC determines
that the activity does not present a significant risk to the FDIC insurance funds. Certain
activities of subsidiaries that are engaged in activities permitted for national banks only through
a "financial subsidiary" are subject to additional restrictions.
Federal law permits a state chartered savings bank to engage, through financial subsidiaries,
in any activity in which a national bank may engage through a financial subsidiary and on
substantially the same terms and conditions. In general, the law permits a national bank that is
well-capitalized and well-
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managed to conduct, through a financial subsidiary, any activity permitted for a financial
holding company other than insurance underwriting, insurance investments, real estate investment or
development or merchant banking. The total assets of all such financial subsidiaries may not
exceed the lesser of 45% of the bank's total assets or $50 billion. The bank must have policies
and procedures to assess the financial subsidiary's risk and protect the bank from such risk and
potential liability, must not consolidate the financial subsidiary's assets with the bank's and
must exclude from its own assets and equity all equity investments, including retained earnings, in
the financial subsidiary. State chartered savings banks may retain subsidiaries in existence as of
March 11, 2000 and may engage in activities that are not authorized under federal law. Although
Oritani Bank meets all conditions necessary to establish and engage in permitted activities through
financial subsidiaries, it has not yet determined whether or the extent to which it will seek to
engage in such activities.
Insurance of Deposit Accounts.
Oritani Bank is a member of the DIF, which is administered by
the FDIC. Deposit accounts at Oritani Bank are insured by the FDIC, generally up to a maximum of
$100,000 for each separately insured depositor and up to a maximum of $250,000 for self-directed
retirement accounts. However, the FDIC increased the deposit insurance available on all deposit
accounts to $250,000, effective until December 31, 2013. In addition, certain noninterest-bearing
transaction accounts maintained with financial institutions participating in the FDIC's Temporary
Liquidity Guarantee Program ("TLG") are fully insured regardless of the dollar amount until June
30, 2010. Oritani Bank has opted to participate in the FDIC's TLG Program.
The FDIC imposes an assessment against all depository institutions for deposit insurance.
This assessment is based on the risk category of the institution and, prior to 2009, ranged from 5
to 43 basis points of the institution's deposits. On February 27, 2009, the FDIC published a final
rule raising the current deposit insurance assessment rates to a range from 12 to 45 basis points
beginning April 1, 2009.
On May 22, 2009, the FDIC adopted a final rule imposing a 5 basis point special assessment on
each insured depository institution's assets minus Tier 1 capital as of June 30, 2009. The amount
of the special assessment for any institution will not exceed 10 basis points times the
institution's assessment base for the second quarter 2009. Our total expense for the special
assessment was $845,000.
The deposit insurance assessment rates are in addition to the assessments for payments on the
bonds issued in the late 1980s by the Financing Corporation, or FICO, to recapitalize the now
defunct Federal Savings and Loan Insurance Corporation. The FICO payments will continue until the
FICO bonds mature in 2017 through 2019. Excluding the special assessment noted above, our expense
for the assessment of deposit insurance and the FICO payments was $928,000 for the year ended June
30, 2009 and $92,000 for the year ended June 30, 2008. The FDIC also established 1.25% of
estimated insured deposits as the designated reserve ratio of the DIF. The FDIC is authorized to
change the assessment rates as necessary, subject to the previously discussed limitations, to
maintain the required reserve ratio of 1.25%.
The FDIC also approved a One-Time Assessment Credit to institutions that were in existence on
December 31, 1996 and paid deposit insurance assessments prior to that date, or are a successor to
such an institution. The Bank received a $2.8 million One-Time Assessment Credit, all of which was
used to offset substantially all of our deposit insurance assessment, excluding the FICO payments,
for the period from January 1, 2007 through March 31, 2009.
The Company is participating in the FDIC's Temporary Account Guarantee ("TAG") program, which
is a part of the FDIC's TLG program. The purpose of the TLG is to strengthen confidence and
encourage liquidity in the banking system. Under the TAG, funds in non-interest-bearing accounts,
in interest-bearing transaction accounts with interest rate of 0.50% or less and in Interest on
Lawyers Trust
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Accounts will have a temporary unlimited guarantee from the FDIC until June 30, 2010. The
coverage of the TAG is in addition to and separate from coverage available under the FDIC's general
deposit insurance rules, which insure accounts up to $250,000.
Federal Home Loan Bank System.
Oritani Bank is a member of the Federal Home Loan Bank System,
which consists of 12 regional Federal Home Loan Banks. The Federal Home Loan Bank System provides
a central credit facility primarily for member institutions. As a member of the FHLB-NY, Oritani
Bank is required to acquire and hold shares of capital stock in the FHLB in an amount at least
equal to 1% of the aggregate principal amount of its unpaid residential mortgage loans and similar
obligations at the beginning of each year, 4.5% of its borrowings from the FHLB, or 0.3% of assets,
whichever is greater. As of December 31, 2009, Oritani Bank was in compliance with this
requirement.
Enforcement.
The FDIC has extensive enforcement authority over insured savings banks,
including Oritani Bank. This enforcement authority includes, among other things, the ability to
assess civil money penalties, to issue cease and desist orders and to remove directors and
officers. In general, these enforcement actions may be initiated in response to violations of laws
and regulations and to unsafe or unsound practices.
Transactions with Affiliates of Oritani Bank.
Transactions between an insured bank, such as
Oritani Bank, and any of its affiliates are governed by Sections 23A and 23B of the Federal Reserve
Act and implementing regulations. An affiliate of a insured bank is any company or entity that
controls, is controlled by or is under common control with the bank. Generally, a subsidiary of a
bank that is not also a depository institution or financial subsidiary is not treated as an
affiliate of the bank for purposes of Sections 23A and 23B.
Section 23A:
•
limits the extent to which the bank or its subsidiaries may engage in "covered
transactions" with any one affiliate to an amount equal to 10.0% of such bank's
capital stock and retained earnings, and limits all such transactions with all
affiliates to an amount equal to 20% of such capital stock and retained earnings;
and
•
requires that all such transactions be on terms that are consistent with safe
and sound banking practices.
The term "covered transaction" includes the making of loans, purchase of assets, issuance of
guarantees and other similar types of transactions. Further, most loans by a bank to any of its
affiliates must be secured by collateral in amounts ranging from 100% to 130% of the loan amounts.
In addition, any covered transaction by a bank with an affiliate and any purchase of assets or
services by a bank from an affiliate must be on terms that are substantially the same, or at least
as favorable to the bank, as those that would be provided to a non-affiliate.
Prohibitions Against Tying Arrangements.
Banks are subject to the prohibitions of 12 U.S.C.
Section 1972 on certain tying arrangements. A depository institution is prohibited, subject to
some exceptions, from extending credit to or offering any other service, or fixing or varying the
consideration for such extension of credit or service, on the condition that the customer obtain
some additional service from the institution or its affiliates or not obtain services of a
competitor of the institution.
Privacy Standards.
FDIC regulations require Oritani Bank to disclose their privacy policy,
including identifying with whom they share "non-public personal information," to customers at the
time
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of establishing the customer relationship and annually thereafter. Oritani Bank does not
share "non-public personal information" with third parties.
In addition, Oritani Bank is required to provide its customers with the ability to "opt-out"
of having Oritani Bank share their non-public personal information with unaffiliated third parties
before they can disclose such information, subject to certain exceptions.
The FDIC and other federal banking agencies adopted guidelines establishing standards for
safeguarding customer information. The guidelines describe the agencies' expectations for the
creation, implementation and maintenance of an information security program, which would include
administrative, technical and physical safeguards appropriate to the size and complexity of the
institution and the nature and scope of its activities. The standards set forth in the guidelines
are intended to insure the security and confidentiality of customer records and information,
protect against any anticipated threats or hazards to the security or integrity of such records and
protect against unauthorized access to or use of such records or information that could result in
substantial harm or inconvenience to any customer.
Community Reinvestment Act and Fair Lending Laws.
All FDIC insured institutions have a
responsibility under the Community Reinvestment Act and related regulations to help meet the credit
needs of their communities, including low- and moderate-income neighborhoods. In connection with
its examination of a state chartered savings bank, the FDIC is required to assess the institution's
record of compliance with the Community Reinvestment Act. Among other things, the current
Community Reinvestment Act regulations replace the prior process-based assessment factors with a
new evaluation system that rates an institution based on its actual performance in meeting
community needs. In particular, the current evaluation system focuses on three tests:
•
a lending test, to evaluate the institution's record of making loans in its
service areas;
•
an investment test, to evaluate the institution's record of investing in
community development projects, affordable housing, and programs benefiting low or
moderate income individuals and businesses; and
•
a service test, to evaluate the institution's delivery of services through its
branches, ATMs and other offices.
An institution's failure to comply with the provisions of the Community Reinvestment Act
could, at a minimum, result in regulatory restrictions on its activities. Oritani Bank received a
"satisfactory" Community Reinvestment Act rating in our most recently completed federal
examination, which was conducted by the FDIC in September 2008.
In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from
discriminating in their lending practices on the basis of characteristics specified in those
statutes. The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act
could result in enforcement actions by the FDIC, as well as other federal regulatory agencies and
the Department of Justice.
Loans to a Bank's Insiders
Federal Regulation.
A bank's loans to its executive officers, directors, any owner of more
than 10.0% or more of its stock (each, an insider) and any of certain entities affiliated with any
such persons (an insider's related interest) are subject to the conditions and limitations imposed
by Section 22(h) of the Federal Reserve Act and its implementing regulations. Under these
restrictions, the aggregate amount of
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the loans to any insider and the insider's related interests may not exceed the
loans-to-one-borrower limit applicable to national banks, which is comparable to the
loans-to-one-borrower limit applicable to Oritani Bank. See "-New Jersey Banking
Regulation-Loans-to-One Borrower Limitations." All loans by a bank to all insiders and insiders'
related interests in the aggregate generally may not exceed the bank's unimpaired capital and
unimpaired surplus. With certain exceptions, loans to an executive officer, other than loans for
the education of the officer's children and certain loans secured by the officer's primary
residence, may not exceed the lesser of (1) $100,000 or (2) the greater of $25,000 or 2.5% of the
bank's unimpaired capital and surplus. Federal regulation also requires that any proposed loan to
an insider or a related interest of that insider be approved in advance by a majority of the Board
of Directors of the bank, with any interested directors not participating in the voting, if such
loan, when aggregated with any existing loans to that insider and the insider's related interests,
would exceed either (1) $500,000 or (2) the greater of $25,000 or 5% of the bank's unimpaired
capital and surplus.
Generally, loans to insiders must be made on substantially the same terms as, and follow
credit underwriting procedures that are not less stringent than, those that are prevailing at the
time for comparable transactions with other persons. An exception is made for extensions of credit
made pursuant to a benefit or compensation plan of a bank that is widely available to employees of
the bank and that does not give any preference to insiders of the bank over other employees of the
bank.
In addition, federal law prohibits extensions of credit to a bank's insiders and their related
interests by any other institution that has a correspondent banking relationship with the bank,
unless such extension of credit is on substantially the same terms as those prevailing at the time
for comparable transactions with other persons and does not involve more than the normal risk of
repayment or present other unfavorable features.
New Jersey Regulation.
Provisions of the New Jersey Banking Act impose conditions and
limitations on the liabilities to a savings bank of its directors and executive officers and of
corporations and partnerships controlled by such persons that are comparable in many respects to
the conditions and limitations imposed on the loans and extensions of credit to insiders and their
related interests under federal law, as discussed above. The New Jersey Banking Act also provides
that a savings bank that is in compliance with federal law is deemed to be in compliance with such
provisions of the New Jersey Banking Act.
Other Regulations
Interest and other charges collected or contracted for by Oritani Bank are subject to state
usury laws and federal laws concerning interest rates. Oritani Bank's operations are also subject
to federal laws applicable to credit transactions, such as the:
•
Truth-In-Lending Act, governing disclosures of credit terms to consumer
borrowers;
•
Home Mortgage Disclosure Act of 1975, requiring financial institutions to
provide information to enable the public and public officials to determine whether
a financial institution is fulfilling its obligation to help meet the housing needs
of the community it serves;
•
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race,
creed or other prohibited factors in extending credit;
•
Fair Credit Reporting Act of 1978, governing the use and provision of
information to credit reporting agencies;
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•
Fair Debt Collection Act, governing the manner in which consumer debts may be
collected by collection agencies; and
•
Rules and regulations of the various federal agencies charged with the
responsibility of implementing such federal laws.
The operations of Oritani Bank also are subject to the:
•
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality
of consumer financial records and prescribes procedures for complying with
administrative subpoenas of financial records;
•
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which
govern automatic deposits to and withdrawals from deposit accounts and customers'
rights and liabilities arising from the use of automated teller machines and other
electronic banking services;
•
Check Clearing for the 21
st
Century Act (also known as "Check 21"),
which gives "substitute checks," such as digital check images and copies made from
that image, the same legal standing as the original paper check;
•
Title III of The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred to as the
"USA PATRIOT Act"), which significantly expanded the responsibilities of financial
institutions, including savings banks, in preventing the use of the U.S. financial
system to fund terrorist activities. Among other provisions, the USA PATRIOT Act
and the related regulations of the OTS require savings associations operating in
the United States to develop new anti-money laundering compliance programs, due
diligence policies and controls to ensure the detection and reporting of money
laundering. Such required compliance programs are intended to supplement existing
compliance requirements, also applicable to financial institutions, under the Bank
Secrecy Act and the Office of Foreign Assets Control Regulations; and
•
The Gramm-Leach-Bliley Act, which placed limitations on the sharing of consumer
financial information by financial institutions with unaffiliated third parties.
Specifically, the Gramm-Leach-Bliley Act requires all financial institutions
offering financial products or services to retail customers to provide such
customers with the financial institution's privacy policy and provide such
customers the opportunity to "opt out" of the sharing of certain personal financial
information with unaffiliated third parties.
Holding Company Regulation
General
. Oritani Financial Corp., MHC and Oritani Financial Corp. are non-diversified savings
and loan holding companies within the meaning of the HOLA. As such, Oritani Financial Corp., MHC
and Oritani Financial Corp. are registered with the OTS and subject to OTS regulations,
examinations, supervision and reporting requirements. In addition, the OTS has enforcement
authority over Oritani Financial Corp. and Oritani Financial Corp., MHC, and their subsidiaries.
Among other things, this authority permits the OTS to restrict or prohibit activities that are
determined to be a serious risk to the subsidiary savings institution. As federal corporations,
Oritani Financial Corp. and Oritani Financial Corp., MHC are generally not subject to state
business organization laws.
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Permitted Activities
. Pursuant to Section 10(o) of the HOLA and OTS regulations and policy, a
mutual holding company and a federally chartered mid-tier holding company such as Oritani Financial
Corp. may engage in the following activities:
(i)
investing in the stock of a savings bank;
(ii)
acquiring a mutual association through the merger of such association
into a savings bank subsidiary of such holding company or an interim savings
bank subsidiary of such holding company;
(iii)
merging with or acquiring another holding company, one of whose
subsidiaries is a savings bank;
(iv)
investing in a corporation, the capital stock of which is available
for purchase by a savings bank under federal law or under the law of any state
where the subsidiary savings bank or associations share their home offices;
(v)
furnishing or performing management services for a savings bank
subsidiary of such company;
(vi)
holding, managing or liquidating assets owned or acquired from a
savings subsidiary of such company;
(vii)
holding or managing properties used or occupied by a savings bank
subsidiary of such company;
(viii)
acting as trustee under deeds of trust;
(ix)
any other activity:
A. that the Federal Reserve Board, by regulation, has determined to be
permissible for bank holding companies under Section 4(c) of the Bank
Holding Company Act of 1956, unless the Director, by regulation, prohibits
or limits any such activity for savings and loan holding companies; or
B. in which multiple savings and loan holding companies were authorized (by
regulation) to directly engage on March 5, 1987;
(x)
any activity permissible for financial holding companies under Section
4(k) of the Bank Holding Company Act, including securities and insurance
underwriting; and
(xi)
purchasing, holding, or disposing of stock acquired in connection
with a qualified stock issuance if the purchase of such stock by such savings
and loan holding company is approved by the Director. If a mutual holding
company acquires or merges with another holding company, the holding company
acquired or the holding company resulting from such merger or acquisition may
only invest in assets and engage in activities listed in (i) through (x) above,
and has a period of two years to cease any nonconforming activities and divest
any nonconforming investments.
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The HOLA prohibits a savings and loan holding company, including Oritani Financial Corp. and
Oritani Financial Corp., MHC, directly or indirectly, or through one or more subsidiaries, from
acquiring more than 5% of another savings institution or holding company thereof, without prior
written approval of the OTS. It also prohibits the acquisition or retention of, with certain
exceptions, more than 5% of a nonsubsidiary company engaged in activities other than those
permitted by the HOLA, or acquiring or retaining control of an institution that is not federally
insured. In evaluating applications by holding companies to acquire savings institutions, the OTS
must consider the financial and managerial resources, future prospects of the company and
institution involved, the effect of the acquisition on the risk to the federal deposit insurance
fund, the convenience and needs of the community and competitive factors.
The OTS is prohibited from approving any acquisition that would result in a multiple savings
and loan holding company controlling savings institutions in more than one state, subject to two
exceptions:
(i) the approval of interstate supervisory acquisitions by savings and loan holding companies;
and
(ii) the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisitions.
The states vary in the extent to which they permit interstate savings and loan holding company
acquisitions.
Waivers of Dividends by Oritani Financial Corp., MHC
. Until the completion of the
reorganization and stock offering, OTS regulations require Oritani Financial Corp., MHC to notify
the OTS of any proposed waiver of its receipt of dividends from Oritani Financial Corp. The OTS
reviews dividend waiver notices on a case-by-case basis, and, in general, does not object to any
such waiver if:
(i) the waiver would not be detrimental to the safe and sound operation of the
subsidiary savings association; and
(ii) the mutual holding company's Board of Directors determines that such waiver is
consistent with such directors' fiduciary duties to the mutual holding company's
members.
Oritani Financial Corp., MHC, applied for, and was granted, permission from the OTS to waive the
dividend paid by Oritani Financial Corp. on July 24, 2009. We anticipate that Oritani Financial
Corp., MHC will waive any additional dividends paid by Oritani Financial Corp. Under OTS
regulations, our public stockholders would not be diluted because of any dividends waived by
Oritani Financial Corp., MHC (and waived dividends would not be considered in determining an
appropriate exchange ratio) in the event Oritani Financial Corp., MHC converts to stock form.
Qualified Thrift Lender Test.
In order for Oritani Financial Corp. and Oritani Financial
Corp., MHC to continue to be regulated as savings and loan holding companies by the OTS (rather
than as a bank holding companies by the Board of Governors of the Federal Reserve System), Oritani
Bank must qualify as a "qualified thrift lender" under OTS regulations or satisfy the "domestic
building and loan association" test under the Internal Revenue Code. Under the qualified thrift
lender test, a savings institution is required to maintain at least 65% of its "portfolio assets"
(total assets less: (i) specified liquid assets up to 20% of total assets; (ii) intangible,
including goodwill; and (iii) the value of property used to conduct business) in certain "qualified
thrift investments" (primarily residential mortgages and related investments, including certain
mortgage-backed and related securities) in at least nine out of each
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12 month period. Oritani Bank currently maintains the majority of its portfolio assets in
qualified thrift investments and has met the qualified thrift lender test in each of the last 12
months.
Federal Securities Laws
Oritani Financial Corp.'s common stock is registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended. Oritani Financial Corp. is
subject to the information, proxy solicitation, insider trading restrictions and other requirements
under the Securities Exchange Act of 1934.
Oritani Financial Corp. common stock held by persons who are affiliates (generally officers,
directors and principal stockholders) of Oritani Financial Corp. may not be resold without
registration or unless sold in accordance with certain resale restrictions. If Oritani Financial
Corp. meets specified current public information requirements, each affiliate of Oritani Financial
Corp. is able to sell in the public market, without registration, a limited number of shares in any
three-month period.
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 addresses, among other issues, corporate governance, auditing
and accounting, executive compensation, and enhanced and timely disclosure of corporate
information. As directed by the Sarbanes-Oxley Act of 2002, our Chief Executive Officer and Chief
Financial Officer each will be required to certify that our quarterly and annual reports do not
contain any untrue statement of a material fact. The rules adopted by the Securities and Exchange
Commission under the Sarbanes-Oxley Act of 2002 have several requirements, including having these
officers certify that: they are responsible for establishing, maintaining and regularly evaluating
the effectiveness of our internal controls; they have made certain disclosures to our auditors and
the audit committee of the Board of Directors about our internal controls; and they have included
information in our quarterly and annual reports about their evaluation and whether there have been
significant changes in our internal controls or in other factors that could significantly affect
internal controls. Oritani Financial Corp is required to report under Section 404 of the
Sarbanes-Oxley Act and has reported that it complies with such in all material respects.
FEDERAL AND STATE TAXATION
Federal Taxation
General
.
Oritani Financial Corp. and Oritani Bank are subject to federal income taxation in
the same general manner as other corporations, with some exceptions discussed below. Neither
Oritani Financial Corp.'s nor Oritani Bank's federal tax returns are currently under audit, and
neither entity has been audited during the past five years. The following discussion of federal
taxation is intended only to summarize certain pertinent federal income tax matters and is not a
comprehensive description of the tax rules applicable to Oritani Financial Corp. or Oritani Bank.
Method of Accounting
.
For federal income tax purposes, Oritani Financial Corp. currently
reports its income and expenses on the accrual method of accounting and uses a tax year ending
December 31 for filing its federal and state income tax returns.
Bad Debt Reserves
.
Historically, Oritani Bank has been subject to special provisions in the
tax law regarding allowable tax bad debt deductions and related reserves. Tax law changes were
enacted in 1996, pursuant to the Small Business Protection Act of 1996 (the "1996 Act"), that
eliminated the use of the percentage of taxable income method for tax years after 1995 and required
recapture into taxable
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income over a six year period of all bad debt reserves accumulated after 1988. Oritani Bank
recaptured its reserve balance over the six-year period ended December 31, 2003.
Currently, the Oritani Bank consolidated group uses the specific charge-off method to account
for bad debt deductions for income tax purposes.
Taxable Distributions and Recapture
.
Prior to the 1996 Act, bad debt reserves created prior
to January 1, 1988 were subject to recapture into taxable income should Oritani Bank fail to meet
certain thrift asset and definitional tests.
At December 31, 2009, our total federal pre-base year reserve was approximately $15.1 million.
However, under current law, pre-base year reserves remain subject to recapture should Oritani Bank
make certain non-dividend distributions, repurchase any of its stock, pay dividends in excess of
tax earnings and profits, or cease to maintain a bank charter.
Alternative Minimum Tax
.
The Internal Revenue Code of 1986, as amended (the "Code") imposes
an alternative minimum tax ("AMT") at a rate of 20% on a base of regular taxable income plus
certain tax preferences ("alternative minimum taxable income" or "AMTI"). The AMT is payable to
the extent such AMTI is in excess of an exemption amount and the AMT exceeds the regular income
tax. Net operating losses can offset no more than 90% of AMTI. Certain payments of alternative
minimum tax may be used as credits against regular tax liabilities in future years. Oritani
Financial Corp. and Oritani Bank have not been subject to the AMT and have no such amounts
available as credits for carryover.
Net Operating Loss Carryforwards
.
A financial institution may carry back net operating losses
to the preceding two taxable years and forward to the succeeding 20 taxable years. At December 31,
2009, Oritani Bank had no net operating loss carryforwards for federal income tax purposes.
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MANAGEMENT
The Board of Directors of Oritani will consist of six individuals who currently serve as
directors of Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank. The Board of
Directors of Oritani will be divided into three classes, as nearly equal as possible, with
one-third of the directors elected each year. The directors will be elected by the stockholders of
Oritani for three-year terms, and until their successors are elected and have qualified. The terms
of the directors of each of Oritani and Oritani Bank are identical. The executive officers of
Oritani are also executive officers of Oritani Financial Corp. We expect that Oritani and Oritani
Bank will continue to have common directors until there is a business reason to establish separate
management structures.
The following individuals will serve as the executive officers of Oritani and hold the offices
set forth below opposite their name.
Name
Positions Held
Kevin J. Lynch
President and Chief Executive Officer
Michael A. DeBernardi
Executive Vice President and Chief Operating Officer
John M. Fields, Jr.
Executive Vice President and Chief Financial Officer
Thomas Guinan
Executive Vice President and Chief Lending Officer
Philip M. Wyks
Senior Vice President and Corporate Secretary
Executive officers of Oritani are elected annually and hold office until their respective
successors have been elected or until death, resignation or removal by the Board of Directors.
The following table provides the positions, ages and terms of office as applicable to our
directors and executive officers, along with the beneficial ownership of our common stock held by
our directors and executive officers, individually and as a group, as of December 31, 2009.
Percentages are based on 37,041,184 shares outstanding.
Unvested Stock
Shares Owned
Awards included in
Directly and
Options Exercisable
Beneficial
Name(1)
Indirectly(1)
within 60 days
Beneficial Ownership
Percent of Class
Ownership
DIRECTORS
Nicholas Antonaccio
72,150
47,689
119,839
*
30,998
Michael A. DeBernardi
122,371
71,534
193,905
*
57,227
Robert S. Hekemian, Jr.
101,904
47,689
149,593
*
30,998
Kevin J. Lynch
269,083
158,964
428,047
1.16
%
119,224
James J. Doyle, Jr.
82,063
47,689
129,752
*
30,998
John J. Skelly, Jr.
119,213
47,689
166,902
*
30,998
NAMED EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
John M. Fields, Jr.
122,227
71,534
193,761
*
57,227
Thomas G. Guinan
107,394
71,534
178,928
*
57,227
Philip M. Wyks
26,404
10,598
37,002
*
9,000
All Directors and
Executive Officers as
a Group (13 persons)
1,173,722
(2)
612,013
1,785,734
4.82
%
453,897
*
Less than 1%.
(1)
Unless otherwise indicated, each person effectively exercises sole, or shared with spouse,
voting and dispositive power as to the shares reported. Totals include unvested stock awards
that were granted pursuant to the 2007 Equity Incentive Plan. The totals for Messrs. Skelly
and Hekemian include 50,000 shares and 16,241 shares, respectively, owned through a company in
which each individual has a beneficial ownership.
(2)
Includes 38,724 shares of common stock allocated to the accounts of executive officers under
the Oritani Bank Employee Stock Ownership Plan.
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The Business Background of Our Directors and Executive Officers.
The business experience for the past five years, as well as the experience, qualifications,
attributes and skills, of each of our directors and executive officers are set forth below. Unless
otherwise indicated, directors and executive officers have held their positions for the past five
years.
Directors
The principal occupation during the past five years of each of our directors is set forth
below. All directors have held their present positions for five years unless otherwise stated.
Nicholas Antonaccio,
age 62, is President of CMA Enterprises LLC, a financial advisory firm
founded by Mr. Antonaccio in 2000. Previously, Mr. Antonaccio was the chief financial officer at a
variety of public and private companies, including serving for five years as senior vice president
and chief financial officer of Copelco Capital, Inc. Mr. Antonaccio has extensive financial and
public company expertise, with responsibilities that have spanned all major areas of financial
management, including financial operations and contract, tax, treasury, financial planning, credit,
information technology, human resources and risk management.
Michael A. DeBernardi,
age 55, served as Lead Director until April 2008 when he was appointed
Executive Vice President and Chief Operating Officer of Oritani Bank. Mr. DeBernardi has
previously served in executive positions with AT&T Capital Corporation, Newcourt Credit Group, CIT
Global Vendor Finance, Aternus Partners, LLC, and US Express Leasing. Mr. DeBernardi is also a
trustee of Chilton Memorial Hospital in Pompton Plains, New Jersey where he serves as Vice-Chairman
of the Audit Committee and Co-Chairman of the Strategic Planning Committee. Mr. DeBernardi has
held executive positions at a variety of capital finance companies throughout his career.
James J. Doyle, Jr.,
age 59, served as the President and Chief Executive Officer of Chilton
Memorial Hospital from 1991 until 2004, and also as a consultant to The Chilton Memorial Hospital's
Foundation Board until 2008. Mr. Doyle has also served as Executive Vice President of Atlantic
Health System from 1994 until 1998, and Executive Vice President of the Valley Health System from
1998 until 2002. Mr. Doyle has significant executive management experience, overseeing
administrative, finance, marketing and human resources activities.
Robert S. Hekemian, Jr.,
age 49, has been with the 75-year-old, family-owned Hekemian & Co.,
Inc. since 1982, becoming President and Chief Operating Officer in 2004. Hekemian & Co. and its
affiliates own, manage and develop apartments, shopping centers and mixed-use projects primarily
throughout New Jersey, Maryland, Virginia, New York and Pennsylvania. Mr. Hekemian has been
involved in all aspects of real estate development and acquisitions throughout his career.
Kevin J. Lynch,
age 63, has been the President and Chief Executive Officer of Oritani Bank
since 1993 and has served as President and Chief Executive Officer of Oritani Financial Corp. since
its creation in 1998. Mr. Lynch is a director of the FHLB-NY and serves on its Executive,
Compensation, and Housing Committees. He is also a director of Pentegra Retirement Services
Financial Institutions Retirement Fund, a national provider of full-service retirement programs.
Mr. Lynch is a former Chairman of the New Jersey League of Community and Savings Bankers and served
as a member of its Board of Governors for several years, and also served on the Board of Directors
of Thrift Institutions Community Investment Corp. Mr. Lynch is a member of the Professional
Development and Education Committee of the American Bankers Association. He is a member of the
American Bar Association and a former member of the Board of Directors of Bergen County Habitat for
Humanity.
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John J. Skelly, Jr.,
age 69, is the President and Chief Executive Officer of West Side
Management, which owns and manages affordable and low-income housing developments throughout New
Jersey, New York and Maryland. Mr. Skelly also served as the Deputy Commissioner of Housing for
the City of New York and was a founding Board Member for Habitat for Humanity of Greater Jersey
City. Mr. Skelly has extensive experience with real estate development and finance.
Executive Officers of the Bank Who Are Not Also Directors
John M. Fields, Jr.
, age 46, has been employed by Oritani Financial Corp. since 1999 and
currently serves as Executive Vice President and Chief Financial Officer. He is also responsible
for information technology, electronic banking and deposit operations, as well as investment and
treasury functions. Prior to 1999, Mr. Fields, Jr. was chief accounting officer and controller at
a local publicly-traded financial institution. Mr. Fields, Jr. is a certified public accountant.
Thomas Guinan
, age 45, has been employed by the Oritani Financial Corp since 2003 and
currently serves as Executive Vice President and Chief Lending Officer. Prior to that, Mr. Guinan
served as a senior vice president of commercial lending at a local financial institution. Mr.
Guinan is responsible for overseeing all aspects of the retail and commercial lending operations of
Oritani Bank, including originations, portfolio growth and developing strategies to enhance Oritani
Bank's market share and profitability.
Philip M. Wyks
, age 55, has been employed by Oritani Financial Corp. since 1976 and currently
serves as Senior Vice President and Secretary. Mr. Wyks is also responsible for facilities
management. In addition, Mr. Wyks is a director of Thrift Institutions Community Investment
Corporation, a subsidiary of the New Jersey League of Community Bankers that assists League members
in forming consortia to originate loans on low to moderate income housing loans and initiate
economic development projects throughout the State of New Jersey.
Anthony V. Bilotta, Jr.
, age 49, began employment with Oritani Financial Corp. in 2008 as
Senior Vice President Retail Banking. Prior to that, Mr. Bilotta served as senior vice president
of retail banking at a local financial institution. Mr. Bilotta is responsible for all aspects of
retail branch banking, sales development, and Oritani Financial Corp.'s marketing program.
Rosanne P. Buscemi
, age 57, has been employed by Oritani Bank since 1978 and currently serves
served as Senior Vice President—Chief Compliance Officer. Ms. Buscemi also assists with training
as well as oversight of new branch development and renovations.
Anne Mooradian
, age 48, has been employed by Oritani Bank since 1985 and currently serves as
Senior Vice President and Human Resources Officer. Ms. Mooradian has also held branch retail
positions at Oritani Bank.
Paul M. Cordero
, age 54, has been employed by Oritani Bank since 1980 and currently serves as
Vice President and Chief Residential Lending Officer.
Ann Marie Jetton
, age 43, has been employed by Oritani Bank since 2000 and currently serves as
Vice President and Principal Accounting Officer.
Paul C. Skinner
, age 47, began employment with Oritani Financial Corp. in 2008 as Vice
President/Chief Information Officer. Prior to that, Mr. Skinner served as senior vice president of
information technology and operations at a local financial institution. Mr. Skinner is responsible
for
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information technology, deposit operations, electronic banking and also serves as the
Company's privacy officer.
Corporate Governance, Code of Ethics and Business Conduct
Oritani Financial Corp. is committed to maintaining sound corporate governance principles and
the highest standards of ethical conduct and is in compliance with applicable corporate governance
laws and regulations.
The Board of Directors has adopted a code of ethics for the principal executive officer,
principal financial officer, principal accounting officer and all persons performing similar
functions, and corporate governance guidelines for directors. These codes are designed to deter
wrongdoing and to promote honest and ethical conduct, the avoidance of conflicts of interest, full
and accurate disclosure and compliance with all applicable laws, rules and regulations. Both of
these documents are available on Oritani Financial Corp.'s website at
www.oritani.com
. Amendments
to and waivers from the code of ethics and corporate governance guidelines for directors are
disclosed on Oritani Financial Corp.'s website.
Director Independence
The Board of Directors has determined that, except as to Mr. Lynch and Mr. DeBernardi, each
member of the Board of Directors is an "independent director" within the meaning of the Nasdaq
corporate governance listing standards and Oritani Financial Corp.'s corporate governance policies.
Mr. Lynch and Mr. DeBernardi are not considered independent as each is an executive officer of
Oritani Financial Corp.
In addition, the Board of Directors has appointed Mr. Antonaccio as Lead Director. The Lead
Director has the following functions:
•
Preside at executive session of the non-management directors.
•
Facilitate communications between other members of the Board of Directors and
the Chief Executive Officer. Any director is free to communicate directly with the
Chief Executive Officer. The Lead Director's role is to attempt to improve such
communications if they are not entirely satisfactory.
•
Work with the Chief Executive Officer in the preparation of the Board of
Directors meeting agenda and information to be provided to the Board of Directors.
•
Chair the annual review of the performance of the Chief Executive Officer.
•
Otherwise consult with the Chief Executive Officer on matters relating to
corporate governance and board performance.
Given the duties of the Lead Director, the Board of Directors has reaffirmed its position of
allowing one individual to serve as Chairman and Chief Executive Officer. Mr. Lynch has served as
Chairman, President and Chief Executive Officer since the inception of Oritani Financial Corp.
During fiscal 2009, each of Directors John J. Skelly, Jr., James J. Doyle, Jr. and Kevin J.
Lynch had residential mortgage loans with Oritani Bank. Additionally, Oritani Bank had loans
outstanding to entities in which Directors Hekemian and Skelly had an ownership interest in the
amounts of $25.2
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million and $8.8 million, respectively. These loans were made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for comparable
transactions with the general public. Oritani Financial Corp. also utilizes the property
management services of Hekemian & Co., Inc. to manage two properties owned by its subsidiaries.
Director Hekemian has a partial ownership interest in Hekemian & Co., Inc. During the fiscal year
ended June 30, 2009, Oritani Financial Corp., through its subsidiaries, paid $87,000 to Hekemian &
Co., Inc. for these management services. In addition, during the fiscal year ended June 30, 2009,
Oritani Bank made rent payments for its Cliffside Park branch totaling $88,080 to the landlord,
Willet & Co. Director Hekemian has a partial ownership interest in Willet & Co. The terms of these
agreements were determined in the ordinary course of business and were made on substantially the
same terms by us as could have been made with unaffiliated parties.
Board of Directors Meetings and Committees
The Board of Directors of Oritani Financial Corp. and Oritani Bank met 12 times during the
fiscal year ended June 30, 2009. All directors attended all Board of Directors and committee
meetings during fiscal 2009, including Board and committee meetings of Oritani Bank. Executive
sessions of the independent directors are regularly scheduled. Although not required, attendance
of directors at the Annual Meeting of Stockholders is encouraged. Each of Oritani Financial
Corp.'s directors attended the Oritani Financial Corp.'s 2009 Annual Meeting of Stockholders.
Oritani Financial Corp. and Oritani Bank have four standing committees of the Board of
Directors: Compensation and Corporate Governance Committee; Audit Committee; Loan Committee; and
CRA and Compliance Committee.
Transactions with Certain Related Persons
Federal law and regulation generally require that all loans or extensions of credit to
executive officers and directors must be made in the ordinary course of business on substantially
the same terms, including interest rates and collateral, as those prevailing at the time for
comparable loans with persons not related to Oritani Bank or Oritani Financial Corp. and must not
involve more than the normal risk of collectibility or present other unfavorable features.
However, applicable regulations permit executive officers and directors to receive the same terms
through loan programs that are widely available to other employees, as long as the director or
executive officer is not given preferential treatment compared to the other participating
employees.
Section 402 of the Sarbanes-Oxley Act of 2002 generally prohibits an issuer from: (1)
extending or maintaining credit; (2) arranging for the extension of credit; or (3) renewing an
extension of credit in the form of a personal loan for an officer or director. There are several
exceptions to this general prohibition, one of which is applicable to Oritani Bank. Sarbanes-Oxley
does not apply to loans made by a depository institution that is insured by the FDIC and is subject
to the insider lending restrictions of the Federal Reserve Act. All loans to the Company's
directors and officers are made in conformity with the Federal Reserve Act and Regulation O.
The aggregate amount of our loans to our executive officers and directors, and their related
entities, was $38.3 million at December 31, 2009. These loans were performing according to their
original terms at December 31, 2009.
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Executive Compensation
Compensation and Corporate Governance Committee Interlocks and Insider Participation
Our Compensation and Corporate Governance Committee ("C&CG Committee") determines the salaries
to be paid each year to the Chief Executive Officer and those executive officers who report
directly to the Chief Executive Officer. The C&CG Committee consists of Directors Doyle (Chair),
Antonaccio, Hekemian and Skelly. None of these individuals was an officer or employee of Oritani
Financial Corp. or Oritani Bank during the fiscal year ended June 30, 2009, or is a former officer
of Oritani Financial Corp. or Oritani Bank.
During the fiscal year ended June 30, 2009, (i) no executive of Oritani Financial Corp. served
as a member of the compensation committee (or other Board committee performing equivalent functions
or, in the absence of any such committee, the entire Board of Directors) of another entity, one of
whose executive officers served on the C&CG Committee of Oritani Financial Corp.; (ii) no executive
officer of Oritani Financial Corp. served as a director of another entity, one of whose executive
officers served on the C&CG Committee of Oritani Financial Corp.; and (iii) no executive officer of
Oritani Financial Corp. served as a member of the compensation committee (or other board committee
performing equivalent functions or, in the absence of any such committee, the entire Board of
Directors) of another entity, one of whose executive officers served as a director of Oritani
Financial Corp.
Compensation Discussion and Analysis
Compensation Philosophy and Objectives
The goal of the Executive Compensation Program is to enable us to attract, develop, and retain
strong executive officers capable of maximizing our performance for the benefit of its
stockholders. Our compensation philosophy is to provide competitive compensation opportunities
that are aligned with our financial performance and the generation of value for stockholders
through stock-price appreciation. Our focus is on retaining and motivating key executives,
maintaining profitability, asset quality and loan growth, while aggressively controlling expenses.
Role of the Compensation and Corporate Governance Committee
The C&CG Committee assists the Board of Directors in discharging its responsibilities
regarding the Company's compensation and benefit plans and practices. Authority granted to the
C&CG Committee is established in its charter, which is available on the Company's website at
www.oritani.com. The C&CG Committee meets as necessary. One of the responsibilities of the C&CG
Committee is to provide, on an annual basis, final approval of the significant components of the
total compensation of the named executive officers. In making these determinations, the C&CG
Committee considers the executive's level of job responsibility, the compensation paid by peers for
similar levels of responsibility, industry survey data regarding executive compensation, the
financial condition and performance of the Company, and an assessment of the executive's individual
performance. The C&CG Committee also strongly considers the recommendations of the CEO regarding
the other named executive officers. The actions of the C&CG Committee are presented for discussion
at meetings of the full Board of Directors.
Use of Outside Advisors and Survey Data.
The C&CG Committee uses industry survey data from
independent sources and had previously engaged a consulting firm to assist it in performing its
duties. The independent sources of industry survey data utilized by the C&CG Committee are the
executive compensation reports prepared by the New Jersey League of Community Bankers and L.R.
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Webber Associates, Inc. ("Webber Survey"). The Webber Survey provides timely and reliable
information on wages, salaries, employee benefits, and compensation practices and trends for
financial institutions. It is widely utilized within the industry. The C&CG Committee engaged a
compensation consulting firm, GK Partners, to prepare a compensation report and analysis in
connection with the compensation package of the named executive officers. The report they produced
is dated September 28, 2007. GK Partners is an independent, executive compensation consulting firm
with experience in, and knowledge of, the financial services industry. The data contained in their
report were still considered pertinent and appropriate for usage by the C&CG Committee in
performing its responsibilities in calendar 2008. GK Partners was not engaged specifically for
calendar 2008 data in order to save costs. They were engaged for 2009. The peers selected for the
2007 GK Partners report for purposes of compiling peer data were local publically traded banks that
were considered reasonable competitors based on size, profitability, market capitalization and
lines of business. The specific peers were:
•
Clifton Savings Bank
•
OceanFirst Financial Corp.
•
Dime Community Bancshares
•
Partners Trust Financial
•
Greater Community Bancorp
•
PennFed Financial Services, Inc.
•
Investors Bancorp, Inc.
•
Provident Financial Services, Inc.
•
Kearny Financial Corp.
•
Provident New York
•
Lakeland Bancorp
•
Roma Financial Corp.
•
NBT Bancorp Inc.
•
Synergy Financial Corp.
The C&CG Committee communicated directly with, and received certain reports directly from, GK
Partners. In addition to the raw peer data, the C&CG Committee also considered the relative
business models, loan growth, asset quality, and profitability of the banks and thrifts in the peer
groups. The report prepared by GK Partners included a peer median and average salary and cash
incentive for each of the named executive officers based on their title and responsibilities. The
C&CG Committee considered the executive's current base salary and historical annual cash incentive,
and compared these amounts to the median and average compensation detailed in the GK Partners
Report for the executive's title and responsibilities. The peer median and average compensation
were strongly considered by the C&CG Committee when contemplating the executive's salary and cash
incentive (described in the procedures below). The C&CG Committee decided that the acceptable
range for base salary increases was 0 — 20% and the acceptable range of target bonus opportunity
for annual cash incentives was 20 — 100% of the executive's current base salary. Given these
restrictions, and considering the information provided in the GK Partners Report, the C&CG
Committee determined a preliminary range of base salary and annual cash incentive for each of the
named executive officers. A final amount for each executive was determined using the procedures
described in the paragraphs below.
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Elements of The Compensation Package
Our 2008/2009 compensation program for named executive officers consisted of base salary,
annual cash incentives, equity incentive awards (such as stock options and restricted stock
awards), a comprehensive benefits package and perquisites.
Base Salary.
Executive base salary levels are generally reviewed on an annual basis and
adjusted as appropriate. We desire to compensate executives fairly. During the fiscal year ended
June 30, 2009 the C&CG Committee considered prevailing market conditions and approved certain
salary adjustments as indicated below. The C&CG Committee also considered the overall performance
of the individual, including their achievement of individual goals as well as their contribution to
our goals in making their determinations. The C&CG Committee relied on the data contained in the
GK Partners Report, as well as the data from independent surveys, in formulating its opinion of
prevailing market conditions. The C&CG Committee viewed this information as a broad database of
the Company's peers with detailed information on Base Salary and Incentive Compensation. The
following table sets forth the base salary increases for the named executive officers approved by
the C&CG Committee during fiscal year 2009.
Base Salary History at June 30, 2009
Base Salary
Increase Date
Increase
% Increase
New Base Salary
Kevin J. Lynch
$
500,000
11/10/08
$
45,000
9.00
%
$
545,000
Michael A.
DeBernardi
$
250,000
11/10/08
$
22,500
9.00
%
$
272,500
John M. Fields, Jr.
$
200,000
11/10/08
$
18,000
9.00
%
$
218,000
Thomas Guinan
$
200,000
11/10/08
$
18,000
9.00
%
$
218,000
Philip M. Wyks
$
189,000
N/M
$
—
N/M
$
189,000
While the C&CG Committee considered the existing base salaries of the named executive
officers to be within a reasonable range based on their perception of existing market conditions,
it also felt that an adjustment was warranted. In general, the C&CG Committee was pleased with the
progress management made in quality balance sheet growth and capital deployment. It felt that our
growth, while adhering to strict quality and profitability standards, was exemplary. The
measurement period for this conclusion was primarily the fiscal year ended June 30, 2008. The C&CG
Committee awarded 9% base salary increases to the named executive officers that they felt were most
responsible for these achievements. In the instance of Mr. Wyks, the C&CG Committee decided that
no increase in base salary was appropriate at this time as they felt his current salary was
sufficient when considered in conjunction with his current responsibilities. The C&CG Committee
considered the ending base salaries of all of the named executive officers to be appropriate and
reasonable considering, their responsibilities, in comparison to their peers.
Annual Cash Incentives.
Annual cash incentive opportunities are provided to the named
executive officers as an incentive to achieve annual goals and objectives. For fiscal 2009 the
C&CG Committee determined each named executive officer's bonus based on a retrospective review of a
variety of corporate performance factors and each individual's contribution to us, taking in to
account the operating environment existing during the year. This review is in addition to our
actual performance against its operating budget, which is adopted at the beginning of the year
along with strategic objectives and projects to be accomplished during the year. At the November
21, 2008 Annual Meeting of Stockholders of Oritani Financial Corp., stockholders approved the
Executive Officer Annual Incentive Plan. This plan became effective at that time and formalized
the process of annual cash incentives for
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named executive officers. Prospective annual cash
incentives, if any, will be awarded in accordance with this plan.
The payments for the named executive officers were based on the achievement of certain goals
on a Bank-wide basis as well as individual performance goals. Bank-wide goals included financial
performance of Oritani Bank measured on a return-on-assets (ROA) and Efficiency Ratio basis as
compared to a peer group. The C&CG Committee held management to a "meet or beat peers" standard.
The peer group selected by the C&CG Committee consisted of area banks with a mutual holding company
structure. The specific group selected was:
•
Kearny Federal Savings Bank
•
Roma Bank
•
Investors Savings Bank
•
Northfield Bank
•
Clifton Savings Bank
Peer group results were determined using the FDIC Website for Statistics on Depository
Institutions. Peer data regarding ROA and Efficiency Ratio were obtained for the quarterly periods
ending September 30, 2008; June 30, 2008; March 31, 2008 and December 31, 2008. The twelve month
period ended September 30, 2008 was utilized as this was the most recent period of data available
when the cash incentives were being determined. The peer results were averaged and compared to the
average results for Oritani Bank (from the same source) for the same periods. Oritani's ROA was
0.58%, versus the peer result of 0.53%. Oritani Bank's Efficiency Ratio was 53.99%, versus the
peer result of 65.15% (a lower efficiency ratio is desired). Accordingly, the C&CG Committee felt
that management had met the goal for financial performance. The other bank-wide goals considered
were loan portfolio growth, delinquency levels, deployment of excess capital, staffing changes,
facility renovations, and new branch openings. In the opinion of the C&CG Committee, all the
bank-wide goals had been attained. In addition, the C&CG Committee also felt that the individual
performance goals were attained for all of the named executive officers. The C&CG Committee
determined that Mr. Lynch had the primary responsibility for the attainment of our Company-wide
goals. The C&CG Committee awarded Mr. Lynch an annual cash incentive equal to 50% of his base
salary in recognition of his accomplishments. A base annual cash incentive equal to 35% of their
respective base salaries was awarded to each of Messrs. DeBernardi, Fields and Guinan. The base
award for Mr. Guinan was increased to 40% due to his specific contributions regarding loan
originations and loan portfolio growth. The base award for Mr. DeBernardi was pro-rated to 26.25%
as he was not a full-time employee for the entire measurement period. The C&CG Committee awarded
Mr. Wyks an annual cash incentive equal to 20% of his base salary, primarily due to attainment of
his individual performance goals.
The C&CG Committee approved awards totaling $503,425 to our named executive officers during
the fiscal year ended June 30, 2009. The specific amount awarded to each named executive officer
for the fiscal year ended June 30, 2009 is set forth in the Bonus column of the table in the
"—Executive Officer Compensation—Summary Compensation Table."
Equity Incentives.
We did not have stock issued to the public prior to our initial public
offering which was consummated in 2007. In connection with the initial public offering, Oritani
Financial Corp. established an employee stock ownership plan that purchased 3.92% of the total
shares issued in the offering (including shares issued to Oritani Financial Corp., MHC and to the
OritaniBank Charitable Foundation) for the benefit of employees of Oritani Bank. The employee
stock ownership plan is a qualified retirement plan. Additionally, at a special meeting of
stockholders in April 2008, our stockholders approved our 2007 Equity Incentive Plan ("the Equity
Plan") which authorized the issuance of up to 2,781,878 shares of our common stock pursuant to
grants of incentive and non-statutory stock options, stock appreciation rights, and restricted
stock awards. The Equity Plan
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provides our officers, employees and directors with additional
incentives to promote growth and performance. The Equity Plan provides that individuals may
receive awards of common stock and grants of options to purchase common stock. The C&CG Committee
believes that officer stock ownership provides a significant incentive in building stockholder
value by aligning the interests of the officers, employees and directors with those of
our shareholders. In addition, stock option grants and stock awards vest over five years,
thereby aiding retention. We granted no awards to any named executive officer under the Equity
Plan during fiscal 2009. As of June 30, 2009, a total of 2,653,173 stock options and restricted
stock awards had been granted under the Equity Plan, representing 95.4% of the shares available.
Other
. Additionally, we provide certain fringe benefits, including retirement plans,
termination benefits, and perquisites. The retirement plans consist of:
•
A multi-employer defined benefit plan (a qualified plan). The plan was frozen as of
December 31, 2008. All employees who attained the age of 21 and completed one year of
service were eligible to participate in the plan.
•
A nonqualified savings incentive plan covering employees whose salary deferrals to the
savings incentive plan are limited.
•
A nonqualified Benefit Equalization Plan which provides benefits to employees who are
disallowed certain benefits under our qualified benefit plans.
•
A nonqualified Post Retirement Medical Plan for directors and certain eligible
employees.
•
A nonqualified Executive Supplemental Retirement Income Agreement for our President and
Chief Executive Officer.
The C&CG Committee considered these items when contemplating the overall compensation package
awarded to the named executive officers. The C&CG Committee felt that these items were appropriate
given the level of responsibility for each named executive officer and that no changes to the
programs were warranted at the time.
Other Matters
Corporate Income Tax Considerations.
Section 162(m) of the Internal Revenue Code imposes a
$1,000,000 annual limit, per executive officer, on a company's federal tax deduction for certain
types of compensation paid to executive officers. Compensation that is "performance-based" under
the Internal Revenue Code's definition is exempt from this limit. Stock option grants are intended
to qualify as performance-based compensation. It has been the C&CG Committee's practice to
structure the compensation and benefit programs offered to the named executive officers in order to
maximize the tax deductibility of amounts paid. However, in structuring the compensation programs
and in reaching compensation decisions, the C&CG Committee considers a variety of factors,
including the Company's tax position, the materiality of the payments and tax deductions involved,
and the need for flexibility to address unforeseen circumstances. After considering these factors,
the C&CG Committee may decide to authorize compensation payments, all or part of which would be
nondeductible for federal tax purposes.
Section 4999 of the Code imposes a 20% excise tax on certain "excess parachute payments" made
to "disqualified individuals." Under Sections 280G of the Code, such excess parachute payments are
also nondeductible to us. If payments that are contingent on a change of control to a disqualified
individual (which includes the named executive officers) exceed three times the individual's "base
amount," they constitute "excess parachute payments" to the extent they exceed one time the
individual's base amount.
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Severance payments to the named executive officers pursuant to their employment agreements
that are paid in connection with termination following a Change in Control are subject to reduction
in order to avoid an excess parachute payment under Section 280G of the Code.
Accounting Considerations.
The C&CG Committee is informed of the financial statement
implications of the elements of the named executive officers' compensation. However, the probable
contribution of a compensation element to the objectives of our named executive officers
compensation program and its projected economic cost, which may or may not be reflected on our
financial statements, are the primary determining factors of the named executive officers'
compensation decisions.
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Executive Officer Compensation
Summary Compensation Table.
The following table sets forth for the fiscal years ended June 30, 2009, 2008 and 2007 certain
information as to the total remuneration paid to Mr. Lynch, who serves as Chief Executive Officer,
Mr. Fields, who serves as Chief Financial Officer, and the three other most highly compensated
executive officers of Oritani Financial Corp. or Oritani Bank other than Messrs. Lynch and Fields,
who received total compensation in excess of $100,000. Each of the individuals listed in the table
below is referred to as a "named executive officer."
Change in pension
value and
non-qualified
deferred
All other
Name and principal
Option Awards ($)
compensation
compensation ($)
position
Fiscal Year
Salary ($)(1)
Bonus ($)
Stock Awards ($)(2)
(3)
earnings ($) (4)
(5)
Total ($)
Kevin J. Lynch
2009
550,750
250,000
621,949
273,419
1,648,874
110,512
3,455,504
President and Chief
2008
530,769
250,000
103,658
45,570
919,491
111,241
1,960,730
Executive Officer
2007
494,327
200,000
—
—
702,360
63,356
1,460,043
Michael A. DeBernardi
2009
263,846
65,625
298,536
123,038
87,278
25,995
864,318
Executive Vice President
2008
57,692
—
49,756
20,506
22,884
8,312
159,150
and Chief Operating
Officer
John M. Fields, Jr.
2009
211,077
70,000
298,536
123,038
73,436
76,249
852,336
Executive Vice President
2008
196,192
56,700
49,756
20,506
19,149
77,649
419,952
and
Chief Financial Officer
2007
189,627
59,150
—
—
18,414
28,645
295,836
Thomas Guinan
2009
211,077
80,000
298,536
123,038
115,092
77,776
905,519
Executive Vice President
2008
188,923
58,800
49,756
20,506
39,735
80,826
438,546
and Chief Lending
Officer
2007
163,817
53,200
—
—
29,336
29,520
275,873
Philip M. Wyks
2009
191,181
37,800
46,950
18,228
192,800
76,239
563,198
Senior Vice President and
2008
192,635
47,250
7,825
3,038
60,577
78,649
389,973
Corporate Secretary
2007
187,270
46,000
—
—
64,599
28,098
325,967
(1)
Includes $23,058 and $2,181 of payments made in 2009 to Messrs. Lynch and Wyks, respectively,
for unused vacation days.
(2)
The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal years ended June 30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the
Equity Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.'s audited financial statements for the fiscal year ended June 30, 2009
included herein.
(3)
The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes, for the fiscal years ended June 30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity
Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.'s audited financial statements for the fiscal year ended June 30, 2009
included herein.
(4)
The amounts in this column reflect the actuarial increase in the present value at June 30,
2009 compared to June 30, 2008, of the named executive officer's benefits under the Defined
Benefit Plan and Benefit Equalization Plan and, in the case of Mr. Lynch, an Executive
Supplement Retirement Income Agreement and the Directors' Retirement Plan maintained by
Oritani Bank, and, in the case of Mr. DeBernardi, the Directors' Retirement Plan maintained by
Oritani Bank, determined using interest rate and mortality rate assumptions consistent with
those used in Oritani Financial Corp.'s financial statements and includes amounts for which
the named executive officer may not currently be entitled to receive because such amounts are
not vested. This column also includes $69,874, $73, $7,435, $2,091, and $5,799 of
preferential or above-market earnings on non tax-qualified deferred compensation for
non-qualified defined contribution plans for Messrs. Lynch, DeBernardi, Fields, Guinan and
Wyks, respectively, as well as $21,025 for Mr. DeBernardi of preferential earnings on a
similar plan for deferred director fees.
(5)
The amounts in this column represent the total of all perquisites (non-cash benefits and
perquisites such as the use of employer-owned automobiles, membership dues and other personal
benefits), employee benefits (employer cost of life insurance and health insurance), and
employer contributions to defined contribution plans (the 401(k) Plan, the ESOP and the
Benefit Equalization Plan). Amounts are reported separately under the "All Other
Compensation" table below.
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All Other Compensation
Company
Contribution on
Company
Medical, Dental,
Contribution to
Benefit
Disability and
ESOP and 401(k)
Equalization Plan
Insurance Benefits
Automobile
Plan Match
Match Contribution
Country Club Dues
Name
Fiscal Year
($)
Allowance ($)
Contribution ($)
($)
($)
Total ($)
Kevin J. Lynch
2009
16,846
16,521
48,430
20,561
8,154
110,512
2008
19,885
13,073
48,480
23,423
6,380
111,241
2007
20,037
15,844
3,462
17,368
6,645
63,356
Michael A. DeBernardi
2009
14,803
9,305
—
1,887
—
25,995
2008
8,312
—
—
—
—
8,312
John M. Fields, Jr.
2009
13,228
9,620
47,969
5,432
—
76,249
2008
12,102
9,581
48,815
7,151
—
77,649
2007
11,042
10,140
3,615
3,848
—
28,645
Thomas Guinan
2009
12,168
7,469
48,527
5,001
4,611
77,776
2008
11,079
7,458
53,612
2,299
6,377
80,826
2007
10,078
6,315
6,511
—
6,615
29,520
Philip M. Wyks
2009
16,879
7,522
49,767
2,072
—
76,239
2008
15,999
7,438
50,414
4,798
—
78,649
2007
14,515
6,585
6,998
—
—
28,098
Plan-Based Awards.
The following table sets forth the threshold, target and maximum
award amounts that could be earned by the named executive officers during fiscal 2010 that were
established during fiscal 2009 under our Executive Officer Annual Incentive Plan. There were no
grants made to the named executive officers during fiscal 2009 under our Stock Based Incentive
Plan.
Grants of Plan-Based Awards for the Fiscal Year Ended JUNE 30, 2009
Estimated Possible Payouts
Under Non-Equity Incentive Plan
Awards (1)
Threshold
Target
Maximum
Name
($)
($)
($)
Kevin J. Lynch
136,250
272,500
408,750
Michael A. DeBernardi
59,950
109,00
133,525
John M. Fields, Jr.
47,960
87,200
106,820
Thomas Guinan
47,960
87,200
106,820
Philip M. Wyks
30,712
37,800
47,250
(1)
Assumes full achievement of individual component of award total.
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Outstanding Equity Awards at Year End.
The following table sets forth information with
respect to outstanding equity awards as of June 30, 2009 for the named executive officers.
OUTSTANDING EQUITY AWARDS AT JUNE 30, 2009
Option Awards
Stock Awards
Number of
Number of
Market Value of
Securities
Securities
Shares or Units of
Underlying
Underlying
Number of Shares or
Stock That Have Not
Unexercised Options
Unexercised Options
Option Exercise
Option Expiration
Units of Stock That
Vested ($)
Name
(#) Exercisable
(#) Unexercisable
Price ($)
Date
(1)
Have Not Vested (#)
(2)
Kevin J. Lynch
79,482
317,929
15.65
05/05/18
158,965
2,179,410
Michael A. DeBernardi
35,767
143,068
15.65
05/05/18
76,303
1,046,114
John M. Fields, Jr.
35,767
143,068
15.65
05/05/18
76,303
1,046,114
Thomas Guinan
35,767
143,068
15.65
05/05/18
76,303
1,046,114
Philip M. Wyks
5,299
21,195
15.65
05/05/18
12,000
164,520
(1)
Stock options expire 10 years after the grant date.
(2)
This amount is based on the per share fair market value of Oritani Financial Corp.'s common
stock on June 30, 2009 of $13.71.
Option Exercises And Stock Vested.
None of the Company's named executive officers
exercised any stock options during the fiscal year ended June 30, 2009. During fiscal 2009, 20% of
the total number of shares of each officers' restricted shares vested.
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Pension Benefits.
The following table sets forth information with respect to pension benefits
at and for the fiscal year ended June 30, 2009 for the named executive officers. See "Defined
Benefit Plan," "Director's Retirement Plan," "Benefit Equalization Plan" and "Executive
Supplemental Retirement Income Agreement" for a discussion of the plans referenced in this table.
Pension Benefits at and for the Fiscal Year Ended June 30, 2009
Number of Years
Present Value of
Payments During
Credited Service
Accumulated Benefit
Last Fiscal Year
Name
Plan Name
(#)
($)
(1)
($)
Kevin J. Lynch
Defined Benefit Plan
15.50
531,000
—
Directors' Retirement Plan
18.67
407,000
—
Benefit Equalization Plan
15.50
1,473,000
—
Executive Supplemental Income Agreement
4.50
2,314,000
—
Michael A. DeBernardi
Defined Benefit Plan
—
—
—
Benefit Equalization Plan
—
—
—
Directors' Retirement Plan
15.67
170,000
John M. Fields, Jr.
Defined Benefit Plan
10.67
128,000
—
Benefit Equalization Plan
10.67
27,000
—
Thomas Guinan
Defined Benefit Plan
21.17
303,000
—
Benefit Equalization Plan
5.50
8,000
—
Philip M. Wyks
Defined Benefit Plan
32.50
701,000
—
Benefit Equalization Plan
32.50
83,000
—
(1)
The figures shown are determined as of the plan's measurement date of June 30, 2009 for
purposes of Oritani Financial Corp.'s audited financial statements. For mortality, discount rate
and other assumptions used for this purpose, please refer to note 13 in the audited financial
statements included herein.
Nonqualified Deferred Compensation.
The following table sets forth information with respect to the portion of the Benefit
Equalization Plan that supplements the 401(k) Plan and the employee stock ownership plan at and for
the fiscal year ended June 30, 2009 for the named executive officers.
Nonqualified Deferred Compensation at and for the Fiscal Year Ended June 30, 2009
Registrant
Executive
Contributions in
Aggregate Earnings
Aggregate
Aggregate Balance
Contributions in
Last Fiscal
in Last Fiscal Year
Withdrawals/
at Last Fiscal Year
Name
Last Fiscal Year
Year
(1)
(2)
Distributions ($)
End ($)
Kevin J. Lynch
127,199
20,561
106,093
—
1,318,161
Michael A. DeBernardi
12,632
1,887
144
—
14,662
John M. Fields, Jr.
33,312
5,432
15,470
—
199,995
Thomas Guinan
26,042
5,001
4,237
—
61,518
Philip M. Wyks
12,196
2,072
12,108
—
147,209
(1)
The amounts reported in this column were also reported as compensation under "All Other
Compensation" in the Summary Compensation Table.
(2)
For Messrs. Lynch, DeBernardi, Fields, Guinan and Wyks, $69,874, $73, $7,436, $2,092 and
$5,800 respectively, were reported as preferential or above-market earnings for each
individual under "Change in pension value and non-qualified deferred compensation earnings" in
the Summary Compensation Table.
Benefit Plans and Arrangements
Employment Agreements.
Oritani Bank entered into an employment agreement with Kevin J. Lynch
effective as of January 1, 2003. The agreement had an initial term of three years. Unless notice
of non-renewal is provided, the agreement renews annually. Under the agreement, the current base
salary is $545,000. The base salary is reviewed at least annually and may be increased, but not
decreased. In addition to base salary, the agreement provides for, among other things,
participation in bonus programs
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and other employee pension benefit and fringe benefit plans applicable to executive employees, use
of an automobile and reimbursement of expenses associated with the use of such automobile. The
executive is also entitled to reimbursement of business expenses, including fees for membership in
a country club, a health club, and such other clubs and organizations as appropriate for business
purposes. Upon retirement at age 70 (or at an earlier age in accordance with any retirement
arrangement established with the executive's consent) the executive and his spouse would be
entitled to continuing health care insurance coverage until the death of the executive and his
spouse.
The executive is entitled to severance payments and benefits in the event of his termination
of employment under specified circumstances. In the event the executive's employment is terminated
for reasons other than just cause, disability, death, retirement or a change in control, or in the
event the executive resigns during the term of the agreement following (1) the failure to elect or
reelect or to appoint or reappoint executive to his executive position, (2) a material change in
the executive's functions, duties, or responsibilities, which change would cause executive's
position to become one of lesser responsibility, importance or scope, (3) a relocation of the
executive's principal place of employment by more than 30 miles from its location at the effective
date of the employment agreement or a material reduction in the benefits and perquisites from those
being provided to the executive as of the effective date of the employment agreement, (4) the
liquidation or dissolution of Oritani Bank, or (5) a breach of the employment agreement by Oritani
Bank, the executive (or, in the event of the executive's death, his beneficiary) would be entitled
to a severance payment equal to three times the sum of the executive's highest base salary and
highest rate of bonus, and the executive would be entitled to the continuation of life, medical,
and dental coverage for 36 months or as provided in the Oritani Bank nonqualified senior officers
medical benefit plan. In the event of a termination following a change in control of Oritani
Financial Corp., the executive (or, in the event of the executive's death, his beneficiary) would
be entitled to a severance payment equal to three times the sum of the executive's highest base
salary and highest rate of bonus paid to him during the term of the employment agreement, plus
continuation of insurance coverage for 36 months. In the event the severance payment provisions of
the employment agreement are triggered, the executive would be entitled to a cash severance benefit
in the amount of approximately $2.4 million, which amount is subject to reduction in order to avoid
an excess parachute payment under Section 280G of the Internal Revenue Code.
Upon termination of the executive's employment other than in connection with a change in
control, the executive agrees not to compete with Oritani Bank for one year following termination
of employment in any city, town or county in which Oritani Bank has an office or has filed an
application for regulatory approval to establish an office. Should the executive become disabled,
Oritani Bank would continue to pay the executive his base salary, bonuses and other cash
compensation for the longer of the remaining term of the employment agreement or one year, provided
that any amount paid to the executive pursuant to any disability insurance would reduce the
compensation he would receive. In the event the executive dies while employed by Oritani Bank, the
executive's beneficiary or estate will be paid the executive's base salary for the remaining term
of the employment agreement and the executive's family will be entitled to continuation of medical
and dental benefits.
Oritani Bank has entered into employment agreements with Messrs. DeBernardi, Fields, Guinan
and Wyks that are substantially similar to the employment agreement of Mr. Lynch, except that each
of these agreements has a term of two years and entitles the executive to a severance payment equal
to two times the sum of the executive's highest base salary and highest rate of bonus and to the
continuation of life, medical, and dental coverage for 24 months or as provided in the Oritani Bank
nonqualified senior officers medical benefit plan. In the event of a termination following a
change in control of Oritani Financial Corp., the executive (or, in the event of the executive's
death, his beneficiary) would be entitled to a severance payment equal to two times the sum of the
executive's highest base salary and highest rate
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of bonus paid to him or her during the term of the employment agreement, plus continuation of
insurance coverage for 24 months.
Benefit Equalization Plan.
Oritani Bank has adopted the 2005 Benefit Equalization Plan to
provide certain executives with benefits to which they would otherwise be entitled under Oritani
Bank's Defined Benefit Pension Plan, 401(k) Plan and Employee Stock Ownership Plan, but for the
limitations imposed by the Internal Revenue Code. The 2005 Benefit Equalization Plan was adopted
to incorporate the required provisions of Code Section 409A and was amended and restated in January
2008 in order to incorporate the final Department of Treasury regulations issued under Code Section
409A. Oritani Bank's prior Benefit Equalization Plan was frozen effective as of December 31, 2004.
The 2005 Benefit Equalization Plan is materially similar to the frozen Benefit Equalization Plan,
except that a participant's elections regarding distributions under the tax-qualified 401(k) Plan,
the Employee Stock Ownership Plan and Defined Benefit Pension Plan control the form and timing of
distributions of a participant's account in the frozen Benefit Equalization Plan. This provision
is no longer permitted with respect to deferrals or accruals subject to Code Section 409A and is
not included in the 2005 Benefit Equalization Plan. Employees who are president, executive vice
president, senior vice president and vice president of Oritani Bank are eligible to participate in
the plan. During fiscal 2009, eleven current employees and one retired employee participated in the
2005 Benefit Equalization Plan. A committee appointed by the Oritani Bank Board of Directors
administers the plan.
Under the 401(k) portion of the 2005 Benefit Equalization Plan, participants may make annual
deferrals of compensation in an amount up to the difference between the maximum amount the
participant would be permitted to contribute to Oritani Bank's 401(k) plan for the given year but
for the limitations of the Internal Revenue Code and the deferrals actually made to the 401(k) plan
by the participant for the plan year. Oritani Bank will establish a supplemental 401(k) plan
account for each participant and credit the account with such contributions. In addition, the
participant's account will be credited monthly with earnings at a rate equivalent to the greater of
(i) the Citibank Prime Rate, or (ii) nine percent (9%), plus matching contributions. For fiscal
2009, a total of $146,000 in interest was credited to the accounts of current employees under this
plan. Upon termination of service due to any reason other than death, the supplemental 401(k) plan
benefit will be payable either in a lump sum or in up to 5 annual installments, as elected by the
participant pursuant to his initial deferral election. Upon termination of service due to death,
the supplemental 401(k) plan benefit under the 2005 Benefit Equalization Plan will be payable to
the participant's beneficiary either in a lump sum or in annual installments, pursuant to the
participant's initial deferral election.
Upon termination of service due to any reason other than death, a participant will also be
entitled to a benefit equal to the difference between the actuarial present value of the
participant's normal retirement benefit under Oritani Bank's defined benefit plan and the actuarial
present value of his normal retirement benefit calculated pursuant to the terms of the defined
benefit plan, without the application of the limitations imposed by the Internal Revenue Code,
which amount will be reduced and offset by the corresponding benefit amount payable to the
participant under the frozen Benefit Equalization Plan. The supplemental defined benefit plan
benefit under the 2005 Benefit Equalization Plan will be payable to the participant in monthly
installments for the longer of 120 months or the remainder of the participant's life. In the event
of the participant's death before 120 installments have been paid, the participant's beneficiary
will receive the present value of the remaining monthly installments in a lump sum. Alternatively,
the participant may also make, prior to commencement of the supplemental defined benefit plan
benefit, a one-time irrevocable election to receive his benefit under the plan in the form of a
100% joint and survivor annuity or a 50% joint and survivor annuity. Upon termination of service
due to death, the supplemental defined benefit plan benefit under the 2005 Benefit Equalization
Plan will be payable to the participant's beneficiary either in a lump sum or in annual
installments, pursuant to the participant's initial deferral election. A participant's supplemental
defined benefit plan amount payable under the 2005
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Benefit Equalization Plan will be reduced and offset by the corresponding supplemental defined
benefit plan amount payable under the frozen Benefit Equalization Plan.
The supplemental employee stock ownership plan benefit under the 2005 Benefit Equalization
Plan is denominated in shares of phantom stock equal to the difference between the number of shares
of Oritani Financial Corp. common stock that would have been allocated to the participant under the
employee stock ownership plan, but for the limitations imposed by the Internal Revenue Code, and
the actual number of shares of Oritani Financial Corp. common stock allocated to the participant
under the Oritani Bank employee stock ownership plan for the relevant plan year, plus earnings on
the phantom shares deemed allocated to the participant's supplemental employee stock ownership plan
account, based on the fair market value of Oritani Financial Corp. stock on such date. Upon
termination of service due to any reason other than death, the supplemental employee stock
ownership plan benefit will be payable either in a lump sum or in up to five annual installments,
as elected by the participant pursuant to his initial deferral election. Upon termination of
service due to death, the supplemental employee stock ownership plan benefit under the 2005 Benefit
Equalization Plan will be payable to the participant's beneficiary either in a lump sum or in
annual installments, pursuant to the participant's initial deferral election.
In the event of a change in control of Oritani Bank or Oritani Financial Corp., the
participant's supplemental 401(k) plan benefit, supplemental employee stock ownership plan benefit,
and supplemental defined benefit plan will be paid to the participants in a lump sum at the time of
the change in control, unless a participant has selected an alternative form of distribution upon a
change in control. Such an election, if made, was required to be made by a participant not later
than December 31, 2008, or with respect to new plan participants within thirty days after the
participant first becomes eligible to participate in the 2005 Benefit Equalization Plan.
Executive Supplemental Retirement Income Agreement
. Oritani Bank entered into an Executive
Supplemental Retirement Income Agreement (the "Agreement") for Kevin J. Lynch (the "Executive")
effective as of January 1, 2005. The Agreement was amended and restated during 2008 for the final
Department of Treasury regulations issued under Code Section 409A.The Agreement provides for the
payment of a supplemental retirement income benefit equal to 70% of the Executive's highest average
annual base salary and bonus (over a 36-consecutive month period within the last 120 consecutive
months of employment), reduced by the sum of the Executive's annuitized value of the benefits
payable from Oritani Bank's Defined Benefit Pension Plan, the annuitized value of the benefits
payable under the defined benefit portion of Oritani Bank's frozen Benefit Equalization Plan and
2005 Benefit Equalization Plan and the annuitized value of one-half of the Executive's Social
Security benefits attributable to Social Security taxes paid by Oritani Bank on behalf of the
Executive, reduced by the Social Security offset under the Oritani Bank's Defined Benefit Pension
Plan. In the event the Executive dies prior to termination of employment or after termination of
employment but prior to the payment of any portion of the supplemental retirement income benefit,
the Executive's beneficiary will be entitled to a survivor's benefit, payable in 240 monthly
installments, and equal to the greater of the annual amount of $327,446 reduced by the annuitized
value of the benefit payable under the Benefit Equalization Plan, or the supplemental retirement
income benefit determined as if the Executive retired on the day before his death and commenced
receiving benefits at such time. In the event the Executive dies while receiving benefits under
the Agreement, the unpaid balance of benefits will be paid to the Executive's beneficiary for the
remainder of the 240 installments. Upon the Executive's retirement, the Executive will be entitled
to a supplemental retirement income benefit payable in monthly installments over the longer of 240
months or the Executive's lifetime. In the event the Executive is a "specified employee," payments
will commence the first day of the 7
th
month following the Executive's retirement, but
only to the extent necessary to comply with Code Section 409A. Upon attainment of age 60, the
Executive may elect to retire and receive an early retirement benefit equal to the supplemental
retirement income benefit reduced by 5%
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per year for each year prior to the Executive's 65
th
birthday, payable monthly for
the longer of 240 months or the Executive's lifetime. In the event the Executive becomes disabled,
he will be entitled to a supplemental disability benefit equal to the supplemental retirement
income benefit calculated as if the Executive retired on the date of his termination of employment
due to disability, reduced by 5% per year for each year that such disability occurs prior to the
Executive's 65
th
birthday. In the event of the Executive's termination of employment
within 3 years following a change in control, other than due to termination for cause, the
Executive will be entitled to a full supplemental retirement income benefit calculated as if the
Executive had retired following his normal retirement date. Payments to the Executive in the event
of a change in control generally will be made in 240 monthly installments. During 2008 the
Agreement was amended to permit the Executive to elect a lump sum distribution on a change in
control, provided that such election was made prior to December 31, 2008. Oritani Bank may
establish a rabbi trust to fund its obligations under the Agreement.
Senior Officers and Directors Post-Retirement Medical Coverage
. Directors who qualify for
benefits under the Directors' Retirement Plan, and senior officers designated by the Board of
Directors who have attained age 52 and have at least five years of service, are eligible to
participate in the senior officers and directors post-retirement medical coverage program. If a
participant dies after becoming eligible for coverage but prior to retirement, the individual will
be deemed to have retired on the day before the individual died. Coverage will begin at the time
of retirement and continue at the same level as before retirement. Retirees who are eligible for
Medicare benefits will have benefits under the program coordinated with Medicare benefits. The
spouse of a senior officer or director covered under the program will be entitled to medical
coverage for life. Oritani Bank's contribution to the program will be limited to two times the
medical insurance premium at the time of the individual's retirement. During fiscal 2009, eight
current employees were eligible for participation in the Senior Officers and Directors
Post-Retirement Medical Coverage, and the total cost to Oritani Bank during fiscal 2009 was
$247,000.
Group Life Insurance Retirement Plan.
In conjunction with its investment in Bank Owned Life
Insurance, Oritani Bank implemented this plan which provides selected employees and directors with
post-retirement life insurance. Coverage under this plan is only applicable to selected employees
and directors who retire from Oritani Bank under this plan (unless their termination is due to
disability or change in control). The post-retirement coverage provided under this plan is equal
to: two times annual base salary for vice presidents and above; one time annual base salary for
assistant vice presidents and below; and $50,000 for directors. This coverage was obtained in
conjunction with Oritani Financial Corp.'s purchase of Bank Owned Life Insurance. Oritani
Financial Corp. incurs no additional cost to provide the coverage, however, there is an expense
accrual associated with the benefit. This accrual totaled $99,000 during fiscal 2009.
4
01(k)
Plan
. Oritani Bank participates in the Pentegra Defined Contribution Plan for
Financial Institutions, a multiple-employer 401(k) plan, for the benefit of its employees.
Employees who have completed 1,000 hours of service during a 12-consecutive-month period are
eligible to participate in the plan. Participants may contribute up to 50% of their plan salary to
the plan. Oritani Bank will provide matching contributions at the rate of 50% of the participant's
contributions, up to 6% of each participant's monthly plan salary. Employee and employer
contributions are 100% vested at all times. In general, under federal tax law limits, the annual
contributions made to the plan may not exceed the lesser of 100% of the participant's total
compensation or $49,000 for calendar 2009. For this purpose, contributions include employer
contributions, participant 401(k) contributions and participant after-tax contributions.
Participants who have attained age 50 before the end of a calendar year will be eligible to make
catch-up contributions in accordance with Section 414(v) of the Internal Revenue Code. The maximum
catch-up contribution level for 2009 is $5,500. This amount is periodically adjusted for inflation.
Contributions are invested at the participant's direction in one or more of the investment funds
provided under the plan. A loan program is available to plan participants. In general,
participants may make only one withdrawal
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from their accounts per calendar year while they are employed, subject to certain limitations;
upon termination of employment, they may make withdrawals from their accounts at any time.
Participants who become disabled may withdraw from their vested account balance as if they had
terminated employment. In the event of a participant's death, the participant's beneficiary will
be entitled to the value of the participant's account. In connection with the minority stock
offering, Oritani Bank withdrew from the Pentegra plan and established an individually designed
401(k) plan with terms substantially similar to the Pentegra plan. In addition, an employer stock
fund will be created within the 401(k) plan in order to permit participants in the 401(k) plan to
purchase shares of employer stock for their accounts.
Defined Benefit Plan
. Oritani Bank participates in the Financial Institutions Retirement
Fund, a multiple-employer defined benefit plan, for the benefit of its employees. Employees of
Oritani Bank who are age 21 or older and who have completed 12 months of employment are eligible to
participate in the plan. Participants become vested in their retirement benefit upon completion of
5 years of employment, provided that participants who have reached age 65 automatically become 100%
vested, regardless of the number of completed years of employment. Payments of benefits under the
plan are made in the form of a life annuity with 120 payments guaranteed unless one of the optional
forms of distribution has been selected. Upon termination of employment at or after age 65, a
participant will be entitled to an annual normal retirement benefit equal to 1.25% multiplied by
the number of years of benefit service, multiplied by the participant's average annual salary, up
to the covered compensation limits, for the 5 highest paid consecutive years of benefit service.
In addition, the participant will be entitled to an annual retirement benefit equal to 1.75%
multiplied by the number of years of benefit service, multiplied by the participant's average
annual salary in excess of the covered compensation limits, for the 5 highest paid consecutive
years. The covered compensation limit is the average of the maximum wage subject to FICA taxes
(i.e., the social security wage base) for the 35-year period preceding social security retirement
age. In the event a participant has more than 35 years of service, the benefit attributable to
benefit service completed in excess of 35 years will be calculated by using a 1.75% accrual rate
for the portion of a participant's high-5 year average salary below the covered compensation limit.
Participants who terminate employment prior to age 65 will be entitled to a reduced retirement
benefit calculated by applying an early retirement factor based on the participant's age when
payments begin. The earliest age at which a participant may receive retirement benefits is age 55.
Normal and early retirement benefits are payable over the longer of the lifetime of the retiree or
120 monthly installments. In the event a retiree dies before 120 monthly installments have been
paid, the retiree's beneficiary will be entitled to the value of such unpaid installments paid in a
lump sum. The participant or beneficiary may elect to have benefits paid in the form of
installments. In the event a participant dies while in active service, his beneficiary will be
entitled to a lump sum death benefit equal to 100% of the participant's last 12 months' salary,
plus an additional 10.0% of such salary for each year of benefit service until a maximum of 300% of
such salary is reached for 20 or more years, plus refund of the participant's contributions, if
any, with interest.
This plan was frozen as of January 1, 2009. Existing participants remain eligible to receive
their accrued benefit as of that date, however, no new benefits will accrue under the plan.
Stock Benefit Plans
Employee Stock Ownership Plan and Trust
. The employee stock ownership plan was adopted in
connection with our initial stock offering. Employees who are at least 21 years old with at least
one year of employment with Oritani Bank are eligible to participate. The employee stock ownership
plan trust borrowed funds from Oritani Financial Corp. and used those funds to purchase a shares of
our common stock equal to 3.92% of the outstanding shares of common stock, including shares of
common stock issued to Oritani Financial Corp., MHC and to the OritaniBank Charitable Foundation.
Collateral for the loan is the common stock purchased by the employee stock ownership plan. The
loan will be repaid principally from Oritani Bank discretionary contributions to the employee stock
ownership plan over a
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Table of Contents
period of not more than 20 years. The loan documents provide that the loan may be repaid over a
shorter period, without penalty for prepayments. The interest rate for the loan is a floating rate
equal to the prime rate. Shares purchased by the employee stock ownership plan are held in a
suspense account for allocation among participants as the loan is repaid.
Contributions to the employee stock ownership plan and shares released from the suspense
account in an amount proportional to the repayment of the employee stock ownership plan loan are
allocated among employee stock ownership plan participants on the basis of compensation in the year
of allocation. Benefits under the plan become vested at the rate of 20% per year, starting upon
completion of two years of credited service, and are fully vested upon completion of six years of
credited service, with credit given to participants for up to three years of credited service with
Oritani Bank mutual predecessor prior to the adoption of the plan. A participant's interest in his
account under the plan will also fully vest in the event of termination of service due to a
participant's early or normal retirement, death, disability, or upon a change in control (as
defined in the plan). Vested benefits will be payable generally in the form of common stock, or to
the extent participants' accounts contain cash, benefits will be paid in cash. Oritani Bank's
contributions to the employee stock ownership plan are discretionary, subject to the loan terms and
tax law limits. Therefore, benefits payable under the employee stock ownership plan cannot be
estimated. Pursuant to SOP 93-6, we are required to record compensation expense each year in an
amount equal to the fair market value of the shares released from the suspense account. In the
event of a change in control, the employee stock ownership plan will terminate.
Stock-Based Incentive Plan
. We adopted the 2007 Equity Incentive Plan to provide our
officers, employees and directors with additional incentives to promote our growth and performance.
Stockholders approved the Equity Plan on April 22, 2008. Subject to permitted adjustments for
certain corporate transactions, the Equity Plan authorizes the issuance of up to 2,781,878 shares
of our common stock pursuant to grants of incentive and non-statutory stock options, stock
appreciation rights, and restricted stock awards. No more than 794,823 shares may be issued as
restricted stock awards.
Employees and outside directors of Oritani Financial Corp. or its subsidiaries are eligible to
receive awards under the Equity Plan, except that non-employees may not be granted incentive stock
options. Awards may be granted in a combination of incentive and non-statutory stock options, stock
appreciation rights or restricted stock awards.
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Potential Payments Under Termination or Change in Control Agreements.
The tables below reflect the amount of compensation to each of the named executive officers
pursuant to such individual's employment agreement in the event of termination of such executive's
employment. No payments are required due to a voluntary termination under the employment
agreements (prior to a change in control). The amount of compensation payable to each Named
Executive Officer upon involuntary not-for-cause termination, termination following a change of
control and in the event of disability or death is shown below. The amounts shown assume that such
termination was effective as of June 30, 2009, and thus include amounts earned through such time
and are estimates of the amounts which would be paid out to the executives upon their termination.
The actual amounts to be paid out can only be determined at the time of such executive's separation
from Oritani Financial Corp.
Termination Payments
Involuntary
Involuntary
Termination after
Termination
Change in Control
Retirement
Disability
Death
Kevin J. Lynch
Employment Agreement
$
2,435,537
(1)
$
1,037,789
(2)
$
—
(3)
$
1,314,719
(4)
$
1,303,546
(5)
Executive Supplemental Retirement Income Agreement
$
1,966,900
(6)
$
2,314,000
(6)
$
2,314,000
(6)
$
1,966,900
(6)
$
1,966,900
(6)
Benefit Equalization Plan
$
1,473,000
(7)
$
1,473,000
(7)
$
1,473,000
(7)
$
1,473,000
(7)
$
1,473,000
(7)
2005 Directors' Retirement Plan
$
407,000
(8)
$
407,000
(8)
$
407,000
(8)
$
407,000
(8)
$
407,000
(8)
2007 Equity Incentive Plan
$
—
(9)
$
2,179,410
(9)
$
—
(9)
$
2,179,410
(9)
$
2,179,410
(9)
Michael A. DeBernardi
Employment Agreement
$
705,857
(10)
$
—
(11)
$
—
(12)
$
384,986
(13)
$
382,801
(14)
Benefit Equalization Plan
$
—
(15)
$
—
(15)
$
—
(15)
$
—
(15)
$
—
(15)
2005 Directors' Retirement Plan
$
—
(16)
$
170,000
(16)
$
—
(16)
$
—
(16)
$
—
(16)
2007 Equity Incentive Plan
$
—
(17)
$
1,046,114
(17)
$
—
(17)
$
1,046,114
(17)
$
1,046,114
(17)
John M. Fields, Jr.
Employment Agreement
$
602,455
(18)
$
306,669
(19)
$
—
(20)
$
309,845
(21)
$
308,295
(22)
Benefit Equalization Plan
$
27,000
(23)
$
27,000
(23)
$
27,000
(23)
$
27,000
(23)
$
27,000
(23)
2007 Equity Incentive Plan
$
—
(24)
$
1,046,114
(24)
$
—
(24)
$
1,046,114
(24)
$
1,046,114
(24)
Thomas G. Guinan
Employment Agreement
$
620,336
(25)
$
272,881
(26)
$
—
(27)
$
308,425
(28)
$
306,875
(29)
Benefit Equalization Plan
$
8,000
(30)
$
8,000
(30)
$
8,000
(30)
$
8,000
(30)
$
8,000
(30)
2007 Equity Incentive Plan
$
—
(31)
$
1,046,114
(31)
$
—
(31)
$
1,046,114
(31)
$
1,046,114
(31)
Philip M. Wyks
Employment Agreement
$
487,358
(32)
$
487,358
(33)
$
—
(34)
$
275,878
(35)
$
274,427
(36)
Benefit Equalization Plan
$
83,000
(37)
$
83,000
(37)
$
83,000
(37)
$
83,000
(37)
$
83,000
(37)
2007 Equity Incentive Plan
$
—
(38)
$
164,520
(38)
$
—
(38)
$
164,520
(38)
$
164,520
(38)
(1)
This amount represents 3 times the sum of (i) Mr. Lynch's highest base salary plus (ii)
highest bonus, and (iii) Oritani Bank contributions to continued life, medical, dental and
disability insurance for 36 months following termination of employment.
(2)
This amount represents the maximum severance payments and other benefits to Mr. Lynch under
his employment agreement without incurring an "excess parachute payment" under Code Section
280G. Severance payments and other benefits provided to Mr. Lynch as a result of the change
in control are reduced by $1,397,749 in order to avoid an "excess parachute payment."
(3)
Mr. Lynch is entitled to no payments or benefits under his employment agreement as a result
of his retirement.
(4)
In the event of his disability, Mr. Lynch would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Lynch's base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under bank sponsored disability programs.
(5)
In the event of his death, Mr. Lynch's beneficiary would be entitled to receive Mr. Lynch's
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.
(6)
This amount represents the present value of Mr. Lynch's accumulated benefit under his
Executive Supplemental Retirement Income Agreement. Under his Executive Supplemental
Retirement Income Agreement, Mr. Lynch is entitled to receive an annual supplemental
retirement benefit commencing at age 65 equal to 70% of his highest annual base salary and
bonus over the consecutive 36 month period within the last 120 consecutive calendar months of
employment, reduced by the sum of (i) the annuitized value of his benefits under the bank's
pension plan, (ii) the annuitized value of his benefits under the "defined benefit" portion of
the Bank's Benefit Equalization Plan, and (iii) the annuitized value of one-half of his Social
Security benefits attributable to taxes paid by the bank on his behalf. Upon a change in
control, Mr. Lynch is entitled to the full supplemental retirement income benefit as if he
worked through age 65. In the event of Mr. Lynch's death, disability, or termination prior to
reaching age 65, Mr. Lynch is entitled to his early retirement benefit equal to 85% of his
supplemental retirement benefit. Mr. Lynch is fully vested in his early retirement benefit.
(footnotes continued on next page)
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(7)
Following Mr. Lynch's separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(8)
This amount represents the present value of Mr. Lynch's accumulated benefit under the 2005
Directors Retirement Plan. Under the 2005 Director s' Retirement Plan, Mr. Lynch is entitled
to receive an annual retirement benefit equal to 50% of the aggregate compensation paid to him
during the year of his retirement. Mr. Lynch is currently 100% vested in his annual
retirement benefit under the plan, and his benefits under the plan will commence following his
date of termination.
(9)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Lynch's involuntary termination after a change in control,
disability, or death. In the event of Mr. Lynch's involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
(10)
This amount represents 2 times the sum of (i) Mr. DeBernardi's highest base salary plus (ii)
highest bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(11)
This amount represents the maximum severance payments and other benefits to Mr. DeBernardi
under his employment agreement without incurring an "excess parachute payment" under Code
Section 280G. Severance payments and other benefits provided to Mr. DeBernardi as a result of
the change in control are reduced by $705,857 in order to avoid an "excess parachute payment."
(12)
Mr. DeBernardi is entitled to no payments or benefits under his employment agreement as a
result of his retirement.
(13)
In the event of his disability, Mr. DeBernardi would receive his base salary and continued
health care coverage for the longer of the remaining term of his employment agreement, or one
year, less amounts payable under any disability programs. This amount represents Mr.
DeBernardi's base salary and continued life, medical, dental and disability insurance for the
remaining term of the agreement, without any reduction for payments under Bank sponsored
disability programs.
(14)
In the event of his death, Mr. DeBernardi's beneficiary would be entitled to receive Mr.
DeBernardi's base salary and medical, dental, family and other benefits for the remaining term
of the employment agreement.
(15)
Mr. DeBernardi has not accumulated any benefits under the Benefit Equalization Plan.
(16)
Under the 2005 Director s' Retirement Plan, Mr. DeBernardi is entitled to receive an annual
retirement benefit equal to 50% of the aggregate compensation paid to Mr. DeBernardi during
the year of his retirement. Mr. DeBernardi is not currently vested in his annual retirement
benefit under the plan, which will occur when Mr. DeBernardi attains age 65. Upon a change in
control, Mr. DeBernardi will be entitled to receive his annual retirement benefit regardless
of his actual age.
(17)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. DeBernardi's involuntary termination after a change in control,
disability, or death. In the event of Mr. DeBernardi's involuntary termination or retirement,
his unvested outstanding equity awards would be forfeited.
(18)
This amount represents 2 times the sum of (i) Mr. Fields' highest base salary plus (ii)
highest bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(19)
This amount represents the maximum severance payments and other benefits to Mr. Fields under
his employment agreement without incurring an "excess parachute payment" under Code Section
280G. Severance payments and other benefits to Mr. Fields as a result of the change in
control are reduced by $295,786 in order to avoid an "excess parachute payment."
(20)
Mr. Fields is entitled to no payments or benefits under his employment agreement as a result
of his retirement.
(21)
In the event of his disability, Mr. Fields would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Fields' base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.
(22)
In the event of his death, Mr. Fields' beneficiary would be entitled to receive Mr. Fields'
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.
(23)
Following Mr. Fields' separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(24)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Fields' involuntary termination after a change in control,
disability, or death. In the event of Mr. Fields' involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
(25)
This amount represents 2 times the sum of (i) Mr. Guinan's highest base salary plus (ii)
highest bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(26)
This amount represents the maximum severance payments and other benefits to Mr. Guinan under
his employment agreement without incurring an "excess parachute payment" under Code Section
280G. Severance payments and other benefits to Mr. Guinan as a result of the change in
control are reduced by $347,455 in order to avoid an "excess parachute payment."
(27)
Mr. Guinan is entitled to no payments or benefits under his employment agreement as a result
of his retirement.
(28)
In the event of his disability, Mr. Guinan would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Guinan's base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.
(29)
In the event of his death, Mr. Guinan beneficiary would be entitled to receive Mr. Guinan's
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.
(30)
Following Mr. Guinan's separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(31)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Guinan's involuntary termination after a change in control,
disability, or death. In the event of Mr. Guinan's involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
(32)
This amount represents 2 times the sum of (i) Mr. Wyks' highest base salary plus (ii) highest
bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(33)
This amount represents 2 times the sum of (i) Mr. Wyks' highest base salary plus (ii) highest
bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following his termination of employment in connection with a change in
control.
(34)
Mr. Wyks is entitled to no payments or benefits under his employment agreement as a result of
his retirement.
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(35)
In the event of his disability, Mr. Wyks would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Wyks's base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.
(36)
In the event of his death, Mr. Wyks beneficiary would be entitled to receive Mr. Wyks's base
salary and medical, dental, family and other benefits for the remaining term of the employment
agreement.
(37)
Following Mr. Wyks's separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(38)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Wyks's involuntary termination after a change in control,
disability, or death. In the event of Mr. Wyks's involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
Director Compensation
Each of the individuals who serves as a director of Oritani Financial Corp. also serves as a
director of Oritani Bank and earns director fees in each capacity. Each non-employee director is
currently paid a fee of $1,750 for each Oritani Financial Corp. meeting attended and a fee of
$1,750 for each Oritani Bank meeting attended. There are no separate fees paid for committee
meetings attended. Additionally, each director receives a monthly retainer of $1,750 from each of
Oritani Financial Corp. and Oritani Bank. Additional annual retainers are paid to the Lead
Director/Chairman of the Audit Committee ($21,000) and the Chairmen of the other Board of Director
committees ($11,000). The Lead Director/Chairman of the Audit Committee is Director Antonaccio.
The following table sets forth the total fees received by the non-management directors during
fiscal year 2009. The amounts reported under the Stock Awards and Option Awards columns were
granted on May 5, 2008 pursuant to the 2007 Equity Incentive Plan approved by stockholders on April
22, 2008.
Change in Pension
Value and
Nonqualified
Deferred
Fees Earned or Paid
Option Awards ($)
Compensation
Name
in Cash ($)
Stock Awards ($) (1)
(2)
Earnings ($) (3)
Total ($)
Nicholas Antonaccio
98,750
161,707
82,026
170,775
513,257
James J. Doyle
88,750
161,707
82,026
132,554
465,036
Robert S. Hekemian
88,750
161,707
82,026
55,885
388,377
John J. Skelly, Jr.
88,750
161,707
82,026
134,522
467,005
(1)
The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal year ended June 30, 2009, in accordance with FAS 123(R) and
its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the Equity Plan that
were made in 2008, which vest over five years. Assumptions used in the calculation of these
amounts are included in footnote 14 to Oritani Financial Corp.'s audited financial statements
for the fiscal year ended June 30, 2009 included in Oritani Financial Corp.'s Annual Report on
Form 10-K.
(2)
The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal year ended June 30, 2009, in accordance with FAS 123(R) and
its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity Plan that
were made in 2008. Stock options vest over five years. Assumptions used in the calculation
of these amounts are included in footnote 14 to Oritani Financial Corp.'s audited financial
statements for the fiscal year ended June 30, 2009 included in Oritani Financial Corp.'s
Annual Report on Form 10-K.
(3)
The amounts in this column reflect the actuarial increase in the present value at June 30,
2009 compared to June 30, 2008, of the directors' benefits under the Directors' Retirement
Plan maintained by Oritani Bank, determined using interest rate and mortality rate assumptions
consistent with those used in Oritani Financial Corp.'s financial statements and include
amounts for which the director may not currently be entitled to receive because such amounts
are not vested. Also includes $32,775, $31,554, $22,895 and $22,522 of preferential or
above-market earnings on non tax-qualified deferred compensation for Directors Antonaccio,
Doyle, Hekemian and Skelly, respectively, under the Directors' Deferred Fee Plan.
There were no grants of restricted stock or of stock options to non-executive directors
during fiscal 2009.
Directors Deferred Fee Plans
. Oritani Bank adopted the 2005 Directors Deferred Fee Plan,
effective as of January 1, 2005, in order to include the provisions required by Section 409A of the
Internal
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Revenue Code. Contributions to Oritani Bank's prior Directors Deferred Fee Plan were frozen,
effective as of December 31, 2004. Each month, Oritani Bank credits a director's account under the
2005 Directors Deferred Fee Plan with the amount such director elects to defer. The director's
deferral election must generally be submitted to Oritani Bank prior to January 1 of the plan year
in which the fees to be deferred are otherwise payable to the director and is irrevocable with
respect to the fees covered by such election. Each director's account under the plans is credited
every month with interest at a rate equal to the greater of the Citibank Prime Rate or a 9%
annualized rate. A committee appointed by the Oritani Bank Board of Directors administers the
plan. The committee may in its discretion permit a director to request that his deferred fee
account(s) be invested in an alternative investment such as equity securities, fixed income
securities, money market accounts and cash. The account of a director who has selected an
alternative investment is credited with earnings or losses based on the investment selected. A
director is 100% vested at all times in his deferred fee account(s). Upon retirement, the director
will receive the value of his benefit in a lump sum or in up to 10 annual installments, as elected
by the director in his deferral election form. In the event the director becomes a "specified
employee," payments under the plan will commence no earlier than the first day of the 7th month
following the director's separation from service. Following a director's cessation of service
prior to retirement or death, Oritani Bank will pay the director's benefit in a lump sum or in up
to 10 annual installments, as elected by the director in his deferral election form. A director
may elect to receive an in-service distribution, provided that such distribution will be no earlier
than the January 1
st
of the calendar year that is at least two years following the year
for which the deferral election is made. Payment will be made in a lump sum or in up to 10 annual
installments, as elected by the director at the time the election to defer was made. A director
may elect to receive amounts in his deferred account(s) upon his disability or upon a change in
control of Oritani Bank either in the form of a lump sum or in annual installments over a period of
up to 10 years. A director may elect to delay payment of his benefits or to change the form of
payment from a lump sum to installments within the limits of Code Section 409A requirements and
Treasury Regulations issued thereunder. In the event of a director's death prior to commencement
of benefit payments, payments will be made to the director's beneficiary, as elected by the
director in his deferral election form. In the event of a director's death after commencement of
benefit payments, the remaining balance of benefit payments will be paid to the director's
beneficiary in the manner and at the time elected by the director in his deferral election form.
In the event a director incurs a financial hardship, the director may request a financial hardship
benefit. If approved, the financial hardship payment will be made in a lump sum. During fiscal
year 2009, Oritani Bank credited $220,000 in interest to directors' accounts under the Directors
Deferred Fee Plans.
Director's Retirement Plan
. Oritani Bank maintains the 2005 Director's Retirement Plan that
was adopted as a restatement of the Directors Retirement Plan and is intended to comply with
section 409A of the Internal Revenue Code. Oritani Bank's prior Director's Retirement Plan was
frozen, effective as of December 31, 2004. Benefits payable under the 2005 Director's Retirement
Plan are reduced by the amount of the retirement benefits payable to the director under the frozen
director retirement plan. The 2005 Director's Retirement Plan provides retirement, medical and
death benefits to directors, including directors who are also employees, who have at least five
years of service and retire after attaining age 65, or who, after attaining age 60 retire, die or
become disabled. Upon retirement on or after attaining age 65 with at least ten years of
cumulative service, an eligible director's annual retirement benefit is equal to 50% of the
director's aggregate annual compensation with respect to his final year of service, including fees
paid to the director for attendance at regular monthly meetings and annual meetings of Oritani Bank
and Oritani Financial Corp., monthly retainers, and any additional annual retainers paid to the
director for service as a committee chair, lead director or otherwise. If, after attaining age 60,
a director retires, dies or becomes disabled, and such director has more than five years of service
the director or his beneficiary will be entitled to the following percentage of benefit: 50% if the
director has 5 to 6 years of service, 60% if the director has 6 to 7 years of service, 70% if the
director has 7 to 8 years of service, 80% if the director has 8 to 9 years of service, 90% if the
director has 9 to 10 years of
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service and 100% if the director has more than 10 years of service. In the event of a change
in control, each director will be deemed to have 10 years of service and attained age 65 for the
purpose of calculating his benefit under the plan. A director who retires prior to age 60 for any
reason shall receive no benefit under the plan. Each director was entitled to elect prior to
December 31, 2006 to receive a lump sum payment upon a change in control in an amount equal to the
present value of his plan benefits. Benefits under the plan are generally payable in monthly
installments for the director's lifetime or as a joint and survivor form of benefit depending on
the director's marital status at the time of the payment triggering event. Notwithstanding the
foregoing, a director was permitted to elect prior to December 31, 2008, to receive his plan
benefits in the form of a lump sum payment in the event of his disability prior to termination of
service. In the event a director who has served on the Board of Directors for at least five years
dies while in service, the director's spouse will be entitled to a benefit calculated as if the
director had continued service until age 65. The amount of the survivor's benefit will be based on
the number of years the director would have served on the Board of Directors assuming the director
served on the Board of Directors until age 65. The benefit will be payable to the director's
spouse for the remainder of the spouse's life, along with medical benefits. As also described
under "Senior Officers and Directors Post-Retirement Medical Coverage," medical benefits provided
to directors and their spouses prior to the date of their retirement will continue to be provided
to retired directors and their spouses, as long as the director lives, or, in the event the
director dies while in office, the medical benefits will continue to be provided to the director's
spouse for his or her lifetime. In the event the cost of medical benefits provided under the plan
exceeds 200% of the cost of such benefits to Oritani Bank immediately prior to the director's
retirement, the cost in excess of 200% will be paid by the retired director or his or her spouse.
Benefits to be Considered Following Completion of the Conversion
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion. Stockholder approval of this plan will be required. If
implemented 12 months or more following completion of the conversion, the stock-based incentive
plan will reserve a number of shares equal to 4.0% of the shares of common stock sold in the
offering, or 2,063,100 shares of common stock at the maximum as adjusted of the offering range, for
awards of restricted stock to key employees and directors, at no cost to the recipients. If the
shares of restricted stock awarded under the stock-based incentive plan come from authorized but
unissued shares of common stock, stockholders would experience dilution of up to approximately
2.89% in their ownership interest in Oritani. If implemented 12 months or more following the
completion of the conversion, the stock-based incentive plan will also reserve a number of shares
equal to 10.0% of the shares of common stock sold in the offering, or 5,157,750 shares of common
stock at the maximum as adjusted of the offering range, for issuance pursuant to grants of stock
options to key employees and directors.
We may fund our plans through open market purchases, as opposed to issuing common stock;
however, if any options previously granted under our existing stock option plans are exercised
during the first year following completion of the offering, they will be funded with newly-issued
shares as OTS regulations do not permit us to repurchase our shares during the first year following
the completion of this offering except to fund the grants of restricted stock under the stock-based
incentive plan or under extraordinary circumstances. The OTS has previously advised that the
exercise of outstanding options and cancellation of treasury shares in the conversion will not
constitute an extraordinary circumstance or a compelling business purpose for satisfying this test.
The stock-based incentive plan will not be established sooner than six months after the stock
offering and if adopted within one year after the stock offering would require the approval by
stockholders owning a majority of the outstanding shares of Oritani common stock eligible to be
cast. If the stock-based incentive plan is established after one year after the stock offering, it
would require the approval of our stockholders by a majority of votes cast. The following
additional restrictions would apply to our stock-based incentive plan only if the plan is adopted
within one year after the stock offering:
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•
non-employee directors in the aggregate may not receive more than 30% of
the options and restricted stock awards authorized under the plan;
•
any one non-employee director may not receive more than 5% of the options
and restricted stock awards authorized under the plan;
•
any officer or employee may not receive more than 25% of the options and
restricted stock awards authorized under the plan;
•
any tax-qualified employee stock benefit plans and management stock award
plans, in the aggregate, may not hold more than 10.0% of the shares sold in the
offering, unless Oritani Bank has tangible capital of 10.0% or more, in which case any
tax-qualified employee stock benefit plans and management stock award plans, may be
increased to up to 12% of the shares sold in the offering;
•
stock options and restricted stock awards may not vest more rapidly than
20% per year, beginning on the first anniversary of the grant;
•
accelerated vesting is not permitted except for death, disability or upon
a change in control of Oritani Bank or Oritani; and
•
our executive officers or directors must exercise or forfeit their options
in the event that Oritani Bank becomes critically undercapitalized, is subject to
enforcement action or receives a capital directive.
In the event either federal or state regulators change their regulations or policies regarding
stock-based incentive plans, including any regulations or policies restricting the size of awards
and vesting of benefits as described above, the restrictions described above may not be applicable.
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SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
The table below sets forth, for each of Oritani's directors and executive officers and for all
of the directors and executive officers as a group, the following information:
(i)
the number of exchange shares to be held upon consummation of the conversion,
based upon their beneficial ownership of Oritani Financial Corp. common stock as of
______;
(ii)
the proposed purchases of subscription shares, assuming sufficient shares of
common stock are available to satisfy their subscriptions; and
(iii)
the total amount of Oritani common stock to be held upon consummation of the
conversion.
In each case, it is assumed that subscription shares are sold at the midpoint of the offering
range. See "The Conversion and Offering—Additional Limitations on Common Stock Purchases."
Regulations of the OTS prohibit our directors and officers from selling the shares they purchase in
the offering for one year after the date of purchase. Subscriptions by management through our
401(k) plan will be counted as part of the maximum number of shares such individuals may subscribe
for in the stock offering.
Number of
Proposed Purchases of Stock in
Total Common Stock to be Held
Exchange Shares to
the Offering (1)
Percentage of Total
Name of Beneficial Owner
be Held (2)
Number of Shares
Amount
Number of Shares
Outstanding (2)
Directors:
Nicholas Antonaccio
$
Michael A. DeBernardi
James J. Doyle, Jr.
Robert S. Hekemian, Jr.
Kevin J. Lynch
John J. Skelly, Jr.
Total
$
%
Executive Officers:
John M. Fields, Jr.
$
Thomas G. Guinan
Philip M. Wyks
Total
$
%
Total for Directors and
Executive Officers
$
%
*
Less than 1%.
(1)
Includes proposed subscriptions, if any, through the director or officer's 401(k) account and
by associates.
(2)
Assumes an exchange ratio of
shares for each share of Oritani Financial Corp. and that
shares are outstanding after the conversion. Includes shares that may be acquired
upon the exercise of stock options.
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THE CONVERSION AND OFFERING
The Board of Directors of Oritani Financial Corp. and the board of trustees of Oritani
Financial Corp., MHC have approved the plan of conversion and reorganization. The plan of
conversion and reorganization must also be approved by the members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) and the stockholders of Oritani Financial Corp. A special meeting of
members and a special meeting of stockholders have been called for this purpose. The OTS has
conditionally approved the plan of conversion and reorganization; however, such approval does not
constitute a recommendation or endorsement of the plan of conversion and reorganization by that
agency.
General
Pursuant to the plan of conversion and reorganization, our organization will convert from the
mutual holding company form of organization to the fully stock form. Oritani Financial Corp., MHC,
the mutual holding company parent of Oritani Financial Corp., will be merged into Oritani Financial
Corp., and Oritani Financial Corp., MHC will no longer exist. Oritani Financial Corp. will merge
into a new Delaware corporation named Oritani Financial Corp. (a Delaware corporation). As part of
the conversion, the ownership interest of Oritani Financial Corp., MHC in Oritani Financial Corp.
will be offered for sale in the offering by Oritani. When the conversion is completed, all of the
outstanding common stock of Oritani Bank will be owned by Oritani, and all of the outstanding
common stock of Oritani will be owned by public stockholders. A diagram of our corporate structure
before and after the conversion is set forth in the "Summary" section of this prospectus.
Under the plan of conversion and reorganization, at the completion of the conversion, each
share of Oritani Financial Corp. common stock owned by persons other than Oritani Financial Corp.,
MHC will be canceled and converted automatically into new shares of Oritani common stock determined
pursuant to an exchange ratio. The exchange ratio will ensure that immediately after the exchange
of existing shares of Oritani Financial Corp. for new shares, the public stockholders will own the
same percentage of shares of common stock of Oritani that they owned in Oritani Financial Corp.
immediately prior to the conversion, excluding any shares they purchased in the offering and cash
paid in lieu of fractional shares.
Oritani intends to contribute between $159.2 million and $215.7 million of net proceeds, or
$248.2 million if the offering range is increased by 15%, to Oritani Bank and to retain between
$145.9 million and $197.8 million of the net proceeds, or $227.6 million if the offering range is
increased by 15% (excluding the portion of the net proceeds loaned to our employee stock ownership
plan). The conversion will be consummated only upon the issuance of at least the minimum number of
shares of our common stock offered pursuant to the plan of conversion and reorganization.
The plan of conversion and reorganization provides that we will offer shares of common stock
in a "subscription offering" in the following descending order of priority:
(i)
First, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on December 31, 2008.
(ii)
Second, to our tax-qualified employee benefit plans, including our employee
stock ownership plan and 401(k) plan, which will receive nontransferable subscription
rights to purchase in the aggregate up to 10.0% of the shares of common stock sold in
the offering.
(iii)
Third, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on [supplemental record date].
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(iv)
Fourth, to depositors of Oritani Bank at the close of business on [depositor
record date].
If all shares are not subscribed for in the subscription offering, we may, at our discretion,
offer shares of common stock for sale in a community offering, with a preference given in the
following order:
(i)
Persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;
(ii)
Oritani Bank's borrowers (with an outstanding loan or line of credit) as of
December 31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December 31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank);
(iii)
Oritani Financial Corp.'s public stockholders as of [stockholder record date],
and
(iv)
members of the general public.
We have the right to accept or reject, in whole or in part, any orders to purchase shares of
the common stock received in the community offering. The community offering, if any, may begin at
the same time as, during, or after the subscription offering and must be completed within 45 days
after the completion of the subscription offering unless otherwise extended by the OTS. See
"—Community Offering."
The shares of common stock not purchased in the subscription offering or community offering
may be offered to the general public on a best efforts basis by Stifel, Nicolaus & Company,
Incorporated, acting as sole book-running manager, and [co-managers], as co-managers, in a
syndicated community offering through a syndicate of selected dealers.
We have the right to accept or reject orders received in the syndicated community offering at
our sole discretion. The syndicated community offering may begin at any time following the
commencement of the subscription offering and must be completed within 45 days after the completion
of the subscription offering unless otherwise extended by us, with approval of the OTS.
Alternatively, we may sell any remaining shares in an underwritten public offering, which would be
conducted on a firm commitment basis. See "—Syndicated Community Offering."
We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation of the estimated pro forma market value of Oritani. All shares of common
stock to be sold in the offering will be sold at $10.00 per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. The independent valuation will be
updated and the final number of the shares of common stock to be issued in the offering will be
determined at the completion of the offering. See "—Stock Pricing and Number of Shares to be
Issued" for more information as to the determination of the estimated pro forma market value of the
common stock.
The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion and reorganization. A copy of the plan of
conversion and reorganization is available for inspection at each banking office of Oritani Bank
and at the Northeast Regional and the Washington, D.C. offices of the OTS. The plan of conversion
and reorganization is also filed as an exhibit to Oritani Financial Corp., MHC's application to
convert from mutual to stock form, of which this prospectus is a part, copies of which may be
obtained from the OTS. The plan of conversion and reorganization is also an exhibit to Oritani's
Registration Statement on Form S-1, which is accessible on the Securities and Exchange Commission
website,
www.sec.gov
. See "Where You Can Find Additional Information."
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Reasons for the Conversion and Offering
Our Board of Directors decided at this time to convert to a fully public stock form of
ownership and conduct the offering in order to increase our capital position. Completing the
offering is necessary for us to continue to grow and execute our business strategy.
Our primary reasons for converting and raising additional capital through the offering are:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and
•
to use the additional capital for other general corporate purposes.
As a fully converted stock holding company, we will have greater flexibility in structuring
mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure limits our ability to offer shares of
our common stock as consideration for a merger or acquisition since Oritani Financial Corp., MHC is
required to own a majority of our shares of common stock. Potential sellers often want stock for
at least part of the purchase price. Our new stock holding company structure will enable us to
offer stock or cash consideration, or a combination of stock and cash, and will therefore enhance
our ability to compete with other bidders when acquisition opportunities arise.
Approvals Required – Plan of Conversion and Reorganization
The affirmative vote of a majority of the total eligible votes of the members of Oritani
Financial Corp., MHC as of [depositor record date] is required to approve the plan of conversion
and reorganization. By their approval of the plan of conversion and reorganization, the members of
Oritani Financial Corp., MHC (comprised of depositors of Oritani Bank) will also be approving the
merger of
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Oritani Financial Corp., MHC into Oritani Financial Corp. The affirmative vote of the holders
of at least two-thirds of the outstanding shares of common stock of Oritani Financial Corp.,
including shares held by Oritani Financial Corp., MHC, and the affirmative vote of the holders of a
majority of the outstanding shares of common stock of Oritani Financial Corp. held by the public
stockholders of Oritani Financial Corp. as of [stockholder record date], are also required to
approve the plan of conversion and reorganization. The plan of conversion and reorganization also
must be approved by the OTS, which has given its conditional approval; however, such approval does
not constitute a recommendation or endorsement of the plan of conversion and reorganization by such
agency.
Share Exchange Ratio for Current Stockholders
OTS regulations provide that in a conversion of a mutual holding company to fully stock form,
the public stockholders will be entitled to exchange their shares for common stock of the new
holding company, provided that the mutual holding company demonstrates to the satisfaction of the
OTS that the basis for the exchange is fair and reasonable. Each publicly held share of Oritani
Financial Corp. common stock will be automatically converted into the right to receive a number of
shares of Oritani common stock. The number of shares of common stock will be determined pursuant
to the exchange ratio, which ensures that the public stockholders will own the same percentage of
common stock in Oritani after the conversion as they held in Oritani Financial Corp. immediately
prior to the conversion, exclusive of their purchase of additional shares of common stock in the
offering and their receipt of cash in lieu of fractional exchange shares. The exchange ratio is not
dependent on the market value of our currently outstanding Oritani Financial Corp. common stock.
The exchange ratio is based on the percentage of Oritani Financial Corp. common stock held by the
public, the independent valuation of Oritani prepared by RP Financial, LC. and the number of shares
of common stock issued in the offering. The exchange ratio is expected to range from approximately
11,379,252 exchange shares at the minimum of the offering range to 17,704,777 exchange shares at
the adjusted maximum of the offering range.
If you are a stockholder of Oritani Financial Corp., at the conclusion of the conversion, your
shares will be exchanged for shares of Oritani. The number of shares you receive will be based on
the number of shares of common stock you own and the final exchange ratio determined as of the
conclusion of the conversion.
The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows how many whole shares of Oritani a hypothetical
owner of Oritani Financial Corp. common stock would receive in the exchange for 100 shares of
Oritani Financial Corp. common stock owned at the consummation of the conversion, depending on the
number of shares issued in the offering.
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New Shares to be
Total Shares of
New Shares That
Exchanged for Existing
Common Stock to be
Equivalent  Per
Would be Received
New Shares to be Sold
Shares of Oritani
Outstanding After
Share Current
for 100 Existing
in This Offering
Financial Corp.
the Offering
Exchange Ratio
Market Value (1)
Shares
Amount
Percent
Amount
Percent
Minimum
33,150,000
74.4454
%
11,379,252
25.5546
%
44,529,252
1.20220
$
12.02
120
Midpoint
39,000,000
74.4454
%
13,387,355
25.5546
%
52,387,355
1.41430
$
14.14
141
Maximum
44,850,000
74.4454
%
15,395,458
25.5546
%
60,245,458
1.62640
$
16.26
163
Adjusted Maximum
51,577,500
74.4454
%
17,704,777
25.5546
%
69,282,277
1.87040
$
18.70
187
(1)
Represents the value of shares of Oritani received in the conversion by a holder of one share
of Oritani Financial Corp. at the exchange ratio, assuming the market price of $10.00 per
share.
Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio so that the aggregate exercise price
and the duration of such options remain unchanged. All such options will vest upon completion of
the conversion. We anticipate the pre-tax expense of such accelerated vesting as well as the
accelerated vesting of outstanding stock awards will be approximately $11.3 million, which
represents the remaining amortization for such accelerated options and awards with such expense to
be incurred during the fiscal quarter in which the stock offering is completed.
Exchange of Existing Stockholders' Stock Certificates
The conversion of existing outstanding shares of Oritani Financial Corp. common stock into the
right to receive shares of Oritani common stock will occur automatically on the effective date of
the conversion. As soon as practicable after the effective date of the conversion, our exchange
agent will send a transmittal form to each public stockholder of Oritani Financial Corp. who holds
stock certificates. The transmittal forms will contain instructions on how to exchange stock
certificates of Oritani Financial Corp. common stock for stock certificates of Oritani common
stock. We expect that stock certificates evidencing shares of Oritani common stock will be
distributed within five business days after the exchange agent receives properly executed
transmittal forms, Oritani Financial Corp. stock certificates and other required documents.
You
should not forward your stock certificates until you have received transmittal forms, which will
include forwarding instructions.
Shares held by public stockholders through a brokerage or other
account in "street name" will be exchanged automatically upon the conclusion of the conversion; no
transmittal forms will be mailed relating to these shares.
No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. when the conversion is completed. For each fractional share that would
otherwise be issued to a stockholder who holds a stock certificate, we will pay by check an amount
equal to the product obtained by multiplying the fractional share interest to which the holder
would otherwise be entitled by the $10.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of a
properly executed transmittal form, stock certificates and other required documents. If your
shares of common stock are held in street name (such as in a brokerage account), you will
automatically receive cash in lieu of fractional shares in your account.
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After the conversion, Oritani Financial Corp. stockholders who hold stock certificates will
not receive shares of Oritani common stock and will not be paid dividends on the shares of Oritani
common stock until existing certificates representing shares of Oritani Financial Corp. common
stock are surrendered for exchange in compliance with the terms of the transmittal form. When
stockholders surrender their certificates, any unpaid dividends will be paid without interest. For
all other purposes, however, each certificate that represents shares of Oritani Financial Corp.
common stock outstanding at the effective date of the conversion will be considered to evidence
ownership of shares of Oritani common stock into which those shares have been converted by virtue
of the conversion.
If a certificate for Oritani Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder's expense.
All shares of Oritani common stock that we issue in exchange for existing shares of Oritani
Financial Corp. common stock will be considered to have been issued in full satisfaction of all
rights pertaining to such shares of common stock, subject, however, to our obligation to pay any
dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
Effects of Conversion on Depositors, Borrowers and Members
Continuity
.
While the conversion is being accomplished, the normal business of Oritani Bank of
accepting deposits and making loans will continue without interruption. Oritani Bank will continue
to be a state chartered savings bank and will continue to be regulated by the FDIC and the New
Jersey Department of Banking and Insurance. After the conversion, Oritani Bank will continue to
offer existing services to depositors, borrowers and other customers. The directors serving
Oritani Financial Corp. at the time of the conversion will be the directors of Oritani after the
conversion.
Effect on Deposit Accounts
.
Pursuant to the plan of conversion and reorganization, each
depositor of Oritani Bank at the time of the conversion will automatically continue as a depositor
after the conversion, and the deposit balance, interest rate and other terms of such deposit
accounts will not change as a result of the conversion. Each such account will be insured by the
FDIC to the same extent as before the conversion. Depositors will continue to hold their existing
certificates, passbooks and other evidences of their accounts.
Effect on Loans
.
No loan outstanding from Oritani Bank will be affected by the conversion, and
the amount, interest rate, maturity and security for each loan will remain as it was contractually
fixed prior to the conversion.
Effect on Voting Rights of Members
.
At present, all depositors of Oritani Bank are members of,
and have voting rights in, Oritani Financial Corp., MHC as to all matters requiring membership
action. Upon completion of the conversion, depositors will cease to be members of Oritani Financial
Corp., MHC and will no longer have voting rights, unless they purchase shares of Oritani's common
stock. Upon completion of the conversion, all voting rights in Oritani Bank will be vested in
Oritani as the sole stockholder of Oritani Bank. The stockholders of Oritani will possess
exclusive voting rights with respect to Oritani common stock.
Tax Effects
.
We will receive an opinion of counsel or tax advisor with regard to the federal
and state income tax consequences of the conversion to the effect that the conversion will not be a
taxable
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transaction for federal or state income tax purposes to Oritani Financial Corp., MHC, Oritani
Financial Corp., the public stockholders of Oritani Financial Corp. (except for cash paid for
fractional shares), members of Oritani Financial Corp., MHC, eligible account holders, supplemental
eligible account holders, or Oritani Bank. See "—Material Income Tax Consequences."
Effect on Liquidation Rights
.
Each depositor in Oritani Bank has both a deposit account in
Oritani Bank and a pro rata ownership interest in the net worth of Oritani Financial Corp., MHC
based upon the deposit balance in his or her account. This ownership interest is tied to the
depositor's account and has no tangible market value separate from the deposit account. This
interest may only be realized in the event of a complete liquidation of Oritani Financial Corp.,
MHC and Oritani Bank. Any depositor who opens a deposit account obtains a pro rata ownership
interest in Oritani Financial Corp., MHC without any additional payment beyond the amount of the
deposit. A depositor who reduces or closes his or her account receives a portion or all of the
balance in the deposit account but nothing for his or her ownership interest in the net worth of
Oritani Financial Corp., MHC, which is lost to the extent that the balance in the account is
reduced or closed.
Consequently, depositors in a stock subsidiary of a mutual holding company normally have no
way of realizing the value of their ownership interest, which has realizable value only in the
unlikely event that Oritani Financial Corp., MHC and Oritani Bank are liquidated. If this occurs,
the depositors of record at that time, as owners, would share pro rata in any residual surplus and
reserves of Oritani Financial Corp., MHC after other claims, including claims of depositors to the
amounts of their deposits and payments to certain depositors of Oritani Bank under liquidation
accounts that have been established for the benefit of such depositors, are paid.
Under the plan of conversion and reorganization, however, depositors will receive rights in a
liquidation account maintained by Oritani representing the amount of (i) Oritani Financial Corp.,
MHC's ownership interest in Oritani Financial Corp.'s total stockholders' equity as of the date of
the latest statement of financial condition used in this prospectus plus (ii) the value of the net
assets of Oritani Financial Corp., MHC as of the date of the latest statement of financial
condition of Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding
its ownership of Oritani Financial Corp.). Oritani shall continue to hold the liquidation account
for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders who continue
to maintain deposits in Oritani Bank. The liquidation account is also designed to provide payments
to depositors of their liquidation interests in the event of a liquidation of Oritani and Oritani
Bank or solely of Oritani Bank.
For further information, see "—Liquidation Rights."
Stock Pricing and Number of Shares to be Issued
The plan of conversion and reorganization and federal regulations require that the aggregate
purchase price of the common stock sold in the offering must be based on the appraised pro forma
market value of the common stock, as determined by an independent valuation. Oritani Bank and
Oritani Financial Corp., MHC have retained RP Financial, LC. to prepare an independent valuation
appraisal. For its services in preparing the initial valuation, RP Financial, LC. will receive a
fee of $125,000 and $10,000 for expenses and an additional $15,000 for each valuation update, as
necessary. Oritani Bank and Oritani Financial Corp., MHC have agreed to indemnify RP Financial, LC.
and its employees and affiliates against specified losses, including any losses in connection with
claims under the federal securities laws, arising out of its services as independent appraiser,
except where such liability results from its negligence or bad faith.
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The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the OTS appraisal guidelines, the appraisal applied three primary methodologies:
the pro forma price-to-book value approach applied to both reported book value and tangible book
value; the pro forma price-to-earnings approach applied to reported and core earnings; and the pro
forma price-to-assets approach. The market value ratios applied in the three methodologies were
based upon the current market valuations of the peer group companies, subject to valuation
adjustments applied by RP Financial, LC. to account for differences between Oritani Financial Corp.
and the peer group. RP Financial, LC. placed the greatest emphasis on the price-to-earnings and
price-to-book approaches in estimating pro forma market value.
The independent valuation was prepared by RP Financial, LC. in reliance upon the information
contained in this prospectus, including the consolidated financial statements of Oritani Financial
Corp. RP Financial, LC. also considered the following factors, among others:
•
the present results and financial condition of Oritani Financial Corp. and
the projected results and financial condition of Oritani;
•
the economic and demographic conditions in Oritani Financial Corp.'s
existing market area;
•
certain historical, financial and other information relating to Oritani
Financial Corp.;
•
the impact of the offering on Oritani's stockholders' equity and earnings
potential;
•
the proposed dividend policy of Oritani; and
•
the trading market for securities of comparable institutions and general
conditions in the market for such securities.
Included in RP Financial, LC.'s independent valuation were certain assumptions as to the pro
forma earnings of Oritani after the conversion that were utilized in determining the appraised
value. These assumptions included estimated expenses, an assumed after-tax rate of return on the
net offering proceeds of 1.98% and purchases in the open market of the common stock issued in the
offering by the stock-based incentive plan at the $10.00 per share purchase price. See "Pro Forma
Data" for additional information concerning these assumptions. The use of different assumptions may
yield different results.
The independent valuation states that as of February 19, 2010, the estimated pro forma market
value, or valuation range, of Oritani ranged from a minimum of $445.3 million to a maximum of
$602.5 million, with a midpoint of $523.8 million and an adjusted maximum of $692.8 million. The
Board of Directors of Oritani decided to offer the shares of common stock for a price of $10.00 per
share. The aggregate offering price of the shares of common stock will be equal to the valuation
range multiplied by the percentage of Oritani Financial Corp. common stock owned by Oritani
Financial Corp., MHC. The number of shares offered will be equal to the aggregate offering price
of the shares of common stock divided by the price per share. Based on the valuation range, the
74.4% of Oritani Financial Corp. common stock owned by Oritani Financial Corp., MHC and the $10.00
price per share, the minimum of the offering range will be 33,150,000 shares, the midpoint of the
offering range will be 39,000,000 shares and the maximum of the offering range will be 44,850,000
shares of common stock, with an adjusted maximum of 51,577,500 shares.
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The Board of Directors of Oritani reviewed the independent valuation and, in particular,
considered the following:
•
Oritani Financial Corp.'s financial condition and results of operations;
•
comparison of financial performance ratios of Oritani Financial Corp. to
those of other financial institutions of similar size;
•
market conditions generally and in particular for financial institutions;
and
•
the historical trading price of the publicly held shares of Oritani
Financial Corp. common stock.
All of these factors are set forth in the independent valuation. The Board of Directors also
reviewed the methodology and the assumptions used by RP Financial, LC. in preparing the independent
valuation and believes that such assumptions were reasonable. The offering range may be amended
with the approval of the OTS, if required, as a result of subsequent developments in the financial
condition of Oritani Financial Corp. or Oritani Bank or market conditions generally. In the event
the independent valuation is updated to amend the pro forma market value of Oritani to less than
$445.3 million or more than $692.8 million, the appraisal will be filed with the Securities and
Exchange Commission by a post-effective amendment to Oritani's registration statement.
The independent valuation is not intended, and must not be construed, as a recommendation of
any kind as to the advisability of purchasing our shares of common stock. RP Financial, LC. did not
independently verify our consolidated financial statements and other information that we provided
to them, nor did RP Financial, LC. independently value our assets or liabilities. The independent
valuation considers Oritani Bank as a going concern and should not be considered as an indication
of the liquidation value of Oritani Bank. Moreover, because the independent valuation is
necessarily based upon estimates and projections of a number of matters, all of which may change
from time to time, no assurance can be given that persons purchasing our common stock in the
offering will thereafter be able to sell their shares of common stock at prices at or above the
$10.00 price per share.
Following commencement of the subscription offering, the maximum of the valuation range may be
increased by up to 15%, or up to $692.8 million, without resoliciting purchasers, which will result
in a corresponding increase of up to 15% in the maximum of the offering range to up to 51,577,500
shares, to reflect changes in the market and financial conditions, demand for the shares of common
stock or regulatory considerations. We will not decrease the minimum of the valuation range and
the minimum of the offering range without a resolicitation of purchasers. The subscription price
of $10.00 per share of common stock will remain fixed. See "—Additional Limitations on Common
Stock Purchases" as to the method of distribution of additional shares of common stock to be issued
in the event of an increase in the offering range of up to 51,577,500 shares.
If the update to the independent valuation at the conclusion of the offering results in an
increase in the maximum of the valuation range to more than $692.8 million and a corresponding
increase in the offering range to more than 51,577,500 shares, or a decrease in the minimum of the
valuation range to less than $445.3 million and a corresponding decrease in the offering range to
fewer than 33,150,000 shares, then, after consulting with the OTS, we may terminate the plan of
conversion and reorganization, cancel deposit account withdrawal authorizations and promptly return
by check all funds received, with interest at Oritani Bank's passbook savings rate. Alternatively,
we may establish a new offering range, extend the offering period and commence a resolicitation of
purchasers or take other actions as permitted
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by the OTS in order to complete the offering. In the event that we extend the offering and
conduct a resolicitation, purchasers would have the opportunity to maintain, change or cancel their
stock orders within a specified period. If a purchaser does not respond during the period, his or
her stock order will be canceled and payment will be returned promptly, with interest at Oritani
Bank's passbook savings rate, and deposit account withdrawal authorizations will be canceled. Any
single offering extension will not exceed 90 days; aggregate extensions may not conclude beyond
[final expiration date], which is two years after the special meeting of members to vote on the
conversion.
An increase in the number of shares of common stock to be issued in the offering would
decrease both a purchaser's ownership interest and Oritani's pro forma earnings and stockholders'
equity on a per share basis while increasing pro forma earnings and stockholders' equity on an
aggregate basis. A decrease in the number of shares to be issued in the offering would increase
both a purchaser's ownership interest and Oritani's pro forma earnings and stockholders' equity on
a per share basis, while decreasing pro forma earnings and stockholders' equity on an aggregate
basis. For a presentation of the effects of these changes, see "Pro Forma Data."
Copies of the independent valuation appraisal report prepared by RP Financial, LC. and the
detailed memorandum setting forth the method and assumptions used in the appraisal report are
available for inspection at the main office of Oritani Bank and as specified under "Where You Can
Find Additional Information."
Subscription Offering and Subscription Rights
In accordance with the plan of conversion and reorganization, rights to subscribe for shares
of common stock in the subscription offering have been granted in the following descending order of
priority. The filling of all subscriptions that we receive will depend on the availability of
common stock after satisfaction of all subscriptions of all persons having prior rights in the
subscription offering and subject to the minimum, maximum and overall purchase and ownership
limitations set forth in the plan of conversion and reorganization and as described below under
"—Additional Limitations on Common Stock Purchases."
Priority 1: Eligible Account Holders
.
Each Oritani Bank depositor with aggregate deposit
account balances of $50.00 or more (a "Qualifying Deposit") at the close of business on December
31, 2008 (an "Eligible Account Holder") will receive, without payment therefor, nontransferable
subscription rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of our common
stock; (ii) one-tenth of one percent of the total number of shares of common stock issued in the
offering; or (iii) 15 times the product, rounded down to the nearest whole number, obtained by
multiplying the total number of shares of common stock offered by a fraction, the numerator of
which is the amount of the Qualifying Deposit of the Eligible Account Holder and the denominator is
the total amount of Qualifying Deposits of all Eligible Account Holders, subject to the overall
purchase and ownership limitations. See "—Additional Limitations on Common Stock Purchases." If
there are not sufficient shares available to satisfy all subscriptions, shares will first be
allocated so as to permit each Eligible Account Holder to purchase a number of shares sufficient to
make his or her total allocation equal to the lesser of 100 shares or the number of shares for
which he or she subscribed. Thereafter, unallocated shares will be allocated to each Eligible
Account Holder whose subscription remains unfilled in the proportion that the amount of his or her
Qualifying Deposit bears to the total amount of Qualifying Deposits of all subscribing Eligible
Account Holders whose subscriptions remain unfilled. If an amount so allocated exceeds the amount
subscribed for by any one or more Eligible Account Holders, the excess will be reallocated among
those Eligible Account Holders whose subscriptions are not fully satisfied until all available
shares have been allocated.
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To ensure proper allocation of our shares of common stock, each Eligible Account Holder must
list on his or her stock order form all deposit accounts in which he or she had an ownership
interest on December 31, 2008. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed. In the event of an
oversubscription, the subscription rights of Eligible Account Holders who are also directors or
executive officers of Oritani Financial Corp. or their associates will be subordinated to the
subscription rights of other Eligible Account Holders to the extent attributable to increased
deposits in the twelve months preceding December 31, 2008.
Priority 2: Tax-Qualified Plans
.
Our tax-qualified employee stock benefit plans, consisting
of our employee stock ownership plan and 401(k) plan, will receive, without payment therefor,
nontransferable subscription rights to purchase up to 10.0% of the shares of common stock sold in
the offering, although our employee stock ownership plan intends to purchase 4.0% of the shares of
common stock sold in the offering. If market conditions warrant, in the judgment of its trustees,
the employee stock ownership plan may instead elect to purchase shares in the open market following
the completion of the conversion.
Priority 3: Supplemental Eligible Account Holders
.
To the extent that there are sufficient
shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders
and our tax-qualified employee stock benefit plans, each Oritani Bank depositor, other than
directors and executive officers of Oritani Financial Corp., with a Qualifying Deposit at the close
of business on [supplemental record date] who is not an Eligible Account Holder ("Supplemental
Eligible Account Holder") will receive, without payment therefor, nontransferable subscription
rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of common stock; (ii)
one-tenth of one percent of the total number of shares of common stock issued in the offering; or
(iii) 15 times the product, rounded down to the nearest whole number, obtained by multiplying the
total number of shares of common stock to be offered by a fraction, the numerator of which is the
amount of the Qualifying Deposit of the Supplemental Eligible Account Holder and the denominator is
the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders, subject to
the overall purchase and ownership limitations. See "—Additional Limitations on Common Stock
Purchases." If there are not sufficient shares available to satisfy all subscriptions, shares will
be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of
shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common
stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will
be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled in
the proportion that the amount of his or her Qualifying Deposit bears to the total amount of
Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain
unfilled.
To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must
list on the stock order form all deposit accounts in which he or she had an ownership interest at
[supplemental record date]. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed.
Priority 4: Other Depositors
.
To the extent that there are shares of common stock remaining
after satisfaction of subscriptions by Eligible Account Holders, our tax-qualified employee stock
benefit plans, and Supplemental Eligible Account Holders, each depositor of Oritani Bank as of the
close of business on the voting record date of [depositor record date] who is not an Eligible
Account Holder or Supplemental Eligible Account Holder ("Other Depositors") will receive, without
payment therefor, nontransferable subscription rights to purchase up to $500,000 (50,000 shares) of
common stock or one-tenth of one percent of the total number of shares of common stock issued in
the offering, subject to the overall purchase and ownership limitations. See "—Additional
Limitations on Common Stock Purchases." If there are not sufficient shares available to satisfy all
subscriptions, available shares will be allocated so as
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to permit each Other Depositor to purchase a number of shares sufficient to make his or her
total allocation equal to the lesser of 100 shares of common stock or the number of shares for
which he or she subscribed. Any remaining shares will be allocated among Other Depositors in the
proportion that the amount of the subscription of each Other Depositor whose subscription remains
unsatisfied bears to the total amount of subscriptions of all Other Depositors whose subscriptions
remain unsatisfied. To ensure proper allocation of common stock, each Other Depositor must list on
the stock order form all deposit accounts in which he or she had an ownership interest at
[depositor record date]. In the event of oversubscription, failure to list an account could result
in fewer shares being allocated than if all accounts had been disclosed.
Expiration Date
. The subscription offering will expire at 2:00 p.m., Eastern Time, on
[expiration date], unless extended by us for up to 45 days. Such extension may be made without
notice to you, except that extensions beyond [extension date] will require the approval of the OTS
and a resolicitation of subscribers in the offering. We may decide to extend the expiration date of
the subscription offering for any reason, whether or not subscriptions have been received for
shares at the minimum, midpoint or maximum of the offering range. Subscription rights which have
not been exercised prior to the expiration date will become void. Subscription rights will expire
whether or not each eligible depositor can be located.
Community Offering
To the extent that shares of common stock remain available for purchase after satisfaction of
all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans,
Supplemental Eligible Account Holders and Other Depositors, we may offer shares pursuant to the
plan of conversion and reorganization in a community offering. Shares will be offered with the
following preferences:
(i)
Persons residing in the counties of Bergen, Passaic, Sussex, Hudson, Essex,
Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;
(ii)
Oritani Bank's borrowers (with an outstanding loan or line of credit) as of
December 31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December 31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank);
(iii)
Oritani Financial Corp.'s public stockholder as of [stockholder record date];
and
(iv)
members of the general public.
Purchasers in the community offering may purchase up to $500,000 (50,000 shares) of common
stock, subject to the overall purchase and ownership limitations. See "—Additional Limitations on
Common Stock Purchases." The minimum purchase is 25 shares.
The opportunity to purchase shares of
common stock in the community offering category is subject to our right, in our sole discretion, to
accept or reject any such orders in whole or in part either at the time of receipt of an order or
as soon as practicable following the expiration date of the offering.
If we do not have sufficient shares of common stock available to fill the accepted orders of
persons residing in the listed counties, we will allocate the available shares among those persons
in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares
or the number of shares subscribed for by such person. Thereafter, unallocated shares will be
allocated among such persons residing in the areas listed above whose orders remain unsatisfied on
an equal number of shares basis per order. If an oversubscription occurs due to the orders of
borrowers or public stockholders
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of Oritani Financial Corp. as of [stockholder record date], the allocation procedures
described above will apply to the stock orders of such persons. In connection with the allocation
process, unless the OTS permits otherwise, orders received for Oritani common stock in the
community offering will first be filled up to a maximum of two percent of the shares sold in the
offering, and thereafter any remaining shares will be allocated on an equal number of shares basis
per order until all shares have been allocated.
The term "residing" or "resident" as used in this prospectus means any person who occupies a
dwelling within the New Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren,
Union, Somerset, Hunterdon, Middlesex and Mercer; has a present intent to remain within such
community for a period of time; and manifests the genuineness of that intent by establishing an
ongoing physical presence within the community, together with an indication that this presence
within the community is something other than merely transitory in nature. We may utilize deposit
or loan records or other evidence provided to us to decide whether a person is a resident. In all
cases, however, the determination shall be in our sole discretion.
Expiration Date.
The community offering, if any, may begin during or after the subscription
offering, and is currently expected to terminate at the same time as the subscription offering.
Oritani may decide to extend the community offering for any reason and is not required to give
purchasers notice of any such extension unless such period extends beyond [extension date], in
which case we will resolicit purchasers in the offering.
Syndicated Community Offering
If feasible, our Board of Directors may decide to offer for sale shares of common stock not
subscribed for or purchased in the subscription and community offerings in a syndicated community
offering, subject to such terms, conditions and procedures as we may determine, in a manner that
will achieve a wide distribution of our shares of common stock. In the syndicated community
offering, any person may purchase up to $500,000 (50,000 shares) of common stock, subject to the
overall purchase and ownership limitations. We retain the right to accept or reject in whole or in
part any orders in the syndicated community offering. Unless the OTS permits otherwise, accepted
orders for Oritani common stock in the syndicated community offering will first be filled up to a
maximum of two percent (2%) of the shares sold in the offering, and thereafter any remaining shares
will be allocated on an equal number of shares basis per order until all shares have been
allocated. Unless the syndicated community offering begins during the community offering, the
syndicated community offering will begin as soon as possible after the completion of the
subscription and community offerings.
If a syndicated community offering is held, Stifel, Nicolaus & Company, Incorporated will
serve as sole book running manager. [co-managers] will serve as co-managers, and each firm will
assist us in selling our common stock on a best efforts basis. Neither Stifel, Nicolaus & Company,
Incorporated nor any registered broker-dealer will have any obligation to take or purchase any
shares of the common stock in the syndicated community offering. The syndicated community offering
will be conducted in accordance with certain Securities and Exchange Commission rules applicable to
best efforts offerings. Generally under those rules, Stifel, Nicolaus & Company, Incorporated, a
broker-dealer, will deposit funds it receives prior to closing from interested investors into a
separate non-interest-bearing bank account at a bank other than Oritani Bank. The closing of the
syndicated community offering is subject to conditions set forth in an agency agreement among
Oritani, Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank on one hand and
Stifel, Nicolaus & Company, Incorporated on the other hand. If and when all the conditions for the
closing are met, funds for common stock sold in the syndicated community offering, less fees and
commissions payable by us, will be delivered promptly to us. If the offering is consummated, but
some or all of an interested investor's funds are not accepted by us, those funds will be returned
to the interested investor promptly after closing, without interest. If the
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offering is not consummated, funds in the account will be returned promptly, without interest,
to the potential investor. Normal customer ticketing will be used for order placement. In the
syndicated community offering, order forms will not be used.
In the event that we sell common stock in a "stand by" underwritten public offering, we have
agreed that Stifel, Nicolaus & Company, Incorporated will have the right to serve as sole
book-running manager. Any underwritten public offering will be conducted on a firm commitment
basis. In such case, the underwriters will purchase all shares of common stock not sold in the
subscription offering or the community offering, if any such shares are purchased. The aggregate
price paid to us by or through the underwriters for the shares of common stock will be the number
of shares sold multiplied by the $10.00 price per share, less the amount of an underwriting
discount as negotiated between us and the underwriters and approved by the OTS and the Financial
Industry Regulatory Authority. If we determine to sell stock in an underwritten public offering,
the terms of such offering, including the names of the underwriters participating in such offering,
will be described in a supplement to this prospectus.
If for any reason we cannot effect a syndicated community offering or underwritten public
offering of shares of common stock not purchased in the subscription and community offerings, or in
the event that there is a significant number of shares remaining unsold after such offerings, we
will try to make other arrangements for the sale of unsubscribed shares, if possible. The OTS must
approve any such arrangements.
Additional Limitations on Common Stock Purchases
The plan of conversion and reorganization includes the following limitations on the number of
shares of common stock that may be purchased in the offering:
(i)
No person may purchase fewer than 25 shares of common stock;
(ii)
The maximum number of shares of common stock that may be purchased by a person,
or persons exercising subscription rights through a single qualifying deposit account
held jointly, is 50,000 shares;
(iii)
Our tax-qualified employee stock benefit plans, including our employee stock
ownership plan and 401(k) plan, may purchase in the aggregate up to 10.0% of the shares
of common stock sold in the offering, including shares sold in the event of an increase
in the offering range of up to 15%;
(iv)
Except for the tax-qualified employee stock benefit plans, including our
employee stock ownership plan and 401(k) plan, as described above, no person or entity,
together with associates or persons acting in concert with such person or entity, may
purchase more than $1.0 million (100,000 shares) of common stock in all categories of
the offering combined;
(v)
Current stockholders of Oritani Financial Corp. are subject to an ownership
limitation. As previously described, current stockholders of Oritani Financial Corp.
will receive shares of Oritani common stock in exchange for their existing shares of
Oritani Financial Corp. common stock at the conclusion of the offering. The number of
shares of common stock that a stockholder may purchase in the offering, together with
associates or persons acting in concert with such stockholder, when combined with the
shares that the stockholder and his or her associates will receive in exchange for
existing Oritani
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Financial Corp. common stock, may not exceed 5% of the shares of common stock of
Oritani to be issued and outstanding at the completion of the conversion; and
(vi)
The maximum number of shares of common stock that may be purchased in all
categories of the offering by executive officers and directors of Oritani Bank and
their associates, in the aggregate, when combined with shares of common stock issued in
exchange for existing shares, may not exceed 25% of the shares of Oritani common stock
outstanding upon completion of the conversion.
Depending upon market or financial conditions, our Board of Directors, with the approval of
the OTS and without further approval of members of Oritani Financial Corp., MHC, may decrease or
increase the purchase and ownership limitations. If a purchase limitation is increased,
subscribers in the subscription offering who ordered the maximum amount will be given, and, in our
sole discretion, some other large subscribers who through their subscriptions evidence a desire to
purchase the maximum allowable number of shares may be given, the opportunity to increase their
subscriptions up to the then applicable limit. The effect of this type of resolicitation will be
an increase in the number of shares of common stock owned by subscribers who choose to increase
their subscriptions. In the event that the maximum purchase limitation is increased to 5% of the
shares sold in the offering, such limitation may be further increased to 9.99%,
provided
that
orders for Oritani common stock exceeding 5% of the shares issued in the offering shall not exceed
in the aggregate 10.0% of the total shares sold in the offering.
In the event of an increase in the offering range of up to 51,577,500 shares of common stock,
shares will be allocated in the following order of priority in accordance with the plan of
conversion and reorganization:
(i)
to fill subscriptions by the tax-qualified employee stock benefit plans,
including the employee stock ownership plan, for up to 10.0% of the total number of
shares of common stock sold in the offering;
(ii)
in the event that there is an oversubscription at the Eligible Account Holder,
Supplemental Eligible Account Holder or Other Depositor levels, to fill unfulfilled
subscriptions of these subscribers according to their respective priorities; and
(iii)
to fill subscriptions in the community offering, with preference given first
to persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer; then to
Oritani Bank's borrowers (with an outstanding loan or line of credit) as of December
31, 2009 that are meeting all of their terms and conditions of the loan agreements with
Oritani Bank (as determined solely in the discretion of Oritani Bank) as of December
31, 2009 and the date of purchase of the common stock; then to Oritani Financial
Corp.'s public stockholders as of [stockholder record date] and then to members of the
general public.
The term "associate" of a person means:
(i)
any corporation or organization, other than Oritani Financial Corp., MHC,
Oritani Financial Corp., Oritani Bank or a majority-owned subsidiary of Oritani
Financial Corp. or Oritani Bank, of which the person is a senior officer, partner or
beneficial owner, directly or indirectly, of 10.0% or more of any equity security;
(ii)
any trust or other estate in which the person has a substantial beneficial
interest or serves as a trustee or in a similar fiduciary capacity; provided, however,
that for the purposes of
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subscriptions in the offering and restrictions on the sale of stock after the
conversion, the term "associate" does not include a person who has a substantial
beneficial interest in an employee stock benefit plan of Oritani Bank, or who is a
trustee or fiduciary of such plan, and for purposes of aggregating total shares that
may be held by officers, trustees and directors of Oritani Financial Corp., MHC,
Oritani Financial Corp. or Oritani Bank, (the term "associate" does not include any
tax-qualified employee stock benefit plan of Oritani Bank); and
(iii)
any blood or marriage relative of the person, who either has the same home as
the person or who is a director, trustee or officer of Oritani Financial Corp., MHC,
Oritani Financial Corp. or Oritani Bank.
The term "acting in concert" means:
(i)
knowing participation in a joint activity or interdependent conscious parallel
action towards a common goal whether or not pursuant to an express agreement; or
(ii)
a combination or pooling of voting or other interests in the securities of an
issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.
A person or company that acts in concert with another person or company shall also be deemed
to be acting in concert with any person or company who is also acting in concert with that other
party, except that any tax-qualified employee stock benefit plan will not be deemed to be acting in
concert with its trustee or a person who serves in a similar capacity solely for the purpose of
determining whether common stock held by the trustee and common stock held by the employee stock
benefit plan will be aggregated.
We have the sole discretion to determine whether prospective purchasers are "associates" or
"acting in concert." Persons exercising subscription rights through a single qualifying deposit
account held jointly, whether or not related, will be deemed to be acting in concert unless we
determine otherwise.
Our directors are not treated as associates of each other solely because of their membership
on the Board of Directors. Common stock purchased in the offering will be freely transferable
except for shares purchased by executive officers and directors of Oritani or Oritani Bank and
except as described below. Any purchases made by any associate of Oritani or Oritani Bank for the
explicit purpose of meeting the minimum number of shares of common stock required to be sold in
order to complete the offering shall be made for investment purposes only and not with a view
toward redistribution. In addition, under Financial Industry Regulatory Authority guidelines,
members of the Financial Industry Regulatory Authority and their associates are subject to certain
restrictions on transfer of securities purchased in accordance with subscription rights and to
certain reporting requirements upon purchase of these securities. For a further discussion of
limitations on purchases of our shares of common stock at the time of conversion and thereafter,
see "—Certain Restrictions on Purchase or Transfer of Our Shares after Conversion" and
"Restrictions on Acquisition of Oritani."
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Marketing Arrangements
To assist in the marketing of our common stock, we have retained Stifel, Nicolaus & Company,
Incorporated, which is a broker-dealer registered with the Financial Industry Regulatory Authority.
Stifel, Nicolaus & Company, Incorporated will assist us on a best efforts basis in the offering by:
(i)
acting as our financial advisor for the conversion and offering;
(ii)
providing administrative services and managing the Stock Information Center;
(iii)
educating our employees regarding the offering;
(iv)
targeting our sales efforts, including assisting in the preparation of
marketing materials; and
(v)
soliciting orders for common stock.
For these services, Stifel, Nicolaus & Company, Incorporated will receive an advisory and
administrative fee of $50,000 and 1% of the dollar amount of all shares of common stock sold in the
subscription and community offering. The sales fee will be reduced by the advisory and
administrative fee. No sales fee will be payable to Stifel, Nicolaus & Company, Incorporated with
respect to shares purchased by officers, directors and employees or their immediate families and
shares purchased by our tax-qualified and non-qualified employee benefit plans. In the event that
Stifel, Nicolaus & Company, Incorporated sells common stock through a group of broker-dealers in a
syndicated community offering, it will be paid a fee equal to 1% of the dollar amount of total
shares sold in the syndicated community offering, which fee along with the fee payable to selected
dealers (which may include Stifel, Nicolaus & Company, Incorporated) shall not exceed 5% in the
aggregate. Stifel, Nicolaus & Company, Incorporated will serve as sole book running manager.
[co-managers] will serve as co-managers. Alternatively, in the event that Stifel, Nicolaus &
Company, Incorporated sells common stock through a group of broker-dealers in a "stand-by" firm
commitment underwritten public offering (for which Stifel, Nicolaus & Company, Incorporated will
serve as sole book running manager), the underwriters will be paid a fee which shall not exceed 6%
of the dollar amount of total shares sold in such offering. Stifel, Nicolaus & Company,
Incorporated also will be reimbursed for allocable expenses in amount not to exceed $20,000 for the
subscription offering and community offering and $75,000 for the syndicated community offering, and
for attorney's fees in an amount not to exceed $150,000.
In the event that we are required to resolicit subscribers for shares of our common stock in
the subscription and community offerings, Stifel, Nicolaus & Company, Incorporated will be required
to provide significant additional services in connection with the resolicitation (including
repeating the services described above), and we may pay Stifel, Nicolaus & Company, Incorporated an
additional fee for those services that will not exceed $50,000. In the event of a material delay
in the offering which would require an update of the financial information in tabular form to
reflect a period later than that set forth in the original filing of this document, Stifel Nicolaus
will not incur any additional accountable reimbursable out-of-pocket expenses in excess of $10,000
or additional reimbursable legal fees in excess of $25,000, and in the aggregate, reimbursable
expenses and legal fees shall not exceed $280,000.
We will indemnify Stifel, Nicolaus & Company, Incorporated against liabilities and expenses,
including legal fees, incurred in connection with certain claims or litigation arising out of or
based upon untrue statements or omissions contained in the offering materials for the common stock,
including liabilities under the Securities Act of 1933, as amended.
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Some of our directors and executive officers may participate in the solicitation of offers to
purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses
incurred in connection with the solicitation. Other regular employees of Oritani Bank may assist in
the offering, but only in ministerial capacities, and may provide clerical work in effecting a
sales transaction. No offers or sales may be made by tellers or at the teller counters. No sales
activity will be conducted in a Oritani Bank banking office. Investment-related questions of
prospective purchasers will be directed to executive officers or registered representatives of
Stifel, Nicolaus & Company, Incorporated. Our other employees have been instructed not to solicit
offers to purchase shares of common stock or provide advice regarding the purchase of common stock.
We will rely on Rule 3a4-1 under the Securities Exchange Act of 1934, as amended, and sales of
common stock will be conducted within the requirements of Rule 3a4-1, so as to permit officers,
directors and employees to participate in the sale of common stock. None of our officers, directors
or employees will be compensated in connection with their participation in the offering.
In addition, we have engaged Stifel, Nicolaus & Company, Incorporated to act as our records
management agent in connection with the conversion and offering. In its role as records management
agent, Stifel, Nicolaus & Company, Incorporated will coordinate with our data processing contacts
and interface with the Stock Information Center to provide the records processing and the proxy and
stock order services, including but not limited to: (1) consolidation of deposit accounts and vote
calculation; (2) preparation of information for order forms and proxy cards; (3) interface with our
financial printer; (4) record stock order information; and (5) tabulate proxy votes. For these
services, Stifel, Nicolaus & Company, Incorporated will receive no additional fee. We will also
reimburse Stifel, Nicolaus & Company, Incorporated for its reasonable out-of-pocket expenses
associated with its acting as records management agent in an amount not to exceed $5,000.
Lock-up Agreements
We and our directors and executive officers have agreed not to, directly or indirectly, offer,
sell, transfer, pledge, assign, hypothecate or otherwise encumber any shares of our common stock or
options, warrants or other securities exercisable, convertible or exchangeable for our common stock
during the period commencing with the filing of the registration statement for the offering and
conversion and ending 90 days after completion of the offering and conversion without the prior
written consent of Stifel, Nicolaus & Company, Incorporated. In addition, except for securities
issued pursuant to existing employee benefit plans in accordance with past practices or securities
issued in connection with a merger or acquisition by us, we have agreed not to issue, offer to sell
or sell any shares of our common stock or options, warrants or other securities exercisable,
convertible or exchangeable for our common stock without the prior written consent of Stifel,
Nicolaus & Company, Incorporated for a period of 90 days after completion of the offering and
conversion.
Offering Deadline
The subscription and community offerings will expire at 2:00 p.m., Eastern Time, on
[expiration date], unless extended, without notice to you, for up to 45 days. Any extension of the
subscription and/or community offering beyond [extension date] would require the OTS's approval.
In such event, we would conduct a resolicitation. Purchasers would have the opportunity to
maintain, change or cancel their stock orders within a specified period. If a purchaser does not
respond during the resolicitation period, his or her stock order will be canceled and payment will
be returned promptly, with interest calculated at Oritani Bank's passbook savings rate, and deposit
account withdrawal authorizations will be canceled. We will not execute orders until at least the
minimum number of shares offered has been sold. If we have not sold the minimum by the expiration
date or any extension thereof, we will terminate the offering and cancel all orders, as described
above. Any single offering extension will not exceed 90 days; aggregate extensions
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may not conclude beyond [final expiration date], which is two years after the special meeting
of members to vote on the conversion. We reserve the right in our sole discretion to terminate the
offering at any time and for any reason, in which case we will cancel any deposit account
withdrawal orders and promptly return all funds submitted, with interest calculated at Oritani
Bank's passbook savings rate from the date of receipt.
Prospectus Delivery
To ensure that each purchaser receives a prospectus at least 48 hours before the expiration
date of the offering in accordance with Rule 15c2-8 of the Securities Exchange Act of 1934, we may
not mail a prospectus any later than five days prior to the expiration date or hand deliver any
later than two days prior to the expiration date. Execution of an order form will confirm receipt
of delivery in accordance with Rule 15c2-8. Order forms will only be distributed with or preceded
by a prospectus.
In the syndicated community offering or any "stand by" underwritten public offering, a
prospectus in electronic format may be made available on the Internet sites or through other online
services maintained by Stifel, Nicolaus & Company, Incorporated or one or more other members of the
syndicate, or by their respective affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the syndicate member, prospective investors may be
allowed to place orders online. The members of the syndicate may agree with us to allocate a
specific number of shares for sale to online brokerage account holders. Any such allocation for
online distributions will be made on the same basis as other allocations.
Other than the prospectus in electronic format, the information on the Internet sites
referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration
statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by
Stifel, Nicolaus & Company, Incorporated or any other member of the syndicate in its capacity as
selling agent or syndicate member and should not be relied upon by investors.
Procedure for Purchasing Shares in the Subscription and Community Offerings
Use of Stock Order Forms
.
In order to purchase shares of common stock in the subscription
offering and community offering, you must submit a properly completed original stock order form and
remit full payment. Incomplete stock order forms or stock order forms that are not signed are not
required to be accepted. We are not required to accept stock orders submitted on photocopied or
facsimiled stock order forms. All stock order forms must be received (not postmarked) prior to 2:00
p.m. Eastern Time, on [expiration date]. We are not required to accept stock order forms that are
not received by that time, are executed defectively or are received without full payment or without
appropriate withdrawal instructions. We are not required to notify purchasers of incomplete or
improperly executed stock order forms. We have the right to waive or permit the correction of
incomplete or improperly executed stock order forms, but we do not represent that we will do so.
You may submit your stock order form and payment by mail using the stock order reply envelope
provided, by bringing your stock order form to our Stock Information Center, or by overnight
delivery to the indicated address on the order form. Our Stock Information Center is located at
Oritani Bank's main office, 370 Pascack Road, Township of Washington, New Jersey 07676. Stock
order forms may not be delivered to other Oritani Bank offices. Once tendered, a stock order form
cannot be modified or revoked without our consent. We reserve the absolute right, in our sole
discretion, to reject orders received in the community offering, in whole or in part, at the time
of receipt or at any time prior to completion of the offering.
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If you are ordering shares in the subscription offering, by signing the stock order form you
are representing that you are purchasing shares for your own account and that you have no agreement
or understanding with any person for the sale or transfer of the shares. Our interpretation of the
terms and conditions of the plan of conversion and reorganization and of the acceptability of the
stock order forms will be final.
By signing the stock order form, you will be acknowledging that the common stock is not a
deposit or savings account and is not federally insured or otherwise guaranteed by Oritani Bank or
any federal or state government, and that you received a copy of this prospectus. However, signing
the stock order form will not cause you to waive your rights under the Securities Act of 1933 or
the Securities Exchange Act of 1934. We have the right to reject any order submitted in the
offering by a person who we believe is making false representations or who we otherwise believe,
either alone or acting in concert with others, is violating, evading, circumventing, or intends to
violate, evade or circumvent the terms and conditions of the plan of conversion and reorganization.
Payment for Shares
.
Payment for all shares of common stock will be required to accompany all
completed order forms for the purchase to be valid. You may not submit cash or wire transfers.
Payment for shares may be made by:
(i)
personal check, bank check or money order, made payable to Oritani Bank; or
(ii)
authorization of withdrawal from the types of Oritani Bank deposit accounts
designated on the stock order form.
Appropriate means for designating withdrawals from deposit accounts at Oritani Bank are
provided on the order forms. The funds designated must be available in the account(s) at the time
the stock order form is received. A hold will be placed on these funds, making them unavailable to
the depositor. Funds authorized for withdrawal will continue to earn interest within the account at
the contract rate until the offering is completed, at which time the designated withdrawal will be
made. Interest penalties for early withdrawal applicable to certificate of deposit accounts will
not apply to withdrawals authorized for the purchase of shares of common stock; however, if a
withdrawal results in a certificate of deposit account with a balance less than the applicable
minimum balance requirement, the certificate of deposit will be canceled at the time of withdrawal
without penalty and the remaining balance will earn interest calculated at the current passbook
savings rate subsequent to the withdrawal. In the case of payments made by personal check, these
funds must be available in the account(s) wire transfers or check and money orders will be
immediately cashed and placed in a segregated account at Oritani Bank or another depository
institution and will earn interest calculated at Oritani Bank's passbook savings rate from the date
payment is processed until the offering is completed, at which time a subscriber will be issued a
check for interest earned.
You may not remit Oritani Bank line of credit checks, and we will not accept wire transfers or
third-party checks, including those payable to you and endorsed over to Oritani. You may not
designate on your stock order form a direct withdrawal from an Oritani Bank retirement account.
See "—Using Retirement Account Funds to Purchase Shares" for information on using such funds.
Additionally, you may not designate on your stock order form a direct withdrawal from Oritani Bank
deposit accounts with check-writing privileges. Please provide a check instead. If you request
direct withdrawal, we reserve the right to interpret that as your authorization to treat those
funds as if we had received a check for the designated amount, and we will immediately withdraw the
amount from your checking account(s). Once we receive your executed stock order form, it may not
be modified, amended or rescinded without our consent, unless the offering is not completed by
[extension date], in which event purchasers may be given the opportunity to increase, decrease or
rescind their orders for a specified period of time.
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Regulations prohibit Oritani Bank from lending funds or extending credit to any persons to
purchase shares of common stock in the offering.
We have the right, in our sole discretion, to permit institutional investors to submit
irrevocable orders together with a legally binding commitment for payment and to thereafter pay for
the shares of common stock for which they subscribe in the community offering at any time prior to
48 hours before the completion of the conversion. This payment may be made by wire transfer.
If our employee stock ownership plan purchases shares in the offering, it will not be required
to pay for such shares until consummation of the offering, provided that there is a loan commitment
from an unrelated financial institution or Oritani to lend to the employee stock ownership plan the
necessary amount to fund the purchase.
Using Retirement Account Funds to Purchase Shares
Persons interested in purchasing common stock using funds currently in an individual
retirement account ("IRA") or any other retirement account, whether held through Oritani Bank or
elsewhere, should contact our Stock Information Center for guidance. Please contact the Stock
Information Center as soon as possible, preferably at least two weeks prior to the [expiration
date] offering deadline, because processing such transactions takes additional time, and whether
such funds can be used may depend on limitations imposed by the institution where the funds are
currently held. Additionally, if such funds are not currently held in a self-directed retirement
account, then before placing your stock order, you will need to establish one with an independent
trustee or custodian, such as a brokerage firm. The new trustee or custodian will hold the shares
of common stock in a self-directed account in the same manner as we now hold retirement account
funds. An annual administrative fee may be payable to the new trustee or custodian. Assistance on
how to transfer such retirement accounts can be obtained from the Stock Information Center.
Oritani Bank cannot offer self-directed retirement accounts. If you wish to use some or all
of your funds that are currently held in an Oritani Bank IRA or other retirement account, you may
not designate on the stock order form that you wish funds to be withdrawn from the account(s) for
the purchase of common stock. Before you place your stock order, the funds you wish to use must be
transferred from those accounts to a self-directed retirement account at an independent trustee or
custodian, as described above.
Delivery of Stock Certificates
Certificates representing shares of common stock issued in the subscription and community
offering will be mailed by regular mail to the persons entitled thereto at the certificate
registration address noted by them on the stock order form, as soon as practicable following
consummation of the conversion. Any certificates returned as undeliverable will be held by our
transfer agent until claimed by persons legally entitled thereto or otherwise disposed of in
accordance with applicable law.
Until certificates for the shares of common stock are available and
delivered to purchasers, purchasers may not be able to sell the shares of common stock which they
ordered, even though the common stock will have begun trading. Your ability to sell shares of
common stock before you receive stock certificates will depend upon the arrangements you may make
with your brokerage firm.
If you are currently a stockholder of Oritani Financial Corp., see "—Exchange of Existing
Stockholders' Stock Certificates."
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Other Restrictions
Notwithstanding any other provision of the plan of conversion and reorganization, no person is
entitled to purchase any shares of common stock to the extent the purchase would be illegal under
any federal or state law or regulation, including state "blue sky" regulations, or would violate
regulations or policies of the Financial Industry Regulatory Authority. We may ask for an
acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may
refuse to honor any purchase order if an opinion is not timely furnished. In addition, we are not
required to offer shares of common stock to any person who resides in a foreign country, or in a
State of the United States with respect to which any of the following apply: (a) a small number of
persons otherwise eligible to subscribe for shares under the plan of conversion and reorganization
reside in such state; (b) the issuance of subscription rights or the offer or sale of shares of
common stock to such persons would require us, under the securities laws of such state, to register
as a broker, dealer, salesman or agent or to register or otherwise qualify our securities for sale
in such state; or (c) such registration or qualification would be impracticable for reasons of cost
or otherwise.
Restrictions on Transfer of Subscription Rights and Shares
OTS regulations prohibit any person with subscription rights, including the Eligible Account
Holders, Supplemental Eligible Account Holders and Other Depositors, from transferring or entering
into any agreement or understanding to transfer the legal or beneficial ownership of the
subscription rights issued under the plan of conversion and reorganization or the shares of common
stock to be issued upon their exercise. These rights may be exercised only by the person to whom
they are granted and only for his or her account. When registering your stock purchase on the
stock order form, you should not add the name(s) of persons who do not have subscription rights or
who qualify only in a lower purchase priority than you do. Doing so may jeopardize your
subscription rights. Each person exercising subscription rights will be required to certify that
he or she is purchasing shares solely for his or her own account and that he or she has no
agreement or understanding regarding the sale or transfer of such shares. The regulations also
prohibit any person from offering or making an announcement of an offer or intent to make an offer
to purchase subscription rights or shares of common stock to be issued upon their exercise prior to
completion of the offering.
We will pursue any and all legal and equitable remedies in the event we become aware of the
transfer of subscription rights, and we will not honor orders that we believe involve the transfer
of subscription rights.
Stock Information Center
Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call or visit
our Stock Information Center, located at Oritani Bank's main office, 370 Pascack Road, Township of
Washington, New Jersey 07676. The toll-free telephone number is 1-877-___. The Stock
Information Center is open Monday through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time.
The Stock Information Center will be closed weekends and bank holidays. Other Oritani Bank offices
will not have offering materials and will not accept stock order forms or proxy cards.
Liquidation Rights
Liquidation prior to the conversion
.
In the unlikely event of a complete liquidation of
Oritani Bank and Oritani Financial Corp., MHC prior to the conversion, all claims of creditors of
Oritani Financial Corp., MHC would be paid first. Thereafter, if there were any assets of Oritani
Financial Corp.,
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MHC remaining, these assets would be distributed to depositors of Oritani Bank. The amount
received by such depositors would be equal to their pro rata interest in the remaining value of
Oritani Financial Corp., MHC, after claims of creditors, based on the relative size of their
deposit. Any assets of Oritani Financial Corp., MHC remaining after distributions under the
liquidation accounts would be distributed to the depositors of Oritani Bank pro rata, based upon
the relative size of their deposit accounts,
Liquidation following the conversion
.
In the unlikely event that Oritani Bank were to
liquidate after the conversion, all claims of creditors, including those of depositors, would be
paid first. However, except with respect to the liquidation account to be established in Oritani
as further described below, a depositor's claim would be solely for the principal amount of his or
her deposit accounts plus accrued interest. Depositors would not have an interest in the value of
the assets of Oritani Bank or Oritani above that amount.
The plan of conversion provides for the establishment, upon the completion of the conversion,
of a "liquidation account" by Oritani for the benefit of Eligible Account Holders and Supplemental
Eligible Account Holders in an amount equal to (i) Oritani Financial Corp., MHC's ownership
interest in Oritani Financial Corp.'s total stockholders equity as of the date of its latest
statement of financial condition contained in this prospectus plus (ii) the value of the net assets
of Oritani Financial Corp., MHC as of the date of the latest statement of financial condition of
Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding its ownership
of Oritani). The plan of conversion also provides for the
establishment of a parallel
liquidation account in Oritani Bank to support the liquidation account
in Oritani.
The liquidation account established by Oritani is designed to provide payments to depositors
of their liquidation interests (exchanged for the liquidation rights such persons had in Oritani
Financial Corp., MHC) in the event of a liquidation of Oritani and Oritani Bank or a liquidation
solely of Oritani Bank. Specifically, in the unlikely event that either (i) Oritani Bank or (ii)
Oritani and Oritani Bank were to liquidate after the conversion, all claims of creditors, including
those of depositors, would be paid first, followed by distribution to depositors as of December 31,
2008 and March 31, 2010 of their interests in the liquidation account maintained by Oritani. Also, in a complete
liquidation of both entities, or of Oritani Bank, when Oritani has insufficient assets (other than
the stock of Oritani Bank), to fund the liquidation account distribution due to Eligible Account
Holders and Supplemental Eligible Account Holders and Oritani Bank has positive net worth, Oritani
Bank shall immediately make a distribution to fund Oritani's remaining obligations under the
liquidation account. If Oritani is completely
liquidated or sold apart from a sale or liquidation of Oritani Bank,
then the Oritani liquidation account will cease to exist and Eligible
Account Holders and Supplemental Eligible Account Holders will
receive an equivalent interest in the Oritani Bank liquidation
account, subject to the same rights and terms as the liquidation account.
Pursuant to the plan of conversion, after two years from the date of conversion and upon the
written request of the OTS, Oritani will transfer the liquidation account and the depositors'
interests in such account to Oritani Bank and the liquidation account shall thereupon become the
liquidation account of Oritani Bank.
Under the rules and regulations of the OTS, a post-conversion merger, consolidation, or
similar combination or transaction with another depository institution in which Oritani or Oritani
Bank is not the surviving institution would not be considered a liquidation. In such a
transaction, the liquidation account would be assumed by the surviving institution.
Each Eligible Account Holder or Supplemental Eligible Account Holder would have an initial
interest in the liquidation account for each deposit account, including savings accounts,
transaction
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accounts such as negotiable order of withdrawal accounts, money market deposit accounts, and
certificates of deposit, with a balance of $50.00 or more held in Oritani Bank on December 31, 2008
or March 31, 2010, equal to  the proportion that the balance of
each   Eligible Account Holder and Supplemental Eligible Account
Holder's
deposit account on December 31, 2008 and March 31, 2010
respectively, bears to the balance of all deposit
accounts of Eligible Account Holders and Supplemental Eligible Account
Holders in Oritani Bank on such dates.
If, however, on any June 30 annual closing date commencing after the effective date of the
conversion, the amount in any such deposit account is less than the amount in the deposit account
on December 31, 2008 or March 31, 2010, or any other annual closing date, then the interest in the
liquidation account relating to such deposit account would be reduced from time to time by the
proportion of any such reduction, and such interest will cease to exist if such deposit account is
closed. In addition, no interest in the liquidation account would ever be increased despite any
subsequent increase in the related deposit account. Payment pursuant to liquidation rights of
Eligible Account Holders and Supplemental Eligible Account Holder would be separate and apart from
the payment of any insured deposit accounts to such depositor. Any assets remaining after the above
liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holder are
satisfied would be available for distribution to stockholders.
Material Income Tax Consequences
Completion of the conversion is subject to the prior receipt of an opinion of counsel or tax
advisor with respect to federal and state income tax consequences of the conversion to Oritani
Financial MHC, Oritani Financial Corp., Oritani Bank or Oritani, Eligible Account Holders and
Supplemental Eligible Account Holders of Oritani. Unlike private letter rulings, the opinions of
counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing
authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that Oritani or Oritani Bank would prevail in a judicial
proceeding.
We have received an opinion of counsel Luse Gorman Pomerenk & Schick as to the federal tax
consequences of the conversion. We have received an opinion of KPMG LLP to the effect that, more
likely than not, the income tax consequences under New Jersey law of the offering are not
materially different than for federal income tax purposes.
Luse Gorman Pomerenk & Schick, has issued an opinion to Oritani Financial Corp., MHC, Oritani
Financial Corp., Oritani Bank and Oritani that for federal income tax purposes:
1.
The merger of Oritani Financial Corp., MHC with and into Oritani Financial
Corp. will qualify as a tax-free reorganization within the meaning of Section
368(a)(1)(A) of the Internal Revenue Code.
2.
The constructive exchange of Eligible Account Holders' and Supplemental
Eligible Account Holders' liquidation interests in Oritani Financial Corp., MHC for
liquidation interests in Oritani Financial Corp. will satisfy the continuity of
interest requirement of Section 1.368-1(b) of the Federal Income Tax Regulations.
3.
None of Oritani Financial Corp., MHC, Oritani Financial Corp., Eligible Account
Holders nor Supplemental Eligible Account Holders, will recognize any gain or loss on
the transfer of the assets of Oritani Financial Corp., MHC to Oritani Financial Corp.
in constructive exchange for a liquidation interest established in Oritani Financial
Corp. for the benefit of such persons who remain depositors of Oritani Bank.
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4.
The basis of the assets of Oritani Financial Corp., MHC and the holding period
of such assets to be received by Oritani Financial Corp. will be the same as the basis
and holding period in such assets in the hands of Oritani Financial Corp., MHC
immediately before the exchange. (Sections 362(b) and 1223(2) of the Internal Revenue
Code.)
5.
The merger of Oritani Financial Corp. with and into Oritani will constitute a
mere change in identity, form or place of organization within the meaning of Section
368(a)(1)(F) of the Code and therefore will qualify as a tax-free reorganization within
the meaning of Section 368(a)(1)(F) of the Code. Neither Oritani Financial Corp. nor
Oritani will recognize gain or loss as a result of such merger. (Sections 361(a) and
1032(a) of the Internal Revenue Code).
6.
The basis of the assets of Oritani Financial Corp. and the holding period of
such assets to be received by Oritani will be the same as the basis and holding period
in such assets in the hands of Oritani Financial Corp. immediately before the exchange.
(Sections 362(b) and 1223(2) of the Internal Revenue Code.)
7.
Current stockholders of Oritani Financial Corp. will not recognize any gain or
loss upon their constructive exchange of Oritani Financial Corp. common stock for
Oritani common stock.
8.
Eligible Account Holders and Supplemental Eligible Account Holders will not
recognize any gain or loss upon their constructive exchange of their liquidation
interests in Oritani Financial Corp. for the liquidation accounts in Oritani.
9.
The constructive exchange of the Eligible Account Holders and Supplemental
Eligible Account Holders liquidation interests in Oritani Financial Corp. for interests
in a liquidation account established in Oritani will satisfy the continuity of interest
requirement of Section 1.368-1(b) of the Federal Income Tax Regulations
10.
Each stockholder's aggregate basis in shares of Oritani common stock (including
fractional share interests) received in the exchange will be the same as the aggregate
basis of Oritani Financial Corp. common stock surrendered in the exchange.
11.
Each stockholder's holding period in his or her Oritani common stock received
in the exchange will include the period during which the Oritani Financial Corp. common
stock surrendered was held, provided that the Oritani Financial Corp. common stock
surrendered is a capital asset in the hands of the stockholder on the date of the
exchange.
12.
Cash received by any current stockholder of Oritani Financial Corp. in lieu of
a fractional share interest in shares of Oritani common stock will be treated as having
been received as a distribution in full payment in exchange for a fractional share
interest of Oritani common stock, which such stockholder would otherwise be entitled to
receive. Accordingly, a stockholder will recognize gain or loss equal to the difference
between the cash received and the basis of the fractional share. If the common stock is
held by the stockholder as a capital asset, the gain or loss will be capital gain or
loss.
13.
It is more likely than not that the fair market value of the nontransferable
subscription rights to purchase Oritani common stock is zero. Accordingly, no gain or
loss will be recognized by Eligible Account Holders, Supplemental Eligible Account
Holders or Other Members upon distribution to them of nontransferable subscription
rights to purchase shares of Oritani
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common stock. Eligible Account Holders, Supplemental Eligible Account Holders and Other
Members will not realize any taxable income as the result of the exercise by them of
the nontransferable subscriptions rights.
14.
It is more likely than not that the fair market value of the benefit provided
by the liquidation account of Oritani Bank supporting the payment of the Oritani
liquidation account in the event Oritani lacks sufficient net assets is zero.
Accordingly, it is more likely than not that no gain or loss will be recognized by
Eligible Account Holders and Supplemental Eligible Account Holders upon the
constructive distribution to them of such rights in the Oritani Bank liquidation
account as of the effective date of the merger of Oritani Financial Corp. with and into
Oritani. (Section 356(a) of the Internal Revenue Code.)
15.
It is more likely than not that the basis of the shares of Oritani common stock
purchased in the offering by the exercise of nontransferable subscription rights will
be the purchase price. The holding period of the Oritani common stock purchased
pursuant to the exercise of nontransferable subscription rights will commence on the
date on which the right to acquire such stock was exercised.
16.
No gain or loss will be recognized by Oritani on the receipt of money in
exchange for Oritani common stock sold in the offering.
We believe that the tax opinions summarized above address all material federal income tax
consequences that are generally applicable to Oritani Financial Corp., MHC, Oritani Financial
Corp., Oritani Bank, Oritani and persons receiving subscription rights and shareholders of Oritani
Financial Corp. The tax opinion as to items 8 and 13 above is based on the position that
subscription rights to be received by Eligible Account Holders, Supplemental Eligible Account
Holders and Other Members do not have any economic value at the time of distribution or the time
the subscription rights are exercised. In this regard, Luse Gorman Pomerenk & Schick noted that the
subscription rights will be granted at no cost to the recipients, are legally non-transferable and
of short duration, and will provide the recipient with the right only to purchase shares of common
stock at the same price to be paid by members of the general public in any community offering. The
firm also noted that the Internal Revenue Service has not in the past concluded that subscription
rights have value. Based on the foregoing, Luse Gorman Pomerenk & Schick believes that it is more
likely than not that the nontransferable subscription rights to purchase shares of common stock
have no value. However, the issue of whether or not the nontransferable subscription rights have
value is based on all the facts and circumstances. If the subscription rights granted to Eligible
Account Holders, Supplemental Eligible Account Holders and Other Members are deemed to have an
ascertainable value, receipt of these rights could result in taxable gain to those Eligible Account
Holders, Supplemental Eligible Account Holders and Other Members who exercise the subscription
rights in an amount equal to the ascertainable value, and we could recognize gain on a
distribution. Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are
encouraged to consult with their own tax advisors as to the tax consequences in the event that
subscription rights are deemed to have an ascertainable value.
We also have received a letter from RP Financial stating its belief that the subscription
rights do not have any ascertainable fair market value and that the price at which the subscription
rights are exercisable will not be more or less than the fair market value of the shares on the
date of the exercise. This position is based on the fact that these rights are acquired by the
recipients without cost, are nontransferable and of short duration, and afford the recipients the
right only to purchase the common stock at the same price as will be paid by members of the general
public in any community offering.
The opinion as to item 14 above is based on the position that Oritani: (i) there is no history
of any holder of a liquidation account receiving any payment attributable to a liquidation account;
(ii) the
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interests in the liquidation accounts are not transferable; (iii) the amounts due under the
liquidation account with respect to each Eligible Account Holder and Supplemental Eligible Account
Holder will be reduced as their deposits in Oritani Bank are reduced; and (iv) the Oritani Bank
liquidation account payment obligation arises only if Oritani lacks sufficient net assets to fund
the liquidation account.
In addition, we have received a letter from RP Financial stating its belief that the benefit
provided by the Oritani Bank liquidation account supporting the payment of the liquidation account
in the event Oritani lacks sufficient net assets does not have any economic value at the time of
the merger of Oritani Financial Corp. and Oritani. Based on the foregoing, Luse Gorman Pomerenk &
Schick believes it is more likely than not that such rights in the Oritani Bank liquidation account
have no value. If such rights are subsequently found to have an economic value, income may be
recognized by each Eligible Account Holder or Supplemental Eligible Account Holder in the amount of
such fair market value as of the date of the merger of Oritani Financial Corp. and Oritani.
We do not plan to apply for a private letter ruling from the Internal Revenue Service
concerning the transactions described herein. Unlike private letter rulings issued by the Internal
Revenue Service, opinions of counsel are not binding on the Internal Revenue Service or any state
tax authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that the conclusions reached in an opinion of counsel would
be sustained by a court if contested by the Internal Revenue Service.
The federal tax opinion has been filed with the Securities and Exchange Commission as an
exhibit to Oritani's registration statement. Advice regarding the New Jersey income tax
consequences consistent with the federal tax opinion is expected to be issued by KPMG LLP, tax
advisors to Oritani Financial Corp., MHC and Oritani Financial Corp.
Certain Restrictions on Purchase or Transfer of Our Shares after the Conversion
All shares of common stock purchased in the offering by a director or an executive officer of
Oritani Bank generally may not be sold for a period of one year following the closing of the
conversion, except in the event of the death of the director or executive officer. Each certificate
for restricted shares will bear a legend giving notice of this restriction on transfer, and
instructions will be issued to the effect that any transfer within this time period of any
certificate or record ownership of the shares other than as provided above is a violation of the
restriction. Any shares of common stock issued at a later date as a stock dividend, stock split, or
otherwise, with respect to the restricted stock will be similarly restricted. The directors and
executive officers of Oritani also will be restricted by the insider trading rules promulgated
pursuant to the Securities Exchange Act of 1934.
Purchases of shares of our common stock by any of our directors, executive officers and their
associates, during the three-year period following the closing of the conversion may be made only
through a broker or dealer registered with the Securities and Exchange Commission, except with the
prior written approval of the OTS. This restriction does not apply, however, to negotiated
transactions involving more than 1% of our outstanding common stock or to purchases of our common
stock by our stock-based incentive plan or any of our tax-qualified employee stock benefit plans or
non-tax-qualified employee stock benefit plans.
OTS regulations prohibit Oritani from repurchasing its shares of common stock during the first
year following the conversion unless compelling business reasons exist for such repurchases. After
one year, the OTS does not impose any repurchase restrictions.
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COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING
STOCKHOLDERS OF ORITANI FINANCIAL CORP.
General.
As a result of the conversion, existing stockholders of Oritani Financial Corp. will
become stockholders of Oritani. There are differences in the rights of stockholders of Oritani
Financial Corp. and stockholders of Oritani caused by differences between federal and Delaware law
and regulations and differences in Oritani Financial Corp.'s federal stock charter and bylaws and
Oritani Financial Corp.'s Delaware certificate of incorporation and bylaws.
This discussion is not intended to be a complete statement of the differences affecting the
rights of stockholders, but rather summarizes the material differences and similarities affecting
the rights of stockholders. See "Where You Can Find Additional Information" for procedures for
obtaining a copy of Oritani's certificate of incorporation and bylaws.
Authorized Capital Stock.
The authorized capital stock of Oritani Financial Corp. consists of
80,000,000 shares of common stock, $0.01 par value per share, and 10,000,000 shares of preferred
stock, par value $0.01 per share.
The authorized capital stock of Oritani consists of 150,000,000 shares of common stock, $0.01
par value per share, and 25,000,000 shares of preferred stock, $0.01par value per share.
Under the Delaware General Corporation Law and Oritani's certificate of incorporation, the
Board of Directors may increase or decrease the number of authorized shares without stockholder
approval. Stockholder approval is required to increase or decrease the number of authorized shares
of Oritani Financial Corp.
Oritani Financial Corp.'s charter and Oritani Financial Corp.'s certificate of incorporation
both authorize the Board of Directors to establish one or more series of preferred stock and, for
any series of preferred stock, to determine the terms and rights of the series, including voting
rights, dividend rights, conversion and redemption rates and liquidation preferences. As a result
of the ability to fix voting rights for a series of preferred stock, our Board of Directors has the
power, to the extent consistent with its fiduciary duty, to issue a series of preferred stock to
persons friendly to management in order to attempt to block a hostile tender offer, merger or other
transaction by which a third party seeks control. We currently have no plans for the issuance of
additional shares for such purposes.
Issuance of Capital Stock.
Pursuant to applicable laws and regulations, Oritani Financial
Corp., MHC is required to own not less than a majority of the outstanding shares of Oritani
Financial Corp. common stock. Oritani Financial Corp., MHC will no longer exist following
consummation of the conversion.
Oritani Financial Corp. Inc.'s certificate of incorporation does not contain restrictions on
the issuance of shares of capital stock to directors, officers or controlling persons, whereas
Oritani Financial Corp.'s stock charter restricts such issuances to general public offerings, or to
directors for qualifying shares, unless the share issuance or the plan under which they would
generally be issued has been approved by a majority of the total votes eligible to be cast at a
legal stockholders' meeting. However, stock-based compensation plans, such as stock option plans
and restricted stock plans, would have to be submitted for approval by Oritani stockholders due to
requirements of the Nasdaq Stock Market and in order to qualify stock options for favorable federal
income tax treatment.
Voting Rights.
Neither Oritani Financial Corp.'s stock charter or bylaws nor Oritani's
certificate of incorporation or bylaws provide for cumulative voting for the election of directors.
For additional
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information regarding voting rights, see "—Limitations on Voting Rights of Greater-than-10%
Stockholders" below.
Payment of Dividends.
Oritani Financial Corp.'s ability to pay dividends depends, to a large
extent, upon Oritani Bank's ability to pay dividends to Oritani Financial Corp. The New Jersey
Banking Code states, in part, that dividends may be declared and paid by Oritani Bank only out of
accumulated net earnings. A dividend may not be declared or paid unless the surplus, prior to the
transfer of net earnings, would not be reduced by the payment of such dividend. Dividends may also
not be declared or paid if Oritani Bank is in default in payment of any assessment due to the FDIC.
The same restrictions will apply to Oritani Bank's payment of dividends to Oritani. In
addition, Delaware law generally provides that Oritani is limited to paying dividends in an amount
equal to its capital surplus over payments that would be owed upon dissolution to stockholders
whose preferential rights upon dissolution are superior to those receiving the dividend, and to an
amount that would not make it insolvent.
Board of Directors
.
Oritani Financial Corp.'s bylaws and Oritani Financial Corp.'s certificate
of incorporation and bylaws require the Board of Directors to be divided into three classes and
that the members of each class shall be elected for a term of three years and until their
successors are elected and qualified, with one class being elected annually.
Under Oritani Financial Corp.'s bylaws, any vacancies on the Board of Directors of Oritani
Financial Corp. may be filled by the affirmative vote of a majority of the remaining directors
although less than a quorum of the Board of Directors. Persons elected by the Board of Directors of
Oritani Financial Corp. to fill vacancies may only serve until the next annual meeting of
stockholders. Under Oritani's bylaws, any vacancy occurring on the Board of Directors, including
any vacancy created by reason of an increase in the number of directors, may be filled only by a
majority of the remaining directors, and any director so chosen shall hold office for the remainder
of the term to which the director has been elected and until his or her successor is elected and
qualified.
Under Oritani Financial Corp.'s bylaws, any director may be removed for cause by the holders
of a majority of the outstanding voting shares. Oritani Financial Corp.'s certificate of
incorporation provide that any director may be removed for cause by the holders of at least a
majority of the outstanding voting shares of Oritani.
Limitations on Liability.
The charter and bylaws of Oritani Financial Corp. does not limit the
personal liability of directors.
Oritani's certificate of incorporation provides that directors will not be personally liable
for monetary damages to Oritani for certain actions as directors, except for (i) receipt of an
improper personal benefit from their positions as directors, (ii) actions or omissions that are
determined to have involved active and deliberate dishonesty, or (iii) to the extent allowed by
Delaware law. These provisions might, in certain instances, discourage or deter stockholders or
management from bringing a lawsuit against directors for a breach of their duties even though such
an action, if successful, might benefit Oritani.
Indemnification of Directors, Officers, Employees and Agents.
Under current OTS regulations,
Oritani Financial Corp. shall indemnify its directors, officers and employees for any costs
incurred in connection with any litigation involving such person's activities as a director,
officer or employee if such person obtains a final judgment on the merits in his or her favor. In
addition, indemnification is permitted in the case of a settlement, a final judgment against such
person, or final judgment other than on the merits, if a majority of disinterested directors
determines that such person was acting in good faith within
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the scope of his or her employment as he or she could reasonably have perceived it under the
circumstances and for a purpose he or she could reasonably have believed under the circumstances
was in the best interests of Oritani Financial Corp. or its stockholders. Oritani Financial Corp.
also is permitted to pay ongoing expenses incurred by a director, officer or employee if a majority
of disinterested directors concludes that such person may ultimately be entitled to
indemnification. Before making any indemnification payment, Oritani Financial Corp. is required to
notify the OTS of its intention, and such payment cannot be made if the OTS objects to such
payment.
The certificate of incorporation of Oritani provides that it shall indemnify its current and
former directors and officers to the fullest extent required or permitted by Delaware law,
including the advancement of expenses. Delaware law allows Oritani to indemnify any person for
expenses, liabilities, settlements, judgments and fines in suits in which such person has been made
a party by reason of the fact that he or she is or was a director, officer or employee of Oritani.
No such indemnification may be given if the acts or omissions of the person are adjudged to be in
bad faith and material to the matter giving rise to the proceeding, if such person is liable to the
corporation for an unlawful distribution, or if such person personally received a benefit to which
he or she was not entitled. The right to indemnification includes the right to be paid the
expenses incurred in advance of final disposition of a proceeding.
Special Meetings of Stockholders.
Oritani Financial Corp.'s bylaws provide that special
meetings of Oritani Financial Corp.'s stockholders may be called by the Chairman, the president, a
majority of the members of the Board of Directors or the holders of not less than one-tenth of the
outstanding capital stock of Oritani Financial Corp. entitled to vote at the meeting. Oritani's
bylaws provide that special meetings of the stockholders of Oritani may be called by the president,
by a majority vote of the total authorized directors, or upon the written request of stockholders
entitled to cast at least a majority of all votes entitled to vote at the meeting.
Stockholder Nominations and Proposals.
Oritani Financial Corp.'s bylaws generally provide that
stockholders may submit nominations for election of directors at an annual meeting of stockholders
and may propose any new business to be taken up at such a meeting by filing the proposal in writing
with Oritani Financial Corp. at least five days before the date of any such meeting.
Oritani's bylaws generally provide that any stockholder desiring to make a nomination for the
election of directors or a proposal for new business at a meeting of stockholders must submit
written notice to Oritani at least 80 days prior and not earlier than 90 days prior to such
meeting. However, if less than 90 days' notice or prior public disclosure of the date of the
meeting is given to stockholders, such written notice must be submitted by a stockholder not later
than the tenth day following the day on which notice of the meeting was mailed to stockholders or
such public disclosure was made.
Management believes that it is in the best interests of Oritani and its stockholders to
provide sufficient time to enable management to disclose to stockholders information about a
dissident slate of nominations for directors. This advance notice requirement may also give
management time to solicit its own proxies in an attempt to defeat any dissident slate of
nominations, should management determine that doing so is in the best interests of stockholders
generally. Similarly, adequate advance notice of stockholder proposals will give management time to
study such proposals and to determine whether to recommend to the stockholders that such proposals
be adopted. In certain instances, such provisions could make it more difficult to oppose
management's nominees or proposals, even if stockholders believe such nominees or proposals are in
their best interests.
Stockholder Action Without a Meeting.
The bylaws of Oritani Financial Corp. provide that any
action to be taken or which may be taken at any annual or special meeting of stockholders may be
taken if a consent in writing, setting forth the actions so taken, is given by the holders of all
outstanding shares
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entitled to vote. The bylaws of Oritani do not provide for action to be taken by stockholders
without a meeting. Under Delaware law, action may be taken by stockholders without a meeting if all
stockholders entitled to vote on the action consent to taking such action without a meeting.
Stockholder's Right to Examine Books and Records.
A federal regulation, which is applicable to
Oritani Financial Corp., provides that stockholders may inspect and copy specified books and
records after proper written notice for a proper purpose. Delaware law provides that a stockholder
may inspect a company's bylaws, stockholder minutes, annual statement of affairs and any voting
trust agreements. However, only a stockholder or group of stockholders who together, for at least
six months, hold at least 5% of the company's total shares, have the right to inspect a company's
stock ledger, list of stockholders and books of accounts.
Limitations on Voting Rights of Greater-than-10% Stockholders.
Oritani's certificate of
incorporation provides that no beneficial owner, directly or indirectly, of more than 10.0% of the
outstanding shares of common stock will be permitted to vote any shares in excess of such 10.0%
limit. Oritani Financial Corp.'s charter does not provide such a limit on voting common stock.
In addition, OTS regulations provide that for a period of three years following the date of
the completion of the offering, no person, acting singly or together with associates in a group of
persons acting in concert, may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10.0% of a class of Oritani's equity securities without the prior written
approval of the OTS. Where any person acquires beneficial ownership of more than 10.0% of a class
of Oritani's equity securities without the prior written approval of the OTS, the securities
beneficially owned by such person in excess of 10.0% may not be voted by any person or counted as
voting shares in connection with any matter submitted to the stockholders for a vote, and will not
be counted as outstanding for purposes of determining the affirmative vote necessary to approve any
matter submitted to the stockholders for a vote.
Mergers, Consolidations and Sales of Assets.
A federal regulation applicable to Oritani
Financial Corp. generally requires the approval of two-thirds of the Board of Directors of Oritani
Financial Corp. and the holders of two-thirds of the outstanding stock of Oritani Financial Corp.
entitled to vote thereon for mergers, consolidations and sales of all or substantially all of
Oritani Financial Corp.'s assets. Such regulation permits Oritani Financial Corp. to merge with
another corporation without obtaining the approval of its stockholders if:
(i)
it does not involve an interim savings institution;
(ii)
Oritani Financial Corp.'s federal stock charter is not changed;
(iii)
each share of Oritani Financial Corp.'s stock outstanding immediately prior to
the effective date of the transaction will be an identical outstanding share or a
treasury share of Oritani Financial Corp. after such effective date; and
(iv)
either:
(a)
no shares of voting stock of Oritani Financial Corp. and no
securities convertible into such stock are to be issued or delivered under the
plan of combination; or
(b)
the authorized but unissued shares or the treasury shares of
voting stock of Oritani Financial Corp. to be issued or delivered under the
plan of combination, plus those initially issuable upon conversion of any
securities to be issued or delivered under such plan, do not exceed 15% of the
total shares of voting stock of Oritani Financial Corp. outstanding immediately
prior to the effective date of the transaction.
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Under Delaware law, "business combinations" between Oritani and an interested stockholder or
an affiliate of an interested stockholder are prohibited for five years after the most recent date
on which the interested stockholder becomes an interested stockholder. These business combinations
include a merger, consolidation, statutory share exchange or, in circumstances specified in the
statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and
reclassifications involving interested stockholders and their affiliates or issuance or
reclassification of equity securities. Delaware law defines an interested stockholder as: (i) any
person who beneficially owns 10.0% or more of the voting power of Oritani's voting stock after the
date on which Oritani had 100 or more beneficial owners of its stock; or (ii) an affiliate or
associate of Oritani at any time after the date on which Oritani had 100 or more beneficial owners
of its stock who, within the two-year period prior to the date in question, was the beneficial
owner of 10.0% or more of the voting power of the then-outstanding voting stock of Oritani. A
person is not an interested stockholder under the statute if the Board of Directors approved in
advance the transaction by which the person otherwise would have become an interested stockholder.
However, in approving a transaction, the Board of Directors may provide that its approval is
subject to compliance, at or after the time of approval, with any terms and conditions determined
by the Board of Directors.
After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani, and (ii) two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani's common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
Evaluation of Offers.
The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
•
the economic effect, both immediate and long-term, upon Oritani's stockholders,
including stockholders, if any, who do not participate in the transaction;
•
the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;
•
whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;
•
whether a more favorable price could be obtained for Oritani's stock or other
securities in the future;
•
the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;
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•
the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;
•
any antitrust or other legal and regulatory issues that are raised by the proposal;
•
the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and
•
the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.
If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
Oritani Financial Corp.'s charter and bylaws do not contain a similar provision.
Dissenters' Rights of Appraisal
.
OTS regulations generally provide that a stockholder of a
federally chartered corporation that engages in a merger, consolidation or sale of all or
substantially all of its assets shall have the right to demand from such institution payment of the
fair or appraised value of his or her stock in the corporation, subject to specified procedural
requirements. The regulations also provide, however, that a stockholder of a federally chartered
corporation whose shares are listed on a national securities exchange or quoted on the Nasdaq stock
market are not entitled to dissenters' rights in connection with a merger if the stockholder is
required to accept only "qualified consideration" for his or her stock, which is defined to include
cash, shares of stock of any institution or corporation that at the effective date of the merger
will be listed on a national securities exchange or quoted on the Nasdaq stock market, or any
combination of such shares of stock and cash.
Under Delaware law, stockholders of Oritani will not have dissenters' appraisal rights in
connection with a plan of merger or consolidation to which Oritani is a party as long as the common
stock of Oritani trades on the Nasdaq Global Market.
Amendment of Governing Instruments
.
No amendment of Oritani Financial Corp.'s stock charter
may be made unless it is first proposed by the Board of Directors of Oritani Financial Corp., then
preliminarily approved by the OTS, and thereafter approved by the holders of a majority of the
total votes eligible to be cast at a legal meeting.
Oritani's certificate of incorporation may be amended, upon the submission of an amendment by
the Board of Directors to a vote of the stockholders, by the affirmative vote of at least
two-thirds of the outstanding shares of common stock, or by the affirmative vote of a majority of
the outstanding shares of common stock if at least two-thirds of the members of the whole Board of
Directors approves such amendment; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend the following provisions:
(i)
The limitation on voting rights of persons who directly or indirectly
beneficially own more than 10.0% of the outstanding shares of common stock;
(ii)
The division of the Board of Directors into three staggered classes;
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(iii)
The ability of the Board of Directors to fill vacancies on the board;
(iv)
The requirement that at least a majority of the votes eligible to be cast by
stockholders must vote to remove directors, and can only remove directors for cause;
(v)
The ability of the Board of Directors to amend and repeal the bylaws;
(vi)
The ability of the Board of Directors to evaluate a variety of factors in
evaluating offers to purchase or otherwise acquire Oritani;
(vii)
The authority of the Board of Directors to provide for the issuance of
preferred stock;
(viii)
The validity and effectiveness of any action lawfully authorized by the affirmative
vote of the holders of a majority of the total number of outstanding shares of common
stock;
(ix)
The number of stockholders constituting a quorum or required for stockholder
consent;
(x)
The indemnification of current and former directors and officers, as well as
employees and other agents, by Oritani;
(xi)
The limitation of liability of officers and directors to
Oritani for money damages;
(xii)
The inability of stockholders to cumulate their votes in the election of directors;
(xiii)
The advance notice requirements for stockholder proposals and nominations; and
(xiv)
The provision of the certificate of incorporation requiring approval of at
least 80% of the outstanding voting stock to amend the provisions of the certificate of
incorporation provided in (i) through (xiii) of this list.
The certificate of incorporation also provides that the bylaws may be amended by the
affirmative vote of a majority of our directors or by the stockholders by the affirmative vote of
at least 80% of the total votes eligible to be voted at a duly constituted meeting of stockholders.
Any amendment of this super-majority requirement for amendment of the bylaws would also require
the approval of 80% of the outstanding voting stock.
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RESTRICTIONS ON ACQUISITION OF ORITANI
Although the Board of Directors of Oritani is not aware of any effort that might be made to
obtain control of Oritani after the conversion, the Board of Directors believes that it is
appropriate to include certain provisions as part of Oritani's certificate of incorporation to
protect the interests of Oritani and its stockholders from takeovers which our Board of Directors
might conclude are not in the best interests of Oritani Bank, Oritani or Oritani's stockholders.
The following discussion is a general summary of the material provisions of Oritani's
certificate of incorporation and bylaws, Oritani Bank's charter and bylaws and certain other
regulatory provisions that may be deemed to have an "anti-takeover" effect. The following
description of certain of these provisions is necessarily general and is not intended to be a
complete description of the document or regulatory provision in question. Oritani's certificate of
incorporation and bylaws are included as part of Oritani Financial Corp., MHC's application for
conversion filed with the OTS and Oritani's registration statement filed with the Securities and
Exchange Commission. See "Where You Can Find Additional Information."
Certificate of Incorporation and Bylaws of Oritani
Oritani's certificate of incorporation and bylaws contain a number of provisions relating to
corporate governance and rights of stockholders that may discourage future takeover attempts. As a
result, stockholders who might desire to participate in such transactions may not have an
opportunity to do so. In addition, these provisions will also render the removal of the Board of
Directors or management of Oritani more difficult.
Directors
.
The Board of Directors will be divided into three classes. The members of each
class will be elected for a term of three years and only one class of directors will be elected
annually. Thus, it would take at least two annual elections to replace a majority of our Board of
Directors. Further, the bylaws impose notice and information requirements in connection with the
nomination by stockholders of candidates for election to the Board of Directors or the proposal by
stockholders of business to be acted upon at an annual meeting of stockholders.
Restrictions on Call of Special Meetings
.
The certificate of incorporation and bylaws provide
that special meetings of stockholders can be called by the President, by a majority of the whole
Board of Directors or upon the written request of stockholders entitled to cast at least a majority
of all votes entitled to vote at the meeting.
Prohibition of Cumulative Voting
.
The certificate of incorporation prohibits cumulative
voting for the election of directors.
Limitation of Voting Rights
.
The certificate of incorporation provides that in no event will
any person who beneficially owns more than 10.0% of the then-outstanding shares of common stock, be
entitled or permitted to vote any of the shares of common stock held in excess of the 10.0% limit.
Restrictions on Removing Directors from Office
.
The certificate of incorporation provides
that directors may be removed only for cause, and only by the affirmative vote of the holders of at
least a majority of the voting power of all of our then-outstanding common stock entitled to vote
(after giving effect to the limitation on voting rights discussed above in "—Limitation of Voting
Rights.")
Authorized but Unissued Shares
. After the conversion, Oritani will have authorized but
unissued shares of common and preferred stock. See "Description of Capital Stock of Oritani
Following
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the Conversion." The certificate of incorporation authorizes 25,000,000 shares of serial
preferred stock. Oritani is authorized to issue preferred stock from time to time in one or more
series subject to applicable provisions of law, and the Board of Directors is authorized to fix the
designations, and relative preferences, limitations, voting rights, if any, including without
limitation, offering rights of such shares (which could be multiple or as a separate class). In
the event of a proposed merger, tender offer or other attempt to gain control of Oritani that the
Board of Directors does not approve, it might be possible for the Board of Directors to authorize
the issuance of a series of preferred stock with rights and preferences that would impede the
completion of the transaction. An effect of the possible issuance of preferred stock therefore may
be to deter a future attempt to gain control of Oritani. The Board of Directors has no present
plan or understanding to issue any preferred stock.
Amendments to Certificate of Incorporation and Bylaws.
Amendments to the certificate of
incorporation must be approved by our Board of Directors and also by at least a majority of the
outstanding shares of our voting stock; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend certain provisions. A list of these
provisions is provided under "Comparison of Stockholders' Rights For Existing Stockholders of
Oritani Financial Corp.—Amendment of Governing Instruments" above.
The certificate of incorporation also provide that the bylaws may be amended by the
affirmative vote of a majority of Oritani's directors or by the stockholders by the affirmative
vote of at least 80% of the total votes eligible to be voted at a duly constituted meeting of
stockholders. Any amendment of this super-majority requirement for amendment of the bylaws would
also require the approval of 80% of the outstanding voting stock.
Business Combinations with Interested Stockholders
.
Under Delaware law, "business
combinations" between Oritani and an interested stockholder or an affiliate of an interested
stockholder are prohibited for five years after the most recent date on which the interested
stockholder becomes an interested stockholder. These business combinations include a merger,
consolidation, statutory share exchange or, in circumstances specified in the statute, certain
transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications
involving interested stockholders and their affiliates or issuance or reclassification of equity
securities. Delaware law defines an interested stockholder as: (i) any person who beneficially owns
10.0% or more of the voting power of Oritani's voting stock after the date on which Oritani had 100
or more beneficial owners of its stock; or (ii) an affiliate or associate of Oritani at any time
after the date on which Oritani had 100 or more beneficial owners of its stock who, within the
two-year period prior to the date in question, was the beneficial owner of 10.0% or more of the
voting power of the then-outstanding voting stock of Oritani. A person is not an interested
stockholder under the statute if the Board of Directors approved in advance the transaction by
which the person otherwise would have become an interested stockholder. However, in approving a
transaction, the Board of Directors may provide that its approval is subject to compliance, at or
after the time of approval, with any terms and conditions determined by the Board of Directors.
After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani and (ii) two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani's common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
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Evaluation of Offers.
The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
•
the economic effect, both immediate and long-term, upon Oritani's stockholders,
including stockholders, if any, who do not participate in the transaction;
•
the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;
•
whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;
•
whether a more favorable price could be obtained for Oritani's stock or other
securities in the future;
•
the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;
•
the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;
•
any antitrust or other legal and regulatory issues that are raised by the proposal;
•
the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and
•
the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.
If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
Purpose and Anti-Takeover Effects of Oritani's Certificate of Incorporation and Bylaws
.
Our
Board of Directors believes that the provisions described above are prudent and will reduce our
vulnerability to takeover attempts and certain other transactions that have not been negotiated
with and approved by our Board of Directors. These provisions also will assist us in the orderly
deployment of the offering proceeds into productive assets during the initial period after the
conversion. Our Board of Directors believes these provisions are in the best interests of Oritani
and its stockholders. Our Board of Directors believes that it will be in the best position to
determine the true value of Oritani and to negotiate more effectively for what may be in the best
interests of its stockholders. Accordingly, our Board of
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Directors believes that it is in the best interests of Oritani and its stockholders to
encourage potential acquirers to negotiate directly with the Board of Directors and that these
provisions will encourage such negotiations and discourage hostile takeover attempts. It is also
the view of our Board of Directors that these provisions should not discourage persons from
proposing a merger or other transaction at a price reflective of the true value of Oritani and that
is in the best interests of all stockholders.
Takeover attempts that have not been negotiated with and approved by our Board of Directors
present the risk of a takeover on terms that may be less favorable than might otherwise be
available. A transaction that is negotiated and approved by our Board of Directors, on the other
hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value
of Oritani for our stockholders, with due consideration given to matters such as the management and
business of the acquiring corporation and maximum strategic development of Oritani's assets.
Although a tender offer or other takeover attempt may be made at a price substantially above
the current market price, such offers are sometimes made for less than all of the outstanding
shares of a target company. As a result, stockholders may be presented with the alternative of
partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be
similar to those of the remaining stockholders.
Despite our belief as to the benefits to stockholders of these provisions of Oritani's
certificate of incorporation and bylaws, these provisions may also have the effect of discouraging
a future takeover attempt that would not be approved by our Board of Directors, but pursuant to
which stockholders may receive a substantial premium for their shares over then current market
prices. As a result, stockholders who might desire to participate in such a transaction may not
have any opportunity to do so. Such provisions will also make it more difficult to remove our Board
of Directors and management. Our Board of Directors, however, has concluded that the potential
benefits outweigh the possible disadvantages.
Following the conversion, pursuant to applicable law and, if required, following the approval
by stockholders, we may adopt additional anti-takeover provisions in our certificate of
incorporation or other devices regarding the acquisition of our equity securities that would be
permitted for a Delaware business corporation.
The cumulative effect of the restrictions on acquisition of Oritani contained in our
certificate of incorporation and bylaws and in Delaware law may be to discourage potential takeover
attempts and perpetuate incumbent management, even though certain stockholders of Oritani may deem
a potential acquisition to be in their best interests, or deem existing management not to be acting
in their best interests.
Conversion Regulations
OTS regulations prohibit any person from making an offer, announcing an intent to make an
offer or participating in any other arrangement to purchase stock or acquiring stock or
subscription rights in a converting institution or its holding company from another person prior to
completion of its conversion. Further, without the prior written approval of the OTS, no person may
make an offer or announcement of an offer to purchase shares or actually acquire shares of an OTS
regulated holding company of a converted institution for a period of three years from the date of
the completion of the conversion if, upon the completion of such offer, announcement or
acquisition, the person would become the beneficial owner of more than 10.0% of the outstanding
stock of the holding company. The OTS has defined "person" to include any individual, group acting
in concert, corporation, partnership, association, joint stock company, trust, unincorporated
organization or similar company, a syndicate or any other group formed
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for the purpose of acquiring, holding or disposing of securities of an insured institution.
However, offers made exclusively to a bank or its holding company, or an underwriter or member of a
selling group acting on the converting institution's or its holding company's behalf for resale to
the general public are excepted. The regulation also provides civil penalties for willful violation
or assistance in any such violation of the regulation by any person connected with the management
of the converting institution or its holding company or who controls more than 10.0% of the
outstanding shares or voting rights of a converted institution or its holding company.
Change in Control Regulations
Under the Change in Bank Control Act, no person may acquire control of an insured federal
savings bank or its parent holding company unless the OTS has been given 60 days' prior written
notice and has not issued a notice disapproving the proposed acquisition. In addition, OTS
regulations provide that no company may acquire control of a savings bank without the prior
approval of the OTS. Any company that acquires such control becomes a "savings and loan holding
company" subject to registration, examination and regulation by the OTS.
Control, as defined under federal law, means ownership, control of or holding irrevocable
proxies representing more than 25% of any class of voting stock, control in any manner of the
election of a majority of the institution's directors, or a determination by the OTS that the
acquiror has the power to direct, or directly or indirectly to exercise a controlling influence
over, the management or policies of the institution. Acquisition of more than 10.0% of any class of
a savings bank's voting stock, if the acquiror is also subject to any one of eight "control
factors," constitutes a rebuttable determination of control under the regulations. Such control
factors include the acquiror being one of the two largest stockholders. The determination of
control may be rebutted by submission to the OTS, prior to the acquisition of stock or the
occurrence of any other circumstances giving rise to such determination, of a statement setting
forth facts and circumstances which would support a finding that no control relationship will exist
and containing certain undertakings. The regulations provide that persons or companies which
acquire beneficial ownership exceeding 10.0% or more of any class of a savings bank's stock who do
not intend to participate in or seek to exercise control over a savings bank's management or
policies may qualify for a safe harbor by filing with the OTS a certification form that states,
among other things, that the holder is not in control of such institution, is not subject to a
rebuttable determination of control and will take no action which would result in a determination
or rebuttable determination of control without prior notice to or approval of the OTS, as
applicable. There are also rebuttable presumptions in the regulations concerning whether a group
"acting in concert" exists, including presumed action in concert among members of an "immediate
family."
The OTS may prohibit an acquisition of control if it finds, among other things, that:
(i)
the acquisition would result in a monopoly or substantially lessen competition;
(ii)
the financial condition of the acquiring person might jeopardize the financial
stability of the institution; or
(iii)
the competence, experience or integrity of the acquiring person indicates that
it would not be in the interest of the depositors or the public to permit the
acquisition of control by such person.
179
Table of Contents
DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION
General
Oritani is authorized to issue 150,000,000 shares of common stock, par value of $0.01 per
share, and 25,000,000 shares of preferred stock, par value $0.01 per share. Oritani currently
expects to issue in the offering up to 44,850,000 shares of common stock, subject to adjustment,
and up to 51,577,500 shares, subject to adjustment, in exchange for the publicly held shares of
Oritani Financial Corp. Oritani will not issue shares of preferred stock in the conversion. Each
share of common stock will have the same relative rights as, and will be identical in all respects
to, each other share of common stock. Upon payment of the subscription price for the common stock,
in accordance with the plan of conversion and reorganization, all of the shares of common stock
will be duly authorized, fully paid and nonassessable.
The shares of common stock of Oritani will represent nonwithdrawable capital, will not be an
account of an insurable type, and will not be insured by the FDIC or any other government agency.
Common Stock
Dividends
.
Oritani may pay dividends to an amount equal to the excess of our capital surplus
over payments that would be owed upon dissolution to stockholders whose preferential rights upon
dissolution are superior to those receiving the dividend, and to an amount that would not make us
insolvent, as and when declared by our Board of Directors. The payment of dividends by Oritani is
subject to limitations that are imposed by law and applicable regulation. The holders of common
stock of Oritani will be entitled to receive and share equally in dividends as may be declared by
our Board of Directors out of funds legally available therefor. If Oritani issues shares of
preferred stock, the holders thereof may have a priority over the holders of the common stock with
respect to dividends.
Voting Rights
.
Upon consummation of the conversion, the holders of common stock of Oritani
will have exclusive voting rights in Oritani. They will elect Oritani's Board of Directors and act
on other matters as are required to be presented to them under Delaware law or as are otherwise
presented to them by the Board of Directors. Generally, each holder of common stock will be
entitled to one vote per share and will not have any right to cumulate votes in the election of
directors. Any person who beneficially owns more than 10.0% of the then-outstanding shares of
Oritani's common stock, however, will not be entitled or permitted to vote any shares of common
stock held in excess of the 10.0% limit. If Oritani issues shares of preferred stock, holders of
the preferred stock may also possess voting rights. Certain matters require an 80% stockholder
vote.
As a Delaware stock savings bank, corporate powers and control of Oritani Bank are vested in
its Board of Directors, who elect the officers of Oritani Bank and who fill any vacancies on the
Board of Directors. Voting rights of Oritani Bank are vested exclusively in the owners of the
shares of capital stock of Oritani Bank, which will be Oritani, and voted at the direction of
Oritani's Board of Directors. Consequently, the holders of the common stock of Oritani will not
have direct control of Oritani Bank.
Liquidation
.
In the event of any liquidation, dissolution or winding up of Oritani Bank,
Oritani, as the holder of 100% of Oritani Bank's capital stock, would be entitled to receive all
assets of Oritani Bank available for distribution, after payment or provision for payment of all
debts and liabilities of Oritani Bank, including all deposit accounts and accrued interest thereon,
and after distribution of the balance in the liquidation account to Eligible Account Holders and
Supplemental Eligible Account Holders. In the event of liquidation, dissolution or winding up of
Oritani, the holders of its common stock would be entitled to receive, after payment or provision
for payment of all its debts and liabilities, all of
180
Table of Contents
the assets of Oritani available for distribution. If preferred stock is issued, the holders
thereof may have a priority over the holders of the common stock in the event of liquidation or
dissolution.
Preemptive Rights
.
Holders of the common stock of Oritani will not be entitled to preemptive
rights with respect to any shares that may be issued. The common stock is not subject to
redemption.
Preferred Stock
None of the shares of Oritani's authorized preferred stock will be issued as part of the
offering or the conversion. Preferred stock may be issued with preferences and designations as our
Board of Directors may from time to time determine. Our Board of Directors may, without stockholder
approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights
that could dilute the voting strength of the holders of the common stock and may assist management
in impeding an unfriendly takeover or attempted change in control.
TRANSFER AGENT
The transfer agent and registrar for Oritani's common stock is Registrar and Transfer Company,
Cranford, New Jersey.
EXPERTS
The consolidated financial statements of Oritani Financial Corp. and subsidiaries as of
June 30, 2009 and 2008, and for each of the years in the three-year period ended June 30, 2009,
have been included herein in reliance upon the report of KPMG LLP, independent registered public
accounting firm, which is included herein and upon the authority of said firm as experts in
accounting and auditing.
The discussions related to state income taxes included under "The Conversion and
Offering—Material Income Tax Consequences" were prepared for us by KPMG LLP, independent registered
public accounting firm, and have been included herein upon the authority of said firm as experts in
tax matters.
RP Financial, LC. has consented to the publication herein of the summary of its report to
Oritani setting forth its opinion as to the estimated pro forma market value of the shares of
common stock upon completion of the offering and its letter with respect to subscription rights.
LEGAL MATTERS
Luse Gorman Pomerenk & Schick, P.C., Washington, D.C., counsel to Oritani, Oritani Financial
Corp., MHC, Oritani Financial Corp. and Oritani Bank, will issue to Oritani its opinion regarding
the legality of the common stock and the federal income tax consequences of the conversion.
Certain legal matters will be passed upon for Stifel, Nicolaus & Company, Incorporated by
Sonnenschein Nath & Rosenthal LLP, Washington, D.C.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
Oritani has filed with the Securities and Exchange Commission a registration statement under
the Securities Act of 1933 with respect to the shares of common stock offered hereby. As permitted
by the rules and regulations of the Securities and Exchange Commission, this prospectus does not
contain all the information set forth in the registration statement. Such information, including
the appraisal report which is an exhibit to the registration statement, can be examined without
charge at the public reference
181
Table of Contents
facilities of the Securities and Exchange Commission located at 100 F Street, N.E.,
Washington, D.C. 20549, and copies of such material can be obtained from the Securities and
Exchange Commission at prescribed rates. The Securities and Exchange Commission telephone number
is 1-800-SEC-0330. In addition, the Securities and Exchange Commission maintains a web site
(
http://www.sec.gov
) that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the Securities and Exchange
Commission, including Oritani. The statements contained in this prospectus as to the contents of
any contract or other document filed as an exhibit to the registration statement are, of necessity,
brief descriptions of the material terms of, and should be read in conjunction with, such contract
or document.
Oritani Financial Corp., MHC has filed with the OTS an Application on Form AC with respect to
the conversion. This prospectus omits certain information contained in the application. The
application may be examined at the principal office of the OTS, 1700 G Street, N.W., Washington,
D.C. 20552, and at the Northeast Regional Office of the OTS, Harborside Financial Center Plaza
Five, Suite 1600, Jersey City, New Jersey 07311. Our plan of conversion and reorganization is
available, upon request, at each of our banking offices.
In connection with the offering, Oritani will register its common stock under
Section 12(b)
of
the Securities Exchange Act of 1934 and, upon such registration, Oritani and the holders of its
common stock will become subject to the proxy solicitation rules, reporting requirements and
restrictions on common stock purchases and sales by directors, officers and greater than 10%
stockholders, the annual and periodic reporting and certain other requirements of the Securities
Exchange Act of 1934. Under the plan of conversion and reorganization, Oritani has undertaken that
it will not terminate such registration for a period of at least three years following the
offering.
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Table of Contents
INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS OF
ORITANI FINANCIAL CORP. AND ITS SUBSIDIARIES
Report of Independent Registered Public Accounting Firm
F-2
Consolidated Statement of Financial Condition at December 31, 2009 (unaudited) and
June 30, 2009 and 2008
F-3
Consolidated Statements of Income for the six months ended December 31, 2009 and 2008
(unaudited) and for the years ended June 30, 2009, 2008 and 2007
F-4
Consolidated Statements of Changes in Shareholders' Equity for the six months ended
December 31, 2009 (unaudited) and for the years ended June 30, 2009, 2008 and 2007
F-5
Consolidated Statements of Cash Flows for the six months ended December 31, 2009 and 2008
(unaudited) and for the years ended June 30, 2009, 2008 and 2007
F-6
Notes to Consolidated Financial Statements
F-8
***
All financial statement schedules have been omitted as the required information either is not
applicable or is included in the financial statements or related notes.
F-1
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders
Oritani Financial Corp.
Township of Washington, New Jersey:
We have audited the accompanying consolidated balance sheets of Oritani Financial Corp. and
subsidiaries (the Company) as of June 30, 2009 and 2008, and the related consolidated statements of
income, stockholders' equity, and cash flows for each of the years in the three-year period ended
June 30, 2009. These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated financial statements
based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Oritani Financial Corp. and subsidiaries as of June
30, 2009 and 2008, and the results of their operations and their cash flows for each of the years
in the three-year period ended June 30, 2009 in conformity with U.S. generally accepted accounting
principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the Company's internal control over financial reporting as of June 30, 2009,
based on criteria established in Internal Control – Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO), and our report dated September 11, 2009
expressed an unqualified opinion on the effectiveness of the Company's internal control over
financial reporting.
/s/ KPMG LLP
Short Hills, New Jersey
September 11, 2009
F-2
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Consolidated Balance Sheets
June 30,
(Unaudited)
Assets
December 31, 2009
2009
2008
(Dollars in thousands)
Cash on hand and in banks
$
5,479
$
7,729
$
7,332
Federal funds sold and short term investments
20,853
127,640
1,558
Cash and cash equivalents (note 3)
26,332
135,369
8,890
Loans, net (notes 4 and 5)
1,357,157
1,278,623
1,007,077
Securities available for sale, at market value (notes 7 and 12)
320,439
144,419
22,285
Mortgage-backed securities held to maturity,
estimated market value of $88,223, $120,381 and $162,671 at
December 31, 2009, June 30, 2009 and 2008, respectively (notes 6 and 12)
86,182
118,817
163,950
Mortgage-backed securities available for sale,
at market value (notes 7 and 12)
98,513
128,603
149,209
Bank Owned Life Insurance (at cash surrender value)
29,973
29,385
26,425
Federal Home Loan Bank of New York stock, at cost
25,481
25,549
21,547
Accrued interest receivable (note 8)
8,786
7,967
5,646
Investments in real estate joint ventures, net
5,836
5,767
5,564
Real estate held for investment
1,222
1,338
3,681
Real estate owned
600
—
—
Office properties and equipment, net (note 9)
14,730
13,777
9,287
Other assets (note 11)
31,623
23,907
19,733
Total assets
$
2,006,874
$
1,913,521
$
1,443,294
Liabilities and Stockholders' Equity
Liabilities:
Deposits (note 10)
$
1,210,507
$
1,127,630
$
698,932
Borrowings (note 12)
507,439
508,991
433,672
Advance payments by borrowers for taxes and insurance
9,347
8,301
7,024
Official checks outstanding
3,884
2,699
4,143
Other liabilities (note 13)
24,966
25,802
20,548
Total liabilities
1,758,924
1,673,423
1,164,319
Stockholders' Equity (notes 2 and 16):
Preferred stock, $0.01 par value; 10,000,000 shares
authorized-none issued or outstanding
—
—
—
Common stock, $0.01 par value; 80,000,000 shares authorized;
40,552,162 issued at December 31, 2009 , June 30, 2009
and 2008
37,041,184, outstanding at December 31, 2009,
37,133,684 and 40,187,062 outstanding at
June 30, 2009 and 2008, respectively.
130
130
130
Additional paid-in capital
132,339
130,375
128,656
Unallocated common stock held by the employee stock
ownership plan
(13,512
)
(13,909
)
(14,704
)
Treasury stock, at cost; 3,510,978 shares at December 31, 2009,
3,418,478 and 365,100 shares at June 30, 2009 and 2008.
(54,649
)
(53,418
)
(5,926
)
Retained income (note 11)
182,528
176,199
171,160
Accumulated other comprehensive loss, net of tax
1,114
721
(341
)
Total stockholders' equity
247,950
240,098
278,975
Commitments and contingencies (notes 4 and 15)
Total liabilities and stockholders' equity
$
2,006,874
$
1,913,521
$
1,443,294
See accompanying notes to consolidated financial statements.
F-3
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Six months ended
December 31,
Years ended June 30,
2009
2008
2009
2008
2007
Interest income:
Interest on mortgage loans
$
42,065
$
34,645
$
72,158
$
55,053
$
44,278
Interest on securities held to maturity and dividends on FHLB stock
717
535
1,069
999
1,073
Interest on securities available for sale
3,738
633
2,468
1,716
868
Interest on mortgage-backed securities held to maturity
1,918
3,032
5,615
7,409
9,475
Interest on mortgage-backed securities available for sale
2,718
3,673
7,046
4,710
813
Interest on federal funds sold and short term investments
90
1
73
1,704
6,842
Total interest income
51,246
42,519
88,429
71,591
63,349
Interest expense:
Deposits and stock subscription proceeds (note 10)
12,123
11,116
24,262
23,865
23,682
Borrowings (note 12)
10,494
9,940
20,238
13,343
9,147
Total interest expense
22,617
21,056
44,500
37,208
32,829
Net interest income before provision for
losses on loans
28,629
21,463
43,929
34,383
30,520
Provision for loan losses (note 5)
5,050
5,375
9,880
4,650
1,210
Net interest income
23,579
16,088
34,049
29,733
29,310
Other income:
Service charges
756
608
1,122
1,126
1,119
Real estate operations, net
710
702
1,294
1,314
1,205
Income from investments in real estate joint ventures
608
543
1,124
1,192
1,084
BOLI income
588
543
1,127
1,060
984
Net loss on sale and write down of securities
(190
)
(1,800
)
(2,045
)
(998
)
—
Gain on sale of real estate held for investment
1,043
—
—
1,096
—
Gain on sale of fixed assets
—
—
—
—
514
Other income
98
72
158
146
403
Total other income
3,613
668
2,780
4,936
5,309
Other expenses:
Compensation, payroll taxes and fringe benefits (notes 13 and 14)
10,216
9,029
18,670
13,923
11,213
Advertising
329
264
635
470
510
Office occupancy and equipment expense (notes 9 and 15)
1,104
923
2,088
1,595
1,575
Data processing service fees
546
529
1,069
1,058
1,031
Federal insurance premiums
1,159
60
1,774
92
93
Contribution to charitable foundation (note 2)
—
—
—
—
9,110
Other expenses
1,640
1,611
3,021
2,353
1,717
Total other expenses
14,994
12,416
27,257
19,491
25,249
Income before income tax expense
12,198
4,340
9,572
15,178
9,370
Income tax expense (benefit) (note 11)
4,786
1,795
4,020
6,218
(1,664
)
Net income
$
7,412
$
2,545
$
5,552
$
8,960
$
11,034
Net income available to common stockholders
$
7,206
$
2,495
$
5,459
$
8,790
$
11,034
Earnings per share-basic and diluted (fiscal 2007 represents
the period from January 23,2007 to June 30, 2007)(note 21)
$
0.20
$
0.07
$
0.15
$
0.23
$
0.15
See accompanying notes to consolidated financial statements.
F-4
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Consoldiated Statements of Stockholders' Equity
For the six months ended December 31, 2009 (Unaudited) and the years ended June 30, 2009, 2008 and
2007
(in thousands, except share data)
Accumulated
Unallocated
other
Total
Additional
common
comprehensive
stock-
Common
paid-in
Treasury
stock held
Retained
(loss)
holders'
Stock
capital
Stock
by
ESOP
income
net of tax
equity
Balance at June 30, 2006
$
—
$
—
$
—
$
—
$
150,266
$
(130
)
$
150,136
Comprehensive income:
Net income
—
—
—
—
11,034
—
11,034
Unrealized holding gain on securities available
for sale arising during year, net of tax
—
—
—
—
—
3
3
Change in minimum pension liability,
net of tax of $55
—
—
—
—
—
132
132
Total comprehensive income
11,169
Sale of 12,976,686 shares of common stock in the
initial public offering and issuance of 27,575,476
shares to the mutual holding company
130
127,500
—
—
—
—
127,630
Purchase of common stock by the ESOP
—
—
—
(15,896
)
—
—
(15,896
)
Cumulative adjustment for accounting change-
adoption of postretirement plans
—
—
—
—
—
(1,076
)
(1,076
)
ESOP shares allocated or committed to be released
—
210
—
397
—
—
607
Balance at June 30, 2007
$
130
$
127,710
$
—
$
(15,499
)
$
161,300
$
(1,071
)
$
272,570
Comprehensive income:
Net income
—
—
—
—
8,960
—
8,960
Unrealized holding gain on securities available
for sale arising during year, net of tax $177
—
—
—
—
—
256
256
Reclassification adjustment for losses included in
net income, net of tax of $264
—
—
—
—
—
382
382
Change in funded status of retirement
obligations, net of tax of $61
—
—
—
—
—
92
92
Total comprehensive income
9,690
Cumulative adjustment for accounting change-
adoption of accounting for uncertainty in
income taxes
—
—
—
—
900
—
900
Purchase of treasury stock (365,100 shares)
—
—
(5,926
)
—
—
—
(5,926
)
Compensation cost for stock options
and restricted stock
—
610
—
—
—
—
610
ESOP shares allocated or committed
to be released
—
336
—
795
—
—
1,131
Balance at June 30, 2008
$
130
$
128,656
$
(5,926
)
$
(14,704
)
$
171,160
$
(341
)
$
278,975
F-5
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Consoldiated Statements of Stockholders' Equity
For the six months ended December 31, 2009 (Unaudited) and the years ended June 30, 2009, 2008 and 2007
(in thousands, except share data)
Accumulated
Unallocated
other
Total
Additional
common
comprehensive
stock-
Common
paid-in
Treasury
stock held
Retained
(loss)
holders'
Stock
capital
Stock
by ESOP
income
net of tax
equity
Comprehensive income:
Net income
—
—
—
—
5,552
—
5,552
Unrealized holding gain on securities available
for sale arising during year, net of tax $200
—
—
—
—
—
203
203
Reclassification adjustment for losses included in
net income, net of tax of $815
—
—
—
—
—
1,231
1,231
Change in funded status of retirement
obligations, net of tax of $249
—
—
—
—
—
(372
)
(372
)
Total comprehensive income
6,614
Cash dividends declared
—
—
—
—
(437
)
—
(437
)
Cumulative adjustment for accounting change -
Split-dollar life insurance
—
—
—
—
(76
)
—
(76
)
Purchase of treasury stock (3,212,337 shares)
—
—
(49,989
)
—
—
—
(49,989
)
Treasury stock allocated to restricted
stock plan (158,959 shares)
—
(2,497
)
2,497
—
—
—
—
Compensation cost for stock options
and restricted stock
—
3,804
—
—
—
—
3,804
ESOP shares allocated or committed
to be released
—
412
—
795
—
—
1,207
Balance at June 30, 2009
$
130
$
130,375
$
(53,418
)
$
(13,909
)
$
176,199
$
721
$
240,098
Comprehensive income:
Net income
—
—
—
—
7,412
—
7,412
Unrealized holding gain on securities available
for sale arising during year, net of tax of $177
—
—
—
—
—
265
265
Reclassification adjustment for losses included in
net income, net of tax of $25
—
—
—
—
—
58
58
Amortization related to post-retirement
obligations, net of tax of $46
—
—
—
—
—
70
70
Total comprehensive income
7,805
Cash dividends declared
—
—
—
—
(1,083
)
—
(1,083
)
Purchase of treasury stock (92,500 shares)
—
—
(1,231
)
—
—
—
(1,231
)
Compensation cost for stock options
and restricted stock
—
1,782
—
—
—
—
1,782
ESOP shares allocated or committed
to be released
—
140
—
397
—
—
537
Tax benefit from stock-based compensation
—
42
—
—
—
—
42
Balance at December 31, 2009
$
130
$
132,339
$
(54,649
)
$
(13,512
)
$
182,528
$
1,114
$
247,950
See accompanying notes to unaudited consolidated financial statements.
F-6
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Six months ended
December 31,
Years ended June 30,
2009
2008
2009
2008
2007
Cash flows from operating activities:
Net income
$
7,412
$
2,545
$
5,552
$
8,960
$
11,034
Adjustments to reconcile net income to net cash provided by operating activities:
Contribution of stock to charitable foundation
—
—
—
—
8,110
ESOP and stock-based compensation expense
2,319
2,409
5,011
1,741
607
Depreciation of premises and equipment
395
321
701
540
718
Amortization and accretion (premiums and discounts), net
1
43
62
237
463
Provision for losses on loans
5,050
5,375
9,880
4,650
1,210
Amortization and accretion (deferred loan fees), net
(457
)
(379
)
(797
)
(779
)
(702
)
Increase in deferred taxes
(1,135
)
(3,144
)
(4,487
)
(1,482
)
(9,159
)
Impairment charge on securities
202
1,751
2,045
998
—
(Gain) loss on sale of securities
(12
)
49
—
—
—
Gain on sale of real estate held for investment
(1,043
)
—
—
(1,096
)
—
Gain on sale of fixed assets
—
—
—
—
(514
)
Write down of real estate owned
212
—
—
—
—
Increase in cash surrender value of bank owned life insurance
(588
)
(544
)
(1,127
)
(1,060
)
(984
)
Income from real estate held for investment
(440
)
(504
)
(818
)
(660
)
(708
)
Income from real estate joint ventures
(608
)
(543
)
(1,124
)
(1,192
)
(1,084
)
Increase in accrued interest receivable
(819
)
(1,211
)
(2,321
)
(673
)
(1,063
)
(Increase) decrease in other assets
(6,712
)
1,132
(1,076
)
(1,292
)
(331
)
Increase in other liabilities
3,596
3,552
3,557
2,041
5,575
Net cash provided by operating activities
7,373
10,852
15,058
10,933
13,172
Cash flows from investing activities:
Net increase in loans receivable
(84,245
)
(169,080
)
(243,561
)
(241,106
)
(109,026
)
Purchase of mortgage loans
(3,694
)
(32,231
)
(37,068
)
(11,300
)
(6,960
)
Proceeeds from sales of mortgage loans
4,000
—
—
—
—
Purchase of securities held to maturity
—
—
—
—
(5,000
)
Purchase of securities available for sale
(251,027
)
(25,000
)
(163,679
)
(17,718
)
(35,000
)
Purchase of mortgage-backed securities held to maturity
—
—
—
—
(4,886
)
Purchase of mortgage-backed securities available for sale
—
(10,116
)
(11,257
)
(124,033
)
(27,023
)
Redemption (purchase) of Federal Home Loan Bank of New York stock
68
(2,603
)
(4,002
)
(10,928
)
(1,252
)
Principal payments on mortgage-backed securities held to maturity
23,075
19,590
44,928
53,083
61,735
Principal payments on mortgage-backed securities available for sale
24,042
11,640
34,562
14,710
5,692
Proceeds from calls and maturities of securities held to maturity
—
—
—
5,415
13,000
Proceeds from calls and maturities of securities available for sale
75,000
10,000
38,895
30,000
10,000
Proceeds from sales of mortgage-backed securities held to maturity
9,361
—
—
—
—
Proceeds from sales of mortgage-backed securities available for sale
6,087
—
—
—
—
Proceeds from sales of securities available for sale
500
250
500
—
—
Purchase of Bank Owned Life Insurance
—
(1,120
)
(1,833
)
—
—
Additional investment in real estate held for investment
—
(1,290
)
(1,352
)
(1,378
)
(238
)
Distributions received from real estate held for investment
398
348
725
552
585
Proceeds from sale of real estate held for investment
1,182
—
—
1,159
—
Additional investment in real estate joint ventures
(387
)
(30
)
(1,090
)
—
(30
)
Distributions received from real estate joint ventures
917
843
1,848
1,841
1,182
Purchase of fixed assets
(1,348
)
(891
)
(1,500
)
(1,466
)
(409
)
Proceeds from sale of fixed assets
—
—
—
—
1,973
Net cash (used in) provided by investing activities
(196,071
)
(199,690
)
(343,884
)
(301,169
)
(95,657
)
Cash flows from financing activities:
Net increase in deposits
82,877
181,014
428,698
3,175
7,111
Proceeds from borrowed funds
—
322,225
341,225
244,885
113,400
Repayment of borrowed funds
(1,552
)
(264,402
)
(265,906
)
(7,874
)
(85,975
)
Increase in advance payments by borrowers for taxes and insurance
1,046
1,129
1,277
1,340
577
Net proceeds from sale of common stock
—
—
—
—
119,520
Purchase of common stock for ESOP
—
—
—
—
(15,896
)
Dividends paid to shareholders
(1,521
)
—
—
—
—
Purchase of treasury stock
(1,231
)
(38,217
)
(49,989
)
(5,926
)
—
Tax benefit from stock-based compensation
42
—
—
—
—
Net cash provided by (used in) financing activities
79,661
201,749
455,305
235,600
138,737
Net (decrease) increase in cash and cash equivalents
(109,037
)
12,911
126,479
(54,636
)
56,252
Cash and cash equivalents at beginning of year
135,369
8,890
8,890
63,526
7,274
Cash and cash equivalents at end of year
$
26,332
$
21,801
$
135,369
$
8,890
$
63,526
Supplemental cash flow information:
Cash paid during the year for:
Interest
$
22,766
$
20,819
$
44,262
$
36,296
$
32,589
Income taxes
2,674
4,646
9,812
9,583
5,647
Noncash transfers
Loans receivable transferred to Eeal etsate owned
812
—
—
—
—
RE Held for Investment transferred to Office, Property and Equipment
—
3,690
3,690
—
—
Non cash borrowing activity
—
—
—
—
(544
)
See accompanying notes to consolidated financial statements.
F-7
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(1) Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements are comprised of the accounts of Oritani Financial Corp.
(the Company), and its wholly owned subsidiaries, Oritani Bank (the Bank); Hampshire
Financial, LLC, and Oritani, LLC, and the wholly owned subsidiaries of Oritani Bank, Oritani
Financial Services, Inc. (inactive), Ormon LLC (Ormon), and Oritani Holding Company
(liquidated), as well as its wholly owned subsidiary, Oritani Asset Corporation (a real estate
investment trust), collectively, the Company. All significant intercompany balances and
transactions have been eliminated in consolidation.
Business
The Company provides a wide range of banking services to individual and corporate customers in
New Jersey. The Company is subject to competition from other financial institutions and to
the regulations of certain federal and state agencies and undergoes periodic examinations by
those regulatory authorities.
The following are the significant accounting policies which were followed in preparing and
presenting these consolidated financial statements.
Basis of Financial Statement Presentation
The consolidated financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America ("GAAP"). In June 2009, the
Financial Accounting Standards Board ("FASB") issued an update to Accounting Standard
Codification 105-10, "Generally Accepted Accounting Principles". This standard establishes
the FASB Accounting Standard Codification ("Codification" or "ASC") as the source of
authoritative U.S. GAAP recognized by the FASB for nongovernmental entities. The Codification
is effective for interim and annual periods ending after September 15, 2009. The Codification
is a reorganization of existing U.S. GAAP and does not change existing U.S. GAAP. The Company
adopted this standard for our financial statements for periods ending after September 15,
2009. As a result, the Company's disclosures in its consolidated financial statements and all
future references to authoritative accounting literature will be referenced in accordance with
FASB ASC 105-10. The adoption had no impact on the Company's financial position, results of
operations, and earnings per share. 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 December 31, 2009 and
June 30, 2009 and 2008, and in the Consolidated Statements of Income for the six months ended
December 31, 2009 and 2008 and the twelve months ended June 30, 2009, 2008 and 2007. Actual
results could differ significantly from those estimates.
In the opinion of management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of the unaudited interim consolidated financial statements
have been made. No adjustments were made other than normal recurring entries.
Material estimates that are particularly susceptible to significant change in the near term
relate to the determination of the allowance for loan losses and the valuation of real estate
acquired in connection with foreclosures or in satisfaction of loans. In connection with the
determination of the
F-8
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
allowance for loan losses, management generally obtains independent appraisals for significant
properties.
A substantial portion of the Company's loans are secured by real estate in the New Jersey
market. In addition, a substantial portion of real estate joint ventures and real estate owned
are located in that same market. Accordingly, as with most financial institutions in the
market area, the ultimate collectibility of a substantial portion of the Company's loan
portfolio and the recovery of the carrying amount of real estate joint ventures and real
estate owned are susceptible to changes in market conditions.
Securities
Securities include debt, mortgage-backed and marketable equity securities. Management
determines the appropriate classification of securities as either available for sale or held
to maturity at the purchase date. Securities that may be sold in response to changing market
and interest rate conditions or as part of an overall asset/liability strategy are classified
as available for sale. Gains or losses on sales of securities available for sale are based
upon the specific-identification method. Securities classified as available for sale are
carried at fair value with unrealized gains and losses net of applicable taxes, included in
accumulated other comprehensive income (loss), a component of equity. If management has the
intent and the ability at the time of purchase to hold securities until maturity, they are
classified as held to maturity. Securities held to maturity are carried at cost, adjusted for
unamortized purchase premiums and discounts. Premiums and discounts on securities are
accreted or amortized using the level-yield method over the estimated lives of the securities,
including the effect of prepayments. Any portion of unrealized loss on an individual equity
security deemed to be other than temporary is recognized as a loss in operations in the period
in which such determination is made. For debt investment securities deemed other than
temporarily impaired, the investment is written down through current earnings by the
impairment related to the estimated credit loss and the non-credit related impairment is
recognized in other comprehensive income. In the ordinary course of business, securities are
pledged as collateral in conjunction with the Company's borrowings and lines of credit.
Loans
Mortgages on real estate and other loans are stated at the outstanding principal amount of the
loans, net of deferred loan fees/costs and the allowance for loan losses. Loan origination and
commitment fees, net of related costs, are deferred and amortized as an adjustment to the
loan's yield, utilizing the level yield method, over the actual lives of the related loans.
Interest income on loans is accrued and credited to interest income as earned. Loans are
generally placed on nonaccrual status when they become delinquent 90 days or more as to
principal or interest, or when it appears that principal or interest is uncollectible.
Interest accrued prior to a loan being placed on nonaccrual status is subsequently reversed.
Interest income on nonaccrual loans is recognized only in the period it is ultimately
collected. Loans are returned to an accrual status when factors indicating doubtful
collectability no longer exist. Loans are generally charged off after an analysis is completed
which indicates collectability of principal and interest is in doubt.
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 individually classified as impaired include multifamily, commercial
mortgage and construction loans. Impaired loans are individually assessed to determine that
each loan's carrying value is not in excess of the fair value of the related collateral or the
present value of
F-9
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
the expected future cash flows. Residential mortgage and consumer loans are
deemed smaller balance homogeneous loans which are evaluated collectively for impairment and
are therefore excluded from the population of impaired loans.
Consumer loans and any portion of residential real estate mortgage loans not adequately
secured are generally charged off when deemed to be uncollectible unless it can be clearly
demonstrated that repayment will occur regardless of the delinquency status. Examples that would demonstrate
repayment include; a loan that is secured by collateral and is in the process of collection; a
loan supported by a valid guarantee or insurance; or a loan supported by a valid claim against
a solvent estate. Charge-offs of commercial real estate mortgage loans are made on the basis
of management's ongoing evaluation of nonperforming loans. In the ordinary course of
business, loans are pledged as collateral in conjunction with the Company's borrowings and
lines of credit.
Allowance for Loan Losses
An allowance for loan losses is charged to operations based on management's evaluation of the
probable losses inherent in its portfolio. Such evaluation includes a review of all loans for
which full collectability may not be reasonably assured and considers, among other matters,
the estimated net realizable value of the underlying collateral, economic conditions and other
matters which warrant consideration. Subsequent recoveries, if any, are credited to the
allowance.
Management believes that the allowance for loan losses is adequate. While management uses
available information to recognize losses on loans, future additions to the allowance may be
necessary based on changes in economic conditions in the Company's market area. In addition,
various regulatory agencies, as an integral part of their examination process, periodically
review the Company's allowance for loan losses. Such agencies may require the Company to
recognize additions to the allowance based on their judgments about information available to
them at the time of their examination.
Real Estate Owned
Real estate owned acquired through foreclosure is carried at fair value, less estimated
selling costs at the time of acquisition. Fair value is derived from independent appraisals.
When a property is acquired, the excess of the loan balance over fair value is charged to the
allowance for loan losses. During the holding period, the property is periodically reviewed
and the recorded value is adjusted through operations, if necessary, if the carrying value of
the property exceeds the fair value, less estimated costs to sell.
Bank Owned Life Insurance
Bank-owned life insurance is accounted for using the cash surrender value method and is
recorded at its realizable value. The change in the cash surrender value is included in other
noninterest income.
Federal Home Loan Bank of New York Stock
The Bank, as a member of the FHLB of New York , is required to hold shares of capital stock in
the FHLB in an amount based on the Bank's total investment in mortgage related assets and
advances. The requirement pertaining to mortgage related assets is a range from 0.10% to
0.25% of mortgage related assets, and is currently equal to 0.20%. The requirement pertaining
to advances is a range from 4.0% to 5.0% of total advances, and is currently equal to 4.5%.
The stock is carried at cost.
F-10
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Investments in Real Estate Joint Ventures, Net
The Company accounts for investments in joint ventures under the equity method. The balance
reflects the cost basis of investments, plus the Company's share of income earned on the joint
venture operations, less cash distributions, including excess cash distributions, and the
Company's share of losses on joint venture operations. Cash received in excess of the
Company's recorded investment in a joint venture is recorded as unearned revenue in other
liabilities.
Real Estate Held for Investment
Real estate held for investment includes the Company's undivided interest in real estate
properties accounted for under the equity method and properties held for investment purposes.
Cash received in excess of the Company's recorded investment for an undivided interest in real
estate property is recorded as unearned revenue in other liabilities. The operations of the
properties held for investment purposes are reflected in the financial results of the Company
and included in the Other Income caption in the Income Statement. Properties held for
investment purposes are carried at cost less accumulated depreciation.
Office Properties and Equipment
Office properties and equipment are carried at cost, less accumulated depreciation.
Depreciation of office properties and equipment is computed on a straight-line basis over the
estimated useful lives of the related assets. The Company uses the following estimated useful
lives for its office properties and equipment categories: land improvements – 15 years;
building and major building improvements – 40 years; minor building improvements – 10 years
and furniture and fixtures – 3 to 7 years. Leasehold improvements are amortized over the
lesser of the remaining life of the lease or the useful life of the improvement.
Employee Benefit Plans
The Bank has a defined benefit pension plan which covers all employees who satisfy the
eligibility requirements. The Bank participates in a multi-employer plan. Costs of the pension
plan are based on the contribution required to be made to the program. The Bank's policy is to
fund at least the minimum contribution required by the Employee Retirement Income Security Act
of 1974, as amended. The Plan was frozen as of December 31, 2008.
The Bank has a 401(k) savings incentive plan covering substantially all employees of the Bank.
The Bank may match a percentage of the first 6% of employee contributions. The contribution
percentage is determined annually by the Board of Directors.
The employee stock ownership plan ("ESOP") is accounted for in accordance with the provisions
of ASC 718, "
Compensation-Stock Compensation
"
.
The funds borrowed by the ESOP from the
Company to purchase the Company's common stock will be repaid from the Bank's contributions
over a period of up to 20 years. The Company's common stock not yet allocated to participants
is recorded as a reduction of stockholders' equity at cost. Compensation expense for the ESOP
is based on the market price of the Company's stock and is recognized as shares committed to
be released to participants.
The Bank provides several nonqualified, defined benefit plans which provides benefits to
executive officers and directors of the Company. These plans are unfunded and the costs of the
plans are recognized over the period that services are provided.
F-11
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
The Company provides several post-retirement benefit plans to directors and certain retired
employees and will provide such benefits to certain active officers that are accounted for in
accordance with ASC 715, "
Compensation-Retirement Benefits
". This guidance requires an
employer to: (a) recognize in its statement of financial condition the overfunded or
underfunded status of a defined benefit postretirement plan measured as the difference between
the fair value of plan assets and the benefit obligation; (b) measure a plan's assets and its
obligations that determine its funded status as of the date of its year-end balance sheet and
(c) recognize as a component of other comprehensive income, net of tax, the actuarial gains
and losses and the prior service costs and credits that arise during the period. The Company
accrues the cost of post-retirement benefit plans during the employee's period of active
service.
The Company's equity incentive plan is accounted for in accordance with ASC 718,
"
Compensation-Stock Compensation
". This guidance requires companies to recognize in the
statement of earnings the grant-date fair value of stock based awards issued to employees.
Compensation cost related to stock based awards is recognized on a straight-line basis over
the requisite service periods.
Income Taxes
The Company records income taxes in accordance with ASC 740, "
Income Taxes
," using the asset
and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized
for the expected future tax consequences of events that have been recognized in the financial
statements or tax returns; (ii) are attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases;
and (iii) are measured using enacted tax rates expected to apply in the years when those
temporary differences are expected to be recovered or settled. Where applicable, deferred tax
assets are reduced by a valuation allowance for any portions determined not likely to be
realized. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income tax expense in the period of enactment. The valuation allowance is
adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances
warrant.
Comprehensive Income
Comprehensive income is divided into net income and other comprehensive income. Other
comprehensive income includes items recorded directly to equity, such as unrealized gains and
losses on securities available for sale, change in actuarial gains and losses on other post
retirement benefits, and change in service cost on other postretirement benefits, net of
taxes. Comprehensive income is presented in the consolidated statements of changes in equity.
Earnings Per Share
Basic earnings per share, or EPS, is computed by dividing net income by the weighted average
number of shares outstanding for the period. ASC 260, "
Earnings Per Share
", provides that
unvested share-based payment awards that contain non-forfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating securities and shall be
included in the computation of earnings per share pursuant to the two-class method. We
determined that our outstanding non-vested restricted stock awards are participating
securities. Accordingly, earnings per common share is computed using the two-class method.
The weighted average common shares outstanding includes the average number of shares of common
stock outstanding, including shares
F-12
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
held by Oritani Financial Corp., MHC 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 and unvested shares of
restricted stock 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: (1)
the assumed proceeds from option exercises; (2) the tax benefit that would have been credited
to additional paid-in capital assuming exercise of non-qualified stock options and vesting of
shares of restricted stock; and (3) the average unamortized compensation costs related to
unvested shares of restricted stock and stock options. We then divide this sum by our average
stock price to calculate shares 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.
Reclassifications
Certain items previously reported have been reclassified to conform with the current period's
reporting format.
(2) Stock Transactions
Stock Offering
The Company completed its initial public stock offering on January 23, 2007. The Company sold
12,165,649 shares, or 30.0% of its outstanding common stock, to subscribers in the offering,
including 1,589,644 shares purchased by the Oritani Bank Employee Stock Ownership Plan
("ESOP"). Oritani Financial Corp., MHC, the Company's federally chartered mutual holding
company parent holds 27,575,476 shares, or 68.0% of the Company's outstanding common stock.
Additionally, the Bank contributed $1.0 million in cash, and the Company issued 811,037 shares
of common stock, or 2.0% of the Company's outstanding common stock, to the OritaniBank
Charitable Foundation. This action resulted in a $9.1 million pre-tax expense recorded in the
quarter ended March 31, 2007. Proceeds from the offering, including the value of shares
issued to the charitable foundation but net of expenses, were $127.6 million. Net deployable
funds, after deducting for the ESOP shares and the total contribution to the charitable
foundation, were $102.6 million. The Company contributed $59.7 million of the proceeds to
Oritani Bank. Stock oversubscription proceeds of $323.4 million were returned to subscribers.
Stock Repurchase Program
On June 2, 2008, the Company announced a stock repurchase plan to acquire up to 10% of its
publicly-held outstanding shares of common stock, or 1,297,668 shares. Additional stock
repurchase plans were announced on: September 18, 2008, for 10% of the publicly-held
outstanding shares, or 1,173,008 shares, on November 21, 2008 for 10% of the publicly-held
outstanding shares, or 1,061,098 shares, and on March 18, 2009, for 10% of the publicly-held
outstanding shares, or 967,828 shares. Under the stock repurchase program, shares of the
Company's common stock may be purchased in the open market and through privately negotiated
transactions, from time to time, depending on market conditions and prices, the Company's
liquidity requirements and alternative uses of capital. At December 31, 2009, a total of
3,669,937
F-13
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
shares were acquired under these repurchase plans at a weighted average cost of
$15.57 per share. No additional shares have been purchased through February 27, 2010. The
March 18, 2009 program has no expiration date and 596,291 shares remain eligible to be
purchased under this program. All repurchased shares are held as treasury stock. All
treasury shares will effectively be reissued in conjunction with our proposed "second step"
transaction.
(3) Cash and Cash Equivalents
For purposes of the consolidated statements of cash flows, cash and cash equivalents include
cash on hand and in banks and federal funds sold and short term investments which are
generally sold for one-day periods.
(4) Loans
A comparative summary of loans at December 31, 2009 and June 30, 2009 and 2008 is as follows:
(Unaudited)
December 31,
June 30,
2009
2009
2008
(In thousands)
First mortgage loans:
Conventional one to four family
260,056
265,962
223,087
Multifamily
296,314
277,589
237,490
Commercial real estate
628,507
562,138
359,681
Total first mortgage loans
1,184,877
1,105,689
820,258
Second mortgage and equity loans
51,036
54,769
59,886
Construction and land loans
124,898
130,831
138,195
Other loans
21,612
10,993
4,880
1,382,423
1,302,282
1,023,219
Less:
Deferred fees, net
3,102
2,979
2,610
Allowance for loan losses
22,164
20,680
13,532
$
1,357,157
$
1,278,623
1,007,077
At December 31, 2009 and June 30, 2009 and 2008, the Company had fixed-rate mortgage
commitments of $28.8 million,$42.8 million and $44.3 million, respectively, and variable-rate
mortgage commitments of $18.8, $34.9 million and $48.7 million, respectively, which are not
included in the accompanying consolidated financial statements. The rate range of the fixed
rate commitments at December 31, 2009 was 4.99% to 6.50%. Commitments generally have fixed
expiration dates or other termination clauses and may require payment of a fee. There is no
exposure to credit loss in the event the other party does not exercise its right to borrow
under the commitment.
The Company grants residential real estate loans on single- and multifamily dwellings
principally throughout the state of New Jersey and has previously purchased out-of-state
residential mortgage pools. Multifamily and commercial real estate loan originations extend
into Eastern Pennsylvania,
F-14
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Southern New York, New York City and parts of Connecticut.
Borrowers' abilities to repay their obligations are dependent upon various factors, including
the borrowers' income and net worth, cash flows generated by the underlying collateral, value
of the underlying collateral and priority of the Company's lien on the property. Such factors
are dependent upon various economic conditions and individual circumstances beyond the
Company's control; the Company is therefore subject to risk of loss. The Company believes
that its lending policies and procedures adequately minimize the potential exposure to such
risks and that adequate provisions for losses are provided for all known and inherent risks.
Collateral and/or guarantees are required for all loans.
(5) Allowance for Loan Losses
Activity in the allowance for loan losses is summarized as follows:
(Unaudited)
Six months ended
December 31,
Years ended June 30,
2009
2008
2009
2008
2007
(In thousands)
Balance at beginning of year
$
20,680
$
13,532
$
13,532
8,882
7,672
Provisions charged to
operations
5,050
5,375
9,880
4,650
1,210
Recoveries
3
—
—
—
—
Loans charged off
3,569
—
2,732
—
—
Balance at end of year
$
22,164
$
18,907
$
20,680
13,532
8,882
Included in loans are loans for which the accrual of interest income has been discontinued due
to deterioration in the financial condition of the borrowers. The principal amount of
nonaccrual loans at December 31, 2009 and 2008 and June 30, 2009 and 2008 were $51.9 million,
$44.1 million, $52.5 million and $14.2 million, respectively. There were no nonaccrual loans
at June 30, 2007. If the nonaccrual loans had performed in accordance with their original
terms, interest income would have increased by $2.1 million, $1.4 million, $3.7 million and
$521,000 for the six months ended December31, 2009 and 2008 and the years ended June 30, 2009,
and 2008, respectively.
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 individually classified as impaired include multifamily, commercial
mortgage and construction loans. Impaired loans at December 31, 2009 and 2008 and June 30,
2009 and 2008 were $46.7 million, $43.6 million, $50.2 million and $13.8 million,
respectively. There were no impaired loans at June 30, 2007. The allocation in the allowance
for loan losses for impaired loans at December 31, 2009 and 2008 and June 30, 2009 and 2008
were $3.2 million on balances of $24.1 million, $4.3 million on balances of $11.8 million,
$3.3 million on balances of $20.0 million and $1.4 million on balances of $13.8 million,
respectively. Interest income recognized on these loans for the six months ended December 31,
2009 and 2008 and the years ended June 30, 2009 and 2008 was $373,000, $300,000, $696,000 and
$184,000, respectively. The average balance of impaired loans was $48.8 million, $19.7
million, $34.8 million and $3.5 million during the six months ended December 31, 2009 and 2008
and the years ended June 30, 2009 and 2008, respectively.
F-15
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(6) Mortgage-backed Securities Held to Maturity
The following is a comparative summary of mortgage-backed securities held to maturity as of
December 31, 2009 and June 30, 2009 and 2008:
December 31, 2009 (unaudited)
Gross
Gross
Estimated
Amortized
unrealized
unrealized
fair
cost
gains
losses
value
(In thousands)
Mortgage-backed securities:
FHLMC
$
15,740
396
1
16,135
FNMA
24,589
712
—
25,301
GNMA
2,423
5
2
2,426
CMO
43,430
931
—
44,361
$
86,182
2,044
3
88,223
June 30, 2009
Gross
Gross
Estimated
Amortized
unrealized
unrealized
market
cost
gains
losses
value
(In thousands)
Mortgage-backed securities:
FHLMC
$
18,783
287
7
19,063
FNMA
31,329
616
2
31,943
GNMA
5,161
16
20
5,157
CMO
63,544
913
239
64,218
$
118,817
1,832
268
120,381
June 30, 2008
Gross
Gross
Estimated
Amortized
unrealized
unrealized
market
cost
gains
losses
value
(In thousands)
Mortgage-backed securities:
FHLMC
$
25,082
156
336
24,902
FNMA
42,066
223
196
42,093
GNMA
6,055
8
23
6,040
CMO
90,747
146
1,257
89,636
$
163,950
533
1,812
162,671
Proceeds from the sale of mortgage-backed securities held to maturity for the six months
ended December 31, 2009 were $9.4 million, resulting in gross gains and gross losses of
$41,000 and $148,000, respectively. These mortgage-backed securities had an amortized cost of
$9.5 million. The held to maturity securities sold were mortgage backed securities with 15%
or less of their
F-16
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
original purchased balances remaining. The Company did not sell any
mortgage-backed securities held to maturity during the six months ended December 31, 2008 or
during years ended June 30, 2009, 2008 or 2007. Mortgage-backed securities with fair values
of $88.2 million, $120.4 million and $162.7 million at December 31, 2009, June 30, 2009 and
2008, respectively, were pledged to FHLB of New York (FHLBNY) as collateral for advances (see
note 12). The Company did not record other than temporary impairment charges on
mortgage-backed securities held to maturity during the six months ended December 31, 2009 or
the years ended June 30, 2009, 2008 and 2007.
The contractual maturities of mortgage-backed securities held-to-maturity generally exceed 20
years; however, the effective lives are expected to be shorter due to anticipated prepayments.
Expected maturities will differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without penalties.
Gross unrealized losses on mortgage-backed securities held to maturity and the estimated
market value of the related securities, aggregated by security category and length of time
that individual securities have been in a continuous unrealized loss position at December 31,
2009 and June 30, 2009 and 2008 are as follows:
December 31, 2009 (unaudited)
Less than 12 months
Greater than 12 months
Total
(In thousands)
Gross
Gross
Gross
Estimated
unrealized
Estimated
unrealized
Estimated
unrealized
fair value
losses
fair value
losses
fair value
losses
Mortgage-backed securities:
FHLMC
$
859
2
—
—
859
2
GNMA
1,749
1
—
—
1,749
1
$
2,608
3
—
—
2,608
3
June 30, 2009
Less than 12 months
Greater than 12 months
Total
(In thousands)
Gross
Gross
Gross
Estimated
unrealized
Estimated
unrealized
Estimated
unrealized
market value
losses
market value
losses
market value
losses
Mortgage-backed securities:
FHLMC
$
805
2
1,012
5
1,817
7
FNMA
845
2
—
—
845
2
GNMA
—
—
2,009
20
2,009
20
CMO
8,214
43
2,284
196
10,498
239
$
9,864
47
5,305
221
15,169
268
F-17
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
June 30, 2008
Less than 12 months
Greater than 12 months
Total
(In thousands)
Gross
Gross
Gross
Estimated
unrealized
Estimated
unrealized
Estimated
unrealized
market value
losses
market value
losses
market value
losses
Mortgage-backed securities:
FHLMC
$
11,191
226
3,035
110
14,226
336
FNMA
8,068
45
17,580
151
25,648
196
GNMA
495
1
2,286
22
2,781
23
CMO
23,628
70
50,742
1,187
74,370
1,257
$
43,382
342
73,643
1,470
117,025
1,812
The unrealized losses on investments in mortgage-backed securities were caused by
interest rate changes. The contractual cash flows of these securities are guaranteed by
Fannie Mae, Ginnie Mae and Freddie Mac. The majority of the contractual cash flows of the
CMO's are guaranteed by these agencies as well. Because the decline in fair value is
attributable to changes in interest rates and not credit quality, and because the Company has
no intent to sell and believes it is not more likely than not that it will be required to sell
these investments until a market price recovery or maturity, these investments are not
considered other than temporarily impaired as of December 31, 2009. The Company had one AAA
rated private label CMO investment with an amortized cost of $946,000 and a fair value of
$809,000. This security was sold during the six months ended December 31, 2009 resulting in a
loss of $137,000.
F-18
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(7) Securities and Mortgage-Backed Securities Available for Sale
The following is a comparative summary of securities and mortgage-backed securities available
for sale as of December 31, 2009 and June 30, 2009 and 2008:
December 31, 2009 (unaudited)
Gross
Gross
Estimated
Amortized
unrealized
unrealized
market
cost
gains
losses
value
(In thousands)
Securities available for sale
U.S. Government and
federal agency obligations
Due in one year to five years
$
310,775
1,010
591
311,194
Corporate bonds
Due in one year to five years
2,000
83
—
2,083
Mutual funds
5,148
213
—
5,361
Equity securities
1,763
54
16
1,801
$
319,686
1,360
607
320,439
Mortgage-backed securities:
FHLMC
$
22,352
993
45
23,300
FNMA
20,267
978
—
21,245
CMO
52,566
1,402
—
53,968
$
95,185
3,373
45
98,513
June 30, 2009
Gross
Gross
Estimated
Amortized
unrealized
unrealized
market
cost
gains
losses
value
(In thousands)
Securities available for sale
U.S. Government and
federal agency obligations
Due in one year to five years
$
109,754
525
205
110,074
Due in five to ten years
25,000
7
244
24,763
Corporate bonds
Due in one year to five years
2,000
156
—
2,156
Mutual funds
5,636
40
—
5,676
Equity securities
1,965
15
230
1,750
$
144,355
743
679
144,419
Mortgage-backed securities:
FHLMC
$
26,979
945
49
27,875
FNMA
27,023
889
1
27,911
GNMA
2,537
21
1
2,557
CMO
68,571
1,689
—
70,260
$
125,110
3,544
51
128,603
F-19
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
June 30, 2008
Gross
Gross
Estimated
Amortized
unrealized
unrealized
market
cost
gains
losses
value
(In thousands)
Securities available for sale
U.S. Government and
federal agency obligations
Due in one year to five years
$
10,000
—
135
9,865
Corporate bonds
Due in one year to five years
2,000
184
—
2,184
Mutual funds
7,782
—
—
7,782
Equity securities
2,364
292
202
2,454
$
22,146
476
337
22,285
Mortgage-backed securities:
FHLMC
$
28,672
263
98
28,837
FNMA
31,084
113
302
30,895
GNMA
3,134
13
4
3,143
CMO
85,351
1,160
177
86,334
$
148,241
1,549
581
149,209
Expected maturities of securities available for sale other than mutual funds, equity
securities and mortgage-backed securities will differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or without penalties.
Proceeds from the sale of mortgage-backed securities available for sale for the six months
ended December 31, 2009 were $6.1 million, resulting in gross gains and gross losses of
$112,000 and $5,000, respectively. The mortgage-backed securities had an amortized cost of
$6.0 million. The Company did not sell any mortgage-backed securities available for sale
during the six months ended December 31, 2008 or during the years ended June 30, 2009, 2008 or
2007. Mortgage-backed securities available for sale with fair values of $266.4 million,
$127.5 million and $159.1 million at December 31, 2009 and June 30, 2009 and 2008,
respectively, were pledged to FHLB of New York (FHLBNY) as collateral for advances (see
note 12).
The Mutual Fund caption relates to holdings of shares in an Asset Management Fund with
underlying investments in adjustable rate mortgages. During the six months ended December 31,
2008 and the years ended June 30, 2009 and 2008, the mutual fund was deemed
other-than-temporarily impaired resulting in noncash impairment charges to earnings of $1.4
million, $1.7 million and $646,000, respectively. There were no impairment charges on the
mutual fund for the six months ended December 31, 2009 or the year ended June 30, 2007.
Proceeds from the sale of the mutual fund were $500,000 resulting in a gain of $12,000,
$250,000 resulting in a loss of $49,000, and $500,000 resulting in a loss of $61,000 for the
six months ended December 31, 2009 and 2008, and the year ended June 30, 2009, respectively.
The Company did not sell any mutual fund during the years ended June 30, 2008 or 2007.
The Equity securities caption relates to holdings of shares in financial institutions common
stock. During the six months ended December 31, 2009 and 2008 and the years ended June 30,
2009 and 2008, several of these holdings were deemed other-than-temporarily impaired resulting
in noncash
F-20
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
impairment charges to earnings of $202,000, $399,000, $399,000 and $352,000, respectively.
There were no impairment charges on the equity securities for the year ended June 30, 2007.
Gross unrealized losses on securities and mortgage-backed securities available for sale and
the estimated market value of the related securities, aggregated by security category and
length of time that individual securities have been in a continuous unrealized loss position
at December 31, 2009 and June 30, 2009 and 2008 are as follows:
Decemeber 31, 2009 (unaudited)
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Estimated
unrealized
Estimated
unrealized
Estimated
unrealized
market value
losses
market value
losses
market value
losses
(In thousands)
Securities available for sale:
U.S. Government and
federal agency obligations
$
118,733
591
—
—
118,733
591
Equity securities
187
16
—
—
187
16
$
118,920
607
—
—
118,920
607
Mortgage-backed securities:
FHLMC
$
573
2
2,757
43
3,330
45
$
573
2
2,757
43
3,330
45
June 30, 2009
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Estimated
unrealized
Estimated
unrealized
Estimated
unrealized
market value
losses
market value
losses
market value
losses
(In thousands)
Securities available for sale:
U.S. Government and
federal agency obligations
$
79,202
449
—
—
79,202
449
Equity securities
654
230
—
—
654
230
$
79,856
679
—
—
79,856
679
Mortgage-backed securities:
FHLMC
$
4,501
49
—
—
4,501
49
FNMA
1,801
1
—
—
1,801
1
GNMA
501
1
—
—
501
1
CMO
—
—
—
—
—
—
$
6,803
51
—
—
6,803
51
F-21
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
June 30, 2008
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Estimated
unrealized
Estimated
unrealized
Estimated
unrealized
market value
losses
market value
losses
market value
losses
(In thousands)
Securities available for sale:
U.S. Government and
federal agency obligations
$
9,865
135
—
—
9,865
135
Equity securities
1,022
202
—
—
1,022
202
$
10,887
337
—
—
10,887
337
Mortgage-backed securities:
FHLMC
$
14,086
95
716
3
14,802
98
FNMA
17,677
302
—
—
17,677
302
GNMA
344
1
474
3
818
4
CMO
19,022
177
—
—
19,022
177
$
51,129
575
1,190
6
52,319
581
At December 31, 2009, management has evaluated the securities in the above table and has
concluded that none of the securities with losses has impairments that are
other-than-temporary. The unrealized losses on debt securities were caused by interest rate
changes. The contractual terms of these investments do not permit the issuer to settle the
securities at a price less than the amortized cost of the investment. Because the declines in
market value are attributable to changes in interest rates and not credit quality, and because
the Company has no intent to sell and believes it is not more likely than not that it will be
required to sell these investments until a market price recovery or maturity, these
investments are not considered other than temporarily impaired.
The unrealized losses on investments in mortgage-backed securities were caused by interest
rate changes. It is expected that the securities would not be settled at a price less than
the amortized cost of the investment. Because the decline in fair value is attributable to
changes in interest rates and not credit quality, and because the Company has no intent to
sell and believes it is not more than likely than not that it will be required to sell these
investments until a market price recovery or maturity, these investments are not considered
other than temporarily impaired.
At December 31, 2009, management evaluated its portfolio of equity securities and, based on
its evaluation of the financial condition and near-term prospects of the issuer, management
believes that it could recover its investment in the security.
(8) Accrued Interest Receivable
A summary of accrued interest receivable at December 31, 2009 and June 30, 2009 and 2008 is as
follows:
(Unaudited)
December 31,
June 30,
2009
2009
2008
(In thousands)
Mortgage loans
$
5,892
$
5,796
4,269
Mortgage-backed securities
680
934
1,214
Securities
2,214
1,237
163
$
8,786
$
7,967
5,646
F-22
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(9) Office Properties and Equipment
At December 31, 2009 and June 30, 2009 and 2008, office properties and equipment, less
accumulated depreciation and amortization, consist of the following:
(Unaudited)
December 31,
June 30,
2009
2009
2008
(In thousands)
Cost:
Land
$
4,171
$
4,171
3,431
Buildings
8,762
8,708
5,600
Land and building improvements
3,430
3,147
2,859
Leasehold improvements
959
718
633
Furniture and equipment
5,333
5,222
4,651
Construction in progress
1,238
612
213
23,893
22,578
17,387
Less accumulated depreciation and amortization
9,163
8,801
8,100
$
14,730
$
13,777
9,287
Depreciation and amortization expense for the six months ended December 31, 2009 and 2008
and the years ended June 30, 2009, 2008 and 2007 amounted to $395,000, $321,000, $701,000
,
$540,000 and $718,000, respectively.
During fiscal 2008, the Company purchased land in Bergenfield, NJ to construct a de novo
branch location which opened in February 2010 and entered into a contract to lease premises in
Jersey City, NJ, for the purpose of a de novo branch location which opened in October 2008.
During fiscal year 2006, the Company sold its branch location and former Corporate
Headquarters in Hackensack, NJ to a private investor. The asset was transferred to the
private investor in December 2005 and the Company initially accounted for the transaction as a
finance obligation due to the Company's continuing involvement with the transferred property.
The Company leased back a portion of the premises and provided the buyer with non recourse
financing. In accordance with finance obligation accounting, the asset was not removed from
the Company's books at that time. During fiscal year 2007, the non recourse note was sold to
another financial institution which permitted the Company to utilize sale/leaseback accounting
(as prescribed by ASC 840-40, "
Sale-Leaseback Transactions
") for the transaction. As a
result, the former headquarters was removed from the books of the Company and office
properties and equipment, net decreased by $1.5 million. In accordance with this guidance, a
$514,000 gain on the sale was recognized.
F-23
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(10) Deposits
Deposit balances at December 31, 2009 and June 30, 2009 and 2008 are summarized as follows:
(Unaudited)
December31,
June 30,
2009
2009
2008
Weighted
Weighted
Weighted
average
average
average
Amount
cost
Amount
cost
Amount
cost
(Dollars in thousands)
Demand accounts
$
106,968
0.75
%
$
88,759
0.90
%
$
73,949
0.89
%
Money market deposit accounts
271,583
1.43
199,965
2.07
57,117
2.92
Savings accounts
146,442
0.79
147,669
1.04
149,062
1.35
Time deposits
685,514
2.32
691,237
2.84
418,804
3.84
$
1,210,507
1.80
%
$
1,127,630
2.32
%
$
698,932
2.92
%
Interest expense on deposits for the six months ended December 31, 2009 and 2008 and the
years ended June 30, 2009, 2008 and 2007 is summarized as follows:
(Unaudited)
Six months ended
December 31,
Years ended June 30,
2009
2008
2009
2008
2007
(In thousands)
Demand accounts
$
404
$
323
$
628
812
868
Money market deposit accounts
2,008
1,076
2,626
1,730
1,195
Savings accounts
675
1,069
1,979
2,427
2,575
Time deposits
9,036
8,648
19,029
18,896
18,526
Stock subscriptions
—
—
—
—
518
$
12,123
$
11,116
$
24,262
23,865
23,682
Time deposits at December 31, 2009 and June 30, 2009 mature as follows (in thousands):
(Unaudited)
December 31,
June 30,
2009
2009
Due within 12 months
$
583,794
$
601,316
Due between 12 and 24 months
83,408
67,014
Due between 24 and 36 months
11,191
16,295
Due between 36 and 48 months
3,746
3,586
Due between 48 and 60 months
3,375
3,026
$
685,514
$
691,237
F-24
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Included in time deposits at December 31, 2009 and June 30, 2009 and 2008 is $240.3 million,
$234.9 million and $100.8 million, respectively, of deposits of $100,000 and over.
(11) Income Taxes
Income tax expense (benefit) for the six months ended December 31, 2009 and 2008 and the years
ended June 30, 2009, 2008 and 2007 consists of the following:
(Unaudited)
Six months ended
December 31,
Years ended June 30,
2009
2008
2009
2008
2007
(In thousands)
Current:
Federal
$
4,692
$
4,822
$
7,749
7,210
6,833
State
1,229
117
758
490
662
Total current
5,921
4,939
8,507
7,700
7,495
Deferred:
Federal
(833
)
(3,492
)
(4,749
)
(2,724
)
(3,312
)
State
(302
)
348
262
1,242
(5,847
)
Total deferred
(1,135
)
(3,144
)
(4,487
)
(1,482
)
(9,159
)
Total income tax
expense (benefit)
$
4,786
$
1,795
$
4,020
6,218
(1,664
)
F-25
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
A reconciliation between the provision for income taxes and the expected amount (computed by
multiplying income before provision for income taxes times the applicable statutory federal
income tax rate) for the six months ended December 31, 2009 and 2008 and the years ended
June 30, 2009, 2008 and 2007 is as follows:
(Unaudited)
Six months ended
December 31,
Yeasrs ended June 30,
2009
2008
2009
2008
2007
(In thousands)
Income before provision for income taxes
$
12,198
4,340
9,572
15,178
9,370
Applicable statutory federal income tax rate
35
%
35
%
35
%
35
%
35
%
Computed "expected" federal income tax expense
4,269
1,519
3,350
5,312
3,280
Increase in federal income tax expense
resulting from:
State income taxes, net of federal benefit
603
302
663
1,128
(3,370
)
Bank owned life insurance
(206
)
(190
)
(395
)
(371
)
(344
)
Contribution to charitable foundation
—
—
—
—
(1,533
)
ESOP fair market value adjustment
49
90
144
118
74
Non-deductible stock based compensation
64
53
209
26
—
Other items, net
7
21
49
5
229
$
4,786
1,795
4,020
6,218
(1,664
)
The effective tax rates for the six months ended December 31, 2009 and 2008 and the years
ended June 30, 2009, 2008 and 2007 were 39.24%, 41.35%, 42.00%, 40.97% and (17.76)%,
respectively.
The tax effects of temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at December 31, 2009 and June 30, 2009 and
2008 are as follows:
F-26
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(Unaudited)
December 31,
June 30,
2009
2009
2008
(In thousands)
Deferred tax assets:
Allowance for loan and real estate owned losses per books
$
9,054
8,448
5,528
Reserve for uncollected interest
1,619
1,456
213
Premises and equipment – differences in depreciation
253
265
291
Pension
5,035
4,754
3,859
Accrued/deferred compensation
2,180
2,088
1,701
ESOP shares allocated or committed to be released
974
812
487
Stock compensation
1,255
601
219
Capital loss carry forward
—
—
37
Other than temporary loss on securities
1,271
1,317
408
Charitable contribution carry forward
2,772
3,286
4,154
Net operating loss carry forward
—
—
1,024
Prepaid AMA
146
146
146
Other
217
250
265
Total gross deferred tax assets
24,776
23,423
18,332
Less valuation reserve
697
655
611
Total deferred tax asset
24,079
22,768
17,721
Deferred tax liabilities:
Unrealized gain on securities available for sale
1,667
1,465
450
Deferred loan fees
245
280
132
Other
590
333
170
Total deferred tax liabilities
2,502
2,078
752
Net deferred tax asset
$
21,577
20,690
16,969
Sources of deferred taxes for the six months ended December 31, 2009 and the years ended
June 30, 2009 and 2008 were due primarily to the difference in recognizing income and expenses
for book purposes and tax purposes for various deferred loan fees, uncollected interest on
loans, accrued benefit costs, book and tax depreciation, non-allowable reserves and charitable
contribution carryforwards.
At June 30, 2008, the Company had state net operating loss carryforwards of approximately
$17.5 million having expiration dates ranging from December 2010 through 2013. During the
fiscal year ended June 30, 2009, the deferred tax asset was realized.
At December 31, 2009 and June 30, 2009 and 2008, the valuation allowance was $697,000,
$655,000 and $611,000, respectively. The valuation allowance relates to the stock
contribution to the charitable foundation and impairment charges on equity securities for
which tax benefits are not
F-27
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
more likely than not to be realized. During the 2007 fiscal year the Company liquidated one
of its subsidiaries. The liquidation of this subsidiary resulted in New Jersey State taxable
income at its Bank subsidiary. The Company had previously established a valuation allowance
for New Jersey net operating loss carryforwards and other deferred tax assets incurred at its
Bank subsidiary. Due to the expected utilization of the loss carryforwards the related
valuation allowance of $3.2 million was reversed.
At December 31, 2009 and June 30, 2009, retained earnings includes approximately $15.1 million
for which no provision for income tax has been made. This amount represents an allocation of
income to bad debt deductions for tax purposes only. Under Statement of Financial Accounting
Standards No. 109, this amount is treated as a permanent difference and deferred taxes are not
recognized unless it appears that it will be reduced and result in taxable income in the
foreseeable future. Events that would result in taxation of these reserves include failure to
qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock
redemptions and excess distributions to shareholders. At December 31, 2009 and June 30, 2009,
the Company had an unrecognized tax liability of $6.3 million with respect to this reserve.
Effective July 1, 2007, the Company adopted FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109," and its successor,
ASC 740,
"Income Taxes",
or FIN 48, which clarified the accounting for uncertainty in income
taxes recognized in an enterprise's financial statements in accordance SFAS No. 109. As a
result of the adoption of FIN 48, the Company recognized a $900,000 decrease in the liability
for unrecognized tax benefits, which was accounted for as an addition to the July 1, 2007,
balance of retained earnings. The Company recognizes accrued interest and penalties related
to unrecognized tax benefits, where applicable, in income tax expense.
The Company files income tax returns in the United States federal jurisdiction and in New
Jersey and Pennsylvania state jurisdictions. The Company is no longer subject to federal and
state income tax examinations by tax authorities for years prior to 2005. Currently, the
Company is not under examination by any taxing authority.
(12) Borrowings
Borrowed funds are summarized as follows:
(Unaudited)
June 30,
December 31, 2009
2009
2008
Weighted
Weighted
Weighted
Amount
Average Rate
Amount
Average Rate
Amount
Average Rate
(Dollars in thousands)
FHLB of NY
$
507,098
3.96
%
$
508,619
3.96
%
$
433,289
4.00
%
Other
341
0.25
%
372
0.25
%
383
2.00
%
$
507,439
3.96
%
$
508,991
3.96
%
$
433,672
4.00
%
F-28
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Borrowings represent advances and repurchase agreements and mature as follows (in thousands):
(Unaudited)
December 31, 2009
June 30, 2009
Due within one year
$
10,341
$
10,372
Due between one and two years
36,413
5,434
Due between two and three years
20,000
52,500
Due between three and four years
67,500
40,000
Due between four and five years
63,185
70,685
Due between five and ten years
310,000
330,000
$
507,439
$
508,991
The majority of the borrowings listed above have various put options held by the issuer,
FHLB. These put options can be exercised by the FHLB after either a certain passage of time
or certain levels of the 3 month Libor interest rate. The Company expects that some of these
advances will be put by the FHLB prior to their maturity date. At December 31, 2009, the
Company had a commitment for an overnight line of credit with the FHLB totaling $200.0
million, of which there were no balances. The line of credit is priced at federal funds rate
plus a spread (generally between 20 and 40 basis points) and re-prices daily.
At December 31, 2009 and June 30, 2009 and 2008, borrowings are secured by mortgage-backed
securities and investment securities with a book value of $352.6 million, $302.8 million and
$323.0 million and performing mortgage loans with an outstanding balance of $881.7 million,
$841.4 million and $185.6 million, respectively. The fair value of mortgage-backed securities
and investment securities pledged as collateral for borrowings were $354.6 million, $308.5
million and $321.8 million at December 31, 2009 and June 30, 2009 and 2008, respectively.
F-29
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(13) Employee Benefit Plans
The Company is a participant in the Financial Institutions Retirement Fund, a multi-employer
defined benefit plan. All employees who attain age 21 and complete one year of service are
eligible to participate in this plan. Retirement benefits are based upon a formula utilizing
years of service and average compensation, as defined. Participants are vested 100% upon the
completion of five years of service. Pension administrative expenses of $31,445, $21,000 and
$10,000 were incurred for the years ended June 30, 2009, 2008 and 2007, respectively. There
were no net contributions made for the years ended June 30, 2009, 2008 and 2007. The Plan
was frozen as of December 31, 2008.
The Financial Institutions Retirement Fund does not segregate its assets, liabilities or
costs by participating employer. Therefore, disclosure of the accumulated benefit
obligations, plan assets and the components of annual pension expense attributable to the
Company cannot be ascertained.
The Company has a savings incentive plan covering substantially all employees of the Company.
Contributions are currently made by the Company in an amount equal to 50% of the first 6% of
employee contributions. The contribution percentage is determined annually by the Board of
Directors. Company contributions for the six months ended December 31, 2009 and 2008 and the
years ended June 30, 2009, 2008 and 2007 were $63,000, $59,000, $133,000, $120,000 and
$123,000, respectively.
The Company has a nonqualified savings incentive plan covering employees whose salary
deferrals to the savings incentive plan are limited. Contributions to the nonqualified
savings incentive plan are currently made by the Company in an amount equal to 50% of the
first 6% of employee contributions to this plan. The contribution percentage is determined
annually by the Board of Directors. The deferrals and contributions are payable, with
interest, at a future date. Until these payments are made, the obligations to the employees
are a general liability of the Company. Company contributions for the six months ended
December 31, 2009 and 2008 and the years ended June 30, 2009, 2008 and 2007 were $61,000,
$38,000, $62,000, $42,000 and $21,000, respectively. The total obligation under the
nonqualified savings incentive plan that existed as of June 30, 2009 and 2008 was $1.9
million and $1.4 million, respectively.
The Company has a nonqualified Benefit Equalization Plan (BEP Plan) which provides benefits
to employees who are disallowed certain benefits under the Company's qualified benefit plans.
The Company recorded expenses associated with the BEP Plan of $90,000, $109,000, $201,000,
$180,000 and $143,000 for the six months ended December 31, 2009 and 2008 and the years ended
June 30, 2009, 2008 and 2007, respectively. The Plan was frozen as of December 31, 2008
resulting in a curtailment of benefits of $454,000.
The Company has a nonqualified Directors' Retirement Plan (the Retirement Plan). The
Retirement Plan provides eligible directors an annual retirement benefit based on the
monthly meeting fee at the time of the director's retirement. The Company recorded expenses
of $264,000, $196,000, $445,000, $420,000 and $391,000 for the six months ended December 31,
2009 and 2008 and the years ended June 30, 2009, 2008 and 2007, respectively, related to the
Retirement Plan.
During 1999, the Company adopted a Post Retirement Medical Plan (the Medical Plan) for
directors and certain eligible employees. The Medical Plan provides a medical retirement
benefit at
F-30
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
a cost to the Company limited to two times the premium at the time of the participant's
retirement. Participants are required to contribute to the plan for excess premiums above the
limitation. The Company recorded expenses of $147,000, $145,000, $247,000, $300,000 and
$337,000 for the six months ended December 31, 2009 and 2008 and the years ended June 30,
2009, 2008 and 2007, respectively, related to the Medical Plan.
During 2000, the Company adopted a Deferred Director's Fee Plan (the Deferred Fee Plan) for
outside directors of the Company. Under the Deferred Fee Plan, directors may elect to defer
the receipt of their monthly and board committee fees. The fees are payable, with interest,
at a predetermined future date. Interest is calculated at the greater of 9.00% or the Wall
Street prime rate of interest. For the years ended June 30, 2009 and 2008, interest was
calculated at 9.00%. Until these payments are made, the obligations to the directors are a
general liability of the Company. The total obligation under the Deferred Fee Plan that
existed as of December 31, 2009 and June 30, 2009 and 2008 was $3.1 million, $2.8 million and
$2.2 million, respectively.
During 2005, the Company adopted an Executive Supplemental Retirement Income Agreement (the
SERP) for the President/CEO of the Company. The SERP provides a retirement benefit to the
executive with a minimum payment period of 20 years. The SERP benefit is equal to 70% of the
executive's average annual pre-retirement income, reduced by the benefits due to the
executive through certain other benefit plans. The Company recorded expenses of $424,000,
$361,000, $806,000, $689,000 and $648,000 for the six months ended December 31, 2009 and 2008
and the years ended June 30, 2009, 2008 and 2007, respectively, related to the SERP. The
SERP is unfunded, and an accrued liability of $3.3 million, $2.8 million and $2.0 million was
recorded for this plan as of December 31, 2009 and June 30, 2009 and 2008, respectively.
F-31
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
The following table sets forth information regarding the BEP Plan and the Retirement Plan,
and the Medical Plan at June 30, 2009 and 2008 (in thousands). As detailed above, similar
disclosures for the multi-employer defined benefit plan cannot be ascertained.
BEP Plan and
Retirement Plan
Medical Plan
2009
2008
2009
2008
Change in benefit obligation:
Projected benefit obligation at
beginning of the year
$
3,748
$
3,421
$
2,600
$
2,694
Service cost
231
256
64
58
Interest cost
284
221
199
163
Amendments
—
—
—
—
Actuarial (gain) loss
850
135
371
(61
)
Curtailment — BEP plan
(454
)
—
—
—
Benefits paid
(52
)
(52
)
(58
)
(52
)
Discount rate change
162
(233
)
256
(202
)
Projected benefit
obligation
at end of the year
$
4,769
$
3,748
$
3,432
$
2,600
Reconciliation of plan assets
Fair value of plan assets at
beginning of the year
$
—
$
—
$
—
$
—
Actual return on plan assets
—
—
—
—
Employer contributions
52
52
58
52
Benefits paid
(52
)
(52
)
(58
)
(52
)
Fair value of plan assets
at end of the year
$
—
$
—
$
—
$
—
Funded status at end of year
$
(4,769
)
$
(3,748
)
$
(3,432
)
$
(2,600
)
The unfunded BEP and retirement benefits of $4.8 million and $3.7 million and medical
benefits of $3.4 million and $2.6 million at June 30, 2009 and 2008, respectively, are
included in other liabilities in our consolidated balance sheet. The components of
accumulated other comprehensive loss related to pension and other postretirement benefits,
on a pre-tax basis, at June 30, 2009 and 2008 are summarized in the following table (in
thousands).
Plan
Medical Plan
2009
2008
2009
2008
Prior service cost
$
358
$
418
$
—
$
—
Net actuarial loss
916
429
1,008
448
Total amounts
recognized in
accumulated
other comprehensive
loss
$
1,274
$
847
$
1,008
$
448
F-32
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Net periodic benefit costs for the six months ended December 31, 2009 and 2008 and the years
ended June 30, 2009, 2008 and 2007, as well as costs that are expected to be amortized into
expense in fiscal 2010, are presented in the following table (in thousands):
BEP Plan and Retirement Plan
(Unaudited)
Six months ended
December 31,
Years ended Jun 30,
2009
2008
2009
2008
2007
Service cost
$
127
$
135
$
231
$
256
$
234
Interest cost
158
117
284
221
195
Amortization of
unrecognized:
Prior service cost
30
30
60
60
61
Net loss
39
23
70
44
44
Total
$
354
$
305
$
645
$
581
$
534
Medical Plan
(Unaudited)
Six months ended
December 31,
Years ended Jun 30,
2009
2008
2009
2008
2007
Service cost
$
28
$
30
$
64
$
58
$
54
Interest cost
89
86
199
163
157
Amortization of
unrecognized:
Prior service cost
—
2
—
4
64
Net loss
30
27
67
51
62
Total
$
147
$
145
$
330
$
276
$
337
The weighted average actuarial assumptions used in the plan determinations at June 30,
2009, 2008 and 2007 were as follows:
BEP Plan and Retirement Plan
Medical Plan
2009
2008
2007
2009
2008
2007
Discount Rate
6.25
%
6.75
%
6.25
%
6.25
%
6.75
%
6.25
%
Rate of compensation
increase
5.50
%
5.50
%
5.50
%
—
—
—
Medical benefits cost
rate of increase
—
—
—
9.00
%
7.00
%
8.00
%
F-33
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Estimated future benefit payments, which reflect expected future service, are as follows (in
thousands):
BEP Plan and
Retirement
Medical
Plan
Plan
2010
$
62
$
81
2011
85
104
2012
180
123
2013
222
151
2014
222
158
2015-2018
1,636
1,071
Assumed health care cost trend rates have a significant effect on the amounts reported
for health care plans. A 1% change in the assumed health care cost trend rate would have the
following effects on post-retirement benefits (in thousands):
1% increase
1% decrease
Effect on total service cost and interest
cost
$
54
$
(42
)
Effect on post retirement benefits
obligation
$
644
$
(507
)
The Company invests in bank owned life insurance ("BOLI") to help offset the cost of
employee benefits. BOLI involves the purchasing of life insurance by the Company on a chosen
group of employees with the Company as owner and beneficiary of the policies. BOLI is
recorded at its cash surrender value and is classified as a non-interest earning asset.
Increases in the carrying value, other than purchases, are recorded as non-interest income.
At December 31, 2009 and June 30, 2009 and 2008, the Company had $30.0 million, $29.4 million
and $26.4 million, respectively, in BOLI. Income earned on BOLI was $588,000, $544,000, $1.1
million, $1.1 million and $984,000 for the six months ended December 31, 2009 and 2008 and
the years ended June 30, 2009, 2008 and 2007, respectively and is exempt from federal and
state income taxes as long as the policies are held until the death of the insured
individuals.
The Company adopted ASC 715-60, "
Compensation: Defined Benefit Plans-Other Postretirement
",
effective July 1, 2008. ASC 715-60 requires that, for split-dollar life insurance
arrangements that provide a benefit to an employee that extends to postretirement periods, an
employer should recognize a liability for future benefits. ASC 715-60 required that
recognition of the effects of adoption should be either by (a) a change in accounting
principle through a cumulative-effect adjustment to retained earnings as of the beginning of
the year of adoption or (b) a change in accounting principle through retrospective
application to all prior periods. Upon adoption, the Company recorded a charge to retained
earnings of $76,000.
(14) Stock Based Compensation
Employee Stock Ownership Plan
During 2006, the Company adopted an Employee Stock Ownership Plan (the ESOP). The ESOP is a
tax-qualified plan designed to invest primarily in the Company's common stock. The ESOP
F-34
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
provides employees with the opportunity to receive a funded retirement benefit from the Bank,
based primarily on the value of the Company's common stock. The ESOP purchased 1,589,644
shares of the Company's common stock in the Company's initial public offering at a price of
$10.00 per share. This purchase was funded with a loan from the Company to the ESOP. The
outstanding loan balance at December 31, 2009 and June 30, 2009 was $14.5 million and $15.1
million, respectively. The shares of Company's common stock purchased in the initial public
offering are pledged as collateral for the loan. Shares will be released from the pledge for
allocation to participants as loan payments are made. At December 31, 2009, shares allocated
to participants were 238,446 since the plan inception. ESOP shares that were unallocated or
not yet committed to be released totaled 1,351,198 at December 31, 2009 and had a fair value
of $18.5 million. ESOP compensation expense for the six months ended December 31, 2009 and
2008 and the years ended June 30, 2009 and 2008 was $537,000, $654,000, $1.3 million and $1.1
million, respectively, representing the fair market value of shares allocated or committed to
be released during the year.
The Company also has established an ESOP restoration plan, which is a non-qualified plan that
provides supplemental benefits to certain executives who are prevented from receiving the
full benefits contemplated by the employee stock ownership plan's benefit formula. The
supplemental benefits consist of payments representing shares that cannot be allocated to
participants under the ESOP due to legal limitations imposed on tax-qualified plans.
Compensation expense related to this plan amounts to $57,000, $60,000, $111,000 and $200,000,
for the six months ended December 31, 2009 and 2008 and the years ended June 30, 2009 and
2008, respectively. There was expense related to this plan for the year ended June 30, 2007.
Equity Incentive Plan
At the Special Meeting of Stockholders of the Company (the "Meeting") held on April 22, 2008,
the stockholders of the Company approved the Oritani Financial Corp. 2007 Equity Incentive
Plan. On May 7, 2008, certain officers and employees of the Company were granted in
aggregate 1,311,457 stock options and 588,171 shares of restricted stock, and non-employee
directors received in aggregate 476,892 stock options and 206,652 shares of restricted stock.
On November 11, 2008, an additional 70,000 stock options were issued. The Company adopted
ASC 718, "
Compensation: Stock Compensation
" upon approval of the Plan, and began to expense
the fair value of all share-based compensation granted over the requisite service periods.
ASC 718- requires the Company to report as a financing cash flow the benefits of realized tax
deductions in excess of the deferred tax benefits previously recognized for compensation
expense. There were no such excess tax benefits in fiscal 2009, 2008 and 2007. The Company
classified share-based compensation for employees and outside directors within "compensation
and fringe benefits" in the consolidated statements of income to correspond with the same
line item as the cash compensation paid.
Stock options vest over a five-year service period and expire ten years from issuance. 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. Since there is limited historical
information on the volatility of the Company's stock, management considered the average
volatilities of similar entities for an appropriate period in determining the assumed
volatility rate used in the estimation of fair value. Management estimated the expected life
of the options using the simplified method. The Treasury
F-35
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
yield in effect at the time of the grant provides the risk-free rate for periods within the
contractual life of the option. The fair values of all options grants were estimated using
the following assumptions: an expected life of 6.5 years, risk-free rate of 3.37%, volatility
of 28.22% and a dividend yield of 3.55%. The Company recognizes compensation expense for the
fair values of these awards, which have graded vesting, on a straight-line basis over the
requisite service period of the awards.
The following is a summary of the Company's stock option activity and related information for
its option plan for the six months ended December 31, 2009 (unaudited) and the year ended
June 30, 2009:
Weighted Average
Weighted Average
Remaining
Number of
Grant Date Fair
Weighted Average
Contractual
Stock Options
Value
Exercise Price
Life (years)
Outstanding at June 30, 2009
1,848,349
$
3.44
$
15.65
9.0
Granted
—
—
—
—
Exercised
—
—
—
—
Forfeited
6,624
3.44
15.65
8.8
Expired
—
—
—
—
Outstanding at December 31, 2009
1,841,725
$
3.44
$
15.65
8.4
Exercisable at December 31, 2009
368,345
$
15.65
Weighted Average
Weighted Average
Number of Stock
Grant Date Fair
Weighted Average
Remaining
Options
Value
Exercise Price
Contractual Life
Outstanding at June 30, 2008
1,788,349
$
3.44
$
15.65
10.0
Granted
70,000
3.44
15.65
10.0
Exercised
—
—
—
—
Forfeited
10,000
3.44
15.65
9.1
Outstanding at June 30, 2009
1,848,349
$
3.44
$
15.65
9.0
Exercisable at June 30, 2009
355,670
$
15.65
The weighted average grant date fair value of options granted during the year ended June
30, 2009 was $3.44 per share. The Company recorded $572,000, $539,000, $1.2 million and
$205,000 of share based compensation expense related to the options granted for the six
months ended December 31, 2009 and 2008 and the years ended June 30, 2009 and 2008,
respectively. There was no share based compensation expense related to the options for the
year ended June 30, 2007. Expected future expense related to the non-vested options
outstanding at December 31, 2009 is $3.8 million over a weighted average period of 3.4 years.
F-36
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Restricted shares vest over a five-year service period on the anniversary date of the grant.
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 Company's restricted shares and related information for its
restricted shares for the six months ended December 31, 2009 (unaudited) and the year ended
June 30, 2009:
Weighted Average
Number of
Grant Date Fair
Weighted Average
Shares Awarded
Value
Vesting
Non-vested at June 30, 2009
635,859
$
15.65
3.9
Granted
—
—
Vested
—
—
Forfeited
—
—
Non-vested at December 31, 2009
635,859
$
15.65
3.3
Weighted Average
Number of Shares
Grant Date Fair
Weighted Average
Awarded
Value
Vesting
Non-vested at June 30, 2008
794,823
$
15.65
4.9
Granted
—
—
Vested
158,964
15.65
3.9
Forfeited
—
—
Non-vested at June 30, 2009
635,859
$
15.65
3.9
The Company recorded $1.2 million, $1.2 million, $2.6 million and $405,000 of
share-based compensation expense related to restricted shares for the six months ended
December 31, 2009 and 2008 and the years ended June 30, 2009 and 2008, respectively. There
was no share based compensation expense related to the restricted shares for the year ended
June 30, 2007. Expected future compensation expense relating to the non-vested restricted
shares at December 31, 2009 is $8.1 million over a weighted average period of 3.3 years.
F-37
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(15) Commitments and Contingencies
In the ordinary course of our operations, we enter into certain contractual obligations.
Such obligations include operating leases for premises and equipment. Certain facilities are
occupied under long-term operating leases which expire on various dates. Certain leases also
provide for renewal options. Total rent expense was $214,000, $180,000, $388,000
,
$302,000
and $304,000 for the six months ended December 31, 2009 and 2008 and the years ended June 30,
2009, 2008 and 2007, respectively. At December 31, 2009, aggregate minimum lease payments
for the remainder of the leases are as follows (in thousands):
Year ended December 31: (unaudited)
2010
$
289
2011
289
2012
257
2013
217
2014
158
Thereafter
370
$
1,580
At December 31, 2009 and June 30, 2009, the Company had outstanding commitments to purchase
when issued securities of $15.0 million and $20.0 million, respectively. At June 30, 2008,
there were no outstanding commitments to purchase securities.
In the normal course of business, the Company may be a party to various outstanding legal
proceedings and claims. In the opinion of management, the financial position of the Company
will not be materially affected by the outcome of such legal proceedings and claims.
F-38
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(16) Regulatory Capital Requirements
Deposits at the Bank are insured up to standard limits of coverage provided by the Deposit
Insurance Fund (DIF) of the FDIC. The Bank is a New Jersey state chartered savings bank and
is subject to comprehensive regulation, supervision and periodic examinations by the FDIC and
by the New Jersey State Department of Banking. The Company is regulated by the Office of
Thrift Supervision ("OTS").
FDIC regulations require banks to maintain minimum levels of regulatory capital. Under the
regulations in effect at December 31, 2009, the Bank and the Company are required to maintain
(a) a minimum leverage ratio of Tier 1 capital to total adjusted assets of 4.0%, and (b)
minimum ratios of Tier 1 and total capital to risk-weighted assets of 4.0% and 8.0%,
respectively.
Under its prompt corrective action regulations, the FDIC is required to take certain
supervisory actions (and may take additional discretionary actions) with respect to an
undercapitalized institution. Such actions could have a direct material effect on the
institution's financial statements. The regulations establish a framework for the
classification of savings institutions into five categories: well capitalized, adequately
capitalized, undercapitalized, significantly undercapitalized, and critically
undercapitalized. Generally, an institution is considered well capitalized if it has a
leverage (Tier 1) capital ratio of at least 5%; a Tier 1 risk-based capital ratio of at least
6%; and a total risk-based capital ratio of at least 10%.
The foregoing capital ratios are based in part on specific quantitative measures of assets,
liabilities and certain off-balance-sheet items as calculated under regulatory accounting
practices. Capital amounts and classifications are also subject to qualitative judgments by
the FDIC about capital components, risk weightings and other factors.
Management believes that, as of December 31, 2009, the Bank meets all capital adequacy
requirements to which it is subject. Further, the most recent FDIC notification categorized
the Bank as a well-capitalized institution under the prompt corrective action regulations.
There have been no conditions or events since that notification that management believes have
changed the Bank's capital classification.
F-39
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
The following is a summary of the Company's and the Bank's actual capital amounts and ratios
as of December 31, 2009 and June 30, 2009 and 2008, compared to the FDIC minimum capital
adequacy requirements and the FDIC requirements for classification as a well-capitalized
institution.
FDIC — for
FDIC — to be well capitalized
capital adequacy
under prompt
Actual
purposes
corrective action
Amount
Rate
Amount
Rate
Amount
Rate
(Dollars in thousands)
Company:
As of December 31, 2009: (unaudited)
Total capital (to risk-weighted
assets)
$
264,865
18.42
%
$
115,053
8.00
%
$
143,817
10.00
%
Tier 1 capital (to risk-weighted
assets)
246,836
17.16
57,527
4.00
86,290
6.00
Tier 1 capital (to average assets)
246,836
12.36
79,912
4.00
99,890
5.00
As of June 30, 2009:
Total capital (to risk-weighted
assets)
$
255,997
19.15
%
$
106,945
8.00
%
$
133,681
10.00
%
Tier 1 capital (to risk-weighted
assets)
239,238
17.90
53,472
4.00
80,208
6.00
Tier 1 capital (to average assets)
239,238
14.31
66,862
4.00
83,578
5.00
As of June 30, 2008:
Total capital (to risk-weighted
assets)
$
292,483
27.78
%
$
84,239
8.00
%
$
105,299
10.00
%
Tier 1 capital (to risk-weighted
assets)
279,316
26.53
42,120
4.00
63,179
6.00
Tier 1 capital (to average assets)
279,316
19.71
56,680
4.00
70,851
5.00
F-40
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
FDIC — for
FDIC — to be well capitalized
capital adequacy
under prompt
Actual
purposes
corrective action
Amount
Rate
Amount
Rate
Amount
Rate
(Dollars in thousands)
Bank:
As of December 31, 2009: (unaudited)
Total capital (to risk-weighted
assets)
$
209,882
15.83
%
$
106,101
8.00
%
132,626
10.00
%
Tier 1 capital (to risk-weighted
assets)
193,248
14.57
53,050
4.00
79,575
6.00
Tier 1 capital (to average assets)
193,248
10.59
72,963
4.00
91,204
5.00
As of June 30, 2009:
Total capital (to risk-weighted
assets)
$
209,882
15.83
%
$
106,101
8.00
%
132,626
10.00
%
Tier 1 capital (to risk-weighted
assets)
193,248
14.57
53,050
4.00
79,575
6.00
Tier 1 capital (to average assets)
193,248
10.59
72,963
4.00
91,204
5.00
As of June 30, 2008:
Total capital (to risk-weighted
assets)
$
202,862
19.76
%
$
82,121
8.00
%
$
102,651
10.00
%
Tier 1 capital (to risk-weighted
assets)
190,022
18.51
41,060
4.00
61,591
6.00
Tier 1 capital (to average assets)
190,022
13.67
55,609
4.00
69,512
5.00
(17) Fair Value Measurements
The Company adopted ASC 820, "
Fair Value Measurements and Disclosures"
, on July 1, 2008. ASC
820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (level 1 measurements) and the
lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair
value hierarchy under ASC 820 are described below:
Basis of Fair Value Measurement:
Level 1: Unadjusted quoted prices in active markets that are accessible at the
measurement date for identical unrestricted assets or liabilities;
Level 2: Quoted prices in markets that are not active, or inputs that are
observable either directly or indirectly, for substantially the full term of the
asset or liability;
Level 3: Price or valuation techniques that require inputs that are both
significant to the fair value measurement and unobservable (i.e. supported with
little or no market activity).
A financial instrument's level within the fair value hierarchy is based on the lowest level
of input that is significant to the fair value measurement.
The Company's cash instruments are generally classified within Level 1 or Level 2 of the fair
value hierarchy because they are valued using quoted market prices, broker or dealer
quotations, or alternative pricing sources with reasonable levels of price transparency.
F-41
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
The types of instruments whose values are based on quoted market prices in active markets
include most U.S. government and agency securities, mortgage-backed securities, many other
sovereign government obligations, and active listed securities. Such instruments are generally
classified within Level 1 or Level 2 of the fair value hierarchy. As required by ASC 820, the
Company does not adjust the quoted price for such instruments.
The following table sets forth the Company's financial assets that were accounted for at fair
values on a recurring basis as of December 31, 2009 and June 30, 2009 by level within the fair
value hierarchy. As required by ASC 820, financial assets are classified in their entirety
based on the lowest level of input that is significant to the fair value measurements (in
thousands):
Quoted Prices
in Active
Significant
(Unaudited)
Markets for
Other
Fair Value as
Identical
Observable
Unobservable
of December 31,
Assets
Inputs
Inputs
2009
(Level 1)
(Level 2)
(Level 3)
Assets:
$
320,439
$
56,871
$
263,568
$
—
Securities available for sale
98,513
—
98,513
—
Mortgage-backed securities
available for sale
$
418,952
$
56,871
$
362,081
$
—
Quoted Prices
in Active
Significant
Markets for
Other
Fair Value as
Identical
Observable
Unobservable
of June 30,
Assets
Inputs
Inputs
2009
(Level 1)
(Level 2)
(Level 3)
Assets:
$
144,419
27,102
$
117,318
$
—
Securities available for sale
128,604
1,141
127,463
—
Mortgage-backed securities
available for sale
$
273,023
$
28,243
$
244,781
$
—
Also, the Company may be required, from time to time, to measure the fair value of
certain other financial assets on a nonrecurring basis in accordance with U.S. generally
accepted accounting principles. The adjustments to fair value usually result from the
application of lower-of-cost-or-market accounting or write downs of individual assets.
The Company had impaired loans with outstanding principal balances of $24.1 million, $20.0
million and $13.8 million at December 31, 2009 and June 30, 2009 and 2008, respectively, that
were recorded at their estimated fair value (less cost to sell) of $21.0 million, $16.7
million and $12.4 million at December 31, 2009 and June 30, 2009 and 2008, respectively.
Specific reserves for impaired loans totaled $3.1 million, $3.3 million and $1.4 million at
December 31, 2009 and June 30, 2009 and 2008, respectively. The Company recorded impairment
charges of $2.7 million, $740,000, $4.4 million and $1.4 million for the six months ended
December 31, 2009 and 2008 and the years ended June 30, 2009 and 2008, respectively, utilizing
Level 3 inputs. There were no impairment charges for the year ended June 30, 2007. Impaired
loans are valued utilizing current
F-42
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
appraisals adjusted downward by management, as necessary,
for changes in relevant valuation factors subsequent to the appraisal date.
(18)
Fair Value of Financial Instruments
ASC 825,
"Financial Instruments"
, requires that the Company disclose estimated fair values for
its financial instruments. Fair value estimates, methods and assumptions are set forth below
for the Company's financial instruments.
Cash and Cash Equivalents
For cash on hand and due from banks and federal funds sold and short-term investments, the
carrying amount approximates fair value.
Securities
The fair value of securities is estimated based on bid quotations received from securities
dealers, if available. If a quoted market price is not available, fair value is estimated
using quoted market prices of similar instruments, adjusted for differences between the quoted
instruments and the instruments being valued.
FHLB of New York Stock
The fair value for FHLB stock is its carrying value, since this is the amount for which it
could be redeemed. There is no active market for this stock and the Bank is required to
maintain a minimum balance based upon the unpaid principal of home mortgage loans.
Loans
Fair values are estimated for portfolios of loans with similar financial characteristics.
Loans are segregated by type such as residential mortgage, construction, land and consumer.
Each loan category is further segmented into fixed and adjustable rate interest terms and by
performing and nonperforming categories.
Fair value of performing loans is estimated by discounting cash flows using estimated market
discount rates at which similar loans would be made to borrowers and reflect similar credit
ratings and interest rate risk for the same remaining maturities. This method of estimating fair
value does not incorporate the exit-price concept of fair value prescribed by ASC 820,
"Fair
Value Measurements and Disclosures."
Fair value for significant nonperforming loans is based on recent external appraisals of
collateral securing such loans, adjusted for the timing of anticipated cash flows.
Deposit Liabilities
The fair value of deposits with no stated maturity, such as noninterest-bearing demand
deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand
as of December 31, 2009 and June 30, 2009 and 2008. The fair value of certificates of deposit
is based on the discounted value of contractual cash flows. The discount rate is estimated
using the rates currently offered for deposits of similar remaining maturities.
F-43
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Borrowings
The fair value of borrowings due in six months or less is equal to the amount payable. The
fair value of all other borrowings is calculated based on the discounted cash flow of
contractual amounts due, using market rates currently available for borrowings of similar
amount and remaining maturity.
Commitments to Extend Credit and to Purchase or Sell Securities
The fair value of commitments to extend credit is estimated using the fees currently charged
to enter into similar agreements, taking into account the remaining terms of the agreements
and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair
value also considers the difference between current levels of interest rates and the committed
rates. The fair value of commitments to purchase or sell securities is estimated based on bid
quotations received from securities dealers.
The estimated fair values of the Company's financial instruments are presented in the
following table. Since the fair value of off-balance-sheet commitments approximates book
value, these disclosures are not included.
(Unaudited)
June 30,
December 30, 2009
2009
2008
Carrying
Fair
Carrying
Fair
Carrying
Fair
value
value
value
value
value
value
Financial assets:
Cash and cash equivalents
$
26,332
26,332
$
135,369
135,369
8,890
8,890
Securities available for sale
320,439
320,439
144,419
144,419
22,285
22,285
Mortgage-backed securities held
to maturity
86,182
88,223
118,817
120,381
163,950
162,671
Mortgage-backed securities
available for sale
98,513
98,513
128,603
128,603
149,209
149,209
Federal Home Loan Bank of New
York stock
25,481
25,481
25,549
25,549
21,547
21,547
Loans
1,357,157
1,374,712
1,278,623
1,292,394
1,007,077
999,366
Financial liabilities — deposits
1,210,507
1,212,923
1,127,630
1,106,212
698,932
700,582
Financial liabilities — borrowings
507,439
543,451
508,991
547,202
433,672
445,162
Limitations
Fair value estimates are made at a specific point in time, based on relevant market
information and information about the financial instrument. These estimates do not reflect any
premium or discount that could result from offering for sale at one time the Company's entire
holdings of a particular financial instrument. Because no market exists for a significant
portion of the Company's financial instruments, fair value estimates are based on judgments
regarding future expected loss experience, current economic conditions, risk characteristics
of various financial instruments, and other factors. These estimates are subjective in nature
and involve uncertainties and matters of significant judgment and, therefore, cannot be
determined with precision. Changes in assumptions could significantly affect the estimates.
F-44
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Fair value estimates are based on existing on- and off-balance-sheet financial instruments
without attempting to estimate the value of anticipated future business and the value of
assets and liabilities that are not considered financial instruments. Significant assets and
liabilities that are not considered financial assets or liabilities include the mortgage
banking operation, deferred tax assets, and premises and equipment. In addition, the tax
ramifications related to the realization of the unrealized gains and losses can have a
significant effect on fair value estimates and have not been considered in the estimates.
(19)
Parent Company Only Financial Statements
The following condensed financial information for Oritani Financial Corp. (parent company only)
reflect the investment in its wholly-owned subsidiaries, Oritani Bank, Oritani, LLC and
Hampshire Financial, LLC, using the equity method of accounting.
Balance Sheets
(Unaudited)
June 30,
December 31, 2009
2009
2008
(In thousands)
Assets:
Cash in Bank
$
9,828
2,442
47,913
Mortgage Loans, net
24,722
24,298
18,659
ESOP loan
14,452
15,082
15,483
Securities available for sale, at market value
1,801
1,750
2,453
Accrued Interest Receivable
120
361
623
Investment in Subsidiaries
196,964
196,427
193,777
Due from Oritani Financial Corp., MHC
100
100
100
Other assets
37
132
19
Total Assets
$
248,024
240,592
279,027
Liabilities and Equity
Total Liabilities
$
74
494
52
Total Equity
247,950
240,098
278,975
Total Liabilities and Equity
$
248,024
240,592
279,027
F-45
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Statements of Income
(Unaudited)
Six months ended December 31,
Years Ended June 30,
2009
2008
2009
2008
2007
(In thousands)
Interest on mortgage loans
$
760
573
1,372
1,160
1,159
Interest on ESOP loan
—
566
809
1,138
650
Interest income on fed funds
12
249
256
2,012
1,378
Net loss on write down of securities
(202
)
(398
)
(398
)
(352
)
—
Other income
30
46
81
101
—
Equity in undistributed earnings of subsidiary
7,322
2,202
4,758
6,953
13,664
Total income
7,922
3,238
6,878
11,012
16,851
Contribution to charitable foundation
—
—
—
—
8,110
Other expenses
250
265
466
391
219
Income tax (benefit) expense
260
428
860
1,661
(2,512
)
Total expenses
510
693
1,326
2,052
5,817
Net income
$
7,412
2,545
5,552
8,960
11,034
F-46
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Statements of Cash Flows
(Unaudited)
Six months ended December 31,
Years Ended June 30,
2009
2008
2009
2008
2007
(In thousands)
Cash flows from operating activities:
Net income
$
7,412
2,545
5,552
8,960
11,034
Adjustments to reconcile net income to net cash
provided by operating activities:
Contribution of stock to charitable foundation
—
—
—
—
8,110
Impairment charge on securities
202
398
398
352
—
Dividends/distributions from subsidiaries
9,765
96
10,241
372
281
Equity in undistributed earnings of subsidiary
(7,322
)
(2,202
)
(4,758
)
(6,953
)
(13,664
)
Decrease (increase) in accrued interest receivable
241
529
262
152
(706
)
Decrease (increase) in other assets
94
18
(113
)
(19
)
—
(Decrease) increase in other liabilities
(73
)
(16
)
436
16
—
Net cash provided by operating activities
10,319
1,368
12,018
2,880
5,055
Cash flows from investing activities
Additional investments in subsidiaries
(387
)
(1,226
)
(4,759
)
(1,410
)
(59,958
)
Purchase of securities available for sale
—
—
—
(2,715
)
—
Loan to ESOP
—
—
—
—
(15,896
)
Principal collected on ESOP loan
630
401
401
413
—
(Increase) decrease in mortgage loans, net
(424
)
149
(5,639
)
320
287
Net cash used in provided by investing activities
(181
)
(676
)
(9,997
)
(3,392
)
(75,567
)
Cash flows from financing activities
Purchase of treasury stock
(1,231
)
(38,217
)
(49,989
)
(5,926
)
—
Treasury stock issued
—
—
2,497
—
—
Proceeds from stock offering, net
—
—
—
—
119,520
Dividends paid to shareholders
(1,521
)
—
—
—
—
Cash (used) provided by financing activities
(2,752
)
(38,217
)
(47,492
)
(5,926
)
119,520
Net change in cash in bank
7,386
(37,525
)
(45,471
)
(6,438
)
49,008
Cash in bank at beginning of period
2,442
47,913
47,913
54,351
5,343
Cash in bank at end of period
$
9,828
10,388
2,442
47,913
54,351
F-47
Table of Contents
ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(20)
Selected Quarterly Financial Data (Unaudited)
The following tables are a summary of certain quarterly financial data for the six months
ended December 31, 2009 and the years ended June 30, 2009 and 2008.
Fiscal 2010 Quarter Ended
September 30
December 31
(Dollars in thousands)
Selected Operating Data:
Interest income
$
25,779
25,467
Interest expense
11,560
11,057
Net interest income
14,219
14,410
Provision for loan losses
2,550
2,500
Net interest income after
provision for loan losses
11,669
11,910
Other income
2,546
1,067
Other expense
6,828
8,166
Income before income tax expense
7,387
4,811
Income tax expense
2,904
1,882
Net income
$
4,483
$
2,929
Basic earnings per common share
$
0.12
0.08
Diluted earnings per common share
0.12
0.08
F-48
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
Fiscal 2009 Quarter Ended
September 30
December 31
March 31
June 30
(Dollars in thousands)
Selected Operating Data:
Interest income
$
20,657
21,862
22,598
23,302
Interest expense
9,887
11,169
11,798
11,646
Net interest income
10,770
10,693
10,800
11,656
Provision for loan losses
1,875
3,500
2,400
2,105
Net interest income after
provision for loan losses
8,895
7,193
8,400
9,551
Other income
1,233
(565
)
822
1,290
Other expense
5,874
6,542
6,652
8,179
Income before income tax expense
4,254
86
2,570
2,662
Income tax expense
1,748
47
1,067
1,158
Net income
$
2,506
$
39
1,503
1,504
Basic earnings per common share
$
0.07
—
0.04
0.04
Diluted earnings per common share
0.07
—
0.04
0.04
Fiscal 2008 Quarter Ended
September 30
December 31
March 31
June 30
(Dollars in thousands)
Selected Operating Data:
Interest income
$
17,043
17,722
18,318
18,508
Interest expense
8,758
9,325
9,594
9,531
Net interest income
8,285
8,397
8,724
8,977
Provision for loan losses
350
950
750
2,600
Net interest income after
provision for loan losses
7,935
7,447
7,974
6,377
Other income
1,329
1,174
791
1,642
Other expense
4,218
4,922
4,751
5,600
Income before income tax expense
5,046
3,699
4,014
2,419
Income tax expense
2,073
1,504
1,649
992
Net income
$
2,973
$
2,195
2,365
1,427
Basic earnings per common share
$
0.08
0.06
0.06
0.04
During the fourth quarter of fiscal year 2008, the Company changed the method of
recording FHLB of New York capital stock dividends to a cash basis from an accrual basis.
This change in methodology decreased the fourth quarter interest income by $312,000.
(21)
Earnings Per Share
The following is a summary of the Company's earnings per share calculations and reconciliation
of basic to diluted earnings per share.
F-49
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
(Unaudited)
Six months ended December 31,
Years Ended June 30,
2009
2008
2009
2008
(in thousands, except earnings per share data)
Net income
$
7,412
2,545
5,552
8,960
Undistributed earnings allocated to unvested
restricted awards
(206
)
(50
)
(93
)
(170
)
Net income available to common shareholders
$
7,206
$
2,495
$
5,459
$
8,790
Weighted average common shares outstanding — basic
35,687
37,515
36,738
39,028
Effect of dilutive non-vested shares and stock
options outstanding
—
—
—
—
Weighted average common shares outstanding — diluted
35,687
37,515
36,738
39,028
Earnings per share-basic and diluted
$
0.20
$
0.07
$
0.15
$
0.23
The Company completed its initial public offering on January 24, 2007. Basic and diluted
earnings per common share for the period of January 24, 2007 to June 30, 2007 was $0.15,
calculated using net income of $5.2 million and weighted average common shares of 34,028,313
outstanding for the period. The number of shares outstanding for this purpose includes shares
held by Oritani Financial Corp., MHC, but excludes unallocated ESOP shares.
(22)
Recent Accounting Pronouncements
In September 2009, the FASB issued Accounting Standards Update ("ASU") 2009-12, "Investments
in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)." The update
provides guidance on estimating the fair value of a company's investments in investment
companies when the investment does not have a readily determinable fair value. It amends
topic 820 to permit the use of the investment's net asset value as a practical expedient to
determine fair value. This guidance also requires additional disclosure of the attributes of
these investments such as; (i) the nature of any restrictions on the reporting entity's
ability to redeem its investment; (ii) unfunded commitments; and (iii) investment strategies
of the investees. This ASU is effective for the first reporting period ending after December
15, 2009, with earlier application permitted. The adoption of the ASU did not have a
material impact on its consolidated financial statements.
In August 2009, the FASB issued ASU 2009-05, "Measuring Liabilities at Fair Value", which
updates topic 820, "Fair Value Measurements and Disclosures". The updated guidance clarifies
that the fair value of a liability can be measured in relation to the quoted price of the
liability when it trades as an asset in an active market, without adjusting the price for
restrictions that prevent the sale of the liability. This guidance is effective for the first
interim or annual reporting period after issuance. The adoption of this guidance did not have
a material impact on its consolidated financial statements.
F-50
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
Township of Washington, New Jersey
Notes to Consolidated Financial Statements
December 31, 2009 and 2008 (Unaudited) and June 30, 2009, 2008 and 2007
In June 2009, the FASB issued guidance which amends the derecognition guidance in ASC 860,
"Transfer and Servicing",
to enhance reporting about transfers of financial assets, including
securitizations, and where companies having continuing exposure to the risks related to
transferred financial assets. The guidance eliminates the concept of "qualifying
special-purpose entity", changes the requirements for derecognizing financial assets and
requires additional disclosures about all continuing involvements with transferred financial
assets including information about gains and losses resulting from transfers during the
period. This guidance is effective for financial asset transfers occurring in fiscal years
beginning after November 15, 2009. The Company does not expect the adoption of this guidance
to have a material impact on its consolidated financial statements.
In 2008, the FASB issued Staff Position No. FAS 132(R)-1, "Employers' Disclosures about
Postretirement Benefit Plan Assets" (ASC Topic 715-20-65). This guidance will expand
disclosure by requiring the following new disclosures: 1) how investment allocation decisions
are made by management; 2) major categories of plan assets; and 3) significant concentrations
of risk. Additionally, ASC 715-20-65 will require an employer to disclose information about
the valuation of plan assets similar to that required in ASC topic 820
"Fair Value
Measurements and Disclosures"
. This guidance is effective for fiscal years beginning after
December 15, 2009. The Company does not expect the adoption to have a material effect on its
consolidated financial statements.
F-51
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No person has been authorized to give any information or to make any representation other than
as contained in this prospectus and, if given or made, such other information or representation
must not be relied upon as having been authorized by Oritani or Oritani Bank. This prospectus does
not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered
hereby to any person in any jurisdiction in which such offer or solicitation is not authorized or
in which the person making such offer or solicitation is not qualified to do so, or to any person
to whom it is unlawful to make such offer or solicitation in such jurisdiction. Neither the
delivery of this prospectus nor any sale hereunder shall under any circumstances create any
implication that there has been no change in the affairs of Oritani or Oritani Bank since any of
the dates as of which information is furnished herein or since the date hereof.
Up to 44,850,000Shares
(Subject to Increase to up to 51,577,500 Shares)
Oritani Financial Corp.
(Proposed Holding Company for
Oritani Bank)
COMMON STOCK
par value $0.01 per share
PROSPECTUS
STIFEL NICOLAUS
[Prospectus Date]
These securities are not deposits or savings accounts and are not federally insured or
guaranteed.
Until [expiration date], or 25 days after commencement of the syndicated community offering, if
any, whichever is later, all dealers effecting transaction in the registered securities, whether or
not participating in this offering, may be required to deliver a prospectus. This is in addition
to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect
to their unsold allotments or subscriptions.
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PROSPECTUS OF ORITANI FINANCIAL CORP., A DELAWARE CORPORATION
PROXY STATEMENT OF ORITANI FINANCIAL CORP., A FEDERAL CORPORATION
Oritani Bank is converting from a mutual holding company structure to a fully-public stock
holding company structure. Currently, Oritani Bank is a wholly-owned subsidiary of Oritani
Financial Corp., and Oritani Financial Corp., MHC owns approximately 74.4% of Oritani Financial
Corp.'s common stock. The remaining 25.6% of Oritani Financial Corp.'s common stock is owned by
public stockholders. As a result of the conversion, a newly formed company, Oritani, will become
the parent of Oritani Bank. Each share of Oritani Financial Corp. common stock owned by the public
will be exchanged for between 1.2022 and 1.6264 shares of common stock of Oritani, so that current
public stockholders will own the same percentage of Oritani common stock as they owned of Oritani
Financial Corp.'s common stock immediately prior to the conversion, excluding any new shares
purchased by them in the offering and their receipt of cash in lieu of fractional exchange shares,
as further discussed below. The actual number of shares that you will receive will depend on the
percentage of Oritani Financial Corp. common stock held by the public at the completion of the
conversion, the final independent appraisal of Oritani and the number of shares of Oritani common
stock sold in the offering described in the following paragraph. It will not depend on the market
price of Oritani Financial Corp. common stock. See "Proposal 1—Approval of the Plan of Conversion
and Reorganization—Share Exchange Ratio for Current Stockholders" for a discussion of the exchange
ratio. Based on the $
per share closing price of Oritani Financial Corp. common stock as of
the last trading day prior to the date of this proxy statement/prospectus, unless at least
shares of Oritani common stock are sold in the offering (which is between the
and
the
of the offering range), the initial value of the Oritani common stock you receive in
the share exchange would be less than the market value of the Oritani Financial Corp. common stock
you currently own. See "Risk Factors—The market value of Oritani common stock received in the
share exchange may be less than the market value of Oritani Financial Corp. common stock
exchanged."
Concurrently with the exchange offer, we are offering up to
shares of common stock
of Oritani, representing the 74.4% ownership interest of Oritani Financial Corp., MHC in Oritani
Financial Corp., for sale to eligible depositors of Oritani Bank and to the public, including
Oritani Financial Corp. stockholders, at a price of $10.00 per share. The conversion of Oritani
Financial Corp., MHC and the offering and exchange of common stock by Oritani is referred to herein
as the "conversion and offering." After the conversion and offering are completed, Oritani Bank
will be a wholly-owned subsidiary of Oritani, and 100% of the common stock of Oritani will be owned
by public stockholders. As a result of the conversion and offering, Oritani Financial Corp. and
Oritani Financial Corp., MHC will cease to exist.
Oritani Financial Corp.'s common stock is currently traded on the Nasdaq Global Market under
the trading symbol "ORIT." We expect that Oritani's shares of common stock will trade on the
Nasdaq Global Market under the trading symbol "ORITD" for a period of 20 trading days after the
completion of this stock offering. Thereafter, Oritani's trading symbol will revert to "ORIT."
The conversion and offering cannot be completed unless the stockholders of Oritani Financial
Corp. approve the Plan of Conversion and Reorganization of Oritani Financial Corp., MHC, referred
to herein as the "plan of conversion." Oritani Financial Corp. is holding a special meeting of
stockholders at [place/address for meeting], on
, 2010, at ___ a.m., local time, to
consider and vote upon the plan of conversion.
Oritani Financial Corp.'s Board of Directors
unanimously recommends that stockholders vote "FOR" the plan of conversion.
This document serves as the proxy statement for the special meeting of stockholders of Oritani
Financial Corp. and the prospectus for the shares of Oritani common stock to be issued in exchange
for
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shares of Oritani Financial Corp. common stock. We urge you to read this entire document
carefully. You can also obtain information about us from documents that we have filed with the
Securities and Exchange Commission and the Office of Thrift Supervision. This document does not
serve as the prospectus relating to the offering by Oritani of its shares of common stock in the
offering, which will be made pursuant to a separate prospectus. Stockholders of Oritani Financial
Corp. are not required to participate in the stock offering.
This proxy statement/prospectus contains information that you should consider in evaluating
the plan of conversion.
In particular, you should carefully read the section captioned "Risk
Factors" beginning on page 22 for a discussion of certain risk factors relating to the conversion
and offering.
We will refer to Oritani Financial Corp., a Delaware corporation formed for this stock
offering, as "Oritani" and Oritani Financial Corp., the existing federal corporation, as "Oritani
Financial Corp." in this document.
These securities are not deposits or savings accounts and are not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
None of the Securities and Exchange Commission, the Office of Thrift Supervision or any state
securities regulator has approved or disapproved of these securities or determined if this proxy
statement/prospectus is accurate or complete. Any representation to the contrary is a criminal
offense.
For answers to your questions, please read this proxy statement/prospectus including the
Questions and Answers section, beginning on page 1. Questions about voting on the plan of
conversion may be directed to our proxy information agent,
, at
1-888-
, Monday through Friday from 9:00 a.m. to 5:00 p.m., Eastern Time.
The date of this proxy statement/prospectus is
, 2010, and it is first being mailed
to stockholders of Oritani Financial Corp. on or about
, 2010.
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ORITANI FINANCIAL CORP.
370 Pascack Road
P.O. Box 128
Township of Washington, New Jersey 07676
(201) 664-5400
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
On
, 2010, Oritani Financial Corp. will hold a special meeting of stockholders at
[place/address for meeting]. The meeting will begin at ___a.m., local time. At the meeting,
stockholders will consider and act on the following:
1.
The approval of a plan of conversion and reorganization pursuant to which: (a)
Oritani Financial Corp., MHC, a federal corporation will merge with and into Oritani
Financial Corp., with Oritani Financial Corp. being the surviving entity; (b) Oritani
Financial Corp., will merge with and into Oritani with, with Oritani being the
surviving entity; (c) the outstanding shares of Oritani Financial Corp., other than
those held by Oritani Financial Corp., MHC, will be converted into shares of common
stock of Oritani; and (e) Oritani will offer shares of its common stock for sale in a
subscription offering, and, if necessary, a community offering or syndicated community
offering;
2.
The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion and reorganization;
3.
The following informational proposals:
3a.
Approval of a provision in Oritani's certificate of incorporation
to limit the ability of stockholders to remove directors;
3b.
Approval of a provision in Oritani's certificate of incorporation
requiring a super-majority vote to approve certain amendments to Oritani's
certificate of incorporation;
3c.
Approval of a provision in Oritani's bylaws requiring a
super-majority vote of stockholders to approve stockholder-proposed amendments to
Oritani's bylaws;
3d.
Approval of a provision in Oritani's certificate of incorporation
to limit the voting rights of shares beneficially owned in excess of 10% of
Oritani's outstanding voting stock; and
4.
Such other business that may properly come before the meeting.
NOTE: The Board of Directors is not aware of any other business to come before the meeting.
The provisions of Oritani's certificate of incorporation and bylaws which are summarized as
informational proposals 3a through 3d were approved as part of the process in which our Board of
Directors approved the plan of conversion and reorganization (referred to herein as the "plan of
conversion"). These proposals are informational in nature only, because the Office of Thrift
Supervision's regulations governing mutual-to-stock conversions do not provide for votes on matters
other than the plan of conversion. While we are asking you to vote with respect to each of the
informational proposals listed above, the proposed provisions for which an informational vote is
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requested will become effective if stockholders approve the plan of conversion, regardless of
whether stockholders vote to approve any or all of the informational proposals.
The Board of Directors has fixed [stockholder record date], as the record date for the
determination of stockholders entitled to notice of and to vote at the special meeting and at an
adjournment or postponement thereof.
Upon written request addressed to the Corporate Secretary of Oritani Financial Corp. at the
address given above, stockholders may obtain an additional copy of this proxy statement/prospectus
and/or a copy of the plan of conversion. In order to assure timely receipt of the additional copy
of the proxy statement/prospectus and/or the plan of conversion, the written request should be
received by Oritani Financial Corp., by
, 2010.
Please complete and sign the enclosed proxy, which is solicited by the Board of Directors, and
mail it promptly in the enclosed envelope. If you prefer, you may vote by using the telephone or
Internet. For information on submitting your proxy or voting by telephone or Internet, please
refer to instructions on the enclosed proxy card. The proxy will not be used if you attend the
meeting and vote in person.
BY ORDER OF THE BOARD OF DIRECTORS
Philip M. Wyks
Corporate Secretary
Township of Washington, New Jersey
, 2010
Table of Contents
TABLE OF CONTENTS
QUESTIONS AND ANSWERS FOR STOCKHOLDERS OF ORITANI FINANCIAL CORP. REGARDING THE PLAN OF CONVERSION AND REORGANIZATION
1
SUMMARY
6
RISK FACTORS
22
PROPOSAL 1 — APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION
36
PROPOSAL 2 — ADJOURNMENT OF THE SPECIAL MEETING
64
PROPOSALS 3a THROUGH 3d — INFORMATIONAL PROPOSALS RELATED TO THE CERTIFICATE OF INCORPORATION AND BYLAWS OF ORITANI
65
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
69
FORWARD-LOOKING STATEMENTS
71
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
73
OUR POLICY REGARDING DIVIDENDS
74
MARKET FOR THE COMMON STOCK
75
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
77
CAPITALIZATION
78
PRO FORMA DATA
80
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
86
BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK
108
SUPERVISION AND REGULATION
134
FEDERAL AND STATE TAXATION
146
MANAGEMENT
148
BENEFICIAL OWNERSHIP OF COMMON STOCK
173
SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
174
COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING STOCKHOLDERS OF ORITANI FINANCIAL CORP.
175
RESTRICTIONS ON ACQUISITION OF ORITANI
182
DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION
187
TRANSFER AGENT
188
EXPERTS
188
LEGAL MATTERS
189
WHERE YOU CAN FIND ADDITIONAL INFORMATION
189
OTHER MATTERS
189
ORITANI FINANCIAL CORP. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
F-1
Table of Contents
QUESTIONS AND ANSWERS
FOR STOCKHOLDERS OF ORITANI FINANCIAL CORP.
REGARDING THE PLAN OF CONVERSION AND REORGANIZATION
You should read this document for more information about the conversion and reorganization. The
plan of conversion and reorganization described herein, including the merger described therein,
(referred to as the "plan of conversion") have been conditionally approved by Oritani Financial
Corp.'s primary federal regulator, the Office of Thrift Supervision. However, such approvals by
the agency does not constitute recommendations or endorsements of the plan of conversion.
Q.
WHAT ARE STOCKHOLDERS BEING ASKED TO APPROVE?
A.
Oritani Financial Corp. stockholders as of [stockholder record date] are being asked to vote
on the plan of conversion pursuant to which Oritani Financial Corp., MHC will convert from the
mutual to the stock form of organization. As part of the conversion, a newly formed Delaware
corporation, Oritani is offering its common stock to eligible depositors of Oritani Bank, to
stockholders of Oritani Financial Corp. as of [stockholder record date] and to the public. The
 shares offered represent Oritani Financial Corp., MHC's current 74.4% ownership interest in
Oritani Financial Corp. Voting for approval of the plan of conversion will also include
approval of the exchange ratio and the certificate of incorporation and bylaws of Oritani
(including the anti-takeover provisions and provisions limiting stockholder rights).
Your
vote is important. Without sufficient votes "FOR" its adoption, we cannot implement the plan
of conversion.
In addition, Oritani Financial Corp. stockholders are being asked to approve the adjournment
of the special meeting, if necessary, to solicit additional proxies in the event that there
are not sufficient votes at the time of the special meeting to approve the plan of
conversion.
Stockholders also are asked to vote on the following informational proposals with respect to
the certificate of incorporation and bylaws of Oritani:
•
Approval of a provision in Oritani's certificate of incorporation to limit
the ability of stockholders to remove directors;
•
Approval of a provision in Oritani's certificate of incorporation requiring
a super-majority vote to approve certain amendments to Oritani's certificate of
incorporation;
•
Approval of a provision in Oritani's bylaws requiring a super-majority vote
of stockholders to approve stockholder-proposed amendments to Oritani's bylaws;
and
•
Approval of a provision in Oritani's certificate of incorporation to limit
the voting rights of shares beneficially owned in excess of 10% of Oritani's
outstanding voting stock.
The provisions of Oritani's certificate of incorporation and bylaws that are included as
informational proposals were approved as part of the process in which our Board of Directors
approved the plan of conversion. These proposals are informational in nature only, because
the Office of Thrift Supervision's regulations governing mutual-to-stock conversions do not
provide for votes on matters other than the plan of conversion. While we are asking you to
vote with respect to each of the informational proposals listed above, the proposed
provisions for which an
1
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informational vote is requested will become effective if stockholders approve the plan of
conversion, regardless of whether stockholders vote to approve any or all of the
informational proposals. The provisions of Oritani's certificate of incorporation and
bylaws which are summarized above as informational proposals may have the effect of
deterring, or rendering more difficult, attempts by third parties to obtain control of
Oritani if such attempts are not approved by the Board of Directors, or may make the removal
of the Board of Directors or management, or the appointment of new directors, more
difficult.
Your vote is important. Without sufficient votes "FOR" adoption of the plan of conversion,
we cannot implement the plan of conversion and the related stock offering.
Q.
WHAT ARE THE REASONS FOR THE CONVERSION AND RELATED OFFERING?
A.
Our primary reasons for converting and raising additional capital through the offering are:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the Federal Deposit Insurance
Corporation (the "FDIC") or the New Jersey Department of Banking and Insurance to raise
capital); and
•
to use the additional capital for other general corporate purposes.
As a fully converted stock holding company, we will have greater flexibility in structuring
mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure limits our ability to offer
shares of our common stock as consideration for a merger or acquisition since Oritani
Financial Corp., MHC is required to own a majority of our shares of common stock. Potential
sellers often want stock for at least part of the purchase price. Our new stock holding
company structure will enable us to offer stock or cash consideration, or a combination of
stock and cash, and will therefore enhance our ability to compete with other bidders when
acquisition opportunities arise.
2
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Q.
WHAT WILL STOCKHOLDERS RECEIVE FOR THEIR EXISTING ORITANI FINANCIAL CORP. SHARES?
A.
As more fully described in "Proposal 1 — Approval of the Plan of Conversion and
Reorganization — Share Exchange Ratio," depending on the number of shares sold in the
offering, each share of common stock that you own at the time of the completion of the
conversion will be exchanged for between 1.2022 shares at the minimum and 1.6264 shares at the
maximum of the offering range (or 1.8704 at the adjusted maximum of the offering range) of
Oritani common stock (cash will be paid in lieu of any fractional shares). For example, if
you own 100 shares of Oritani Financial Corp. common stock, and the exchange ratio is 1.4143
(at the midpoint of the offering range), after the conversion you will receive 141 shares of
Oritani Financial Corp. common stock and $4.30 in cash, the value of the fractional share,
based on the $10.00 per share purchase price of stock in the offering.
After completion of the conversion, stockholders who hold shares in street-name at a
brokerage firm or other nominee do not need to take any action to exchange their shares
of common stock. Your shares will be automatically exchanged within your account.
Stockholders with Oritani Financial Corp. stock certificates will receive a transmittal
form from our exchange agent with instructions on how to surrender stock certificates
to receive new stock certificates representing shares of Oritani You should not submit
a stock certificate until you receive a transmittal form.
Q.
WHY WILL THE SHARES THAT I RECEIVE BE BASED ON A PRICE OF $10.00 PER SHARE RATHER THAN THE
TRADING PRICE OF THE COMMON STOCK PRIOR TO COMPLETION OF THE CONVERSION?
A.
The $10.00 per share price was selected primarily because it is a commonly selected per share
price for mutual-to-stock conversion offerings. The amount of common stock Oritani will issue
at $10.00 per share in the offering and the exchange is based on an independent appraisal of
the estimated market value of Oritani, assuming the conversion and offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisal of financial institutions, has
estimated that, as of February 19, 2010, this market value ranged from $445.3 million to
$602.5 million, with a midpoint of $523.8 million. Based on this valuation, the number of
 shares of common stock of Oritani that existing public stockholders of Oritani Financial Corp.
will receive in exchange for their shares of Oritani Financial Corp. common stock will range
from approximately 33.15 million to 44.85 million, with a midpoint of 39.0 million (with a
value of approximately $331.5 million to $448.5 million, with a midpoint of $390.0 million, at
$10.00 per share). The number of shares received by the existing public stockholders of
Oritani Financial Corp. is intended to maintain their existing 25.6% ownership in our
organization (excluding any new shares purchased by them in the offering and their receipt of
cash in lieu of fractional exchange shares). The independent appraisal is based in part on
Oritani Financial Corp.'s financial condition and results of operations, the pro forma impact
of the additional capital raised by the sale of shares of common stock in the offering, and an
analysis of a peer group of ten publicly traded savings bank and thrift holding companies that
RP Financial, LC. considered comparable to Oritani Financial Corp.
Q.
DOES THE EXCHANGE RATIO DEPEND ON THE TRADING PRICE OF ORITANI FINANCIAL CORP. COMMON STOCK?
A.
No, the exchange ratio will not be based on the market price of Oritani Financial Corp.
common stock. Therefore, changes in the price of Oritani Financial Corp. common stock between
now and the completion of the conversion and offering will not affect the calculation of the
exchange ratio.
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Table of Contents
Q.
WHY DOESN'T ORITANI FINANCIAL CORP. WAIT TO CONDUCT THE CONVERSION AND OFFERING UNTIL THE
STOCK MARKET IMPROVES SO THAT CURRENT STOCKHOLDERS CAN RECEIVE A HIGHER EXCHANGE RATIO?
A.
The Board of Directors believes that because the stock holding company form of organization
offers important advantages and that it is in the best interest of our stockholders to
complete the conversion and offering sooner rather than later. There is no way to know when
market conditions will change, when regulations governing conversion to stock form will
change, or how they might change, or how changes in market conditions might affect stock
prices for financial institutions. The Board of Directors concluded that it would be better to
complete the conversion and offering now, under existing Office of Thrift Supervision
conversion regulations and under a valuation that offers a fair exchange ratio to existing
stockholders and an attractive price to new investors, rather than wait an indefinite amount
of time for market conditions that would result in a higher exchange ratio but a less
attractive valuation for new investors.
Q.
SHOULD I SUBMIT MY STOCK CERTIFICATES NOW?
A.
No. If you hold stock certificate(s), instructions for exchanging the certificates will be
sent to you by our exchange agent
after
completion of the conversion. If your shares are held
in "street name" (
e.g.,
in a brokerage account) rather than in certificate form, the share
exchange will be reflected automatically in your account upon completion of the conversion.
Q.
HOW DO I VOTE?
A.
Mark your vote, sign each proxy card enclosed and return the card(s) to us, in the enclosed
proxy reply envelope. If you prefer, you may vote by using the telephone or Internet. For
information on submitting your proxy or voting by telephone or Internet, please refer to
instructions on the enclosed proxy card.
YOUR VOTE IS IMPORTANT. PLEASE VOTE PROMPTLY.
Q.
IF MY SHARES ARE HELD IN STREET NAME, WILL MY BROKER, BANK OR OTHER NOMINEE AUTOMATICALLY
VOTE ON THE PLAN ON MY BEHALF?
A.
No. Your broker, bank or other nominee will not be able to vote your shares without
instructions from you. You should instruct your broker, bank or other nominee to vote your
 shares, using the directions that they provide to you.
Q.
WHAT HAPPENS IF I DON'T VOTE?
A.
Your vote is very important. Not voting all the proxy card(s) you receive will have the same
effect as voting
"against"
the plan of conversion.
Without sufficient favorable votes
"for"
the plan of conversion, we will not proceed with the conversion and offering.
Q.
WHAT IF I DO NOT GIVE VOTING INSTRUCTIONS TO MY BROKER, BANK OR OTHER NOMINEE?
A.
Your vote is important. If you do not instruct your broker, bank or other nominee to vote
your shares, the unvoted proxy will have the same effect as a vote
"against"
the plan of
conversion.
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Table of Contents
Q.
MAY I PLACE AN ORDER TO PURCHASE SHARES IN THE OFFERING, IN ADDITION TO THE SHARES THAT I
WILL RECEIVE IN THE EXCHANGE?
A.
Yes. If you would like to receive a prospectus and stock order form, you must call our Stock
Information Center at 1-877-___, Monday through Friday between 10:00 a.m. and 4:00 p.m.,
Eastern Time. The Stock Information Center is closed weekends and bank holidays.
Eligible depositors of Oritani Bank have priority subscription rights allowing them to
purchase common stock in a subscription offering. Shares of common stock not purchased in
the subscription offering are expected to be offered for sale in a "community offering,"
which will be limited to persons residing in New Jersey counties of Bergen, Passaic, Sussex,
Hudson, Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer, certain
borrowers as of December 31, 2009 and the stockholders of Oritani Financial Corp as of
[voting record date]. We also may offer for sale shares of common stock not purchased in
the subscription offering or community offering through a "syndicated community offering"
managed by Stifel, Nicolaus & Company, Incorporated.
Shares of common stock purchased in the offering by a stockholder and his or her
associates or individuals acting in concert with the stockholder,
plus
any shares a
stockholder and these individuals receive in the exchange for existing shares of Oritani
Financial Corp. common stock, may not exceed 5% of the total shares of common stock of
Oritani to be issued and outstanding after the completion of the conversion.
Q.
WILL THE CONVERSION HAVE ANY EFFECT ON DEPOSIT AND LOAN ACCOUNTS AT ORITANI BANK?
A.
No. The account number, amount, interest rate and withdrawal rights of deposit accounts will
remain unchanged. Deposits will continue to be federally insured by the Federal Deposit
Insurance Corporation up to the legal limit. Loans and rights of borrowers will not be
affected. Depositors will no longer have voting rights in the mutual holding company, which
will cease to exist, after the conversion and offering. Only stockholders of Oritani will
have voting rights after the conversion and offering.
Please note that properly completed and signed stock order forms, with full payment, must be
received (not postmarked) by the Stock Information Center no later than 2:00 p.m., Eastern Time on
, 2010.
OTHER QUESTIONS?
For answers to other questions, please read this proxy statement/prospectus. Questions about
voting on the plan of conversion may be directed to our proxy information agent,
, at 1-877___, Monday through Friday from 9:00 a.m. to 5:00 p.m., Eastern
Time. Questions about the stock offering may be directed to our Stock Information Center at
1-877-___, Monday through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock
Information Center is closed weekends and bank holidays.
5
Table of Contents
SUMMARY
This summary highlights material information from this proxy statement/prospectus and may not
contain all the information that is important to you. To understand the conversion and other
proposals fully, you should read this entire document carefully, including the sections entitled
"Risk Factors," "Proposal 1 — Approval of The Plan of Conversion and Reorganization," "Proposal 2—
Adjournment of the Special Meeting," "Proposals 3a through 3d — Informational Proposals Related to
the Certificate of incorporation and Bylaws of Oritani" and the consolidated financial statements
and the notes to the consolidated financial statements.
The Oritani Financial Corp. Special Meeting
Date, Time and Place.
Oritani Financial Corp. will hold its special meeting of stockholders
at [place/address for meeting], on ___, 2010, at ___a.m., Eastern Time.
The Proposals.
Stockholders will be voting on the following proposals at the special meeting:
1.
The approval of a plan of conversion and reorganization pursuant to which: (a)
Oritani Financial Corp., MHC, a federal corporation will merge with and into Oritani
Financial Corp., with Oritani Financial Corp. being the surviving entity; (b) Oritani
Financial Corp., will merge with and into Oritani with, with Oritani being the
surviving entity; (c) the outstanding shares of Oritani Financial Corp., other than
those held by Oritani Financial Corp., MHC, will be converted into shares of common
stock of Oritani; and (e) Oritani will offer shares of its common stock for sale in a
subscription offering, and, if necessary, a community offering or syndicated community
offering;
2.
The approval of the adjournment of the special meeting, if necessary, to
solicit additional proxies in the event that there are not sufficient votes at the time
of the special meeting to approve the plan of conversion and reorganization;
3.
The following informational proposals:
3a.
Approval of a provision in Oritani's certificate of incorporation
to limit the ability of stockholders to remove directors;
3b.
Approval of a provision in Oritani's certificate of incorporation
requiring a super-majority vote to approve certain amendments to Oritani's
certificate of incorporation;
3c.
Approval of a provision in Oritani's bylaws requiring a
super-majority vote of stockholders to approve stockholder-proposed amendments to
Oritani's bylaws;
3d.
Approval of a provision in Oritani's certificate of incorporation
to limit the voting rights of shares beneficially owned in excess of 10% of
Oritani's outstanding voting stock; and
4.
Such other business that may properly come before the meeting.
Vote Required for Approval of Proposals by the Stockholders of Oritani Financial Corp.
Proposal 1: Approval of the Plan of Conversion and Reorganization.
We must obtain the
affirmative vote of the holders of (i) two-thirds of the total number of votes entitled to be cast
at the special meeting by Oritani Financial Corp. stockholders, including shares held by Oritani
Financial Corp.,
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MHC, and (ii) a majority of the total number of votes entitled to be cast at the special meeting by
Oritani Financial Corp. stockholders other than Oritani Financial Corp., MHC.
Proposal 2 Approval of the adjournment of the special meeting.
We must obtain the
affirmative vote of at least a majority of the votes cast by Oritani Financial Corp. stockholders
at the special meeting to adjourn the special meeting, if necessary, to solicit additional proxies
in the event that there are not sufficient votes at the time of the special meeting to approve the
proposal to approve the plan of conversion.
Informational Proposals 3a through 3d.
The provisions of Oritani's certificate of
incorporation and bylaws which are summarized as informational proposals were approved as part of
the process in which the Board of Directors of Oritani Financial Corp. approved the plan of
conversion. These proposals are informational in nature only, because the Office of Thrift
Supervision's regulations governing mutual-to-stock conversions do not provide for votes on matters
other than the plan of conversion. While we are asking you to vote with respect to each of the
informational proposals listed above, the proposed provisions for which an informational vote is
requested will become effective if stockholders approve the plan of conversion, regardless of
whether stockholders vote to approve any or all of the informational proposals. The provisions of
Oritani's certificate of incorporation and bylaws which are summarized as informational proposals
may have the effect of deterring or rendering more difficult attempts by third parties to obtain
control of Oritani, if such attempts are not approved by the Board of Directors, or may make the
removal of the Board of Directors or management, or the appointment of new directors, more
difficult.
Other Matters.
We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oritani Financial Corp.. At this time, we know of
no other matters that may be presented at the special meeting.
Proposals 1 and 2 must also be approved by the members of Oritani Financial Corp., MHC at a
special meeting of members called for that purpose. Members will receive separate informational
materials for Oritani Financial Corp., MHC regarding the conversion.
Revocability of Proxies
You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oritani Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
Vote by Oritani Financial Corp., MHC
Management anticipates that Oritani Financial Corp., MHC, our majority stockholder, will vote
all of its shares of common stock in favor of all the matters set forth above. If Oritani
Financial Corp., MHC votes all of its shares in favor of each proposal, the approval of the
adjournment of the special meeting if necessary, would be assured.
As of ___, 2010 the directors and executive officers of Oritani Financial Corp.
beneficially owned ___ shares, or approximately ___% of the outstanding shares of Oritani
Financial Corp. common stock, and Oritani Financial Corp., MHC owned 27,575,476 shares, or
approximately 74.4% of the outstanding shares of Oritani Financial Corp. common stock.
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Your Board of Directors unanimously recommends that you vote "FOR" the plan of conversion,
"FOR" the adjournment of the special meeting and "FOR" the Informational Proposals 3a through 3d.
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The Companies
Oritani
Oritani Financial Corp., is a newly-formed Delaware corporation that was incorporated in
February 2010 to be the successor corporation to Oritani Financial Corp. upon completion of the
conversion. Oritani ("Oritani") will own all of the outstanding shares of common stock of Oritani
Bank upon completion of the conversion.
Oritani's executive offices are located at 370 Pascack Road, Township of Washington, New
Jersey 07676. Our telephone number at this address is (201) 664-5400.
Oritani Financial Corp., MHC
Oritani Financial Corp., MHC is the federally chartered mutual holding company of Oritani
Financial Corp. Oritani Financial Corp., MHC's principal business activity is the ownership of
27,575,476 shares of common stock of Oritani Financial Corp., or 74.4% of the issued and
outstanding shares as of the date of this prospectus. The remaining 9,465,710 shares of Oritani
Financial Corp. common stock outstanding as of the date of this prospectus were held by the public.
After the completion of the conversion, Oritani Financial Corp., MHC will cease to exist.
Oritani Financial Corp.
Oritani Financial Corp. is a federally chartered stock holding company that owns all of the
outstanding common stock of Oritani Bank. At December 31, 2009, Oritani Financial Corp. had
consolidated assets of $2.01 billion, deposits of $1.21 billion and stockholders' equity of $248.0
million. After the completion of the conversion, Oritani Financial Corp. will cease to exist, and
will be succeeded by Oritani, a new Delaware corporation. As of the date of this prospectus,
Oritani Financial Corp. had 40,552,162 shares of common stock issued and 37,041,184 shares
outstanding, of which 27,575,476 shares were owned by Oritani Financial Corp., MHC.
Oritani Bank
Oritani Bank is a New Jersey-chartered stock savings bank headquartered in Township of
Washington, New Jersey, and the wholly-owned subsidiary of Oritani Financial Corp. Oritani Bank
was originally founded in 1911 as a mutual (meaning no stockholders) organization and converted to
stock form in 1997 as part of Oritani Bank's mutual holding company reorganization. Oritani Bank
became a wholly-owned subsidiary of Oritani Financial Corp. in 2007.
9
Table of Contents
Plan of Conversion and Reorganization
The Boards of Directors of Oritani Financial Corp., Oritani Financial Corp., MHC, Oritani Bank
and Oritani have adopted a plan of conversion pursuant to which Oritani Bank will reorganize from a
mutual holding company structure to a stock holding company structure. Public stockholders of
Oritani Financial Corp. will receive shares in Oritani in exchange for their shares of Oritani
Financial Corp. common stock based on an exchange ratio. This conversion to a stock holding
company structure also includes the offering by Oritani of shares of its common stock to eligible
depositors of Oritani Bank in a subscription offering and, if necessary, to the public in a
community offering and/or syndicated community offering. Following the conversion and offering,
Oritani Financial Corp., MHC and Oritani Financial Corp. will no longer exist, and Oritani will be
the parent company of Oritani Bank.
The conversion and offering cannot be completed unless the stockholders of Oritani Financial
Corp. approve the plan of conversion. Oritani Financial Corp.'s stockholders will vote on the plan
of conversion at Oritani Financial Corp.'s special meeting. This document is the proxy statement
used by Oritani Financial Corp.'s Board of Directors to solicit proxies for the special meeting.
It is also the prospectus of Oritani regarding the shares of Oritani common stock to be issued to
Oritani Financial Corp.'s stockholders in the share exchange. This document does not serve as the
prospectus relating to the offering by Oritani of its shares of common stock in the subscription
offering and any community offering, syndicated community offering or firm commitment offering,
which will be made pursuant to a separate prospectus.
Our Current Organizational Structure
Oritani Financial Corp. completed its initial public stock offering on January 23, 2007.
Oritani Financial Corp. sold 12,165,649 shares, or 30.0% of its outstanding common stock, to
subscribers in the offering, including 1,589,644 shares purchased by the Oritani Bank Employee
Stock Ownership Plan. Proceeds from the offering, including the value of shares issued to the
charitable foundation but net of expenses, were $127.6 million. Oritani Financial Corp.
contributed $59.7 million of the proceeds to Oritani Bank. At December 31, 2009, Oritani Financial
Corp., MHC owned 74.4% of the Oritani Financial Corp.'s outstanding common stock.
Pursuant to the terms of Oritani Financial Corp., MHC's plan of conversion and reorganization,
Oritani Financial Corp., MHC will convert from the mutual holding company to the stock holding
company corporate structure. As part of the conversion, we are offering for sale in a subscription
offering, a community offering and possibly a syndicated community offering, the ownership interest
of Oritani Financial Corp. that is currently owned by Oritani Financial Corp., MHC. Upon the
completion of the conversion, Oritani Financial Corp., MHC will cease to exist, and we will
complete the transition from partial to full public stock ownership. In addition, as part of the
conversion existing public stockholders of Oritani Financial Corp. will receive shares of common
stock of Oritani in exchange for their shares of Oritani Financial Corp. common stock pursuant to
an exchange ratio that maintains the same percentage ownership in Oritani (excluding any new shares
purchased by them in the offering and their receipt of cash in lieu of fractional exchange shares)
that existing stockholders had in Oritani Financial Corp. immediately prior to the completion of
the conversion and offering.
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The following diagram shows our current organizational structure:
Our Organizational Structure Following the Conversion
After the conversion and offering are completed, we will be organized as a fully public stock
holding company, as follows:
Reasons for the Conversion and the Offering
Our primary reasons for converting and raising additional capital through the offering are:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
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•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the Federal Deposit Insurance
Corporation (the "FDIC") or the New Jersey Department of Banking and Insurance to raise
capital); and
•
to use the additional capital for other general corporate purposes.
Conditions to Completion of the Conversion
The OTS has conditionally approved the plan of conversion and reorganization; however, such
approval does not constitute recommendations or endorsements of the plan of conversion and
reorganization by that agency.
We cannot complete the conversion unless:
•
The plan of conversion and reorganization is approved by at least
a
majority of votes eligible
to be cast by members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) as of [depositor record date];
•
The plan of conversion and reorganization is approved by a vote of at
least
two-thirds of the outstanding shares
of common stock of Oritani Financial Corp.
as of [stockholder record date], including shares held by Oritani Financial Corp., MHC
(because Oritani Financial Corp., MHC owns 74.4% of the outstanding shares of Oritani
Financial Corp. common stock, we expect that Oritani Financial Corp., MHC and our
directors and executive officers will control the outcome of this vote);
•
The plan of conversion and reorganization is approved by a vote of at
least
a majority of the outstanding shares
of common stock of Oritani Financial Corp.
as of [stockholder record date], excluding those shares held by Oritani Financial
Corp., MHC;
•
We sell at least the minimum number of shares of common stock offered; and
•
We receive the final approval of the OTS to complete the conversion;
however, such approval does not constitute a recommendation or endorsement of the plan
of conversion and reorganization by that agency.
Oritani Financial Corp., MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At [stockholder record date], Oritani Financial Corp., MHC owned
74.4% of the outstanding shares of common stock of Oritani Financial Corp. The directors and
executive officers of Oritani Financial Corp. and their affiliates
owned ___ shares of Oritani
Financial Corp., or ___%
12
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of the outstanding shares of common stock as of [stockholder record date]. They have indicated
their intention to vote those shares in favor of the plan of conversion and reorganization.
The Exchange of Existing Shares of Oritani Financial Corp. Common Stock
At the conclusion of the conversion, shares held by existing stockholders of Oritani Financial
Corp. will be canceled and exchanged for shares of common stock of Oritani. The number of shares
of common stock received will be based on an exchange ratio determined as of the conclusion of the
conversion and offering, which will depend upon our final appraised value. The number of shares
received will not be based on the market price of our currently outstanding shares. Instead, the
exchange ratio will ensure that existing public stockholders of Oritani Financial Corp. will retain
the same percentage ownership of our organization after the offering, exclusive of their purchase
of any additional shares of common stock in the offering or their receipt of cash in lieu of
fractional exchange shares. In addition, if options to purchase shares of Oritani Financial Corp.
common stock are exercised before consummation of the conversion, there will be an increase in the
percentage of shares of Oritani Financial Corp. held by public stockholders, an increase in the
number of shares of common stock issued to public stockholders in the share exchange and a decrease
in the exchange ratio.
The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows the number of whole shares of Oritani common stock a
hypothetical owner of Oritani Financial Corp. common stock would receive in exchange for 100 shares
of Oritani Financial Corp. common stock owned at the completion of the conversion, depending on the
number of shares of common stock sold in the offering.
New Shares to be
Exchanged for Existing
Total Shares of
New Shares That
New Shares to be Sold
Shares of Oritani
Common Stock to be
Equivalent  Per
Would be Received
in This Offering
Financial Corp.
Outstanding After
Share Current
for 100 Existing
Amount
Percent
Amount
Percent
the Offering
Exchange Ratio
Market Value (1)
Shares
Minimum
33,150,000
74.45
%
11,379,252
25.55
%
44,529,252
1.2022
$
12.02
120
Midpoint
39,000,000
74.45
%
13,387,355
25.55
%
52,387,355
1.4143
$
14.14
141
Maximum
44,850,000
74.45
%
15,395,458
25.55
%
60,245,458
1.6264
$
16.26
162
Adjusted Maximum
51,577,500
74.45
%
17,704,777
25.55
%
69,282,277
1.8704
$
18.70
187
(1)
Represents the value of shares of Oritani common stock received in the conversion by a
holder of one share of Oritani Financial Corp. at the exchange ratio, assuming the market
price of $10.00 per share.
No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. For each fractional share that would otherwise be issued, Oritani will pay
in cash an amount equal to the product obtained by multiplying the fractional share interest to
which the holder would otherwise be entitled by the $10.00 per share purchase price of the common
stock in the offering.
Outstanding options to purchase shares of Oritani Financial Corp. common stock also will
convert into and become options to purchase new shares of Oritani common stock. The number of
shares of common stock to be received upon exercise of these options and the exercise price per
share to be adjusted based upon the exchange ratio so that the aggregate exercise price and the
duration of such options remain unchanged. All such options will vest upon completion of the
conversion. Oritani Financial Corp. anticipates the pre-tax expense of such accelerated vesting as
well as the accelerated vesting for outstanding stock awards will be approximately $11.3 million,
with such expense to be
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incurred during the fiscal quarter in which the stock offering is completed. At December 31,
2009, there were 1,841,725 outstanding options to purchase shares of Oritani Financial Corp. common
stock, 368,345 of which have vested. Such options will be converted into options to purchase
2,214,122 shares of common stock at the minimum of the offering range and 3,444,762 shares of
common stock at the maximum of the offering range.
How We Determined the Offering Range, the Exchange Ratio and the $10.00 Per Share Stock Price
The offering range and exchange ratio are based on an independent appraisal of the estimated
market value of Oritani, assuming the conversion, the exchange and the offering are completed. RP
Financial, LC., an appraisal firm experienced in appraisals of financial institutions, has
estimated that, as of February 19, 2010, this estimated pro forma market value ranged from $445.3
million to a maximum of $602.5 million, with a midpoint of $523.8 million and an adjusted maximum
of $692.8 million. Based on this valuation, the 74.4% ownership interest held by Oritani Financial
Corp., MHC being sold in the offering and the $10.00 per share price, the number of shares of
common stock being offered for sale by us will range from 33,150,000 shares to 44,850,000 shares.
The $10.00 per share price was selected primarily because it is the price most commonly used in
mutual-to-stock conversions of financial institutions. The exchange ratio will range from 1.2022
shares at the minimum of the offering range to 1.6264 shares at the maximum of the offering range
in order to approximately preserve the existing percentage ownership of public stockholders of
Oritani Financial Corp. (excluding any new shares purchased by them in the offering and their
receipt of cash in lieu of fractional exchange shares). If demand for shares or market conditions
warrant, the appraisal can be increased by 15%. At this adjusted maximum of the offering range,
the estimated pro forma market value is $692.8 million, the number of shares of common stock
offered for sale will be 69,282,277 and the exchange ratio will be 1.8704 shares.
The independent appraisal is based in part on Oritani Financial Corp.'s financial condition
and results of operations, the pro forma impact of the additional capital raised by the sale of
shares of common stock in the offering, and an analysis of a peer group of 10 publicly traded
savings bank and thrift holding companies that RP Financial, LC. considered comparable to Oritani
Financial Corp.
The appraisal peer group consists of the following companies. Total assets are as of December
31, 2009, unless otherwise indicated.
Company Name and Ticker Symbol
Exchange
Headquarters
Total Assets
Beacon Federal Bancorp (BFED)
NASDAQ
East Syracuse, NY
$
1,070
(1)
Brookline Bancorp, Inc. (BRKL)
NASDAQ
Brookline, MA
$
2,616
Danvers Bancorp, Inc. (DNBK)
NASDAQ
Danvers, MA
$
2,500
ESB Financial Corp. (ESBF)
NASDAQ
Ellwood City, PA
$
1,979
(1)
ESSA Bancorp, Inc. (ESSA)
NASDAQ
Stroudsburg, PA
$
1,034
OceanFirst Financial Corp. (OCFC)
NASDAQ
Toms River, NJ
$
1,989
Parkvale Financial Corp. (PVSA)
NASDAQ
Monroeville, PA
$
1,916
Provident NY Bancorp (PBNY)
NASDAQ
Montebello, NY
$
2,918
United Financial Bancorp, Inc. (UBNK)
NASDAQ
West Springfield, MA
$
1,247
(1)
Westfield Financial, Inc. (WFD)
AMEX
Westfield, MA
$
1,191
(1)
As of September 30, 2009.
The independent appraisal does not indicate actual market value. Do not assume or expect
that the estimated pro forma market value as indicated above means that, after the offering, the
shares of our common stock will trade at or above the $10.00 purchase price.
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Table of Contents
The following table presents a summary of selected pricing ratios for the peer group companies
and Oritani (on a pro forma basis). The pricing ratios are based on earnings and other information
as of and for the six months ended December 31, 2009, stock price information as of February 19,
2010, as reflected in RP Financial, LC.'s appraisal report, dated February 19, 2010, and the number
of shares outstanding as described in "Pro Forma Data." Compared to the average pricing of the
peer group, our pro forma pricing ratios at the maximum of the offering range indicated a premium
of 6.5% on a price-to-book value basis, a discount of 6.4% on a price-to-tangible book value basis,
and a premium of 183.1% on a price-to-earnings basis.
Price-to-earnings
Price-to-book
Price-to-tangible
multiple
(1)
value ratio
book value ratio
Oritani (on a pro
forma basis,
assuming completion
of the conversion)
Minimum
39.21x
82.44
%
82.44
%
Midpoint
45.45x
88.50
%
88.50
%
Maximum
51.50x
93.63
%
93.63
%
Maximum, as adjusted
58.25x
98.52
%
98.52
%
Valuation of peer
group companies, as
of
February 19,
2010
Averages
18.19x
87.90
%
100.03
%
Medians
14.00x
95.34
%
103.58
%
(1)
Information is derived from the RP Financial appraisal report and are based upon
estimated earnings for the twelve months ended December 31, 2009. These ratios are
different from the ratios in "Pro Forma Data."
Our Board of Directors, in reviewing and approving the independent appraisal, considered
the range of price-to- earnings multiples, the range of price-to-book value and price-to-tangible
book value ratios at the different ranges of shares of common stock to be sold in the offering, and
did not consider one valuation approach to be more important than the other. Instead, in approving
the independent appraisal, the Board of Directors concluded that these ranges represented the
appropriate balance of the three approaches to establishing our estimated valuation range, and the
number of shares of common stock to be sold, in comparison to the peer group institutions.
Specifically, in approving the independent appraisal, the Board of Directors believed that we would
not be able to sell our shares at a price-to-book value and price-to-tangible book value that was
in line with the peer group without unreasonably exceeding the peer group on a price-to-earnings
basis. The estimated appraised value and the resulting discounts took into consideration the
potential financial impact of the offering as well as the trading price of Oritani Financial Corp.
common stock, which closed at $13.80 per share on February 19, 2010, the date of the independent
appraisal.
RP Financial, LC. will update the independent appraisal prior to the completion of the
conversion. If the estimated appraised value, including offering shares and exchange shares,
changes to either below $445.3 million or above $692.8 million, we will resolicit persons who
submitted stock orders. See "The Conversion and Offering—Stock Pricing and Number of Shares to be
Issued."
How We Intend to Use the Proceeds From the Offering
Assuming we sell 44,850,000 shares of common stock in the stock offering, and we have net
proceeds of $431.4 million, we intend to distribute the net proceeds as follows:
•
$215.7 million (50.0% of the net proceeds) will be invested in Oritani Bank;
•
$17.9 million (4.2% of the net proceeds) will be loaned by Oritani to the employee
stock ownership plan to fund its purchase of our shares of common stock; and
•
$197.8 million (45.8% of the net proceeds) will be retained by Oritani.
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We may use the remaining funds we receive for investments, to pay cash dividends, to
repurchase shares of common stock and for other general corporate purposes. Oritani Bank may use
the proceeds it receives to support increased lending and other products and services. The net
proceeds retained also may be used for future business expansion through opening or acquiring
branch offices and the acquisition of banks, thrifts and other financial services companies. We
have no current arrangements or agreements with respect to any such acquisitions. Initially, a
substantial portion of the net proceeds be invested in short-term investments and mortgage-backed
securities consistent with our investment policy.
Please see "How We Intend to Use the Proceeds from the Offering" for more information on the
proposed use of the proceeds from the offering.
Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion
Employee Stock Ownership Plan
. Our tax-qualified employee stock ownership plan may purchase
up to 4.0% of the shares of common stock we sell in the offering, or 2,063,100 shares of common
stock, assuming we sell the maximum, as adjusted, number of shares proposed to be sold which, when
combined with the existing employee stock ownership plan, will be less than 8% of the shares
outstanding following the conversion. If we receive orders for more shares of common stock than
the maximum of the offering range, the employee stock ownership plan will have first priority to
purchase shares over this maximum, up to a total of 4.0% of the shares of common stock sold in the
offering. We reserve the right to purchase shares of common stock in the open market following the
offering in order to fund all or a portion of the employee stock ownership plan. Assuming the
employee stock ownership plan purchases 1,560,000 shares in the offering, the midpoint of the
offering range, we will recognize additional compensation expense of approximately $780,000
annually (or approximately $476,000 after tax) over a 20-year period, assuming the loan to the
employee stock ownership plan has a 20-year term and an interest rate equal to the prime rate as
published in
The Wall Street Journal
, and the shares of common stock have a fair market value of
$10.00 per share for the full 20-year period. If, in the future, the shares of common stock have a
fair market value greater or less than $10.00, the compensation expense will increase or decrease
accordingly. We also reserve the right to have the employee stock ownership plan purchase more
than 4.0% of the shares of common stock sold in the offering if necessary to complete the offering
at the minimum of the offering range.
Stock-Based Incentive Plan
. Our current intention is to implement a new stock-based incentive
plan no earlier than twelve months after completion of the conversion. Stockholder approval of
this plan will be required. If implemented 12 months or more following completion of the
conversion, the stock-based incentive plan will reserve a number of shares equal to 4.0% of the
shares of common stock sold in the offering, or 2,063,100 shares of common stock at the maximum as
adjusted of the offering range, for awards of restricted stock to key employees and directors, at
no cost to the recipients. If the shares of restricted stock awarded under the stock-based
incentive plan come from authorized but unissued shares of common stock, stockholders would
experience dilution of up to approximately 2.89% in their ownership interest in Oritani. If
implemented 12 months or more following the completion of the conversion, the stock-based incentive
plan will also reserve a number of shares equal to 10.0% of the shares of common stock sold in the
offering, or 5,157,750 shares of common stock at the maximum as adjusted of the offering range, for
issuance pursuant to grants of stock options to key employees and directors. For a description of
our current stock-based incentive plans, see "Management—Compensation Discussion and Analysis."
The following table summarizes the number of shares of common stock and the aggregate dollar
value of grants that are expected under the new stock-based incentive plan as a result of the
conversion. The table also shows the dilution to stockholders if all such shares are issued from
authorized but
16
Table of Contents
unissued shares, instead of shares purchased in the open market. A portion of the stock
grants shown in the table below may be made to non-management employees.
Number of Shares to be Granted or Purchased (1)
Dilution Resulting
Value of Grants (2)
As a Percentage of
From Issuance of
(Dollars in thousands)
At Maximum as
Common Stock to be
Shares for
At Maximum as
At Minimum of
adjusted of
Sold in the
Stock-Based
At Minimum of
adjusted of
Offering Range
Offering Range
Offering
Incentive Plans (3)
Offering Range
Offering Range
Employee stock ownership plan
1,326,000
2,063,100
4.0
%
—
%
$
13,260
$
20,631
Restricted stock awards
1,326,000
2,063,100
(1)
4.0
2.89
13,260
20,631
Stock options
3,315,000
5,157,750
(2)
10.0
6.93
11,370
17,691
Total
5,967,000
9,283,950
18.0
%
9.44
%
$
37,890
$
58,953
(1)
The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12 months of
the completion of the conversion, the number of shares that may be reserved for grants of
restricted stock cannot exceed 4% of the total number of shares to be outstanding upon
completion of the conversion, less the number of shares of restricted stock (adjusted for the
exchange ratio) reserved under previously adopted benefit plans.
(2)
The table assumes that the stock-based incentive plan is implemented twelve months or more
following the completion of the conversion and offering. If implemented within 12 months of
the completion of the conversion, the number of shares that may be reserved for grants of
stock options cannot exceed 10% of the total number of shares to be outstanding upon
completion of the conversion, less the number of option shares (adjusted for the exchange
ratio) reserved under previously adopted benefit plans.
(3)
The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value for stock awards is
assumed to be the same as the offering price of $10.00 per share. The fair value of stock
options has been estimated at $3.43 per option using the Black-Scholes option pricing model
with the following assumptions: a grant-date share price and option exercise price of $10.00;
an expected option life of ten years; a dividend yield of 3.0%; an interest rate of 3.85%; and
a volatility rate of 36.45% based on an index of publicly traded thrift institutions. The
actual value of option grants will be determined by the grant-date fair value of the options,
which will depend on a number of factors, including the valuation assumptions used in the
option pricing model ultimately adopted.
(4)
Represents the dilution of stock ownership interest. No dilution is reflected for the
employee stock ownership plan because such shares are assumed to be purchased in the offering.
We may fund our plans through open market purchases, as opposed to new issuances of
common stock; however, if any options previously granted under our existing stock option plans are
exercised during the first year following completion of the offering, they will be funded with
newly-issued shares as Office of Thrift Supervision (the "OTS") regulations do not permit us to
repurchase our shares during the first year following the completion of this offering except to
fund the grants of restricted stock under the stock-based incentive plan or, with prior regulatory
approval, under extraordinary circumstances. The OTS has previously advised that the exercise of
outstanding options and cancellation of treasury shares in the conversion will not constitute an
extraordinary circumstance or a compelling business purpose for satisfying this test.
The following table presents information as of December 31, 2009 regarding our existing
employee stock ownership plan, our existing stock option plans, our existing recognition and
retention plan, our proposed employee stock ownership plan purchases and our proposed stock-based
incentive plan, all assuming an exchange ratio of 1.6264. The table below assumes that 60,245,458
shares are outstanding after the offering, which includes the sale of 44,850,000 shares in the
offering at the maximum of the offering range, and the issuance of 15,395,458 shares in exchange
for shares of Oritani Financial Corp. using an exchange ratio of 1.6264. It also assumes that the
value of the stock is $10.00 per share.
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Table of Contents
Percentage of
Shares Outstanding
Existing and New Stock-Based
Estimated Value of
After the
Incentive Plans
Participants
Shares
Shares
Conversion
(Dollars in thousands)
Existing employee stock ownership plan
Employees
2,585,397
(1)
$
25,854
4.29
%
New employee stock ownership plan
Employees
1,794,000
17,940
2.98
%
Total employee stock ownership plan
Employees
4,379,397
43,794
7.27
%
Directors, Officers and
Existing shares of restricted stock
Employees
1,292,700
(2)
12,927
(3)
2.15
%
Directors, Officers and
New shares of restricted stock
Employees
1,794,000
17,940
2.98
%
Directors, Officers and
Total shares of restricted stock
Employees
3,086,700
30,867
5.13
%
Directors, Officers and
Existing stock options
Employees
3,231,746
(4)
11,117
5.36
%
Directors, Officers and
New stock options
Employees
4,485,000
15,384
(5)
7.44
%
Directors, Officers and
Total stock options
Employees
7,716,746
26,501
12.80
%
Total of stock-based incentive plans
15,182,843
$
101,162
25.20
%
(1)
As of December 31, 2009, Oritani Financial Corp.'s existing employee stock ownership plan
held 1,588,649 shares, 237,451 of which have been allocated.
(2)
Represents shares of restricted stock authorized for grant under our existing recognition and
retention plans.
(3)
The actual value of restricted stock awards will be determined based on their fair value as
of the date grants are made. For purposes of this table, fair value is assumed to be the same
as the offering price of $10.00 per share.
(4)
Represents shares authorized for grant under our existing stock option plans.
(5)
The fair value of stock options to be granted under the new stock-based incentive plan has
been estimated based on an index of publicly traded thrift institutions at $3.43 per option
using the Black-Scholes option pricing model with the following assumptions; exercise price,
$10.00; trading price on date of grant, $10.00; dividend yield, 3.0%; expected life, ten
years; expected volatility, 36.45%; and interest rate, 3.85%.
(6)
The number of shares of restricted stock and stock options set forth in the table would
exceed regulatory limits if a stock-based incentive plan was adopted within one year of the
completion of the conversion and offering. Accordingly, the number of new shares of
restricted stock and stock options set forth in the table would have to be reduced such that
the aggregate amount of outstanding stock awards would be 4.0% or less and outstanding stock
options would be 10.0% or less, unless we obtain a waiver from the OTS, or we implement the
incentive plan after twelve months following the completion of the conversion and offering.
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion and offering.
The value of the restricted shares awarded under the stock-based incentive plan will be
based on the market value of our common stock at the time the shares are awarded. The stock-based
incentive plan is subject to stockholder approval, and cannot be implemented until at least six
months after completion of the offering. The following table presents the total value of all
shares of restricted stock that would be available for award and issuance under the new stock-based
incentive plan, assuming the new stock-based incentive plan is adopted more than one year after
completion of the conversion, the shares are awarded when the market price of our common stock
ranges from $8.00 per share to $14.00 per share.
2,063,100 Shares
1,362,000 Shares
1,560,000 Shares
1,794,000 Shares
Awarded at Maximum
Awarded at Minimum
Awarded at Midpoint
Awarded at Maximum
of Range, As
Share Price
of Range
of Range
of Range
Adjusted
(Dollars in thousands, except per share data))
$8.00
$
10,608
$
12,480
$
14,352
$
16,505
10.00
13,260
15,600
17,940
20,631
12.00
15,912
18,720
21,528
24,757
14.00
18,564
21,840
25,116
28,883
The grant-date fair value of the options granted under the new stock-based incentive plan
will be based in part on the price of shares of common stock of Oritani at the time the options are
granted. The value will also depend on the various assumptions used in the option pricing model
ultimately adopted. The following table presents the total estimated value of the options to be
available for grant under the stock-based incentive plan, assuming the new stock-based incentive
plan is adopted more than one year
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after completion of the conversion, the market price and exercise price for the stock options
are equal and the range of market prices for the shares is $8.00 per share to $14.00 per share.
3,900,000 Options
5,157,750 Options
Grant-Date Fair
3,315,000 Options
at Midpoint of
4,485,000 Options
at Maximum of
Exercise Price
Value Per Option
at Minimum of Range
Range
at Maximum of Range
Range, As Adjusted
(Dollars in thousands, except per share data)
$8.00
$
2.74
$
9,083
$
10,686
$
12,289
$
14,132
10.00
3.43
11,370
13,377
15,384
17,691
12.00
4.12
13,658
16,068
18,478
21,250
14.00
4.80
15,912
18,720
21,528
24,757
The tables presented above are provided for informational purposes only. Our shares of
common stock may trade below $10.00 per share. Before you make an investment decision, we urge you
to read this entire prospectus carefully, including, but not limited to, the section entitled "Risk
Factors" beginning on page ___.
Our Dividend Policy
As of December 31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. Oritani expects the annual dividends to equal
$0.30 per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering
range, respectively, which represents an annual dividend yield of 3.0%, at each of the minimum,
midpoint, maximum and adjusted maximum of the offering range, respectively, based upon a price of
$10.00 per share. The amount of dividends that we intend to pay after the conversion will preserve
the dividend rate that Oritani Financial Corp. stockholders currently receive, however, total
dividends received will be positively adjusted to reflect the exchange ratio. The dividend rate and
the continued payment of dividends will depend on a number of factors, including our capital
requirements, our financial condition and results of operations, tax considerations, statutory and
regulatory limitations, and general economic conditions. No assurance can be given that we will
continue to pay dividends or that they will not be reduced or eliminated in the future.
See "Selected Consolidated Financial and Other Data" and "Market for the Common Stock" for
information regarding our historical dividend payments.
Purchases and Ownership by our Officers and Directors
We expect our directors, executive officers and their associates, to purchase 150,000 shares
of common stock in the offering. The purchase price paid by them will be the same $10.00 per share
price paid by all other persons who purchase shares of common stock in the offering. After the
conversion, as a result of purchases in the offering and the shares they will receive in exchange
for shares of Oritani Financial Corp. that they currently own, our directors and executive
officers, together with their associates, are expected to beneficially own approximately ___
and ___ shares of common stock, or ___% and ___% of our total outstanding shares of common
stock, at the minimum and the maximum of the offering range, respectively.
Market for the Common Stock
Shares of Oritani Financial Corp.'s common stock currently trade on the Nasdaq Global Market
under the symbol "ORIT." Upon completion of the conversion, the shares of common stock of Oritani
will replace Oritani Financial Corp.'s existing shares. We expect that Oritani's shares
of common stock will trade on the Nasdaq Global Market under the trading symbol "ORITD" for a
period of 20 trading
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days after the completion of the offering. Thereafter, Oritani's trading symbol will revert to
"ORIT." In order to list our common stock on the Nasdaq Global Market, we are required to have at
least three broker-dealers who will make a market in our common stock. Oritani Financial Corp.
currently has ___registered market makers. Persons purchasing shares of common stock in the
offering may not be able to sell their shares at or above the $10.00 price per share.
Tax Consequences
As a general matter, the conversion will not be a taxable transaction for federal or state
income tax purposes to Oritani Financial Corp., MHC, Oritani Financial Corp., Oritani Bank,
Oritani, persons eligible to subscribe in the subscription offering, or existing stockholders of
Oritani Financial Corp. Existing stockholders of Oritani Financial Corp. who receive cash in lieu
of fractional share interests in shares of Oritani common stock will recognize a gain or loss equal
to the difference between the cash received and the tax basis of the fractional share.
Changes in Stockholders' Rights for Existing Stockholders of Oritani Financial Corp.
As a result of the conversion, existing stockholders of Oritani Financial Corp. will become
stockholders of Oritani. Some rights of stockholders of Oritani will be reduced compared to the
rights stockholders currently have in Oritani Financial Corp. The reduction in stockholder rights
results from differences between the federal and Delaware charters and bylaws, and from
distinctions between federal and Delaware law. Many of the differences in stockholder rights under
the certificate of incorporation and bylaws of Oritani are not mandated by Delaware law but have
been chosen by management as being in the best interests of Oritani and all of its stockholders.
The differences in stockholder rights in the certificate of incorporation and bylaws of Oritani
include the following: (i) approval by at least a majority of outstanding shares required to
remove a director for cause; (ii) greater lead time required for stockholders to submit proposals
for certain provisions of new business or to nominate directors; and (iii) approval by at least 80%
of outstanding shares required to amend the bylaws and certain provisions of the certificate of
incorporation. See "Comparison of Stockholders' Rights For Existing Stockholders of Oritani
Financial Corp." for a discussion of these differences.
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Table of Contents
Dissenters' Rights
Stockholders of Oritani Financial Corp. do not have dissenters' rights in connection with the
conversion and offering.
Important Risks in Owning Oritani's Common Stock
Before you decide to purchase stock, you should read the "Risk Factors" section beginning on
page 22 of this proxy statement/prospectus.
21
Table of Contents
RISK FACTORS
You should consider carefully the following risk factors in evaluating an investment in the
shares of common stock.
Risks Related to Our Business
Our Continued Emphasis On Multi-Family and Commercial Real Estate Lending Could Expose Us To
Increased Lending Risks.
Our business strategy centers on continuing our emphasis on multi-family and commercial real
estate lending. We have grown our loan portfolio in recent years with respect to these types of
loans and intend to continue to emphasize these types of lending. At December 31, 2009, $296.3
million, or 21.4%, of our total loan portfolio consisted of multi-family loans and $628.5 million,
or 45.5%, of our total loan portfolio consisted of commercial real estate loans. As a result, our
credit risk profile will be higher than traditional thrift institutions that have higher
concentrations of one- to four-family residential loans. Loans secured by multi-family and
commercial real estate generally expose a lender to greater risk of non-payment and loss than one-
to four-family residential mortgage loans because repayment of the loans often depends on the
successful operation of the property and the income stream of the underlying property.
Additionally, such loans typically involve larger loan balances to single borrowers or groups of
related borrowers compared to one- to four-family residential mortgage loans. Accordingly, an
adverse development with respect to one loan or one credit relationship can expose us to greater
risk of loss compared to an adverse development with respect to a one- to four-family residential
mortgage loan. We seek to minimize these risks through our underwriting policies, which require
such loans to be qualified on the basis of the property's collateral value, net income and debt
service ratio; however, there is no assurance that our underwriting policies will protect us from
credit-related losses. Finally, if we foreclose on multi-family and commercial real estate loans,
our holding period for the collateral typically is longer than one-to four- family residential
mortgage loans because there are fewer potential purchasers of the collateral. As discussed in
"Business of Oritani Financial Corp., MHC, Oritani Financial Corp. and Oritani Bank—Lending
Activities," we have recently been utilizing stricter underwriting standards for these types of
loans, and have curtailed our construction lending.
The largest commercial real estate loan in our portfolio at December 31, 2009 was a $21.0
million loan secured by a shopping mall located in Ocean County, New Jersey. Our largest
commercial real estate relationship consisted of properties located mainly in our primary market
area with a real estate investor. The aggregate outstanding loan balance for this relationship is
$47.6 million.
If Our Allowance for Loan Losses is Not Sufficient to Cover Actual Loan Losses, Our Earnings Will
Decrease.
We make various assumptions and judgments about the collectability of our loan portfolio,
including the creditworthiness of our borrowers and the value of the real estate and other assets
serving as collateral for the repayment of many of our loans. In determining the amount of the
allowance for loan losses, we review our loans and our loss and delinquency experience, and we
evaluate economic conditions. If our assumptions are incorrect, our allowance for loan losses may
not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to our
allowance. Our delinquent and nonaccrual loans have risen significantly over the past 24 months,
and this growth increases the possibility that our allowance for loan losses may be insufficient in
the future. In addition, the majority of our loan growth since June 30, 2005 has been in
commercial real estate loans. According to Real Estate Econometrics, a property research firm,
default rates on commercial loans climbed to a 16 year high during the quarter ended September 30,
2009. Real Estate Econometrics projects that the default rate will
22
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peak in 2011, before falling back. While our allowance for loan losses was 1.60% of total
loans at December 31, 2009, material additions to our allowance could materially decrease our net
income.
In addition, bank regulators periodically review our allowance for loan losses and may require
us to increase our provision for loan losses or recognize further loan charge-offs. Any increase
in our allowance for loan losses or loan charge-offs as required by these regulatory authorities
might have a material adverse effect on our financial condition and results of operations.
Future Changes in Interest Rates Could Reduce Our Profits.
Our ability to make a profit largely depends on our net interest income, which could be
negatively affected by changes in interest rates. Net interest income is the difference between:
•
the interest income we earn on our interest-earning assets, such as loans and
securities; and
•
the interest expense we pay on our interest-bearing liabilities, such as
deposits and borrowings.
In addition, changes in interest rates can affect the average life of loans and
mortgage-backed and related securities. A reduction in interest rates usually results in increased
prepayments of loans and mortgage-backed and related securities, as borrowers refinance their debt
in order to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we
may not be able to reinvest prepayments at rates that are comparable to the rates we earned on the
original loans or securities. Increases in interest rates may decrease loan demand and/or make it
more difficult for borrowers to repay adjustable rate loans.
Changes in interest rates also affect the current market value of our interest-earning
securities portfolio. Generally, the value of securities moves inversely with changes in interest
rates. At December 31, 2009, the fair value of our securities and mortgage-backed securities
available for sale totaled $419.0 million. Unrealized net gains on these available for sale
securities totaled approximately $2.4 million, net of taxes, at December 31, 2009 and are reported
as a separate component of stockholders' equity. Decreases in the fair value of securities
available for sale in future periods would have an adverse effect on stockholders' equity.
In addition, many of our FHLB-NY advances are callable, often five years from the date of
issuance. To the extent the FHLB-NY calls all or a portion of these advances, we would need to
find another funding source, which might be more expensive to us than these advances.
We evaluate interest rate sensitivity by estimating the change in Oritani Bank's net portfolio
value over a range of interest rate scenarios. Net portfolio value is the discounted present value
of expected cash flows from assets, liabilities and off-balance sheet contracts. At December 31,
2009, in the event of an immediate 200 basis point increase in interest rates, the model projects
that we would experience a $53.6 million, or 20.9%, decrease in net portfolio value. See
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Management
of Market Risk."
Our Direct Investments in Real Estate May Be Riskier than More Traditional Real Estate Loans.
Oritani Financial Corp. and Oritani Bank each have formed companies that have invested
directly in real estate. While these investments have provided us net income during the course of
these investments, they are direct investments and represent a greater risk than loans. With
loans, the borrower
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has an investment interest in the property that partially insulates the loan from the negative
consequences of decreases in the property's value. There is no such protection with a direct real
estate investment. Any decline in performance of these investments may have an adverse effect on
our net income. As detailed in "Business of Oritani Financial Corp., MHC, Oritani Financial Corp.
and Oritani Bank-Subsidiary Activities and Joint Venture Information," we have increased our
investments in these types of assets.
Current Market and Economics Conditions May Significantly Affect Our Operations and Financial
Condition.
Recent negative developments in the national and global credit markets have resulted in
uncertainty in the financial markets and downturn in general economic conditions, including
increased levels of unemployment. The resulting economic pressure on consumers and businesses may
adversely affect our business, financial condition, and results of operations. A worsening of
these conditions would likely exacerbate the adverse effects of these difficult market conditions
on us and others in the financial services industry. In general, loan and investment securities
credit quality has deteriorated at many institutions and the values of real estate collateral
supporting many commercial loans and home mortgages have declined and may continue to decline.
Indications of the deterioration of the value of real estate collateral have been evidenced on a
national level as well as in our market area. These developments could have a significant negative
effect on our borrowers and the values of underlying collateral securing loans, which could
negatively affect our financial performance. Housing market conditions in the New York metro area,
where most of our lending activity occurs, have deteriorated as evidenced by reduced levels of
sales, increasing inventories of houses on the market, declining house prices and an increase in
the length of time houses remain on the market. The S&P/Case-Shiller Home Price Indices, the
leading measure of U.S. home prices, showed that the price of existing single family homes in the
New York metro area at June 30, 2009, suffered a 12.0% decline versus the prior year. RealtyTrac,
a leading online marketplace for foreclosure properties, noted in its 2008 U.S. Foreclosure Market
Report, that New Jersey foreclosures in 2008 had increased 101.2% from 2007, and that the overall
foreclosure rate in New Jersey for 2008 was 1.80%. Foreclosure filings in New Jersey in the first
six months of 2009, increased 31.6% compared to the first half of 2008. Weakening economic
conditions in the residential and commercial real estate sector have adversely affected, and may
continue to adversely affect, our loan portfolio. Total non-performing assets increased from $44.1
million at December 31, 2008 to $52.5 million at December 31, 2009. Total non-performing loans as
a percentage of total assets decreased to 2.59% at December 31, 2009 as compared to 2.66% at
December 31, 2008. If loans that are currently non-performing further deteriorate or loans that
are currently performing become non-performing loans, we may need to increase our allowance for
loan losses, which would have an adverse impact on our financial condition and results of
operations. We would have recognized an additional $1.3 million and $3.7 million in interest
income during the six months ended December 31, 2009 and year ended June 30, 2009, respectively,
had non-performing loans performed in accordance with the original terms.
Our Deposit Growth Has Been a Primary Funding Source. If Deposit Growth Slows, It May Be More
Expensive For Us to Fund Loan Originations.
We have recently experienced a period of unprecedented deposit growth, with a 61.3% increase
in deposit balances from June 30, 2008 to June 30, 2009, and annualized growth for the six month
period ended December 31, 2009 of 14.7%. We will continue to focus on deposit growth, which we use
to fund loan originations and purchase investment securities. If we are unable to continue to
increase our deposit balances, we may be required to utilize alternative sources of funding,
including Federal Home Loan Bank ("FHLB") advances, or increase our deposit rates, each of which
will increase our cost of funds.
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Any future Federal Deposit Insurance Corporation insurance premiums or special assessments will
adversely impact our earnings.
On May 22, 2009, the FDIC adopted a final rule levying a five basis point special assessment
on each insured depository institution's assets minus Tier 1 capital as of June 30, 2009. We
recorded an expense of $846,000 during the quarter ended June 30, 2009, to reflect the special
assessment. Any further special assessments that the FDIC levies will be recorded as an expense
during the appropriate period. In addition, the FDIC increased the general assessment rate and,
therefore, our FDIC general insurance premium expense will increase compared to prior periods.
The FDIC also issued a final rule pursuant to which all insured depository institutions were
required to prepay on December 30, 2009 their estimated assessments for the fourth quarter of 2009,
and for all of 2010, 2011 and 2012. The assessment rate for the fourth quarter of 2009 and for
2010 was based on each institution's total base assessment rate for the third quarter of 2009,
modified to assume that the assessment rate in effect on September 30, 2009 had been in effect for
the entire third quarter, and the assessment rate for 2011 and 2012 would be equal to the modified
third quarter assessment rate plus an additional three basis points. In addition, each
institution's base assessment rate for each period was calculated using its third quarter
assessment base, adjusted quarterly for an estimated 5% annual growth rate in the assessment base
through the end of 2012. We made a payment of $7.6 million to the FDIC on December 30, 2009, and
recorded the payment as a prepaid expense, which will be amortized to expense over three years.
If Our Investment in the Federal Home Loan Bank of New York is Classified as Other-Than-Temporarily
Impaired or as Permanently Impaired, Our Earnings Could Decrease.
We own common stock of the Federal Home Loan Bank of New York (the "FHLB-NY"). We hold the
FHLB-NY common stock to qualify for membership in the Federal Home Loan Bank System and to be
eligible to borrow funds under the FHLB-NY's advance program. The aggregate cost and fair value of
our FHLB-NY common stock as of December 31, 2009 was $25.5 million based on its par value. There
is no market for our FHLB-NY common stock.
Recent published reports indicate that certain member banks of the Federal Home Loan Bank
System may be subject to asset quality-related risks that could result in materially lower
regulatory capital levels. In an extreme situation, it is possible that the capitalization of a
FHLB, including the FHLB-NY, could be substantially diminished or reduced to zero. Consequently,
we believe that there is a risk that our investment in FHLB-NY common stock could be deemed
other-than-temporarily impaired at some time in the future, and if this occurs, it would cause our
earnings to decrease by the after-tax amount of the impairment charge.
Our Inability to Achieve Profitability on New Branches May Negatively Affect Our Earnings.
We have expanded our presence throughout our market area and we intend to pursue further
expansion through de novo branching. The profitability of our expansion strategy will depend on
whether the income that we generate from the new branches will offset the increased expenses
resulting from operating these branches. We expect that it may take a period of time before these
branches can become profitable, especially in areas in which we do not have an established
presence. During this period, the expense of operating these branches may negatively affect our
net income.
Strong Competition Within Our Market Area May Limit Our Growth and Profitability.
Competition in the banking and financial services industry is intense. In our market area, we
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compete with numerous commercial banks, savings institutions, mortgage brokerage firms, credit
unions, finance companies, mutual funds, insurance companies, and brokerage and investment banking
firms operating locally and elsewhere. Some of our competitors have substantially greater resources
and lending limits than we have, have greater name recognition and market presence that benefit
them in attracting business, and offer certain services that we do not or cannot provide. In
addition, larger competitors may be able to price loans and deposits more aggressively than we do.
Our profitability depends upon our continued ability to successfully compete in our market area.
The greater resources and deposit and loan products offered by some of our competitors may limit
our ability to increase our interest-earning assets.
We Operate in a Highly Regulated Industry, Which Limits the Manner and Scope of Our Business
Activities.
We are subject to extensive supervision, regulation and examination by the New Jersey
Department of Banking and Insurance and by the FDIC. As a result, we are limited in the manner in
which we conduct our business, undertake new investments and activities and obtain financing. This
regulatory structure is designed primarily for the protection of the FDIC's Deposit Insurance Fund
("DIF") and our depositors, and not to benefit our stockholders. This regulatory structure also
gives the regulatory authorities extensive discretion in connection with their supervisory and
enforcement activities and examination policies, including policies with respect to capital levels,
the timing and amount of dividend payments, the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes. In addition, we must comply with significant
anti-money laundering and anti-terrorism laws. Government agencies have substantial discretion to
impose significant monetary penalties on institutions which fail to comply with these laws.
A Legislative Proposal Has Been Introduced That Would Require Oritani to Become a Bank Holding
Company.
Legislation has been proposed that would implement sweeping changes to the current bank
regulatory structure. The proposal would, among other things, merge the OTS into the Office of the
Comptroller of the Currency. As discussed further under "Supervision and Regulation—Holding
Company Regulation," federal law allows a state savings bank that qualifies as a Qualified Thrift
Lender, such as Oritani Bank, to elect to be treated as a savings association for purposes of the
savings and loan holding company provisions of the Home Owners' Loan Act of 1933, as amended. Such
election results in the state savings bank's holding company being regulated as a savings and loan
holding company by the OTS rather than as a bank holding company regulated by the Board of
Governors of the Federal Reserve System. If the OTS is eliminated, Oritani would become a bank
holding company subject to regulation and supervision under the Bank Holding Company Act of 1956,
as amended, and the supervision and regulation of the Board of Governors of the Federal Reserve
System, including holding company regulatory capital requirements to which Oritani Financial Corp.
is not currently subject. Such regulatory changes could impact our ability to continue our real
estate investments and joint ventures.
Risks Related to the Offering
The future price of the shares of common stock may be less than the $10.00 purchase price per share
in the offering.
If you purchase shares of common stock in the offering, you may not be able to sell them later
at or above the $10.00 purchase price in the offering. In several cases, shares of common stock
issued by newly converted savings institutions or mutual holding companies have traded below the
initial offering price. The aggregate purchase price of the shares of common stock sold in the
offering will be based on an independent appraisal. The independent appraisal is not intended, and
should not be construed, as a
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recommendation of any kind as to the advisability of purchasing shares of common stock. The
independent appraisal is based on certain estimates, assumptions and projections, all of which are
subject to change from time to time. After our shares begin trading, the trading price of our
common stock will be determined by the marketplace, and may be influenced by many factors,
including prevailing interest rates, the overall performance of the economy, investor perceptions
of Oritani and the outlook for the financial services industry in general. Price fluctuations may
be unrelated to the operating performance of particular companies.
We have broad discretion to deploy our net proceeds. Our failure to timely or effectively deploy
the net proceeds may have an adverse impact on our financial performance and the value of our common stock.
Oritani intends to contribute between $159.4 million and $215.9 million of the net proceeds of
the offering (or $248.4 million at the adjusted maximum of the offering range) to Oritani Bank.
Oritani may use the remaining net proceeds to invest in short-term investments (which generally
have low interest rates), to repurchase shares of common stock, to pay dividends or for other
general corporate purposes. Oritani also expects to use a portion of the net proceeds it retains
to fund a loan for the purchase of shares of common stock in the offering by the employee stock
ownership plan. Oritani Bank may use the net proceeds it receives to fund new loans, to purchase
investment securities, to acquire financial institutions or financial services companies, build or
acquire new branches, or for other general corporate purposes. With the exception of the loan to
the employee stock ownership plan and some of our branching initiatives, we have not allocated
specific amounts of the net proceeds for any of these purposes, and we will have significant
flexibility in determining the amount of the net proceeds we apply to different uses and the timing
of such applications. We have not established a timetable for reinvesting of the net proceeds, and
we cannot predict how long we will require to reinvest the net proceeds.
Our return on equity initially will be low compared to our historical performance. A lower return
on equity may negatively impact the trading price of our common stock.
Net income divided by average stockholders' equity, known as "return on average equity" is a
ratio many investors use to compare the performance of a financial institution to its peers. Our
return on average equity ratio of 6.08% for the six months ended December 31, 2009, compared to an
average negative return on equity of 0.57% based on trailing twelve-month earnings for all publicly
traded fully converted savings institutions as of February 19, 2010. Although we expect that our
net income will increase following the offering, we expect that our return on average equity will
decrease as a result of the additional capital that we will raise in the offering. For example,
our pro forma return on equity for the six months ended December 31, 2009 is 2.5%, assuming the
sale of shares at the maximum of the offering range. Over time, we intend to use the net proceeds
from the offering to increase earnings per share and book value per share, without assuming undue
risk, with the goal of achieving a return on equity that is comparable to our historical
performance. This goal may take a number of years to achieve, and we cannot assure you that we
will be able to achieve it. Consequently, you should not expect a return on equity similar to our
current return on equity in the near future. Failure to achieve a competitive return on equity may
make an investment in our common stock unattractive to some investors and may cause our common
stock to trade at lower prices than comparable companies with higher returns on equity. See "Pro
Forma Data" for an illustration of the financial impact of the offering.
The ownership interest of management and employees could enable insiders to prevent a merger that
may provide stockholders a premium for their shares.
The shares of common stock that our directors and officers intend to purchase in the offering,
when combined with the shares that they will receive in the exchange for their existing shares of
Oritani
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Financial Corp. common stock are expected to result in management and the Board of Directors
controlling approximately ___% of our outstanding shares of common stock at the midpoint of the
offering range. In addition, our employee stock ownership plan is expected to purchase 4.0% of the
shares of common stock sold in the stock offering, and additional stock options and shares of
common stock would be granted to our directors and employees if a stock-based incentive plan is
adopted in the future. This would result in management and employees controlling a significant
percentage of our shares of common stock. If these individuals were to act together, they could
have significant influence over the outcome of any stockholder vote. This voting power may
discourage a potential sale of Oritani that our stockholders may desire.
The implementation of the stock-based incentive plan may dilute your ownership interest.
We intend to adopt a new stock-based incentive plan following the offering, subject to receipt
of stockholder approval. This stock-based incentive plan may be funded either through open market
purchases or from the issuance of authorized but unissued shares of common stock of Oritani. While
our intention is to fund this plan through open market purchases, stockholders would experience an
8.15% reduction in ownership interest at the adjusted maximum of the offering range in the event
newly issued shares of our common stock are used to fund stock options or shares of restricted
common stock under the plan in an amount equal to up to 10.0% and 4.0%, respectively, of the shares
sold in the offering. In the event we adopt the plan within twelve months following the
conversion, shares of common stock reserved for issuance pursuant to awards of restricted stock and
grants of options under the stock-based incentive plan would be limited to 4.0% and 10.0%,
respectively, of the total shares to be outstanding upon completion of the conversion, less the
number of shares of common stock reserved for stock awards and stock options (adjusted by the
exchange ratio) received under previously adopted benefit plans. In the event we adopt the plan
more than one year following the conversion, the plan will not be subject to these limitations.
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion and offering.
Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, historically, the overwhelming majority of stock-based benefit plans adopted by savings
institutions and their holding companies following mutual-to-stock conversions have been approved
by stockholders.
Additional expenses following the conversion from the compensation and benefit expenses associated
with the implementation of the new stock-based incentive benefit plan will adversely affect our
profitability.
We intend to adopt a new stock-based incentive plan after the offering, subject to stockholder
approval, pursuant to which plan participants would be awarded restricted shares of our common
stock (at no cost to them) and options to purchase shares of our common stock. If the stock-based
incentive plan is implemented within twelve months of the completion of the offering, the number of
shares of common stock reserved for issuance for awards of restricted stock or grants of options
under such stock-based incentive plan may not exceed 4.0% and 10.0%, respectively, of the total
shares to be outstanding upon completion of the conversion, less the number of shares of common
stock reserved for stock awards and stock option (adjusted by the exchange ratio) received under
previously adopted benefit plans. If we award restricted shares of common stock or grant options
in excess of these amounts under a stock-based incentive plan adopted more than one year after the
completion of the offering, our costs would increase further. Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after completion of the
offering.
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Following the offering, our non-interest expenses are likely to increase as we will recognize
additional annual employee compensation and benefit expenses related to the shares granted to
employees and executives under our stock-based incentive plan. We cannot predict the actual amount
of these new stock-related compensation and benefit expenses because applicable accounting
practices require that expenses be based on the fair market value of the shares of common stock at
specific points in the future; however, we expect them to be material. In addition, we would
recognize expense for our employee stock ownership plan when shares are committed to be released to
participants' accounts (i.e., as the loan used to acquire these shares is repaid), and we would
recognize expense for restricted stock awards and stock options over the vesting period of awards
made to recipients. The expense in the first year following the offering has been estimated to be
approximately $8.7 million ($6.0 million after tax) at the adjusted maximum of the offering range
as set forth in the pro forma financial information under "Pro Forma Data," assuming the $10.00 per
share purchase price as fair market value. Actual expenses, however, may be higher or lower,
depending on the price of our common stock. In addition, all stock options and stock awards
currently outstanding will vest upon completion of the conversion. We anticipate the pre-tax
expense of such accelerated vesting as well as the accelerated vesting for outstanding stock awards
will be approximately $11.3 million, with such expense to be incurred during the fiscal quarter in
which the stock offering is completed. For further discussion of our proposed stock-based plans,
see "Management—Compensation Discussion and Analysis."
Stock-based incentive plans implemented twelve months following the stock offering may exceed
regulatory restrictions on the size of stock-based incentive plans.
If we implement stock-based incentive plans within twelve months following the completion of
the stock offering, then we may reserve shares of common stock for awards of restricted stock or
grants of stock options under our stock-based incentive plans for up to 4.0% and 10.0%,
respectively, of the shares of stock to be outstanding upon completion of the stock offering, less
the number of shares of restricted stock and option shares (adjusted for the exchange ratio)
reserved under previously adopted benefit plans. The amount of stock awards and stock options
available for grant under the stock-based incentive plans may exceed these amounts, provided the
stock-based incentive plans are implemented twelve months or more following the stock offering.
Although the implementation of the stock-based benefit plan will be subject to stockholder
approval, the determination as to the timing of the implementation of such a plan will be at the
discretion of our board of Directors. Stock-based incentive plans that provide for awards in excess
of these amounts would increase our costs beyond the amounts estimated in "—Additional expenses
following the conversion from the compensation and benefit expenses associated with the
implementation of the new stock-based incentive benefit plan will adversely affect our
profitability." Stock-based incentive plans that provide for awards in excess of these amounts
could also result in dilution to stockholders in excess of that described in "—The implementation
of the stock-based incentive plan may dilute your ownership interest." Our current intention is to
implement a new stock-based incentive plan no earlier than twelve months after the completion of
the conversion. Pro forma data is presented herein assumes the reservation of 4% and 10% of the
outstanding shares of common stock upon completion of the stock offering for awards of estimated
stock or grants of stock options, respectively, and the expenses associated with such amounts.
Various factors may make takeover attempts more difficult to achieve.
Our Board of Directors has no current intention to sell control of Oritani. Provisions of our
certificate of incorporation and bylaws, federal regulations, Delaware law and various other
factors may make it more difficult for companies or persons to acquire control of Oritani without
the consent of our Board of Directors. You may want a takeover attempt to succeed because, for
example, a potential acquirer could offer a premium over the then prevailing price of our common
stock. The factors that may discourage takeover attempts or make them more difficult include:
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•
Office of Thrift Supervision Regulations
.
OTS regulations prohibit, for
three years following the completion of a conversion, the direct or indirect
acquisition of more than 10.0% of any class of equity security of a savings institution
or holding company regulated by the OTS regulated holding company of a converted
institution without the prior approval of the OTS.
•
Certificate of incorporation and statutory provisions.
Provisions of the
certificate of incorporation and bylaws of Oritani and Delaware law may make it more
difficult and expensive to pursue a takeover attempt that management opposes, even if
the takeover is favored by a majority of our stockholders. These provisions also would
make it more difficult to remove our current Board of Directors or management, or to
elect new directors. Additional provisions include limitations on voting rights of
beneficial owners of more than 10.0% of our common stock, the election of directors to
staggered terms of three years and not permitting cumulative voting in the election of
directors. Our bylaws also contain provisions regarding the timing and content of
stockholder proposals and nominations and qualification for service on the Board of
Directors.
•
Issuance of stock options and restricted stock
.
We also intend to issue
stock options and shares of restricted stock to key employees and directors that will
require payments to these persons in the event of a change in control of Oritani.
These payments may have the effect of increasing the costs of acquiring Oritani,
thereby discouraging future takeover attempts.
•
Employment agreements
.
Oritani Financial Corp. has employment agreements
with each of its executive officers which will remain in effect following the stock
offering. These agreements may have the effect of increasing the costs of acquiring
Oritani, thereby discouraging future takeover attempts.
There may be a decrease in stockholders' rights for existing stockholders of Oritani Financial
Corp.
As a result of the conversion, existing stockholders of Oritani Financial Corp. will become
stockholders of Oritani. Some rights of stockholders of Oritani will be reduced compared to the
rights stockholders currently have in Oritani Financial Corp. The reduction in stockholder rights
results from differences between the federal and Delaware charters and bylaws, and from
distinctions between federal and Delaware law. Many of the differences in stockholder rights under
the certificate of incorporation and bylaws of Oritani are not mandated by Delaware law but have
been chosen by management as being in the best interests of Oritani and its stockholders. The
certificate of incorporation and bylaws of Oritani include the following provisions: (i) approval
by at least a majority of outstanding shares required to remove a director for cause; (ii) greater
lead time required for stockholders to submit proposals for new business or to nominate directors;
and (iii) approval by at least 80% of outstanding shares of capital stock entitled to vote
generally is required to amend the bylaws and certain provisions of the certificate of
incorporation. See "Comparison of Stockholders' Rights For Existing Stockholders of Oritani
Financial Corp." for a discussion of these differences.
You may not revoke your decision to purchase Oritani common stock in the subscription offering
after you send us your subscription.
Funds submitted or automatic withdrawals authorized in the connection with a purchase of
shares of common stock in the subscription offering will be held by us until the completion or
termination of the conversion and offering, including any extension of the expiration date.
Because completion of the conversion and offering will be subject to regulatory approvals and an
update of the independent appraisal
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prepared by RP Financial, LC., among other factors, there may be one or more delays in the
completion of the conversion and offering. Orders submitted in the subscription offering are
irrevocable, and subscribers will have no access to subscription funds unless the offering is
terminated, or extended beyond [extension date], or the number of shares to be sold in the offering
is increased to more than 51,577,500 shares or decreased to less than 33,150,000 shares.
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INFORMATION ABOUT THE SPECIAL MEETING
General
This proxy statement/prospectus is being furnished to you in connection with the solicitation
by the Board of Directors of Oritani Financial Corp. of proxies to be voted at the special meeting
of stockholders to be held at [place/address for meeting],
on
, 2010, at ___ a.m.,
Eastern Time, and any adjournment or postponement thereof.
The purpose of the special meeting is to consider and vote upon the Plan of Conversion and
Reorganization of Oritani Financial Corp., MHC (referred to herein as the "plan of conversion").
In addition, stockholders will vote on a proposal to approve the adjournment of the special
meeting, if necessary, to solicit additional proxies in the event that there are not sufficient
votes at the time of the special meeting to approve the proposals. Stockholders also will vote on
informational proposals with respect to the certificate of incorporation and bylaws of Oritani
Voting in favor of or against the plan of conversion includes a vote for or against the
conversion of Oritani Financial Corp., MHC to a stock holding company as contemplated by the plan
of conversion. Voting in favor of the plan of conversion will not obligate you to purchase any
shares of common stock in the offering and will not affect the balance, interest rate or federal
deposit insurance of any deposits at Oritani Bank.
Who Can Vote at the Meeting
You are entitled to vote your Oritani Financial Corp. common stock if our records show that
you held your shares as of the close of business on [stockholder record date]. If your shares are
held in a stock brokerage account or by a bank or other nominee, you are considered the beneficial
owner of shares held in street name and these proxy materials are being forwarded to you by your
broker or nominee. As the beneficial owner, you have the right to direct your broker or nominee
how to vote.
As of the close of business on [stockholder record date], there were
shares of
Oritani Financial Corp. common stock outstanding. Each share of common stock has one vote.
Attending the Meeting
If you are a stockholder as of the close of business on [stockholder record date], you may
attend the meeting. However, if you hold your shares in street name, you will need proof of
ownership to be admitted to the meeting. A recent brokerage statement or a letter from a bank or
broker are examples of proof of ownership. If you want to vote your shares of Oritani Financial
Corp. common stock held in street name in person at the meeting, you will have to get a written
proxy in your name from the broker, bank or other nominee who holds your shares.
Quorum; Vote Required
The special meeting will be held only if there is a quorum. A quorum exists if a majority of
the outstanding shares of common stock entitled to vote, represented in person or by proxy, is
present at the meeting. If you return valid proxy instructions or attend the meeting in person,
your shares will be counted for purposes of determining whether there is a quorum, even if you
abstain from voting. Broker non-votes also will be counted for purposes of determining the
existence of a quorum. A broker non-vote occurs when a broker, bank or other nominee holding
shares for a beneficial owner does not vote on a
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particular proposal because the nominee does not have discretionary voting power with respect to
that item and has not received voting instructions from the beneficial owner.
Proposal 1: Approval of the Plan of Conversion and Reorganization.
We must obtain the
affirmative vote of the holders of (i) two-thirds of the outstanding common stock of Oritani
Financial Corp. entitled to be cast at the special meeting, including shares held by Oritani
Financial Corp., MHC, and (ii) a majority of the outstanding shares of common stock of Oritani
Financial Corp. entitled to be cast at the special meeting, other than shares held by Oritani
Financial Corp., MHC.
Proposal 2: Approval of the adjournment of the special meeting.
We must obtain the
affirmative vote of at least a majority of the votes cast by Oritani Financial Corp. stockholders
entitled to vote at the special meeting to adjourn the special meeting, if necessary, to solicit
additional proxies in the event that there are not sufficient votes at the time of the special
meeting to approve the proposal to approve the plan of conversion.
Informational Proposals 3a through 3d: Approval of certain provisions in Oritani's
certificate of incorporation.
The provisions of Oritani's certificate of incorporation and bylaws
which are summarized as informational proposals were approved as part of the process in which the
Board of Directors of Oritani Financial Corp. approved the plan of conversion. These proposals are
informational in nature only, because the Office of Thrift Supervision's regulations governing
mutual-to-stock conversions do not provide for votes on matters other than the plan of conversion.
While we are asking you to vote with respect to each of the informational proposals, the proposed
provisions for which an informational vote is requested will become effective if stockholders
approve the plan of conversion, regardless of whether stockholders vote to approve any or all of
the informational proposals. The provisions of Oritani's certificate of incorporation and bylaws
which are summarized as informational proposals may have the effect of deterring or rendering more
difficult attempts by third parties to obtain control of Oritani, if such attempts are not approved
by the Board of Directors, or may make the removal of the Board of Directors or management, or the
appointment of new directors, more difficult.
Other Matters.
We must obtain the affirmative vote of the majority of the votes cast by
holders of outstanding shares of common stock of Oritani Financial Corp. At this time, we know of
no other matters that may be presented at the special meeting.
Shares Held by Oritani Financial Corp., MHC and Our Officers and Directors
As of [stockholder record date], Oritani Financial Corp., MHC beneficially owned 27,575,476
shares of Oritani Financial Corp. common stock. This equals approximately 74.4% of our outstanding
shares. Oritani Financial Corp., MHC intends to vote all of its shares in favor of Proposal
1—Approval of the plan of conversion, Proposal 2—Approval of the adjournment of the special
meeting, and Informational Proposals 3a through 3d.
As
of [stockholder record date], our officers and directors beneficially owned
shares
of Oritani Financial Corp. common stock, not including shares that they may acquire upon the
exercise of outstanding stock options. This equals ___% of our outstanding shares and ___% of
shares held by persons other than Oritani Financial Corp., MHC.
Voting by Proxy
Our Board of Directors is sending you this proxy statement/prospectus to request that you
allow your shares of Oritani Financial Corp. common stock to be represented at the special meeting
by the persons named in the enclosed proxy card. All shares of Oritani Financial Corp. common
stock
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represented at the meeting by properly executed and dated proxies will be voted according to the
instructions indicated on the proxy card. If you sign, date and return a proxy card without giving
voting instructions, your shares will be voted as recommended by our Board of Directors. Our Board
of Directors recommends that you vote
"FOR"
approval of the plan of conversion,
"FOR"
approval of
the adjournment of the special meeting, and
"FOR"
each of the Informational Proposals 3a through
3d.
If any matters not described in this proxy statement/prospectus are properly presented at the
special meeting, the Board of Directors will use their judgment to determine how to vote your
shares. We do not know of any other matters to be presented at the special meeting.
If your Oritani Financial Corp. common stock is held in street name, you will receive
instructions from your broker, bank or other nominee that you must follow to have your shares
voted. Your broker, bank or other nominee may allow you to deliver your voting instructions via
the telephone or the Internet. Please see the instruction form provided by your broker, bank or
other nominee that accompanies this proxy statement/prospectus.
Revocability of Proxies
You may revoke your proxy at any time before the vote is taken at the special meeting. To
revoke your proxy, you must advise the corporate secretary of Oritani Financial Corp. in writing
before your common stock has been voted at the special meeting, deliver a later-dated proxy or
attend the special meeting and vote your shares in person. Attendance at the special meeting will
not in itself constitute revocation of your proxy.
Solicitation of Proxies
This proxy statement/prospectus and the accompanying proxy card are being furnished to you in
connection with the solicitation of proxies for the special meeting by the Board of Directors.
Oritani Financial Corp. will pay the costs of soliciting proxies from its stockholders. To the
extent necessary to permit approval of the plan of conversion and the other proposals being
considered,
, our proxy solicitor, directors, officers or employees of
Oritani Financial Corp. and Oritani Bank may solicit proxies by mail, telephone and other forms of
communication. We will reimburse such persons for their reasonable out-of-pocket expenses incurred
in connection with such solicitation. For its services as information agent and stockholder proxy
solicitor, we will pay
, $
plus out-of-pocket expenses and charges for
telephone calls in connection with the solicitation.
We will also reimburse banks, brokers, nominees and other fiduciaries for the expenses they
incur in forwarding the proxy materials to you.
Participants in the Employee Stock Ownership Plan and 401(k) Plan
If you participate in Oritani Bank Employee Stock Ownership Plan (the "ESOP") or if you hold
shares through the Oritani Bank 401(k) Plan ("401(k) Plan"), you will receive a voting instruction
form for each plan that reflects all shares you may direct the trustees to vote on your behalf
under the plans. Under the terms of the ESOP, the ESOP trustee votes all shares held by the ESOP,
but each ESOP participant may direct the trustee how to vote the shares of common stock allocated
to his or her account. The ESOP trustee, subject to the exercise of its fiduciary duties, will vote
all unallocated shares of Oritani Financial Corp. common stock held by the ESOP and allocated
shares for which no voting instructions are received in the same proportion as shares for which it
has received timely voting instructions. Under the terms of the 401(k) Plan, a participant is
entitled to direct the trustee as to the shares in the Oritani
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Financial Corp. Stock Fund credited to his or her account. The trustee will vote all shares for
which no directions are given or for which instructions were not timely received in the same
proportion as shares for which the trustee received voting instructions. The deadline for returning
your voting instructions to each plan's trustee is
, 2010.
Recommendation of the Board of Directors
The Board of Directors recommends that you promptly sign and mark the enclosed proxy in favor
of the above described proposals, including, the adoption of the plan of conversion and promptly
return it in the enclosed envelope. Voting the proxy card will not prevent you from voting in
person at the special meeting. If you prefer, you may vote by using the telephone or Internet.
For information on submitting your proxy or voting by telephone or Internet, please refer to the
instructions on the enclosed proxy.
Your prompt vote is very important. Failure to vote will have the same effect as voting
against the plan of conversion.
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PROPOSAL 1 — APPROVAL OF THE PLAN OF CONVERSION AND REORGANIZATION
The Board of Directors of Oritani Financial Corp. and the Board of Trustees of Oritani
Financial Corp., MHC, have approved the plan of conversion and reorganization, referred to herein
as the "plan of conversion." The plan of conversion must also be approved by the members of
Oritani Financial Corp., MHC (depositors of Oritani Bank) and the stockholders of Oritani Financial
Corp.. A special meeting of members and a special meeting of stockholders have been called for
this purpose. The Office of Thrift Supervision has conditionally approved the plan of conversion;
however, such approval does not constitute a recommendation or endorsement of the plan of
conversion by that agency.
General
Pursuant to the plan of conversion and reorganization, our organization will convert from the
mutual holding company form of organization to the fully stock form. Oritani Financial Corp., MHC,
the mutual holding company parent of Oritani Financial Corp., will be merged into Oritani Financial
Corp., and Oritani Financial Corp., MHC will no longer exist. Oritani Financial Corp. will merge
into a new Delaware corporation named Oritani Financial Corp. (a Delaware corporation). As part of
the conversion, the ownership interest of Oritani Financial Corp., MHC in Oritani Financial Corp.
will be offered for sale in the offering by Oritani. When the conversion is completed, all of the
outstanding common stock of Oritani Bank will be owned by Oritani, and all of the outstanding
common stock of Oritani will be owned by public stockholders. A diagram of our corporate structure
before and after the conversion is set forth in the "Summary" section of this document.
Under the plan of conversion and reorganization, at the completion of the conversion, each
share of Oritani Financial Corp. common stock owned by persons other than Oritani Financial Corp.,
MHC will be canceled and converted automatically into new shares of Oritani common stock determined
pursuant to an exchange ratio. The exchange ratio will ensure that immediately after the exchange
of existing shares of Oritani Financial Corp. for new shares, the public stockholders will own the
same percentage of shares of common stock of Oritani that they owned in Oritani Financial Corp.
immediately prior to the conversion, excluding any shares they purchased in the offering and cash
paid in lieu of fractional shares.
Oritani intends to contribute between $159.2 million and $215.7 million of net proceeds, or
$248.2 million if the offering range is increased by 15%, to Oritani Bank and to retain between
$145.9 million and $197.8 million of the net proceeds, or $227.6 million if the offering range is
increased by 15% (excluding the portion of the net proceeds loaned to our employee stock ownership
plan). The conversion will be consummated only upon the issuance of at least the minimum number of
shares of our common stock offered pursuant to the plan of conversion and reorganization.
The plan of conversion and reorganization provides that we will offer shares of common stock
in a "subscription offering" in the following descending order of priority:
(i)
First, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on December 31, 2008.
(ii)
Second, to our tax-qualified employee benefit plans, including our employee
stock ownership plan and 401(k) plan, which will receive nontransferable subscription
rights to purchase in the aggregate up to 10.0% of the shares of common stock sold in
the offering.
(iii)
Third, to depositors with accounts at Oritani Bank with aggregate balances of
at least $50.00 at the close of business on [supplemental record date].
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(iv)
Fourth, to depositors of Oritani Bank at the close of business on [depositor
record date].
If all shares are not subscribed for in the subscription offering, we may, at our discretion,
offer shares of common stock for sale in a community offering, with a preference given in the
following order:
(v)
Persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;
(vi)
Oritani Bank's borrowers (with an outstanding loan or line of credit) as of
December 31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December 31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank); and
(vii)
Oritani Financial Corp.'s public stockholders as of [stockholder record date].
We have the right to accept or reject, in whole or in part, any orders to purchase shares of
the common stock received in the community offering. The community offering, if any, may begin at
the same time as, during, or after the subscription offering and must be completed within 45 days
after the completion of the subscription offering unless otherwise extended by the OTS. See
"—Community Offering."
The shares of common stock not purchased in the subscription offering or community offering
may be offered to the general public on a best efforts basis by Stifel, Nicolaus & Company,
Incorporated, acting as sole book-running manager, and [co-managers], as co-managers, in a
syndicated community offering through a syndicate of selected dealers.
We have the right to accept or reject orders received in the syndicated community offering at
our sole discretion. The syndicated community offering may begin at any time following the
commencement of the subscription offering and must be completed within 45 days after the completion
of the subscription offering unless otherwise extended by us, with approval of the OTS.
Alternatively, we may sell any remaining shares in an underwritten public offering, which would be
conducted on a firm commitment basis. See "—Syndicated Community Offering."
We determined the number of shares of common stock to be offered in the offering based upon an
independent valuation of the estimated pro forma market value of Oritani. All shares of common
stock to be sold in the offering will be sold at $10.00 per share. Investors will not be charged a
commission to purchase shares of common stock in the offering. The independent valuation will be
updated and the final number of the shares of common stock to be issued in the offering will be
determined at the completion of the offering. See "—Stock Pricing and Number of Shares to be
Issued" for more information as to the determination of the estimated pro forma market value of the
common stock.
The following is a brief summary of the conversion and is qualified in its entirety by
reference to the provisions of the plan of conversion and reorganization. A copy of the plan of
conversion and reorganization is available for inspection at each banking office of Oritani Bank
and at the Northeast Regional and the Washington, D.C. offices of the OTS. The plan of conversion
and reorganization is also filed as an exhibit to Oritani Financial Corp., MHC's application to
convert from mutual to stock form, of which this prospectus is a part, copies of which may be
obtained from the OTS. The plan of conversion and reorganization is also an exhibit to Oritani's
Registration Statement on Form S-1, which is accessible on the Securities and Exchange Commission
website,
www.sec.gov
. See "Where You Can Find Additional Information."
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The Board of Directors recommends that you vote "FOR" the Plan of Conversion and
Reorganization of Oritani Financial Corp., MHC.
Reasons for the Conversion and Offering
Our Board of Directors decided at this time to convert to a fully public stock form of
ownership and conduct the offering in order to increase our capital position. Completing the
offering is necessary for us to continue to grow and execute our business strategy.
Our primary reasons for converting and raising additional capital through the offering are:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and
•
to use the additional capital for other general corporate purposes.
As a fully converted stock holding company, we will have greater flexibility in structuring
mergers and acquisitions, including the form of consideration that we can use to pay for an
acquisition. Our current mutual holding company structure limits our ability to offer shares of
our common stock as consideration for a merger or acquisition since Oritani Financial Corp., MHC is
required to own a majority of our shares of common stock. Potential sellers often want stock for
at least part of the purchase price. Our new stock holding company structure will enable us to
offer stock or cash consideration, or a combination of stock and cash, and will therefore enhance
our ability to compete with other bidders when acquisition opportunities arise.
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Conditions to Completion of the Conversion
The Office of Thrift Supervision has conditionally approved the plan of conversion and
reorganization; however, such approval does not constitute a recommendation or endorsement of the
plan of conversion and reorganization by that agency.
We cannot complete the conversion unless:
•
The plan of conversion and reorganization is approved by at least
a
majority of votes eligible
to be cast by members of Oritani Financial Corp., MHC
(depositors of Oritani Bank) as of [depositor record date];
•
The plan of conversion and reorganization is approved by a vote of at
least
two-thirds of the outstanding shares
of common stock of Oritani Financial Corp.
as of [stockholder record date], including shares held by Oritani Financial Corp., MHC.
(Because Oritani Financial Corp., MHC owns 74.4% of the outstanding shares of Oritani
Financial Corp. common stock, we expect that Oritani Financial Corp., MHC and our
directors and executive officers will control the outcome of this vote.);
•
The plan of conversion and reorganization is approved by a vote of at
least
a majority of the outstanding shares
of common stock of Oritani Financial Corp.
as of [stockholder record date], excluding those shares held by Oritani Financial
Corp., MHC;
•
We sell at least the minimum number of shares of common stock offered; and
•
We receive the final approval of the Office of Thrift Supervision to
complete the conversion; (including the merger of Oritani Financial Corp., MHC into
Oritani Financial Corp. and the merger of Oritani Financial Corp. into Oritani)
however, such approval does not constitute a recommendation or endorsement of the plan
of conversion and reorganization by that agency.
Oritani Financial Corp., MHC intends to vote its ownership interest in favor of the plan of
conversion and reorganization. At [stockholder record date], Oritani Financial Corp., MHC owned
74.4% of the outstanding shares of common stock of Oritani Financial Corp. The directors and
executive officers of Oritani Financial Corp. and their affiliates owned
shares of Oritani
Financial Corp., or ___% of the outstanding shares of common stock as of [stockholder record date].
They have indicated their intention to vote those shares in favor of the plan of conversion and
reorganization.
Share Exchange Ratio for Current Stockholders
OTS regulations provide that in a conversion of a mutual holding company to fully stock form,
the public stockholders will be entitled to exchange their shares for common stock of the new
holding company, provided that the mutual holding company demonstrates to the satisfaction of the
OTS that the basis for the exchange is fair and reasonable. Each publicly held share of Oritani
Financial Corp. common stock will be automatically converted into the right to receive a number of
shares of Oritani common stock. The number of shares of common stock will be determined pursuant
to the exchange ratio, which ensures that the public stockholders will own the same percentage of
common stock in Oritani after the conversion as they held in Oritani Financial Corp. immediately
prior to the conversion, exclusive of their purchase of additional shares of common stock in the
offering and their receipt of cash in lieu of fractional exchange shares. The exchange ratio is not
dependent on the market value of our currently outstanding Oritani Financial Corp. common stock.
The exchange ratio is based on the
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percentage of Oritani Financial Corp. common stock held by the public, the independent
valuation of Oritani prepared by RP Financial, LC. and the number of shares of common stock issued
in the offering. The exchange ratio is expected to range from approximately 11,379,252 exchange
shares at the minimum of the offering range to 17,704,777 exchange shares at the adjusted maximum
of the offering range.
If you are a stockholder of Oritani Financial Corp., at the conclusion of the conversion, your
shares will be exchanged for shares of Oritani. The number of shares you receive will be based on
the number of shares of common stock you own and the final exchange ratio determined as of the
conclusion of the conversion.
The following table shows how the exchange ratio will adjust, based on the number of shares of
common stock issued in the offering and the shares of common stock issued and outstanding on the
date of this prospectus. The table also shows how many whole shares of Oritani a hypothetical
owner of Oritani Financial Corp. common stock would receive in the exchange for 100 shares of
Oritani Financial Corp. common stock owned at the consummation of the conversion, depending on the
number of shares issued in the offering.
New Shares to be
Total Shares of
Per
New Shares That
Exchanged for Existing
Common Stock to be
Equivalent
Would be Received
New Shares to be Sold
Shares of Oritani
Outstanding After
Share Current
for 100 Existing
in This Offering
Financial Corp.
the Offering
Exchange Ratio
Market Value (1)
Shares
Amount
Percent
Amount
Percent
Minimum
33,150,000
74.4454
%
11,379,252
25.5546
%
44,529,252
1.20220
$
12.02
120
Midpoint
39,000,000
74.4454
%
13,387,355
25.5546
%
52,387,355
1.41430
$
14.14
141
Maximum
44,850,000
74.4454
%
15,395,458
25.5546
%
60,245,458
1.62640
$
16.26
163
Adjusted Maximum
51,577,500
74.4454
%
17,704,777
25.5546
%
69,282,277
1.87040
$
18.70
187
(1)
Represents the value of shares of Oritani received in the conversion by a holder of one share
of Oritani Financial Corp. at the exchange ratio, assuming the market price of $10.00 per
share.
Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio so that the aggregate exercise price
and the duration of such options remain unchanged. All such options will vest upon completion of
the conversion. We anticipate the pre-tax expense of such accelerated vesting as well as the
accelerated vesting of outstanding stock awards will be approximately $11.3 million, which
represents the remaining amortization for such accelerated options and awards with such expense to
be incurred during the fiscal quarter in which the stock offering is completed.
Exchange of Existing Stockholders' Stock Certificates
The conversion of existing outstanding shares of Oritani Financial Corp. common stock into the
right to receive shares of Oritani common stock will occur automatically on the effective date of
the conversion. As soon as practicable after the effective date of the conversion, our exchange
agent will send a transmittal form to each public stockholder of Oritani Financial Corp. who holds
stock certificates. The transmittal forms will contain instructions on how to exchange stock
certificates of Oritani Financial Corp. common stock for stock certificates of Oritani common
stock. We expect that stock certificates evidencing shares of Oritani common stock will be
distributed within five business days after the exchange agent receives properly executed
transmittal forms, Oritani Financial Corp. stock certificates
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and other required documents.
You should not forward your stock certificates until you have
received transmittal forms, which will include forwarding instructions.
Shares held by public
stockholders through a brokerage or other account in "street name" will be exchanged automatically
upon the conclusion of the conversion; no transmittal forms will be mailed relating to these
shares.
No fractional shares of Oritani common stock will be issued to any public stockholder of
Oritani Financial Corp. when the conversion is completed. For each fractional share that would
otherwise be issued to a stockholder who holds a stock certificate, we will pay by check an amount
equal to the product obtained by multiplying the fractional share interest to which the holder
would otherwise be entitled by the $10.00 offering purchase price per share. Payment for
fractional shares will be made as soon as practicable after the receipt by the exchange agent of a
properly executed transmittal form, stock certificates and other required documents. If your
shares of common stock are held in street name (such as in a brokerage account), you will
automatically receive cash in lieu of fractional shares in your account.
After the conversion, Oritani Financial Corp. stockholders who hold stock certificates will
not receive shares of Oritani common stock and will not be paid dividends on the shares of Oritani
common stock until existing certificates representing shares of Oritani Financial Corp. common
stock are surrendered for exchange in compliance with the terms of the transmittal form. When
stockholders surrender their certificates, any unpaid dividends will be paid without interest. For
all other purposes, however, each certificate that represents shares of Oritani Financial Corp.
common stock outstanding at the effective date of the conversion will be considered to evidence
ownership of shares of Oritani common stock into which those shares have been converted by virtue
of the conversion.
If a certificate for Oritani Financial Corp. common stock has been lost, stolen or destroyed,
our exchange agent will issue a new stock certificate upon receipt of appropriate evidence as to
the loss, theft or destruction of the certificate, appropriate evidence as to the ownership of the
certificate by the claimant, and appropriate and customary indemnification, which is normally
effected by the purchase of a bond from a surety company at the stockholder's expense.
All shares of Oritani common stock that we issue in exchange for existing shares of Oritani
Financial Corp. common stock will be considered to have been issued in full satisfaction of all
rights pertaining to such shares of common stock, subject, however, to our obligation to pay any
dividends or make any other distributions with a record date prior to the effective date of the
conversion that may have been declared by us on or prior to the effective date, and which remain
unpaid at the effective date.
Effects of Conversion on Depositors, Borrowers and Members
Continuity
.
While the conversion is being accomplished, the normal business of Oritani Bank of
accepting deposits and making loans will continue without interruption. Oritani Bank will continue
to be a state chartered savings bank and will continue to be regulated by the FDIC and the New
Jersey Department of Banking and Insurance. After the conversion, Oritani Bank will continue to
offer existing services to depositors, borrowers and other customers. The directors serving
Oritani Financial Corp. at the time of the conversion will be the directors of Oritani after the
conversion.
Effect on Deposit Accounts
.
Pursuant to the plan of conversion and reorganization, each
depositor of Oritani Bank at the time of the conversion will automatically continue as a depositor
after the conversion, and the deposit balance, interest rate and other terms of such deposit
accounts will not change as a result of the conversion. Each such account will be insured by the
FDIC to the same extent as before the conversion. Depositors will continue to hold their existing
certificates, passbooks and other evidences of their accounts.
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Effect on Loans
.
No loan outstanding from Oritani Bank will be affected by the conversion, and
the amount, interest rate, maturity and security for each loan will remain as it was contractually
fixed prior to the conversion.
Effect on Voting Rights of Members
.
At present, all depositors of Oritani Bank are members of,
and have voting rights in, Oritani Financial Corp., MHC as to all matters requiring membership
action. Upon completion of the conversion, depositors will cease to be members of Oritani Financial
Corp., MHC and will no longer have voting rights, unless they purchase shares of Oritani's common
stock. Upon completion of the conversion, all voting rights in Oritani Bank will be vested in
Oritani as the sole stockholder of Oritani Bank. The stockholders of Oritani will possess
exclusive voting rights with respect to Oritani common stock.
Tax Effects
.
We will receive an opinion of counsel or tax advisor with regard to the federal
and state income tax consequences of the conversion to the effect that the conversion will not be a
taxable transaction for federal or state income tax purposes to Oritani Financial Corp., MHC,
Oritani Financial Corp., the public stockholders of Oritani Financial Corp. (except for cash paid
for fractional shares), members of Oritani Financial Corp., MHC, eligible account holders,
supplemental eligible account holders, or Oritani Bank. See "—Material Income Tax Consequences."
Effect on Liquidation Rights
.
Each depositor in Oritani Bank has both a deposit account in
Oritani Bank and a pro rata ownership interest in the net worth of Oritani Financial Corp., MHC
based upon the deposit balance in his or her account. This ownership interest is tied to the
depositor's account and has no tangible market value separate from the deposit account. This
interest may only be realized in the event of a complete liquidation of Oritani Financial Corp.,
MHC and Oritani Bank. Any depositor who opens a deposit account obtains a pro rata ownership
interest in Oritani Financial Corp., MHC without any additional payment beyond the amount of the
deposit. A depositor who reduces or closes his or her account receives a portion or all of the
balance in the deposit account but nothing for his or her ownership interest in the net worth of
Oritani Financial Corp., MHC, which is lost to the extent that the balance in the account is
reduced or closed.
Consequently, depositors in a stock subsidiary of a mutual holding company normally have no
way of realizing the value of their ownership interest, which has realizable value only in the
unlikely event that Oritani Financial Corp., MHC and Oritani Bank are liquidated. If this occurs,
the depositors of record at that time, as owners, would share pro rata in any residual surplus and
reserves of Oritani Financial Corp., MHC after other claims, including claims of depositors to the
amounts of their deposits and payments to certain depositors of Oritani Bank under liquidation
accounts that have been established for the benefit of such depositors, are paid.
Under the plan of conversion and reorganization, however, depositors will receive rights in a
liquidation account maintained by Oritani representing the amount of (i) Oritani Financial Corp.,
MHC's ownership interest in Oritani Financial Corp.'s total stockholders' equity as of the date of
the latest statement of financial condition used in this prospectus plus (ii) the value of the net
assets of Oritani Financial Corp., MHC as of the date of the latest statement of financial
condition of Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding
its ownership of Oritani Financial Corp.). Oritani shall continue to hold the liquidation account
for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders who continue
to maintain deposits in Oritani Bank. The liquidation account is also designed to provide payments
to depositors of their liquidation interests in the event of a liquidation of Oritani and Oritani
Bank or solely of Oritani Bank.
For further information, see "—Liquidation Rights."
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Stock Pricing and Number of Shares to be Issued
The plan of conversion and reorganization and federal regulations require that the aggregate
purchase price of the common stock sold in the offering must be based on the appraised pro forma
market value of the common stock, as determined by an independent valuation. Oritani Bank and
Oritani Financial Corp., MHC have retained RP Financial, LC. to prepare an independent valuation
appraisal. For its services in preparing the initial valuation, RP Financial, LC. will receive a
fee of $125,000 and $10,000 for expenses and an additional $15,000 for each valuation update, as
necessary. Oritani Bank and Oritani Financial Corp., MHC have agreed to indemnify RP Financial, LC.
and its employees and affiliates against specified losses, including any losses in connection with
claims under the federal securities laws, arising out of its services as independent appraiser,
except where such liability results from its negligence or bad faith.
The independent valuation appraisal considered the pro forma impact of the offering.
Consistent with the OTS appraisal guidelines, the appraisal applied three primary methodologies:
the pro forma price-to-book value approach applied to both reported book value and tangible book
value; the pro forma price-to-earnings approach applied to reported and core earnings; and the pro
forma price-to-assets approach. The market value ratios applied in the three methodologies were
based upon the current market valuations of the peer group companies, subject to valuation
adjustments applied by RP Financial, LC. to account for differences between Oritani Financial Corp.
and the peer group. RP Financial, LC. placed the greatest emphasis on the price-to-earnings and
price-to-book approaches in estimating pro forma market value.
The independent valuation was prepared by RP Financial, LC. in reliance upon the information
contained in this prospectus, including the consolidated financial statements of Oritani Financial
Corp. RP Financial, LC. also considered the following factors, among others:
•
the present results and financial condition of Oritani Financial Corp. and
the projected results and financial condition of Oritani;
•
the economic and demographic conditions in Oritani Financial Corp.'s
existing market area;
•
certain historical, financial and other information relating to Oritani
Financial Corp.;
•
the impact of the offering on Oritani's stockholders' equity and earnings
potential;
•
the proposed dividend policy of Oritani; and
•
the trading market for securities of comparable institutions and general
conditions in the market for such securities.
Included in RP Financial, LC.'s independent valuation were certain assumptions as to the pro
forma earnings of Oritani after the conversion that were utilized in determining the appraised
value. These assumptions included estimated expenses, an assumed after-tax rate of return on the
net offering proceeds of 1.98% and purchases in the open market of the common stock issued in the
offering by the stock-based incentive plan at the $10.00 per share purchase price. See "Pro Forma
Data" for additional information concerning these assumptions. The use of different assumptions may
yield different results.
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The independent valuation states that as of February 19, 2010, the estimated pro forma market
value, or valuation range, of Oritani ranged from a minimum of $445.3 million to a maximum of
$602.5 million, with a midpoint of $523.8 million and an adjusted maximum of $692.8 million. The
Board of Directors of Oritani decided to offer the shares of common stock for a price of $10.00 per
share. The aggregate offering price of the shares of common stock will be equal to the valuation
range multiplied by the percentage of Oritani Financial Corp. common stock owned by Oritani
Financial Corp., MHC. The number of shares offered will be equal to the aggregate offering price
of the shares of common stock divided by the price per share. Based on the valuation range, the
74.4% of Oritani Financial Corp. common stock owned by Oritani Financial Corp., MHC and the $10.00
price per share, the minimum of the offering range will be 33,150,000 shares, the midpoint of the
offering range will be 39,000,000 shares and the maximum of the offering range will be 44,850,000
shares of common stock, with an adjusted maximum of 51,577,500 shares.
The Board of Directors of Oritani reviewed the independent valuation and, in particular,
considered the following:
•
Oritani Financial Corp.'s financial condition and results of operations;
•
comparison of financial performance ratios of Oritani Financial Corp. to
those of other financial institutions of similar size;
•
market conditions generally and in particular for financial institutions;
and
•
the historical trading price of the publicly held shares of Oritani
Financial Corp. common stock.
All of these factors are set forth in the independent valuation. The Board of Directors also
reviewed the methodology and the assumptions used by RP Financial, LC. in preparing the independent
valuation and believes that such assumptions were reasonable. The offering range may be amended
with the approval of the OTS, if required, as a result of subsequent developments in the financial
condition of Oritani Financial Corp. or Oritani Bank or market conditions generally. In the event
the independent valuation is updated to amend the pro forma market value of Oritani to less than
$445.3 million or more than $692.8 million, the appraisal will be filed with the Securities and
Exchange Commission by a post-effective amendment to Oritani's registration statement.
The independent valuation is not intended, and must not be construed, as a recommendation of
any kind as to the advisability of purchasing our shares of common stock. RP Financial, LC. did not
independently verify our consolidated financial statements and other information that we provided
to them, nor did RP Financial, LC. independently value our assets or liabilities. The independent
valuation considers Oritani Bank as a going concern and should not be considered as an indication
of the liquidation value of Oritani Bank. Moreover, because the independent valuation is
necessarily based upon estimates and projections of a number of matters, all of which may change
from time to time, no assurance can be given that persons purchasing our common stock in the
offering will thereafter be able to sell their shares of common stock at prices at or above the
$10.00 price per share.
Following commencement of the subscription offering, the maximum of the valuation range may be
increased by up to 15%, or up to $692.8 million, without resoliciting purchasers, which will result
in a corresponding increase of up to 15% in the maximum of the offering range to up to 51,577,500
shares, to reflect changes in the market and financial conditions, demand for the shares of common
stock or regulatory considerations. We will not decrease the minimum of the valuation range and
the minimum of
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the offering range without a resolicitation of purchasers. The subscription price of $10.00
per share of common stock will remain fixed. See "—Additional Limitations on Common Stock
Purchases" as to the method of distribution of additional shares of common stock to be issued in
the event of an increase in the offering range of up to 51,577,500 shares.
If the update to the independent valuation at the conclusion of the offering results in an
increase in the maximum of the valuation range to more than $692.8 million and a corresponding
increase in the offering range to more than 51,577,500 shares, or a decrease in the minimum of the
valuation range to less than $445.3 million and a corresponding decrease in the offering range to
fewer than 33,150,000 shares, then, after consulting with the OTS, we may terminate the plan of
conversion and reorganization, cancel deposit account withdrawal authorizations and promptly return
by check all funds received, with interest at Oritani Bank's passbook savings rate. Alternatively,
we may establish a new offering range, extend the offering period and commence a resolicitation of
purchasers or take other actions as permitted by the OTS in order to complete the offering. In the
event that we extend the offering and conduct a resolicitation, purchasers would have the
opportunity to maintain, change or cancel their stock orders within a specified period. If a
purchaser does not respond during the period, his or her stock order will be canceled and payment
will be returned promptly, with interest at Oritani Bank's passbook savings rate, and deposit
account withdrawal authorizations will be canceled. Any single offering extension will not exceed
90 days; aggregate extensions may not conclude beyond [final expiration date], which is two years
after the special meeting of members to vote on the conversion.
An increase in the number of shares of common stock to be issued in the offering would
decrease both a purchaser's ownership interest and Oritani's pro forma earnings and stockholders'
equity on a per share basis while increasing pro forma earnings and stockholders' equity on an
aggregate basis. A decrease in the number of shares to be issued in the offering would increase
both a purchaser's ownership interest and Oritani's pro forma earnings and stockholders' equity on
a per share basis, while decreasing pro forma earnings and stockholders' equity on an aggregate
basis. For a presentation of the effects of these changes, see "Pro Forma Data."
Copies of the independent valuation appraisal report prepared by RP Financial, LC. and the
detailed memorandum setting forth the method and assumptions used in the appraisal report are
available for inspection at the main office of Oritani Bank and as specified under "Where You Can
Find Additional Information."
Subscription Offering and Subscription Rights
In accordance with the plan of conversion and reorganization, rights to subscribe for shares
of common stock in the subscription offering have been granted in the following descending order of
priority. The filling of all subscriptions that we receive will depend on the availability of
common stock after satisfaction of all subscriptions of all persons having prior rights in the
subscription offering and subject to the minimum, maximum and overall purchase and ownership
limitations set forth in the plan of conversion and reorganization and as described below under
"—Additional Limitations on Common Stock Purchases."
Priority 1: Eligible Account Holders
.
Each Oritani Bank depositor with aggregate deposit
account balances of $50.00 or more (a "Qualifying Deposit") at the close of business on December
31, 2008 (an "Eligible Account Holder") will receive, without payment therefor, nontransferable
subscription rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of our common
stock; (ii) one-tenth of one percent of the total number of shares of common stock issued in the
offering; or (iii) 15 times the product, rounded down to the nearest whole number, obtained by
multiplying the total number of shares of common stock offered by a fraction, the numerator of
which is the amount of the Qualifying Deposit of
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the Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of
all Eligible Account Holders, subject to the overall purchase and ownership limitations. See
"—Additional Limitations on Common Stock Purchases." If there are not sufficient shares available
to satisfy all subscriptions, shares will first be allocated so as to permit each Eligible Account
Holder to purchase a number of shares sufficient to make his or her total allocation equal to the
lesser of 100 shares or the number of shares for which he or she subscribed. Thereafter,
unallocated shares will be allocated to each Eligible Account Holder whose subscription remains
unfilled in the proportion that the amount of his or her Qualifying Deposit bears to the total
amount of Qualifying Deposits of all subscribing Eligible Account Holders whose subscriptions
remain unfilled. If an amount so allocated exceeds the amount subscribed for by any one or more
Eligible Account Holders, the excess will be reallocated among those Eligible Account Holders whose
subscriptions are not fully satisfied until all available shares have been allocated.
To ensure proper allocation of our shares of common stock, each Eligible Account Holder must
list on his or her stock order form all deposit accounts in which he or she had an ownership
interest on December 31, 2008. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed. In the event of an
oversubscription, the subscription rights of Eligible Account Holders who are also directors or
executive officers of Oritani Financial Corp. or their associates will be subordinated to the
subscription rights of other Eligible Account Holders to the extent attributable to increased
deposits in the twelve months preceding December 31, 2008.
Priority 2: Tax-Qualified Plans
.
Our tax-qualified employee stock benefit plans, consisting
of our employee stock ownership plan and 401(k) plan, will receive, without payment therefor,
nontransferable subscription rights to purchase up to 10.0% of the shares of common stock sold in
the offering, although our employee stock ownership plan intends to purchase 4.0% of the shares of
common stock sold in the offering. If market conditions warrant, in the judgment of its trustees,
the employee stock ownership plan may instead elect to purchase shares in the open market following
the completion of the conversion.
Priority 3: Supplemental Eligible Account Holders
.
To the extent that there are sufficient
shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders
and our tax-qualified employee stock benefit plans, each Oritani Bank depositor, other than
directors and executive officers of Oritani Financial Corp., with a Qualifying Deposit at the close
of business on [supplemental record date] who is not an Eligible Account Holder ("Supplemental
Eligible Account Holder") will receive, without payment therefor, nontransferable subscription
rights to purchase up to the greater of: (i) $500,000 (50,000 shares) of common stock; (ii)
one-tenth of one percent of the total number of shares of common stock issued in the offering; or
(iii) 15 times the product, rounded down to the nearest whole number, obtained by multiplying the
total number of shares of common stock to be offered by a fraction, the numerator of which is the
amount of the Qualifying Deposit of the Supplemental Eligible Account Holder and the denominator is
the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders, subject to
the overall purchase and ownership limitations. See "—Additional Limitations on Common Stock
Purchases." If there are not sufficient shares available to satisfy all subscriptions, shares will
be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of
shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common
stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will
be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled in
the proportion that the amount of his or her Qualifying Deposit bears to the total amount of
Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain
unfilled.
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To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must
list on the stock order form all deposit accounts in which he or she had an ownership interest at
[supplemental record date]. In the event of oversubscription, failure to list an account could
result in fewer shares being allocated than if all accounts had been disclosed.
Priority 4: Other Depositors
.
To the extent that there are shares of common stock remaining
after satisfaction of subscriptions by Eligible Account Holders, our tax-qualified employee stock
benefit plans, and Supplemental Eligible Account Holders, each depositor of Oritani Bank as of the
close of business on the voting record date of [depositor record date] who is not an Eligible
Account Holder or Supplemental Eligible Account Holder ("Other Depositors") will receive, without
payment therefor, nontransferable subscription rights to purchase up to $500,000 (50,000 shares) of
common stock or one-tenth of one percent of the total number of shares of common stock issued in
the offering, subject to the overall purchase and ownership limitations. See "—Additional
Limitations on Common Stock Purchases." If there are not sufficient shares available to satisfy all
subscriptions, available shares will be allocated so as to permit each Other Depositor to purchase
a number of shares sufficient to make his or her total allocation equal to the lesser of 100 shares
of common stock or the number of shares for which he or she subscribed. Any remaining shares will
be allocated among Other Depositors in the proportion that the amount of the subscription of each
Other Depositor whose subscription remains unsatisfied bears to the total amount of subscriptions
of all Other Depositors whose subscriptions remain unsatisfied. To ensure proper allocation of
common stock, each Other Depositor must list on the stock order form all deposit accounts in which
he or she had an ownership interest at [depositor record date]. In the event of oversubscription,
failure to list an account could result in fewer shares being allocated than if all accounts had
been disclosed.
Expiration Date
. The subscription offering will expire at 2:00 p.m., Eastern Time, on
[expiration date], unless extended by us for up to 45 days. Such extension may be made without
notice to you, except that extensions beyond [extension date] will require the approval of the OTS
and a resolicitation of subscribers in the offering. We may decide to extend the expiration date of
the subscription offering for any reason, whether or not subscriptions have been received for
shares at the minimum, midpoint or maximum of the offering range. Subscription rights which have
not been exercised prior to the expiration date will become void. Subscription rights will expire
whether or not each eligible depositor can be located.
Community Offering
To the extent that shares of common stock remain available for purchase after satisfaction of
all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans,
Supplemental Eligible Account Holders and Other Depositors, we may offer shares pursuant to the
plan of conversion and reorganization in a community offering. Shares will be offered with the
following preferences:
(viii)
Persons residing in the counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris,
Warren, Union, Somerset, Hunterdon, Middlesex and Mercer;
(ix)
Oritani Bank's borrowers (with an outstanding loan or line of credit) as of
December 31, 2009 that are meeting all of the terms and conditions of their loan
agreements with Oritani Bank as of December 31, 2009 and the date of purchase of the
common stock (as determined solely in the discretion of Oritani Bank);
(x)
Oritani Financial Corp.'s public stockholder as of [stockholder record date];
and
(xi)
members of the general public.
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Purchasers in the community offering may purchase up to $500,000 (50,000 shares) of common
stock, subject to the overall purchase and ownership limitations. See "—Additional Limitations on
Common Stock Purchases." The minimum purchase is 25 shares.
The opportunity to purchase shares of
common stock in the community offering category is subject to our right, in our sole discretion, to
accept or reject any such orders in whole or in part either at the time of receipt of an order or
as soon as practicable following the expiration date of the offering.
If we do not have sufficient shares of common stock available to fill the accepted orders of
persons residing in the listed counties, we will allocate the available shares among those persons
in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares
or the number of shares subscribed for by such person. Thereafter, unallocated shares will be
allocated among such persons residing in the areas listed above whose orders remain unsatisfied on
an equal number of shares basis per order. If an oversubscription occurs due to the orders of
borrowers or public stockholders of Oritani Financial Corp. as of [stockholder record date], the
allocation procedures described above will apply to the stock orders of such persons. In
connection with the allocation process, unless the OTS permits otherwise, orders received for
Oritani common stock in the community offering will first be filled up to a maximum of two percent
of the shares sold in the offering, and thereafter any remaining shares will be allocated on an
equal number of shares basis per order until all shares have been allocated.
The term "residing" or "resident" as used in this prospectus means any person who occupies a
dwelling within the New Jersey counties of Bergen, Passaic, Sussex, Hudson, Essex, Morris, Warren,
Union, Somerset, Hunterdon, Middlesex and Mercer; has a present intent to remain within such
community for a period of time; and manifests the genuineness of that intent by establishing an
ongoing physical presence within the community, together with an indication that this presence
within the community is something other than merely transitory in nature. We may utilize deposit
or loan records or other evidence provided to us to decide whether a person is a resident. In all
cases, however, the determination shall be in our sole discretion.
Expiration Date.
The community offering, if any, may begin during or after the subscription
offering, and is currently expected to terminate at the same time as the subscription offering.
Oritani may decide to extend the community offering for any reason and is not required to give
purchasers notice of any such extension unless such period extends beyond [extension date], in
which case we will resolicit purchasers in the offering.
Syndicated Community Offering
If feasible, our Board of Directors may decide to offer for sale shares of common stock not
subscribed for or purchased in the subscription and community offerings in a syndicated community
offering, subject to such terms, conditions and procedures as we may determine, in a manner that
will achieve a wide distribution of our shares of common stock. In the syndicated community
offering, any person may purchase up to $500,000 (50,000 shares) of common stock, subject to the
overall purchase and ownership limitations. We retain the right to accept or reject in whole or in
part any orders in the syndicated community offering. Unless the OTS permits otherwise, accepted
orders for Oritani common stock in the syndicated community offering will first be filled up to a
maximum of two percent (2%) of the shares sold in the offering, and thereafter any remaining shares
will be allocated on an equal number of shares basis per order until all shares have been
allocated. Unless the syndicated community offering begins during the community offering, the
syndicated community offering will begin as soon as possible after the completion of the
subscription and community offerings.
If a syndicated community offering is held, Stifel, Nicolaus & Company, Incorporated will
serve as sole book running manager. [co-managers] will serve as co-managers, and each firm will
assist us in
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selling our common stock on a best efforts basis. Neither Stifel, Nicolaus & Company,
Incorporated nor any registered broker-dealer will have any obligation to take or purchase any
shares of the common stock in the syndicated community offering. The syndicated community offering
will be conducted in accordance with certain Securities and Exchange Commission rules applicable to
best efforts offerings. Generally under those rules, Stifel, Nicolaus & Company, Incorporated, a
broker-dealer, will deposit funds it receives prior to closing from interested investors into a
separate non-interest-bearing bank account at a bank other than Oritani Bank. The closing of the
syndicated community offering is subject to conditions set forth in an agency agreement among
Oritani, Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank on one hand and
Stifel, Nicolaus & Company, Incorporated on the other hand. If and when all the conditions for the
closing are met, funds for common stock sold in the syndicated community offering, less fees and
commissions payable by us, will be delivered promptly to us. If the offering is consummated, but
some or all of an interested investor's funds are not accepted by us, those funds will be returned
to the interested investor promptly after closing, without interest. If the offering is not
consummated, funds in the account will be returned promptly, without interest, to the potential
investor. Normal customer ticketing will be used for order placement. In the syndicated community
offering, order forms will not be used.
In the event that we sell common stock in a "stand by" underwritten public offering, we have
agreed that Stifel, Nicolaus & Company, Incorporated will have the right to serve as sole
book-running manager. Any underwritten public offering will be conducted on a firm commitment
basis. In such case, the underwriters will purchase all shares of common stock not sold in the
subscription offering or the community offering, if any such shares are purchased. The aggregate
price paid to us by or through the underwriters for the shares of common stock will be the number
of shares sold multiplied by the $10.00 price per share, less the amount of an underwriting
discount as negotiated between us and the underwriters and approved by the OTS and the Financial
Industry Regulatory Authority. If we determine to sell stock in an underwritten public offering,
the terms of such offering, including the names of the underwriters participating in such offering,
will be described in a supplement to this prospectus.
If for any reason we cannot effect a syndicated community offering or underwritten public
offering of shares of common stock not purchased in the subscription and community offerings, or in
the event that there is a significant number of shares remaining unsold after such offerings, we
will try to make other arrangements for the sale of unsubscribed shares, if possible. The OTS must
approve any such arrangements.
Additional Limitations on Common Stock Purchases
The plan of conversion and reorganization includes the following limitations on the number of
shares of common stock that may be purchased in the offering:
(i)
No person may purchase fewer than 25 shares of common stock;
(ii)
The maximum number of shares of common stock that may be purchased by a person,
or persons exercising subscription rights through a single qualifying deposit account
held jointly, is 50,000 shares;
(iii)
Our tax-qualified employee stock benefit plans, including our employee stock
ownership plan and 401(k) plan, may purchase in the aggregate up to 10.0% of the shares
of common stock sold in the offering, including shares sold in the event of an increase
in the offering range of up to 15%;
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(iv)
Except for the tax-qualified employee stock benefit plans, including our
employee stock ownership plan and 401(k) plan, as described above, no person or entity,
together with associates or persons acting in concert with such person or entity, may
purchase more than $1.0 million (100,000 shares) of common stock in all categories of
the offering combined;
(v)
Current stockholders of Oritani Financial Corp. are subject to an ownership
limitation. As previously described, current stockholders of Oritani Financial Corp.
will receive shares of Oritani common stock in exchange for their existing shares of
Oritani Financial Corp. common stock at the conclusion of the offering. The number of
 shares of common stock that a stockholder may purchase in the offering, together with
associates or persons acting in concert with such stockholder, when combined with the
 shares that the stockholder and his or her associates will receive in exchange for
existing Oritani Financial Corp. common stock, may not exceed 5% of the shares of
common stock of Oritani to be issued and outstanding at the completion of the
conversion; and
(vi)
The maximum number of shares of common stock that may be purchased in all
categories of the offering by executive officers and directors of Oritani Bank and
their associates, in the aggregate, when combined with shares of common stock issued in
exchange for existing shares, may not exceed 25% of the shares of Oritani common stock
outstanding upon completion of the conversion.
Depending upon market or financial conditions, our Board of Directors, with the approval of
the OTS and without further approval of members of Oritani Financial Corp., MHC, may decrease or
increase the purchase and ownership limitations. If a purchase limitation is increased,
subscribers in the subscription offering who ordered the maximum amount will be given, and, in our
sole discretion, some other large subscribers who through their subscriptions evidence a desire to
purchase the maximum allowable number of shares may be given, the opportunity to increase their
subscriptions up to the then applicable limit. The effect of this type of resolicitation will be
an increase in the number of shares of common stock owned by subscribers who choose to increase
their subscriptions. In the event that the maximum purchase limitation is increased to 5% of the
shares sold in the offering, such limitation may be further increased to 9.99%,
provided
that
orders for Oritani common stock exceeding 5% of the shares issued in the offering shall not exceed
in the aggregate 10.0% of the total shares sold in the offering.
In the event of an increase in the offering range of up to 51,577,500 shares of common stock,
shares will be allocated in the following order of priority in accordance with the plan of
conversion and reorganization:
(i)
to fill subscriptions by the tax-qualified employee stock benefit plans,
including the employee stock ownership plan, for up to 10.0% of the total number of
 shares of common stock sold in the offering;
(ii)
in the event that there is an oversubscription at the Eligible Account Holder,
Supplemental Eligible Account Holder or Other Depositor levels, to fill unfulfilled
subscriptions of these subscribers according to their respective priorities; and
(iii)
to fill subscriptions in the community offering, with preference given first
to persons residing in the New Jersey counties of Bergen, Passaic, Sussex, Hudson,
Essex, Morris, Warren, Union, Somerset, Hunterdon, Middlesex and Mercer; then to
Oritani Bank's borrowers (with an outstanding loan or line of credit) as of December
31, 2009 that are meeting all of their terms and conditions of the loan agreements with
Oritani Bank (as
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determined solely in the discretion of Oritani Bank) as of December 31, 2009 and the
date of purchase of the common stock; then to Oritani Financial Corp.'s public
stockholders as of [stockholder record date] and then to members of the general
public.
The term "associate" of a person means:
(i)
any corporation or organization, other than Oritani Financial Corp., MHC,
Oritani Financial Corp., Oritani Bank or a majority-owned subsidiary of Oritani
Financial Corp. or Oritani Bank, of which the person is a senior officer, partner or
beneficial owner, directly or indirectly, of 10.0% or more of any equity security;
(ii)
any trust or other estate in which the person has a substantial beneficial
interest or serves as a trustee or in a similar fiduciary capacity; provided, however,
that for the purposes of subscriptions in the offering and restrictions on the sale of
stock after the conversion, the term "associate" does not include a person who has a
substantial beneficial interest in an employee stock benefit plan of Oritani Bank, or
who is a trustee or fiduciary of such plan, and for purposes of aggregating total
 shares that may be held by officers, trustees and directors of Oritani Financial Corp.,
MHC, Oritani Financial Corp. or Oritani Bank, (the term "associate" does not include
any tax-qualified employee stock benefit plan of Oritani Bank); and
(iii)
any blood or marriage relative of the person, who either has the same home as
the person or who is a director, trustee or officer of Oritani Financial Corp., MHC,
Oritani Financial Corp. or Oritani Bank.
The term "acting in concert" means:
(i)
knowing participation in a joint activity or interdependent conscious parallel
action towards a common goal whether or not pursuant to an express agreement; or
(ii)
a combination or pooling of voting or other interests in the securities of an
issuer for a common purpose pursuant to any contract, understanding, relationship,
agreement or other arrangement, whether written or otherwise.
A person or company that acts in concert with another person or company shall also be deemed
to be acting in concert with any person or company who is also acting in concert with that other
party, except that any tax-qualified employee stock benefit plan will not be deemed to be acting in
concert with its trustee or a person who serves in a similar capacity solely for the purpose of
determining whether common stock held by the trustee and common stock held by the employee stock
benefit plan will be aggregated.
We have the sole discretion to determine whether prospective purchasers are "associates" or
"acting in concert." Persons exercising subscription rights through a single qualifying deposit
account held jointly, whether or not related, will be deemed to be acting in concert unless we
determine otherwise.
Our directors are not treated as associates of each other solely because of their membership
on the Board of Directors. Common stock purchased in the offering will be freely transferable
except for shares purchased by executive officers and directors of Oritani or Oritani Bank and
except as described below. Any purchases made by any associate of Oritani or Oritani Bank for the
explicit purpose of meeting the minimum number of shares of common stock required to be sold in
order to complete the offering shall be made for investment purposes only and not with a view
toward redistribution. In addition, under
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Financial Industry Regulatory Authority guidelines, members of the Financial Industry
Regulatory Authority and their associates are subject to certain restrictions on transfer of
securities purchased in accordance with subscription rights and to certain reporting requirements
upon purchase of these securities. For a further discussion of limitations on purchases of our
shares of common stock at the time of conversion and thereafter, see "—Certain Restrictions on
Purchase or Transfer of Our Shares after Conversion" and "Restrictions on Acquisition of Oritani."
Marketing Arrangements
To assist in the marketing of our common stock, we have retained Stifel, Nicolaus & Company,
Incorporated, which is a broker-dealer registered with the Financial Industry Regulatory Authority.
Stifel, Nicolaus & Company, Incorporated will assist us on a best efforts basis in the offering by:
(i)
acting as our financial advisor for the conversion and offering;
(ii)
providing administrative services and managing the Stock Information Center;
(iii)
educating our employees regarding the offering;
(iv)
targeting our sales efforts, including assisting in the preparation of
marketing materials; and
(v)
soliciting orders for common stock.
For these services, Stifel, Nicolaus & Company, Incorporated will receive an advisory and
administrative fee of $50,000 and 1% of the dollar amount of all shares of common stock sold in the
subscription and community offering. The sales fee will be reduced by the advisory and
administrative fee. No sales fee will be payable to Stifel, Nicolaus & Company, Incorporated with
respect to shares purchased by officers, directors and employees or their immediate families and
shares purchased by our tax-qualified and non-qualified employee benefit plans. In the event that
Stifel, Nicolaus & Company, Incorporated sells common stock through a group of broker-dealers in a
syndicated community offering, it will be paid a fee equal to 1% of the dollar amount of total
shares sold in the syndicated community offering, which fee along with the fee payable to selected
dealers (which may include Stifel, Nicolaus & Company, Incorporated) shall not exceed 5% in the
aggregate. Stifel, Nicolaus & Company, Incorporated will serve as sole book running manager.
[co-managers] will serve as co-managers. Alternatively, in the event that Stifel, Nicolaus &
Company, Incorporated sells common stock through a group of broker-dealers in a "stand-by" firm
commitment underwritten public offering (for which Stifel, Nicolaus & Company, Incorporated will
serve as sole book running manager), the underwriters will be paid a fee which shall not exceed 6%
of the dollar amount of total shares sold in such offering. Stifel, Nicolaus & Company,
Incorporated also will be reimbursed for allocable expenses in amount not to exceed $20,000 for the
subscription offering and community offering and $75,000 for the syndicated community offering, and
for attorney's fees in an amount not to exceed $150,000.
In the event that we are required to resolicit subscribers for shares of our common stock in
the subscription and community offerings, Stifel, Nicolaus & Company, Incorporated will be required
to provide significant additional services in connection with the resolicitation (including
repeating the services described above), and we may pay Stifel, Nicolaus & Company, Incorporated an
additional fee for those services that will not exceed $50,000. In the event of a material delay
in the offering which would require an update of the financial information in tabular form to
reflect a period later than that set forth in the original filing of this document, Stifel Nicolaus
will not incur any additional accountable
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reimbursable out-of-pocket expenses in excess of $10,000 or additional reimbursable legal fees
in excess of $25,000, and in the aggregate, reimbursable expenses and legal fees shall not exceed
$280,000.
We will indemnify Stifel, Nicolaus & Company, Incorporated against liabilities and expenses,
including legal fees, incurred in connection with certain claims or litigation arising out of or
based upon untrue statements or omissions contained in the offering materials for the common stock,
including liabilities under the Securities Act of 1933, as amended.
Some of our directors and executive officers may participate in the solicitation of offers to
purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses
incurred in connection with the solicitation. Other regular employees of Oritani Bank may assist in
the offering, but only in ministerial capacities, and may provide clerical work in effecting a
sales transaction. No offers or sales may be made by tellers or at the teller counters. No sales
activity will be conducted in a Oritani Bank banking office. Investment-related questions of
prospective purchasers will be directed to executive officers or registered representatives of
Stifel, Nicolaus & Company, Incorporated. Our other employees have been instructed not to solicit
offers to purchase shares of common stock or provide advice regarding the purchase of common stock.
We will rely on Rule 3a4-1 under the Securities Exchange Act of 1934, as amended, and sales of
common stock will be conducted within the requirements of Rule 3a4-1, so as to permit officers,
directors and employees to participate in the sale of common stock. None of our officers, directors
or employees will be compensated in connection with their participation in the offering.
In addition, we have engaged Stifel, Nicolaus & Company, Incorporated to act as our records
management agent in connection with the conversion and offering. In its role as records management
agent, Stifel, Nicolaus & Company, Incorporated will coordinate with our data processing contacts
and interface with the Stock Information Center to provide the records processing and the proxy and
stock order services, including but not limited to: (1) consolidation of deposit accounts and vote
calculation; (2) preparation of information for order forms and proxy cards; (3) interface with our
financial printer; (4) record stock order information; and (5) tabulate proxy votes. For these
services, Stifel, Nicolaus & Company, Incorporated will receive no additional fee. We will also
reimburse Stifel, Nicolaus & Company, Incorporated for its reasonable out-of-pocket expenses
associated with its acting as records management agent in an amount not to exceed $5,000.
Lock-up Agreements
We and our directors and executive officers have agreed not to, directly or indirectly, offer,
sell, transfer, pledge, assign, hypothecate or otherwise encumber any shares of our common stock or
options, warrants or other securities exercisable, convertible or exchangeable for our common stock
during the period commencing with the filing of the registration statement for the offering and
conversion and ending 90 days after completion of the offering and conversion without the prior
written consent of Stifel, Nicolaus & Company, Incorporated. In addition, except for securities
issued pursuant to existing employee benefit plans in accordance with past practices or securities
issued in connection with a merger or acquisition by us, we have agreed not to issue, offer to sell
or sell any shares of our common stock or options, warrants or other securities exercisable,
convertible or exchangeable for our common stock without the prior written consent of Stifel,
Nicolaus & Company, Incorporated for a period of 90 days after completion of the offering and
conversion.
Offering Deadline
The subscription and community offerings will expire at 2:00 p.m., Eastern Time, on
[expiration date], unless extended, without notice to you, for up to 45 days. Any extension of the
subscription and/or
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community offering beyond [extension date] would require the OTS's approval. In such event,
we would conduct a resolicitation. Purchasers would have the opportunity to maintain, change or
cancel their stock orders within a specified period. If a purchaser does not respond during the
resolicitation period, his or her stock order will be canceled and payment will be returned
promptly, with interest calculated at Oritani Bank's passbook savings rate, and deposit account
withdrawal authorizations will be canceled. We will not execute orders until at least the minimum
number of shares offered has been sold. If we have not sold the minimum by the expiration date or
any extension thereof, we will terminate the offering and cancel all orders, as described above.
Any single offering extension will not exceed 90 days; aggregate extensions may not conclude beyond
[final expiration date], which is two years after the special meeting of members to vote on the
conversion. We reserve the right in our sole discretion to terminate the offering at any time and
for any reason, in which case we will cancel any deposit account withdrawal orders and promptly
return all funds submitted, with interest calculated at Oritani Bank's passbook savings rate from
the date of receipt.
Prospectus Delivery
To ensure that each purchaser receives a prospectus at least 48 hours before the expiration
date of the offering in accordance with Rule 15c2-8 of the Securities Exchange Act of 1934, we may
not mail a prospectus any later than five days prior to the expiration date or hand deliver any
later than two days prior to the expiration date. Execution of an order form will confirm receipt
of delivery in accordance with Rule 15c2-8. Order forms will only be distributed with or preceded
by a prospectus.
In the syndicated community offering or any "stand by" underwritten public offering, a
prospectus in electronic format may be made available on the Internet sites or through other online
services maintained by Stifel, Nicolaus & Company, Incorporated or one or more other members of the
syndicate, or by their respective affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the syndicate member, prospective investors may be
allowed to place orders online. The members of the syndicate may agree with us to allocate a
specific number of shares for sale to online brokerage account holders. Any such allocation for
online distributions will be made on the same basis as other allocations.
Other than the prospectus in electronic format, the information on the Internet sites
referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration
statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by
Stifel, Nicolaus & Company, Incorporated or any other member of the syndicate in its capacity as
selling agent or syndicate member and should not be relied upon by investors.
Procedure for Purchasing Shares in the Subscription and Community Offerings
Use of Stock Order Forms
.
In order to purchase shares of common stock in the subscription
offering and community offering, you must submit a properly completed original stock order form and
remit full payment. Incomplete stock order forms or stock order forms that are not signed are not
required to be accepted. We are not required to accept stock orders submitted on photocopied or
facsimiled stock order forms. All stock order forms must be received (not postmarked) prior to 2:00
p.m. Eastern Time, on [expiration date]. We are not required to accept stock order forms that are
not received by that time, are executed defectively or are received without full payment or without
appropriate withdrawal instructions. We are not required to notify purchasers of incomplete or
improperly executed stock order forms. We have the right to waive or permit the correction of
incomplete or improperly executed stock order forms, but we do not represent that we will do so.
You may submit your stock order form and payment by mail using the stock order reply envelope
provided, by bringing your stock order
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form to our Stock Information Center, or by overnight delivery to the indicated address on the
order form. Our Stock Information Center is located at Oritani Bank's main office, 370 Pascack
Road, Township of Washington, New Jersey 07676. Stock order forms may not be delivered to other
Oritani Bank offices. Once tendered, a stock order form cannot be modified or revoked without our
consent. We reserve the absolute right, in our sole discretion, to reject orders received in the
community offering, in whole or in part, at the time of receipt or at any time prior to completion
of the offering.
If you are ordering shares in the subscription offering, by signing the stock order form you
are representing that you are purchasing shares for your own account and that you have no agreement
or understanding with any person for the sale or transfer of the shares. Our interpretation of the
terms and conditions of the plan of conversion and reorganization and of the acceptability of the
stock order forms will be final.
By signing the stock order form, you will be acknowledging that the common stock is not a
deposit or savings account and is not federally insured or otherwise guaranteed by Oritani Bank or
any federal or state government, and that you received a copy of this prospectus. However, signing
the stock order form will not cause you to waive your rights under the Securities Act of 1933 or
the Securities Exchange Act of 1934. We have the right to reject any order submitted in the
offering by a person who we believe is making false representations or who we otherwise believe,
either alone or acting in concert with others, is violating, evading, circumventing, or intends to
violate, evade or circumvent the terms and conditions of the plan of conversion and reorganization.
Payment for Shares
.
Payment for all shares of common stock will be required to accompany all
completed order forms for the purchase to be valid. You may not submit cash or wire transfers.
Payment for shares may be made by:
(vi)
personal check, bank check or money order, made payable to Oritani Bank; or
(vii)
authorization of withdrawal from the types of Oritani Bank deposit accounts
designated on the stock order form.
Appropriate means for designating withdrawals from deposit accounts at Oritani Bank are
provided on the order forms. The funds designated must be available in the account(s) at the time
the stock order form is received. A hold will be placed on these funds, making them unavailable to
the depositor. Funds authorized for withdrawal will continue to earn interest within the account at
the contract rate until the offering is completed, at which time the designated withdrawal will be
made. Interest penalties for early withdrawal applicable to certificate of deposit accounts will
not apply to withdrawals authorized for the purchase of shares of common stock; however, if a
withdrawal results in a certificate of deposit account with a balance less than the applicable
minimum balance requirement, the certificate of deposit will be canceled at the time of withdrawal
without penalty and the remaining balance will earn interest calculated at the current passbook
savings rate subsequent to the withdrawal. In the case of payments made by personal check, these
funds must be available in the account(s) wire transfers or check and money orders will be
immediately cashed and placed in a segregated account at Oritani Bank or another depository
institution and will earn interest calculated at Oritani Bank's passbook savings rate from the date
payment is processed until the offering is completed, at which time a subscriber will be issued a
check for interest earned.
You may not remit Oritani Bank line of credit checks, and we will not accept wire transfers or
third-party checks, including those payable to you and endorsed over to Oritani. You may not
designate on your stock order form a direct withdrawal from an Oritani Bank retirement account.
See "—Using Retirement Account Funds to Purchase Shares" for information on using such funds.
Additionally, you
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may not designate on your stock order form a direct withdrawal from Oritani Bank deposit
accounts with check-writing privileges. Please provide a check instead. If you request direct
withdrawal, we reserve the right to interpret that as your authorization to treat those funds as if
we had received a check for the designated amount, and we will immediately withdraw the amount from
your checking account(s). Once we receive your executed stock order form, it may not be modified,
amended or rescinded without our consent, unless the offering is not completed by [extension date],
in which event purchasers may be given the opportunity to increase, decrease or rescind their
orders for a specified period of time.
Regulations prohibit Oritani Bank from lending funds or extending credit to any persons to
purchase shares of common stock in the offering.
We have the right, in our sole discretion, to permit institutional investors to submit
irrevocable orders together with a legally binding commitment for payment and to thereafter pay for
the shares of common stock for which they subscribe in the community offering at any time prior to
48 hours before the completion of the conversion. This payment may be made by wire transfer.
If our employee stock ownership plan purchases shares in the offering, it will not be required
to pay for such shares until consummation of the offering, provided that there is a loan commitment
from an unrelated financial institution or Oritani to lend to the employee stock ownership plan the
necessary amount to fund the purchase.
Using Retirement Account Funds to Purchase Shares
Persons interested in purchasing common stock using funds currently in an individual
retirement account ("IRA") or any other retirement account, whether held through Oritani Bank or
elsewhere, should contact our Stock Information Center for guidance. Please contact the Stock
Information Center as soon as possible, preferably at least two weeks prior to the [expiration
date] offering deadline, because processing such transactions takes additional time, and whether
such funds can be used may depend on limitations imposed by the institution where the funds are
currently held. Additionally, if such funds are not currently held in a self-directed retirement
account, then before placing your stock order, you will need to establish one with an independent
trustee or custodian, such as a brokerage firm. The new trustee or custodian will hold the shares
of common stock in a self-directed account in the same manner as we now hold retirement account
funds. An annual administrative fee may be payable to the new trustee or custodian. Assistance on
how to transfer such retirement accounts can be obtained from the Stock Information Center.
Oritani Bank cannot offer self-directed retirement accounts. If you wish to use some or all
of your funds that are currently held in an Oritani Bank IRA or other retirement account, you may
not designate on the stock order form that you wish funds to be withdrawn from the account(s) for
the purchase of common stock. Before you place your stock order, the funds you wish to use must be
transferred from those accounts to a self-directed retirement account at an independent trustee or
custodian, as described above.
Delivery of Stock Certificates
Certificates representing shares of common stock issued in the subscription and community
offering will be mailed by regular mail to the persons entitled thereto at the certificate
registration address noted by them on the stock order form, as soon as practicable following
consummation of the conversion. Any certificates returned as undeliverable will be held by our
transfer agent until claimed by persons legally entitled thereto or otherwise disposed of in
accordance with applicable law.
Until certificates for the shares of common stock are available and
delivered to purchasers, purchasers may not be able
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to sell the shares of common stock which they ordered, even though the common stock will have
begun trading. Your ability to sell shares of common stock before you receive stock certificates
will depend upon the arrangements you may make with your brokerage firm.
If you are currently a stockholder of Oritani Financial Corp., see "—Exchange of Existing
Stockholders' Stock Certificates."
Other Restrictions
Notwithstanding any other provision of the plan of conversion and reorganization, no person is
entitled to purchase any shares of common stock to the extent the purchase would be illegal under
any federal or state law or regulation, including state "blue sky" regulations, or would violate
regulations or policies of the Financial Industry Regulatory Authority. We may ask for an
acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may
refuse to honor any purchase order if an opinion is not timely furnished. In addition, we are not
required to offer shares of common stock to any person who resides in a foreign country, or in a
State of the United States with respect to which any of the following apply: (a) a small number of
persons otherwise eligible to subscribe for shares under the plan of conversion and reorganization
reside in such state; (b) the issuance of subscription rights or the offer or sale of shares of
common stock to such persons would require us, under the securities laws of such state, to register
as a broker, dealer, salesman or agent or to register or otherwise qualify our securities for sale
in such state; or (c) such registration or qualification would be impracticable for reasons of cost
or otherwise.
Restrictions on Transfer of Subscription Rights and Shares
OTS regulations prohibit any person with subscription rights, including the Eligible Account
Holders, Supplemental Eligible Account Holders and Other Depositors, from transferring or entering
into any agreement or understanding to transfer the legal or beneficial ownership of the
subscription rights issued under the plan of conversion and reorganization or the shares of common
stock to be issued upon their exercise. These rights may be exercised only by the person to whom
they are granted and only for his or her account. When registering your stock purchase on the
stock order form, you should not add the name(s) of persons who do not have subscription rights or
who qualify only in a lower purchase priority than you do. Doing so may jeopardize your
subscription rights. Each person exercising subscription rights will be required to certify that
he or she is purchasing shares solely for his or her own account and that he or she has no
agreement or understanding regarding the sale or transfer of such shares. The regulations also
prohibit any person from offering or making an announcement of an offer or intent to make an offer
to purchase subscription rights or shares of common stock to be issued upon their exercise prior to
completion of the offering.
We will pursue any and all legal and equitable remedies in the event we become aware of the
transfer of subscription rights, and we will not honor orders that we believe involve the transfer
of subscription rights.
Stock Information Center
Our banking office personnel may not, by law, assist with investment-related questions about
the offering. If you have any questions regarding the conversion or offering, please call or visit
our Stock Information Center, located at Oritani Bank's main office, 370 Pascack Road, Township of
Washington, New Jersey 07676. The toll-free telephone number is 1-877-
. The Stock
Information Center is open Monday through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time.
The Stock Information
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Center will be closed weekends and bank holidays. Other Oritani Bank offices will not have
offering materials and will not accept stock order forms or proxy cards.
Liquidation Rights
Liquidation prior to the conversion
.
In the unlikely event of a complete liquidation of
Oritani Bank and Oritani Financial Corp., MHC prior to the conversion, all claims of creditors of
Oritani Financial Corp., MHC would be paid first. Thereafter, if there were any assets of Oritani
Financial Corp., MHC remaining, these assets would be distributed to depositors of Oritani Bank.
The amount received by such depositors would be equal to their pro rata interest in the remaining
value of Oritani Financial Corp., MHC, after claims of creditors, based on the relative size of
their deposit. Any assets of Oritani Financial Corp., MHC remaining after distributions under the
liquidation accounts would be distributed to the depositors of Oritani Bank pro rata, based upon
the relative size of their deposit accounts,
Liquidation following the conversion
.
In the unlikely event that Oritani Bank were to
liquidate after the conversion, all claims of creditors, including those of depositors, would be
paid first. However, except with respect to the liquidation account to be established in Oritani
as further described below, a depositor's claim would be solely for the principal amount of his or
her deposit accounts plus accrued interest. Depositors would not have an interest in the value of
the assets of Oritani Bank or Oritani above that amount.
The plan of conversion provides for the establishment, upon the completion of the conversion,
of a "liquidation account" by Oritani for the benefit of Eligible Account Holders and Supplemental
Eligible Account Holders in an amount equal to (i) Oritani Financial Corp., MHC's ownership
interest in Oritani Financial Corp.'s total stockholders equity as of the date of its latest
statement of financial condition contained in this prospectus plus (ii) the value of the net assets
of Oritani Financial Corp., MHC as of the date of the latest statement of financial condition of
Oritani Financial Corp., MHC prior to the consummation of the conversion (excluding its ownership
of Oritani). The plan of conversion also provides for the
establishment of a parallel
liquidation account in Oritani Bank to support the liquidation account
in Oritani.
The liquidation account established by Oritani is designed to provide payments to depositors
of their liquidation interests (exchanged for the liquidation rights such persons had in Oritani
Financial Corp., MHC) in the event of a liquidation of Oritani and Oritani Bank or a liquidation
solely of Oritani Bank. Specifically, in the unlikely event that either (i) Oritani Bank or (ii)
Oritani and Oritani Bank were to liquidate after the conversion, all claims of creditors, including
those of depositors, would be paid first, followed by distribution to depositors as of December 31,
2008 and March 31, 2010 of their interests in the liquidation account maintained by Oritani. Also, in a complete
liquidation of both entities, or of Oritani Bank, when Oritani has insufficient assets (other than
the stock of Oritani Bank), to fund the liquidation account distribution due to Eligible Account
Holders and Supplemental Eligible Account Holders and Oritani Bank has positive net worth, Oritani
Bank shall immediately make a distribution to fund Oritani's remaining obligations under the
liquidation account. If Oritani is completely
liquidated or sold apart from a sale or liquidation of Oritani Bank,
then the Oritani liquidation account will cease to exist and  Eligible
Account Holders and Supplemental Eligible Account Holders will receive
an equivalent interest in the Oritani Bank liquidation
account, subject to the same rights and terms as the liquidation account.
Pursuant to the plan of conversion, after two years from the date of conversion and upon the
written request of the OTS, Oritani will transfer the liquidation account and the depositors'
interests in such account to Oritani Bank and the liquidation account shall thereupon become the
liquidation account of Oritani Bank.
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Under the rules and regulations of the OTS, a post-conversion merger, consolidation, or
similar combination or transaction with another depository institution in which Oritani or Oritani
Bank is not the surviving institution would not be considered a liquidation. In such a
transaction, the liquidation account would be assumed by the surviving institution.
Each Eligible Account Holder or Supplemental Eligible Account Holder would have an initial
pro rata
interest in the liquidation account for each deposit account, including savings accounts,
transaction accounts such as negotiable order of withdrawal accounts, money market deposit
accounts, and certificates of deposit, with a balance of $50.00 or more held in Oritani Bank on
December 31, 2008 or March 31, 2010, equal to  the proportion that the
balance of each  Eligible Account Holder and Supplemental  Eligible
Account Holder's deposit account on December 31, 2008 and
March 31, 2010 respectively, bears to the balance of
all deposit accounts  of Eligible Account Holders and Supplemental
Eligible Account Holders in Oritani Bank on such dates.
If, however, on any June 30 annual closing date commencing after the effective date of the
conversion, the amount in any such deposit account is less than the amount in the deposit account
on December 31, 2008 or March 31, 2010 or any other annual closing date, then the interest in the
liquidation account relating to such deposit account would be reduced from time to time by the
proportion of any such reduction, and such interest will cease to exist if such deposit account is
closed. In addition, no interest in the liquidation account would ever be increased despite any
subsequent increase in the related deposit account. Payment pursuant to liquidation rights of
Eligible Account Holders and Supplemental Eligible Account Holder would be separate and apart from
the payment of any insured deposit accounts to such depositor. Any assets remaining after the above
liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holder are
satisfied would be available for distribution to  stockholders.
Material Income Tax Consequences
Completion of the conversion is subject to the prior receipt of an opinion of counsel or tax
advisor with respect to federal and state income tax consequences of the conversion to Oritani
Financial MHC, Oritani Financial Corp., Oritani Bank or Oritani, Eligible Account Holders and
Supplemental Eligible Account Holders of Oritani. Unlike private letter rulings, the opinions of
counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing
authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that Oritani or Oritani Bank would prevail in a judicial
proceeding.
We have received an opinion of counsel Luse Gorman Pomerenk & Schick as to the federal tax
consequences of the conversion. We have received an opinion of KPMG LLP to the effect that, more
likely than not, the income tax consequences under New Jersey law of the offering are not
materially different than for federal income tax purposes.
Luse Gorman Pomerenk & Schick, has issued an opinion to Oritani Financial Corp., MHC, Oritani
Financial Corp., Oritani Bank and Oritani that for federal income tax purposes:
1.
The merger of Oritani Financial Corp., MHC with and into Oritani Financial
Corp. will qualify as a tax-free reorganization within the meaning of Section
368(a)(1)(A) of the Internal Revenue Code.
2.
The constructive exchange of Eligible Account Holders' and Supplemental
Eligible Account Holders' liquidation interests in Oritani Financial Corp., MHC for
liquidation interests in Oritani Financial Corp. will satisfy the continuity of
interest requirement of Section 1.368-1(b) of the Federal Income Tax Regulations.
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3.
None of Oritani Financial Corp., MHC, Oritani Financial Corp., Eligible Account
Holders nor Supplemental Eligible Account Holders, will recognize any gain or loss on
the transfer of the assets of Oritani Financial Corp., MHC to Oritani Financial Corp.
in constructive exchange for a liquidation interest established in Oritani Financial
Corp. for the benefit of such persons who remain depositors of Oritani Bank.
4.
The basis of the assets of Oritani Financial Corp., MHC and the holding period
of such assets to be received by Oritani Financial Corp. will be the same as the basis
and holding period in such assets in the hands of Oritani Financial Corp., MHC
immediately before the exchange. (Sections 362(b) and 1223(2) of the Internal Revenue
Code.)
5.
The merger of Oritani Financial Corp. with and into Oritani will constitute a
mere change in identity, form or place of organization within the meaning of Section
368(a)(1)(F) of the Code and therefore will qualify as a tax-free reorganization within
the meaning of Section 368(a)(1)(F) of the Code. Neither Oritani Financial Corp. nor
Oritani will recognize gain or loss as a result of such merger. (Sections 361(a) and
1032(a) of the Internal Revenue Code).
6.
The basis of the assets of Oritani Financial Corp. and the holding period of
such assets to be received by Oritani will be the same as the basis and holding period
in such assets in the hands of Oritani Financial Corp. immediately before the exchange.
(Sections 362(b) and 1223(2) of the Internal Revenue Code.)
7.
Current stockholders of Oritani Financial Corp. will not recognize any gain or
loss upon their constructive exchange of Oritani Financial Corp. common stock for
Oritani common stock.
8.
Eligible Account Holders and Supplemental Eligible Account Holders will not
recognize any gain or loss upon their constructive exchange of their liquidation
interests in Oritani Financial Corp. for the liquidation accounts in Oritani.
9.
The constructive exchange of the Eligible Account Holders and Supplemental
Eligible Account Holders liquidation interests in Oritani Financial Corp. for interests
in a liquidation account established in Oritani will satisfy the continuity of interest
requirement of Section 1.368-1(b) of the Federal Income Tax Regulations
10.
Each stockholder's aggregate basis in shares of Oritani common stock (including
fractional share interests) received in the exchange will be the same as the aggregate
basis of Oritani Financial Corp. common stock surrendered in the exchange.
11.
Each stockholder's holding period in his or her Oritani common stock received
in the exchange will include the period during which the Oritani Financial Corp. common
stock surrendered was held, provided that the Oritani Financial Corp. common stock
surrendered is a capital asset in the hands of the stockholder on the date of the
exchange.
12.
Cash received by any current stockholder of Oritani Financial Corp. in lieu of
a fractional share interest in shares of Oritani common stock will be treated as having
been received as a distribution in full payment in exchange for a fractional share
interest of Oritani common stock, which such stockholder would otherwise be entitled to
receive. Accordingly, a stockholder will recognize gain or loss equal to the difference
between the cash received and
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the basis of the fractional share. If the common stock is held by the stockholder as a
capital asset, the gain or loss will be capital gain or loss.
13.
It is more likely than not that the fair market value of the nontransferable
subscription rights to purchase Oritani common stock is zero. Accordingly, no gain or
loss will be recognized by Eligible Account Holders, Supplemental Eligible Account
Holders or Other Members upon distribution to them of nontransferable subscription
rights to purchase shares of Oritani common stock. Eligible Account Holders,
Supplemental Eligible Account Holders and Other Members will not realize any taxable
income as the result of the exercise by them of the nontransferable subscriptions
rights.
14.
It is more likely than not that the fair market value of the benefit provided
by the liquidation account of Oritani Bank supporting the payment of the Oritani
liquidation account in the event Oritani lacks sufficient net assets is zero.
Accordingly, it is more likely than not that no gain or loss will be recognized by
Eligible Account Holders and Supplemental Eligible Account Holders upon the
constructive distribution to them of such rights in the Oritani Bank liquidation
account as of the effective date of the merger of Oritani Financial Corp. with and into
Oritani. (Section 356(a) of the Internal Revenue Code.)
15.
It is more likely than not that the basis of the shares of Oritani common stock
purchased in the offering by the exercise of nontransferable subscription rights will
be the purchase price. The holding period of the Oritani common stock purchased
pursuant to the exercise of nontransferable subscription rights will commence on the
date on which the right to acquire such stock was exercised.
16.
No gain or loss will be recognized by Oritani on the receipt of money in
exchange for Oritani common stock sold in the offering.
We believe that the tax opinions summarized above address all material federal income tax
consequences that are generally applicable to Oritani Financial Corp., MHC, Oritani Financial
Corp., Oritani Bank, Oritani and persons receiving subscription rights and shareholders of Oritani
Financial Corp. The tax opinion as to items 8 and 13 above is based on the position that
subscription rights to be received by Eligible Account Holders, Supplemental Eligible Account
Holders and Other Members do not have any economic value at the time of distribution or the time
the subscription rights are exercised. In this regard, Luse Gorman Pomerenk & Schick noted that the
subscription rights will be granted at no cost to the recipients, are legally non-transferable and
of short duration, and will provide the recipient with the right only to purchase shares of common
stock at the same price to be paid by members of the general public in any community offering. The
firm also noted that the Internal Revenue Service has not in the past concluded that subscription
rights have value. Based on the foregoing, Luse Gorman Pomerenk & Schick believes that it is more
likely than not that the nontransferable subscription rights to purchase shares of common stock
have no value. However, the issue of whether or not the nontransferable subscription rights have
value is based on all the facts and circumstances. If the subscription rights granted to Eligible
Account Holders, Supplemental Eligible Account Holders and Other Members are deemed to have an
ascertainable value, receipt of these rights could result in taxable gain to those Eligible Account
Holders, Supplemental Eligible Account Holders and Other Members who exercise the subscription
rights in an amount equal to the ascertainable value, and we could recognize gain on a
distribution. Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are
encouraged to consult with their own tax advisors as to the tax consequences in the event that
subscription rights are deemed to have an ascertainable value.
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We also have received a letter from RP Financial stating its belief that the subscription
rights do not have any ascertainable fair market value and that the price at which the subscription
rights are exercisable will not be more or less than the fair market value of the shares on the
date of the exercise. This position is based on the fact that these rights are acquired by the
recipients without cost, are nontransferable and of short duration, and afford the recipients the
right only to purchase the common stock at the same price as will be paid by members of the general
public in any community offering.
The opinion as to item 14 above is based on the position that Oritani: (i) there is no history
of any holder of a liquidation account receiving any payment attributable to a liquidation account;
(ii) the interests in the liquidation accounts are not transferable; (iii) the amounts due under
the liquidation account with respect to each Eligible Account Holder and Supplemental Eligible
Account Holder will be reduced as their deposits in Oritani Bank are reduced; and (iv) the Oritani
Bank liquidation account payment obligation arises only if Oritani lacks sufficient net assets to
fund the liquidation account.
In addition, we have received a letter from RP Financial stating its belief that the benefit
provided by the Oritani Bank liquidation account supporting the payment of the liquidation account
in the event Oritani lacks sufficient net assets does not have any economic value at the time of
the merger of Oritani Financial Corp. and Oritani. Based on the foregoing, Luse Gorman Pomerenk &
Schick believes it is more likely than not that such rights in the Oritani Bank liquidation account
have no value. If such rights are subsequently found to have an economic value, income may be
recognized by each Eligible Account Holder or Supplemental Eligible Account Holder in the amount of
such fair market value as of the date of the merger of Oritani Financial Corp. and Oritani.
We do not plan to apply for a private letter ruling from the Internal Revenue Service
concerning the transactions described herein. Unlike private letter rulings issued by the Internal
Revenue Service, opinions of counsel are not binding on the Internal Revenue Service or any state
tax authority, and such authorities may disagree with such opinions. In the event of such
disagreement, there can be no assurance that the conclusions reached in an opinion of counsel would
be sustained by a court if contested by the Internal Revenue Service.
The federal tax opinion has been filed with the Securities and Exchange Commission as an
exhibit to Oritani's registration statement. Advice regarding the New Jersey income tax
consequences consistent with the federal tax opinion is expected to be issued by KPMG LLP, tax
advisors to Oritani Financial Corp., MHC and Oritani Financial Corp.
Certain Restrictions on Purchase or Transfer of Our Shares after the Conversion
All shares of common stock purchased in the offering by a director or an executive officer of
Oritani Bank generally may not be sold for a period of one year following the closing of the
conversion, except in the event of the death of the director or executive officer. Each certificate
for restricted shares will bear a legend giving notice of this restriction on transfer, and
instructions will be issued to the effect that any transfer within this time period of any
certificate or record ownership of the shares other than as provided above is a violation of the
restriction. Any shares of common stock issued at a later date as a stock dividend, stock split, or
otherwise, with respect to the restricted stock will be similarly restricted. The directors and
executive officers of Oritani also will be restricted by the insider trading rules promulgated
pursuant to the Securities Exchange Act of 1934.
Purchases of shares of our common stock by any of our directors, executive officers and their
associates, during the three-year period following the closing of the conversion may be made only
through a broker or dealer registered with the Securities and Exchange Commission, except with the
prior written approval of the OTS. This restriction does not apply, however, to negotiated
transactions involving more than 1% of our outstanding common stock or to purchases of our common
stock by our
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stock-based incentive plan or any of our tax-qualified employee stock benefit plans or
non-tax-qualified employee stock benefit plans.
OTS regulations prohibit Oritani from repurchasing its shares of common stock during the first
year following the conversion unless compelling business reasons exist for such repurchases. After
one year, the OTS does not impose any repurchase restrictions.
The Board of Directors recommends that you vote "FOR" the Plan of Conversion and
Reorganization of Oritani Financial Corp., MHC.
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PROPOSAL 2 — ADJOURNMENT OF THE SPECIAL MEETING
If there are not sufficient votes to constitute a quorum or to approve the plan of conversion
at the time of the special meeting, the proposals may not be approved unless the special meeting is
adjourned to a later date or dates in order to permit further solicitation of proxies. In order to
allow proxies that have been received by Oritani Financial Corp. at the time of the special meeting
to be voted for an adjournment, if necessary, Oritani Financial Corp. has submitted the question of
adjournment to its stockholders as a separate matter for their consideration. The Board of
Directors of Oritani Financial Corp. recommends that stockholders vote "FOR" the adjournment
proposal. If it is necessary to adjourn the special meeting, no notice of the adjourned special
meeting is required to be given to stockholders (unless the adjournment is for more than 30 days or
if a new record date is fixed), other than an announcement at the special meeting of the hour, date
and place to which the special meeting is adjourned.
The Board of Directors recommends that you vote "FOR" the adjournment of the special meeting,
if necessary, to solicit additional proxies in the event that there are not sufficient votes at the
time of the special meeting to approve the plan of conversion.
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PROPOSALS 3a THROUGH 3d — INFORMATIONAL PROPOSALS RELATED TO THE
CERTIFICATE OF INCORPORATION AND BYLAWS OF ORITANI
By their approval of the plan of conversion as set forth in Proposal 1, the Board of Directors
of Oritani Financial Corp. has approved each of the informational proposals numbered 3a through 3d,
all of which relate to provisions included in the certificate of incorporation or bylaws of
Oritani. Each of these informational proposals is discussed in more detail below.
As a result of the conversion, the public stockholders of Oritani Financial Corp., whose
rights are presently governed by the charter and bylaws of Oritani Financial Corp., will become
stockholders of Oritani, whose rights will be governed by the certificate of incorporation and
bylaws of Oritani. The following informational proposals address the material differences between
the governing documents of the two companies. This discussion is qualified in its entirety by
reference to the charter and bylaws of Oritani Financial Corp. and the certificate of incorporation
and bylaws of Oritani. See "Where You Can Find Additional Information" for procedures for
obtaining a copy of those documents.
The provisions of Oritani's certificate of incorporation and bylaws which are summarized as
informational proposals 3a through 3d were approved as part of the process in which the Board of
Directors of Oritani Financial Corp. approved the plan of conversion. These proposals are
informational in nature only, because the Office of Thrift Supervision's regulations governing
mutual-to-stock conversions do not provide for votes on matters other than the plan of conversion.
Oritani Financial Corp.'s stockholders are not being asked to approve these informational proposals
at the special meeting. While we are asking you to vote with respect to each of the informational
proposals set forth below, the proposed provisions for which an informational vote is requested
will become effective if stockholders approve the plan of conversion, regardless of whether
stockholders vote to approve any or all of the informational proposals. The provisions of
Oritani's certificate of incorporation and bylaws which are summarized as informational proposals
may have the effect of deterring or rendering more difficult attempts by third parties to obtain
control of Oritani, if such attempts are not approved by the Board of Directors, or may make the
removal of the Board of Directors or management, or the appointment of new directors, more
difficult.
Informational Proposal 3a — Approval of a Provision in Oritani's Certificate of incorporation
and Bylaws to Limit the Ability of Stockholders to Remove Directors.
The certificate of
incorporation of Oritani provides that any director may be removed by stockholders only for cause
upon the affirmative vote of the holders of at least a majority of the shares entitled to vote in
the election of directors. However, Oritani's bylaws provide that a special meeting of the
stockholders shall be called at the request of stockholders only on the written request of
stockholders entitled to cast at least a majority of all the votes entitled to be cast at the
meeting. These provisions, along with the prohibition against any beneficial owner voting more
than 10% of the outstanding voting stock, which is discussed below, will prevent anyone that
acquires beneficial ownership, directly or indirectly, of a majority of the outstanding shares from
voting shares in excess of the 10% limit to call a special meeting to remove directors.
Oritani Financial Corp.'s bylaws provide that any director may be removed only for cause by a
vote of the holders of a majority of the outstanding voting shares at a meeting of stockholders
called for such purpose. This has provided an adequate degree of protection under the mutual
holding company structure, in which the mutual holding company owns a majority of all voting shares
and can prevent a third party from seeking removal of one or more directors in order to promote an
agenda that may not be in the best interests of all other stockholders.
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The majority voting requirement for the removal of directors for cause, together with the 10%
voting limit and the provision regarding the calling of special meetings, is intended to prevent
sudden and fundamental changes to the composition of the Board of Directors except in the case of
director misconduct. This provision does not prevent the replacement of one or more directors at a
special meeting of stockholders, and will not prevent replacement of the entire Board over the
course of three years. This provision is intended to reduce the ability of anyone to coerce
members of the Board of Directors by threatening them with removal from office, in cases where the
directors are acting in good faith to discharge their duties to the corporation and to all
stockholders as a group. This provision will not prevent a stockholder from conducting a proxy
contest with respect to the election of directors at a special meeting of stockholders.
The majority vote threshold, together with the other provisions discussed above, may make it
more difficult to bring about a change in control of Oritani One method for a hostile stockholder
to take control of a company is to acquire a majority of the outstanding shares of the company
through a tender offer or open market purchases and then use its voting power to remove the
existing directors.
The Board of Directors believes that it is desirable to adopt the provision requiring a
majority vote to remove a director so that a director's continued service will be conditioned on
his or her ability to serve and discharge his or her duties to the corporation and the stockholders
in good faith, rather than his or her position relative to a dominant stockholder.
The Board of Directors recommends that you vote "FOR" the approval of a provision in Oritani's
certificate of incorporation and bylaws to limit the ability of stockholders to remove directors.
Informational Proposal 3b. — Approval of a Provision in Oritani's Certificate of
incorporation Requiring a Super-Majority Vote to Approve Certain Amendments to Oritani's
Certificate of incorporation.
No amendment of the charter of Oritani Financial Corp. may be made
unless it is first proposed by the Board of Directors, then preliminarily approved by the Office of
Thrift Supervision, and thereafter approved by the holders of a majority of the total votes
eligible to be cast at a legal meeting. The certificate of incorporation of Oritani generally may
be amended by the holders of a majority of the shares entitled to vote; provided, however, that any
amendment of Section C, D and E of Article Sixth (Preferred Stock, Restrictions on Voting Rights of
the Corporation's Equity Securities, Majority Vote), Article 6 (Directors), Article 7 (Bylaws),
Article 8 (Approval of Certain Business Combinations), Article 9 (Indemnification, etc. of
Directors and Officers), Article 10 (Limitation of Liability) and Article 11 (Amendment of the
Certificate of incorporation) must be approved by the affirmative vote of the holders of at least
80% of the outstanding shares entitled to vote (or in the case of Article 11, at least 85% of the
understanding shares entitled to vote), except that the Board of Directors may amend the
certificate of incorporation without any action by the stockholders to increase or decrease the
aggregate number of shares of capital stock.
These limitations on amendments to specified provisions of Oritani's certificate of
incorporation are intended to ensure that the referenced provisions are not limited or changed upon
a simple majority vote. While this limits the ability of stockholders to amend those provisions,
Oritani Financial Corp., MHC, as a 74.4% stockholder, currently can effectively block any
stockholder proposed change to the charter.
The requirement of a super-majority stockholder vote to amend specified provisions of
Oritani's certificate of incorporation could have the effect of discouraging a tender offer or
other takeover attempt where the ability to make fundamental changes through amendments to the
certificate of incorporation is an important element of the takeover strategy of the potential
acquiror. The Board of Directors believes
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that the provisions limiting certain amendments to the certificate of incorporation will put the
Board of Directors in a stronger position to negotiate with third parties with respect to
transactions potentially affecting the corporate structure of Oritani and the fundamental rights of
its stockholders, and to preserve the ability of all stockholders to have an effective voice in the
outcome of such matters.
The Board of Directors recommends that you vote "FOR" the approval of a provision in Oritani's
certificate of incorporation requiring a super-majority vote to approve certain amendments to
Oritani's certificate of incorporation.
Informational Proposal 3c. — Approval of a Provision in Oritani's Bylaws Requiring a
Super-Majority Vote of Stockholders to Approve Stockholder Proposed Amendments to Oritani's Bylaws.
An amendment to Oritani Financial Corp.'s bylaws proposed by stockholders must be approved by the
holders of a majority of the total votes eligible to be cast at a legal meeting subject to
applicable approval by the Office of Thrift Supervision. The bylaws of Oritani provide that
stockholders may only amend the bylaws if such proposal is approved by the affirmative vote of the
holders of at least 80% of the outstanding shares entitled to vote.
The requirement of a super-majority stockholder vote to amend the bylaws of Oritani is
intended to ensure that the bylaws are not limited or changed upon a simple majority vote of
stockholders. While this limits the ability of stockholders to amend the bylaws, Oritani Financial
Corp., MHC, as a 74.4% stockholder, currently can effectively block any stockholder proposed change
to the bylaws. Also, the Board of Directors of both Oritani Financial Corp. and Oritani may by a
majority vote amend either company's bylaws.
This provision in Oritani's bylaws could have the effect of discouraging a tender offer or
other takeover attempt where the ability to make fundamental changes through amendments to the
bylaws is an important element of the takeover strategy of the potential acquiror. The Board of
Directors believes that the provision limiting amendments to the bylaws will put the Board of
Directors in a stronger position to negotiate with third parties with respect to transactions
potentially affecting the corporate structure of Oritani and the fundamental rights of its
stockholders, and to preserve the ability of all stockholders to have an effective voice in the
outcome of such matters.
The Board of Directors recommends that you vote "FOR" the approval of the provision in
Oritani's bylaws requiring a super-majority vote of stockholders to approve stockholder proposed
amendments to Oritani's bylaws.
Informational Proposal 3d. — Approval of a Provision in Oritani's Certificate of
incorporation to Limit the Voting Rights of Shares Beneficially Owned in Excess of 10% of Oritani's
Outstanding Voting Stock.
The certificate of incorporation of Oritani provide that in no event
shall any person, who directly or indirectly beneficially owns in excess of 10% of the
then-outstanding shares of common stock as of the record date for the determination of stockholders
entitled or permitted to vote on any matter, be entitled or permitted to any vote in respect of the
shares held in excess of the 10% limit. Beneficial ownership is determined pursuant to the federal
securities laws and includes, but is not limited to, shares as to which any person and his or her
affiliates (i) have the right to acquire pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights, warrants or options and (ii) have or share
investment or voting power (but shall not be deemed the beneficial owner of any voting shares
solely by reason of a revocable proxy granted for a particular meeting of stockholders, and that
are not otherwise beneficially, or deemed by Oritani to be beneficially, owned by such person and
his or her affiliates).
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The foregoing restriction does not apply to any employee benefit plans of Oritani or any
subsidiary or a trustee of a plan.
The charter of Oritani Bank provides that, for a period of five years from the effective date
of Oritani Bank's mutual holding company reorganization, no person, other than Oritani Financial
Corp., MHC, shall directly or indirectly offer to acquire or acquire more than 10% of the
then-outstanding shares of common stock. The foregoing restriction does not apply to:
•
the purchase of shares by underwriters in connection with a public offering; or
•
the purchase of shares by any employee benefit plans of Oritani Financial Corp. or
any subsidiary.
The provision in Oritani's certificate of incorporation limiting the voting rights of
beneficial owners of more than 10% of Oritani's outstanding voting stock is intended to limit the
ability of any person to acquire a significant number of shares of Oritani common stock and thereby
gain sufficient voting control so as to cause Oritani to effect a transaction that may not be in
the best interests of Oritani and its stockholders generally. This provision will not prevent a
stockholder from seeking to acquire a controlling interest in Oritani, but it will prevent a
stockholder from voting more than 10% of the outstanding shares of common stock unless that
stockholder has first persuaded the Board of Directors of the merits of the course of action
proposed by the stockholder. The Board of Directors of Oritani believes that fundamental
transactions generally should be first considered and approved by the Board of Directors as it
generally believes that it is in the best position to make an initial assessment of the merits of
any such transactions and that its ability to make the initial assessment could be impeded if a
single stockholder could acquire a sufficiently large voting interest so as to control a
stockholder vote on any given proposal. This provision in Oritani's certificate of incorporation
makes an acquisition, merger or other similar corporate transaction less likely to occur, even if
such transaction is supported by most stockholders, because it can prevent a holder of shares in
excess of the 10% limit from voting the excess shares in favor of the transaction. Thus, it may be
deemed to have an anti-takeover effect.
The Board of Directors recommends that you vote "FOR" the approval of a provision in Oritani's
certificate of incorporation to limit the voting rights of shares beneficially owned in excess of
10% of Oritani's outstanding voting stock.
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
The summary financial information presented below is derived in part from the consolidated
financial statements of Oritani Financial Corp. and subsidiaries. The following is only a summary
and you should read it in conjunction with the consolidated financial statements and notes
beginning on page F-1. The information at June 30, 2009 and 2008 and for the years ended June 30,
2008 and 2007 is derived in part from the audited consolidated financial statements of Oritani
Financial Corp. that appear in this prospectus. The operating data for the three months and six
months ended December 31, 2009 and 2008 and the financial condition data at December 31, 2009 were
not audited. However, in the opinion of management of Oritani Financial Corp., all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of the results of
operations for the unaudited periods have been made. No adjustments were made other than normal
recurring entries. The results of operations for the three months and six months ended December
31, 2009 are not necessarily indicative of the results of operations that may be expected for the
entire year.
At December
June 30,
31, 2009
2009
2008
2007
2006
2005
(In thousands)
Selected Financial Condition Data:
Total assets
$
2,006,874
$
1,913,521
$
1,443,294
$
1,194,443
$
1,031,421
$
1,051,702
Loans, net
1,357,157
1,278,623
1,007,077
758,542
643,064
493,554
Securities available for sale, at market value
320,439
144,419
22,285
35,443
10,499
60,924
Securities held to maturity
—
—
—
5,415
13,415
25,500
Mortgage-backed securities held to maturity
86,182
118,817
163,950
217,406
274,695
372,104
Mortgage-backed securities available for sale, at market value
98,513
128,603
149,209
38,793
17,426
25,659
Bank owned life insurance
29,973
29,385
26,425
25,365
24,381
18,988
Federal Home Loan Bank of New York stock, at cost
25,481
25,549
21,547
10,619
9,367
9,088
Accrued interest receivable
8,786
7,967
5,646
4,973
3,910
3,405
Investments in real estate joint ventures, net
5,836
5,767
5,564
6,200
6,233
5,438
Real estate held for investment
1,222
1,338
3,681
2,492
2,223
1,425
Deposits
1,210,507
1,127,630
698,932
695,757
688,646
702,980
Borrowings
507,439
508,991
433,672
196,661
169,780
182,129
Stockholders' equity
247,950
240,098
278,975
272,570
150,135
141,796
For the Three Months Ended
For the Six Months Ended
December 31,
December 31,
2009
2008
2009
2008
(Dollars in thousands, except per share amounts)
Selected Operating Data:
Total interest income
$
25,467
$
21,862
$
51,246
$
42,519
Total interest expense
11,057
11,169
22,617
21,056
Net interest income
14,410
10,693
28,629
21,463
Provision for loan losses
2,500
3,500
5,050
5,375
Net interest income after
provision for loan losses
11,910
7,193
23,579
16,088
Other income
1,067
(565
)
3,613
668
Other expense
8,166
6,542
14,994
12,416
Income before income tax expense
4,811
86
12,198
4,340
Income tax expense
1,882
47
4,786
1,795
Net income
$
2,929
$
39
$
7,412
$
2,545
Earnings per share:
Basic
$
0.08
$
0.00
$
0.20
$
0.07
Diluted
$
0.08
$
0.00
$
0.20
$
0.07
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For the Year Ended June 30,
2009
2008
2007
2006
2005
(In thousands)
Selected Operating Data:
Interest income
$
88,429
$
71,591
$
63,349
$
51,276
$
46,439
Interest expense
44,500
37,208
32,829
23,522
18,349
Net interest income
43,929
34,383
30,520
27,754
28,090
Provision for loan losses
9,880
4,650
1,210
1,500
800
Net interest income after provision for loan losses
34,049
29,733
29,310
26,254
27,290
Other income
2,780
4,936
5,309
4,560
1,663
Other expense
27,257
19,491
25,249
17,524
14,800
Income before income tax expense
9,572
15,178
9,370
13,290
14,153
Income tax expense (benefit)
4,020
6,218
(1,664
)
4,827
5,193
Net income
$
5,552
$
8,960
$
11,034
$
8,463
$
8,960
At or for the Six Months
Ended December 31,
(1)
At or For the Years Ended June 30,
2009
2008
2009
2008
2007
2006
2005
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on assets
(2)
0.75
%
0.42
%
0.33
%
0.68
%
0.94
%
0.81
%
0.86
%
Return on equity
(3)
6.08
%
4.14
%
2.20
%
3.21
%
5.48
%
5.77
%
6.51
%
Net interest rate spread
(4)
2.75
%
2.42
%
2.36
%
2.06
%
2.23
%
2.42
%
2.54
%
Net interest margin
(5)
3.03
%
2.90
%
2.77
%
2.77
%
2.73
%
2.77
%
2.80
%
Efficiency ratio
(6)
46.50
%
56.10
%
58.35
%
49.59
%
70.47
%
54.23
%
49.74
%
Non-interest expense to average total assets
1.52
%
1.59
%
1.63
%
1.49
%
2.14
%
1.68
%
1.43
%
Average interest-earning assets to average
interest-bearing liabilities
111.59
%
117.16
%
114.47
%
123.59
%
117.00
%
115.05
%
114.42
%
Asset Quality Ratios:
Non-performing assets to total assets
2.62
%
2.66
%
2.74
%
0.98
%
—
%
0.04
%
0.02
%
Non-performing loans to total loans
3.75
%
3.60
%
4.03
%
1.39
%
—
%
0.07
%
0.04
%
Allowance for loan losses to total loans
1.60
%
1.54
%
1.59
%
1.32
%
1.15
%
1.18
%
1.23
%
Allowance for loan losses to nonperforming loans
42.70
%
42.91
%
39.42
%
5.23
%
N/M
N/M
N/M
Net charge-offs to average loans
0.50
%
—
%
0.23
%
—
%
—
%
—
%
—
%
Capital Ratios:
(7)
Total stockholders' equity to assets
12.36
%
14.94
%
12.55
%
19.33
%
22.82
%
14.56
%
13.48
%
Total capital (to risk-weighted assets)
18.42
%
21.30
%
19.15
%
27.78
%
34.87
%
26.98
%
30.80
%
Tier I capital (to risk-weighted assets)
17.16
%
20.04
%
17.90
%
26.53
%
33.77
%
25.73
%
29.55
%
Tier I capital (to average assets)
12.36
%
15.23
%
14.31
%
19.71
%
23.10
%
14.39
%
13.62
%
Other Data:
Number of full service offices
21
19
21
19
19
19
21
Full time equivalent employees
177
158
174
155
144
143
138
(1)
Ratios are annualized where appropriate.
(2)
Represents net income divided by average total assets.
(3)
Represents net income divided by average equity.
(4)
Represents average yield on interest-owning assets less average cost of interest-bearing
liabilities.
(5)
Represents net interest income as a percent of average interest-earning assets.
(6)
Represents non-interest expense divided by the sum of net interest income before provision
for loan losses and non-interest income.
(7)
Represent consolidated ratios.
N/M Not meaningful.
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FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements, which can be identified by the use of
words such as "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect"
and words of similar meaning. These forward-looking statements include, but are not limited to:
•
statements of our goals, intentions and expectations;
•
statements regarding our business plans, prospects, growth and operating
strategies;
•
statements regarding the asset quality of our loan and investment
portfolios; and
•
estimates of our risks and future costs and benefits.
These forward-looking statements are based on current beliefs and expectations of our
management and are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change.
The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements:
•
changes in laws or government regulations or policies affecting financial
institutions, including changes in regulatory fees and capital requirements;
•
general economic conditions, either nationally or in our market areas,
that are worse than expected;
•
competition among depository and other financial institutions;
•
inflation and changes in the interest rate environment that reduce our
margins or reduce the fair value of financial instruments;
•
adverse changes in the securities markets;
•
our ability to enter new markets successfully and capitalize on growth
opportunities;
•
our ability to successfully integrate acquired entities, if any;
•
changes in consumer spending, borrowing and savings habits;
•
changes in our organization, compensation and benefit plans;
•
our ability to continue to increase and manage our commercial and
residential real estate, multi-family, and commercial and industrial loans;
•
possible impairments of securities held by us, including those issued by
government entities and government sponsored enterprises;
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•
the level of future deposit premium assessments;
•
the impact of the current recession on our loan portfolio (including cash
flow and collateral values), investment portfolio, customers and capital market
activities;
•
the impact of the current governmental effort to restructure the U.S.
financial and regulatory system;
•
changes in the financial performance and/or condition of our borrowers;
and
•
the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Securities and Exchange Commission,
the Public Company Accounting Oversight Board, the Financial Accounting Standards Board
and other accounting standard setters.
Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. Please see "Risk
Factors" beginning on page 22.
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HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING
Although we cannot determine what the actual net proceeds from the sale of the shares of
common stock in the offering will be until the offering is completed, we anticipate that the
aggregate net proceeds will be between $318.4 million and $431.4 million, or $496.5 million if the
offering range is increased by 15%.
We intend to distribute the net proceeds from the stock offering as follows:
Based Upon the Sale at $10.00 Per Share of
33,150,000 Shares
39,000,000 Shares
44,850,000 Shares
51,577,500 Shares (1)
Percent
Percent
Percent
Percent of
of Net
of Net
of Net
Net
Amount
Proceeds
Amount
Proceeds
Amount
Proceeds
Amount
Proceeds
(Dollars in thousands)
Offering proceeds
$
331,500
$
390,000
$
448,500
$
515,775
Less: offering expenses
(13,131
)
(15,096
)
(17,062
)
(19,322
)
Net offering proceeds
$
318,369
100.0
%
$
374,904
100.0
%
$
431,438
100.0
%
$
496,453
100.0
%
Distribution of net proceeds:
To Oritani Bank
$
159,184
50.0
%
$
187,452
50.0
%
$
215,719
50.0
%
$
248,226
50.0
%
To fund the loan to
employee stock ownership
plan
$
13,260
4.2
%
$
15,600
4.2
%
$
17,940
4.2
%
$
20,631
4.2
%
Retained by Oritani
$
145,924
45.8
%
$
171,852
45.8
%
$
197,779
45.8
%
$
227,595
45.8
%
(1)
As adjusted to give effect to an increase in the number of shares which could occur due to a
15% increase in the offering range to reflect demand for the shares or changes in market or
general financial conditions following the commencement of the offering.
Payments for shares of common stock made through withdrawals from existing deposit
accounts will not result in the receipt of new funds for investment but will result in a reduction
of Oritani Bank's deposits. The net proceeds may vary because total expenses relating to the
offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the
subscription and community offerings.
Oritani and Oritani Bank May Use the Proceeds it Retains From the Offering:
•
to support internal growth through lending and deposit gathering in the
communities we serve;
•
to enhance existing products and services, and support the development of
new products and services to support growth and enhanced customer service;
•
to improve the liquidity of our shares of common stock and stockholder
returns through higher earnings and more flexible capital management strategies;
•
to finance the acquisition of branches from other financial institutions
or build or lease new branch facilities primarily in, or adjacent to New Jersey,
although we do not currently have any agreements or understandings regarding any
specific acquisition transaction;
•
to finance the acquisition of financial institutions or other financial
service companies primarily in, or adjacent to New Jersey, although we do not currently
have any understandings or agreements regarding any specific acquisition transaction;
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Table of Contents
•
to maintain our capital position during a period of significant economic
uncertainty, especially for the financial services industry (although, as of December
31, 2009, Oritani Bank was considered "well capitalized" for regulatory purposes and is
not subject to any directive or recommendation from the FDIC or the New Jersey
Department of Banking and Insurance to raise capital); and
•
to use the additional capital for other general corporate purposes.
Under current OTS regulations, we may not repurchase shares of our common stock during the
twelve months following the completion of the conversion, except to fund certain stock-based plans
or, with prior regulatory approval, when extraordinary circumstances exist.
Initially, a substantial portion of the net proceeds will likely be invested in short-term
investments, investment-grade debt obligations and mortgage-backed securities. The use of proceeds
may change based on changes in interest rates, equity markets, laws and regulations affecting the
financial services industry, our relative position in the financial services industry, the
attractiveness of potential acquisitions, and overall market conditions. Our business strategy for
the deployment of the net proceeds raised in the offering is discussed in more detail in
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Business
Strategy."
Our return on equity may be relatively low until we are able to effectively reinvest the
additional capital raised in the offering. Until we can deploy our capital until we have a
leverage ratio similar to peers, our return on equity may be below the industry average, which may
negatively affect the value of our common stock. See "Risk Factors—Our return on equity initially
will be low compared to our historical performance. A lower return on equity may negatively impact
the trading price of our common stock."
OUR POLICY REGARDING DIVIDENDS
As of December 31, 2009, Oritani Financial Corp. paid a quarterly cash dividend of $0.075 per
share, which equals $0.30 per share on an annualized basis. After the conversion, we intend to
continue to pay cash dividends on a quarterly basis. We expect the annual dividends to equal $0.30
per share at each of the minimum, midpoint, maximum and adjusted maximum of the offering range,
respectively, which represents an annual dividend yield of 3.0% at each of the minimum, midpoint,
maximum and adjusted maximum of the offering range, respectively, based upon a stock price of
$10.00 per share. The amount of dividends that we intend to pay to our stockholders following the
conversion is intended to preserve the per share dividend rate that Oritani Financial Corp.
stockholders currently receive. The dividend rate and the continued payment of dividends will
depend on a number of factors including our capital requirements, our financial condition and
results of operations, tax considerations, statutory and regulatory limitations, and general
economic conditions. We cannot assure you that we will not reduce or eliminate dividends in the
future.
Under the rules of the OTS, Oritani Bank will not be permitted to pay dividends on its capital
stock to Oritani, its sole stockholder, if Oritani Bank's stockholder's equity would be reduced
below the amount of the liquidation account established in connection with the conversion. In
addition, Oritani Bank will not be permitted to make a capital distribution if, after making such
distribution, it would be undercapitalized. See "The Conversion and Offering—Liquidation Rights."
Unlike Oritani Bank, we are not restricted by OTS regulations on the payment of dividends to
our stockholders, although the source of dividends will depend on the net proceeds retained by us
and earnings and dividends from Oritani Bank. However, we will be subject to state law limitations
on the
74
Table of Contents
payment of dividends. Delaware law generally limits dividends to be paid out of its capital
surplus or, if there is no surplus, out of net profits from the fiscal year in which the dividend
is declared, and the preceding fiscal year, subject to certain limitations.
Finally, pursuant to OTS regulations, during the three-year period following the conversion,
we will not take any action to declare an extraordinary dividend to stockholders that would be
treated by recipients as a tax-free return of capital for federal income tax purposes.
See "Selected Consolidated Financial and Other Data" and "Market for the Common Stock" for
information regarding our historical dividend payments.
MARKET FOR THE COMMON STOCK
Oritani Financial Corp.'s common stock currently trades on the Nasdaq Global Market under the
symbol "ORIT." Upon completion of the offering, the shares of common stock of Oritani will replace
Oritani Financial Corp.'s shares of common stock. We expect that Oritani's shares of
common stock will trade on the Nasdaq Global Market under the trading symbol "ORITD" for a period
of 20 trading days after the completion of the offering. Thereafter, Oritani's trading symbol will
revert to "ORIT." In order to list our common stock on the Nasdaq Global Market, we are required
to have at least three broker-dealers who will make a market in our common stock. Oritani
Financial Corp. currently has ___registered market makers.
The development of a public market having the desirable characteristics of depth, liquidity
and orderliness depends on the existence of willing buyers and sellers, the presence of which is
not within our control or that of any market maker. The number of active buyers and sellers of our
common stock at any particular time may be limited, which may have an adverse effect on the price
at which our common stock can be sold. You may not be able to sell your shares at or above the
$10.00 price per share in the offering. Purchasers of our common stock should have a long-term
investment intent and should recognize that there may be a limited trading market in our common
stock.
In connection with the conversion and offering, each existing publicly held share of common
stock of Oritani Financial Corp. will be converted into a right to receive a number of shares of
Oritani common stock, based upon the exchange ratio that is described in other sections of this
prospectus. See "The Conversion and Offering—Share Exchange Ratio for Current Stockholders."
Options to purchase shares of Oritani Financial Corp. common stock which are outstanding
immediately prior to the consummation of the conversion will be converted into options to purchase
shares of Oritani common stock, with the number of shares subject to the option and the exercise
price per share to be adjusted based upon the exchange ratio. The vesting period of such options
as well as any outstanding stock awards will be accelerated upon the closing of the conversion and
the term of such options will remain unchanged. We anticipate the pre-tax expense of such
accelerated vesting will be approximately $11.3 million, which represents the remaining
amortization for such accelerated options and awards, with such expense to be incurred during the
fiscal quarter in which the stock offering is completed.
Our shares of common stock are traded on the Nasdaq Global Market under the symbol "ORIT". The
approximate number of holders of record of Oritani Financial Corp.'s common stock as of
[shareholder record date] was ___. Certain shares of Oritani Financial Corp. are held in
"nominee" or "street" name and accordingly, the number of beneficial owners of such shares is not
known or included in the foregoing number. The following table presents quarterly market
information for Oritani Financial Corp.'s common stock for the periods indicated.
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Table of Contents
Fiscal 2010
Dividends
High
Low
per share
First Quarter
$
14.61
$
12.75
$
0.050
Second Quarter
14.50
12.46
0.075
Third Quarter
(through___)
Fiscal 2009
Fiscal 2008
Dividend
Dividend
High
Low
per share
High
Low
per share
First Quarter
$
20.12
$
15.50
$
—
$
15.93
$
12.55
$
—
Second Quarter
17.33
13.25
—
17.23
12.17
—
Third Quarter
17.04
9.56
—
15.25
10.78
—
Fourth Quarter
15.10
12.73
0.05
17.15
14.87
—
The sources of funds for the payment of a cash dividend are the retained proceeds from
the initial sale of shares of common stock and earnings on those proceeds, interest and principal
payments with respect to Oritani Financial Corp.'s loan to the Employee Stock Ownership Plan, and
dividends from Oritani Bank. For a discussion of the limitations applicable to Oritani Bank's
ability to pay dividends, see "Supervision and Regulation—Federal Banking Regulation."
On February 18, 2010, the business day immediately preceding the public announcement of the
conversion, the closing price of Oritani Financial Corp. common stock as reported on the Nasdaq
Global Market was $13.88 per share. At
, the closing price of Oritani Financial
Corp.'s common stock was $
, and there were approximately
stockholders of record.
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Table of Contents
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
At December 31, 2009, Oritani Bank exceeded all of the applicable regulatory capital
requirements. The table below sets forth the historical equity capital and regulatory capital of
Oritani Bank at December 31, 2009, and the pro forma regulatory capital of Oritani Bank, after
giving effect to the sale of Oritani's shares of common stock at a $10.00 per share purchase price.
Accordingly, the table assumes the receipt by Oritani Bank of at least 50% of the net proceeds.
See "How We Intend to Use the Proceeds from the Offering."
Oritani Bank Historical
Pro Forma at December 31, 2009 Based Upon the Sale at $10.00 Per Share
at
December 31, 2009
33,150,000 Shares
39,000,000 Shares
44,850,000 Shares
51,577,500 Shares (1)
Percent of
Percent of
Percent of
Percent of
Percent of
Amount
Assets (2)
Amount
Assets (2)
Amount
Assets (2)
Amount
Assets (2)
Amount
Assets (2)
(Dollars in thousands)
Equity capital
$
194,340
9.84
%
$
327,213
15.33
%
$
350,801
16.22
%
$
374,388
17.08
%
$
401,513
18.05
%
Core (leverage) capital
$
193,183
9.76
%
$
326,056
15.25
%
$
349,644
16.14
%
$
373,231
17.01
%
$
400,356
17.98
%
Core (leverage)
requirement (3)
79,144
4.00
%
85,512
4.00
%
86,642
4.00
%
87,773
4.00
%
89,073
4.00
%
Excess
$
114,039
5.76
%
$
240,544
11.25
%
$
263,002
12.14
%
$
285,458
13.01
%
$
311,283
13.98
%
Tier 1 risk-based
capital (4)
$
193,183
13.49
%
$
326,056
22.27
%
$
349,644
23.79
%
$
373,231
25.29
%
$
400,356
27.01
%
Tier 1 requirement (3)
85,943
6.00
%
87,854
6.00
%
88,193
6.00
%
88,532
6.00
%
88,922
6.00
%
Excess
$
107,240
7.49
%
$
238,201
16.27
%
$
261,451
17.79
%
$
284,699
19.29
%
$
311,434
21.01
%
Total risk-based
capital (4)
$
211,236
14.75
%
$
344,109
23.50
%
$
367,697
25.02
%
$
391,284
26.52
%
$
418,409
28.23
%
Risk-based requirement
114,591
8.00
%
117,138
8.00
%
117,590
8.00
%
118,043
8.00
%
118,563
8.00
%
Excess
$
96,645
6.75
%
$
226,971
15.50
%
$
250,107
17.02
%
$
273,241
18.52
%
$
299,846
20.23
%
Reconciliation of
capital infused into
Oritani Bank:
Net proceeds
$
159,184
$
187,452
$
215,719
$
248,226
Less:
Common stock acquired by employee
stock ownership plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Common stock acquired by the stock-based
incentive plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Plus:
Assets received from MHC
209
209
209
209
Pro forma increase in GAAP and regulatory
capital (5)
$
132,873
$
156,461
$
180,048
$
207,173
(1)
As adjusted to give effect to an increase in the number of shares of common stock that
could occur due to a 15% increase in the offering range to reflect demand for the
shares, or changes in market or general financial conditions following the commencement
of the offering.
(2)
Tangible and core capital levels are shown as a percentage of total adjusted assets.
Risk-based capital levels are shown as a percentage of risk-weighted assets.
(3)
Although not adopted in regulation form, the New Jersey Department of Banking and Insurance
utilizes capital standards of 6% leverage capital and 8.0% risk-based capital. In addition,
the FDIC requires a Tier 1 risk-based capital ratio of 4.0% or greater.
(4)
Pro forma capital levels assume that we fund the stock-based incentive plans with purchases
in the open market equal to 4.0% of the shares of common stock sold in the stock offering at a
price equal to the price for which the shares of common stock are sold in the stock offering,
and that the employee stock ownership plan purchases 4.0% of the shares of common stock sold
in the stock offering with funds we lend. Pro forma GAAP and regulatory capital have been
reduced by the amount required to fund both of these plans. See "Management" for a discussion
of the stock-based incentive plan and employee stock ownership plan. We may award shares of
common stock under one or more stock-based incentive plans in excess of this amount if the
stock-based incentive plans are adopted more than one year following the stock offering.
(5)
Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20%
risk weighting.
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Table of Contents
CAPITALIZATION
The following table presents the historical consolidated capitalization of Oritani Financial
Corp. at December 31, 2009 and the pro forma consolidated capitalization of Oritani after giving
effect to the offering, based upon the assumptions set forth in the "Pro Forma Data" section.
Oritani
Financial Corp.
Historical at
Oritani $10.00 Per Share Pro Forma Based on the Sale of
December 31,
33,150,000
39,000,000
44,850,000
51,577,500
2009
Shares
Shares
Shares
Shares (1)
(Dollars in thousands)
Deposits (2)
$
1,210,507
$
1,210,507
$
1,210,507
$
1,210,507
$
1,210,507
Borrowed funds
507,439
507,439
507,439
507,439
507,439
Total deposits and borrowed funds
$
1,717,946
$
1,717,946
$
1,717,946
$
1,717,946
$
1,717,946
Stockholders' equity:
Common stock $0.01 par value,
150,000,000 shares authorized
(post-conversion); shares to be
issued as reflected (3) (4)
130
445
524
602
693
Paid-in capital (3)
132,339
450,393
506,849
563,305
628,229
Retained earnings (5)
182,528
182,528
182,528
182,528
182,528
Plus:
Oritani Financial Corp., MHC
capital contribution
—
209
209
209
209
Accumulated other comprehensive
income
1,114
1,114
1,114
1,114
1,114
Less:
Treasury stock
(54,649
)
(54,649
)
(54,649
)
(54,649
)
(54,649
)
Common stock to be acquired by the
ESOP (6)
(13,512
)
(26,772
)
(29,112
)
(31,452
)
(34,143
)
Common stock to be acquired by the
stock-based incentive plan (7)
—
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Total stockholders' equity
$
247,950
$
540,008
$
591,863
$
643,717
$
703,350
Shares outstanding:
Total shares outstanding
44,529,252
52,387,355
60,245,458
69,282,277
Exchange shares issued
11,379,252
13,387,355
15,395,458
17,704,777
Shares offered for sale
33,150,000
39,000,000
44,850,000
51,577,500
Total stockholders' equity as a
percentage of total assets
12.36
%
23.49
%
25.18
%
26.79
%
28.57
%
Tangible equity ratio
12.36
%
23.49
%
25.18
%
26.79
%
28.57
%
(1)
As adjusted to give effect to an increase in the number of shares of common stock that could
occur due to a 15% increase in the offering range to reflect demand for the shares, or changes
in market or general financial conditions following the commencement of the offering.
(2)
Does not reflect withdrawals from deposit accounts for the purchase of shares of common stock
in the offering. These withdrawals would reduce pro forma deposits by the amount of the
withdrawals.
(3)
Oritani Financial Corp. currently has 10,000,000 authorized shares of preferred stock and
80,000,000 authorized shares of common stock, par value $0.01 per share. On a pro forma
basis, Oritani common stock and additional paid-in capital have been revised to reflect the
number of shares of Oritani common stock to be outstanding, which is 44,592,252 shares,
52,387,355 shares, 60,245,458 shares and 69,282,277 shares at the minimum, midpoint, maximum
and adjusted maximum of the offering range, respectively.
(4)
No effect has been given to the issuance of additional shares of Oritani common stock
pursuant to stock options to be granted under a stock-based incentive plan. If this plan
is implemented within one year of the completion of the offering, an amount up to 10.0% of
the shares of Oritani common stock sold in the offering will be reserved for issuance upon
the exercise of options. We may exceed this limit if the plan is implemented more than
one year following the completion of the offering. No effect has been given to the
exercise of options currently outstanding. See "Management—Benefits to be Considered
Following Completion of the Conversion."
(5)
The retained earnings of Oritani Bank will be substantially restricted after the
conversion. See "The Conversion and Offering—Liquidation Rights" and "Supervision and
Regulation."
(Footnotes continued on next page)
78
Table of Contents
(continued from previous page)
(6)
Assumes that 4.0% of the shares sold in the offering will be acquired by the employee
stock ownership plan financed by a loan from Oritani The loan will have a term of 20 years
and an interest rate equal to the prime rate as published in
The Wall Street Journal
,
and be repaid principally from Oritani Bank's contributions to the employee stock
ownership plan. Since Oritani will finance the employee stock ownership plan debt, this
debt will be eliminated through consolidation and no liability will be reflected on
Oritani's consolidated financial statements. Accordingly, the amount of shares of common
stock acquired by the employee stock ownership plan is shown in this table as a reduction
of total stockholders' equity.
(7)
Assumes at the minimum, midpoint, the maximum and the maximum as adjusted, of the
offering range that a number of shares of common stock equal to 4.0% of the shares of
common stock to be sold in the offering will be purchased by the stock-based incentive
plan in open market purchases. The stock-based incentive plan will be submitted to a vote
of stockholders following the completion of the offering. Our current intent is to
implement a new stock-based incentive plan no earlier than twelve months after completion
of the conversion. The funds to be used by the stock-based incentive plan to purchase the
shares will be provided by Oritani. The dollar amount of common stock to be purchased is
based on the $10.00 per share offering price and represents unearned compensation. This
amount does not reflect possible increases or decreases in the value of common stock
relative to the subscription price in the offering. As Oritani accrues compensation
expense to reflect the vesting of shares pursuant to the stock-based incentive plan, the
credit to capital will be offset by a charge to operations. Implementation of the
stock-based incentive plan will require stockholder approval.
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Table of Contents
PRO FORMA DATA
The following tables summarize historical data of Oritani Financial Corp. and pro forma data
at and for the six months ended December 31, 2009 and at and for the year ended June 30, 2009.
This information is based on assumptions set forth below and in the tables, and should not be used
as a basis for projections of market value of the shares of common stock following the offering.
Moreover, pro forma stockholders' equity per share does not give effect to the liquidation account
to be established in the conversion or, in the unlikely event of a liquidation of Oritani Bank, to
the recoverability of intangible assets or the tax effect of the recapture of the bad debt reserve.
See "The Conversion and Offering—Liquidation Rights."
The net proceeds in the tables are based upon the following assumptions:
(i)
forty percent of all shares of common stock will be sold in the subscription
and community offerings, including shares purchased by insiders, with the remaining
 shares to be sold in the syndicated community offering;
(ii)
150,000 shares of common stock will be purchased by our executive officers and
directors, and their associates;
(iii)
our employee stock ownership plan will purchase 4.0% of the shares of common
stock sold in the offering, with a loan from Oritani. The loan will be repaid in
substantially equal payments of principal and interest over a period of 20 years;
(iv)
Stifel, Nicolaus & Company, Incorporated will receive a fee equal to 1% of all
 shares of common stock sold in the subscription and community offerings and a fee equal
to 5% of all shares sold in the syndicated community offering. No fee will be paid
with respect to shares of common stock purchased by our qualified and non-qualified
employee stock benefit plans, or stock purchased by our officers, directors and
employees, and their immediate families; and
(v)
total expenses of the offering, including the marketing fees to be paid to
Stifel, Nicolaus & Company, Incorporated, will be between $13.1 million at the minimum
of the offering range and $19.3 million at the maximum of the offering range, as
adjusted.
We calculated pro forma consolidated net income for the six months ended December 31, 2009 and
the year ended June 30, 2009 as if the estimated net proceeds we received had been invested at the
beginning of each period at an assumed interest rate of 2.69% (1.64% on an after-tax basis) and
2.54% (1.55% on an after-tax basis). This represents the five-year United States Treasury note
yield as of December 31, 2009 and June 30, 2009. We consider the resulting rate to reflect more
accurately the pro forma reinvestment rate than an arithmetic average method in light of current
market interest rates. The effect of withdrawals from deposit accounts for the purchase of shares
of common stock has not been reflected. Historical and pro forma per share amounts have been
calculated by dividing historical and pro forma amounts by the indicated number of shares of common
stock. No effect has been given in the pro forma stockholders' equity calculations for the assumed
earnings on the net proceeds.
The pro forma tables give effect to the implementation of the stock-based incentive plan.
Subject to the receipt of stockholder approval, we have assumed that the stock-based incentive plan
will acquire for restricted stock awards a number of shares of common stock equal to 4.0% of the
shares of common stock sold in the stock offering at the same price for which they were sold in the
stock offering. We
80
Table of Contents
assumed that shares of common stock are granted under the plans in awards that vest over a
five-year period.
We have also assumed that the stock-based incentive plans will grant options to acquire shares
of common stock equal to 10.0% of the shares of common stock sold in the stock offering. In
preparing the tables below, we assumed that stockholder approval was obtained, that the exercise
price of the stock options and the market price of the stock at the date of grant were $10.00 per
share and that the stock options had a term of ten years and vested over five years. We applied
the Black-Scholes option pricing model to estimate a grant-date fair value of $3.43 for each
option. In addition to the terms of the options described above, the Black-Scholes option pricing
model assumed an estimated volatility rate of 36.45% for the shares of common stock, a dividend
yield of 3.0%, an expected option life of eight years and a risk-free interest rate of 3.85%.
We may grant options and award shares of common stock under one or more stock-based incentive
plans in excess of 10.0% and 4.0%, respectively, of the shares of common stock sold in the stock
offering if the stock-based incentive plans are adopted more than twelve months following the stock
offering. Our current intention is to implement a new stock-based incentive plan no earlier than
twelve months after completion of the offering.
As discussed under "How We Intend to Use the Proceeds from the Offering," we intend to
contribute at least 50% of the net proceeds from the stock offering to Oritani Bank, and we will
retain the remainder of the net proceeds from the stock offering. We will use a portion of the
proceeds we retain for the purpose of making a loan to the employee stock ownership plan and retain
the rest of the proceeds for future use.
The pro forma table does not give effect to:
•
withdrawals from deposit accounts for the purpose of purchasing shares of
common stock in the stock offering;
•
our results of operations after the stock offering; or
•
changes in the market price of the shares of common stock after the stock
offering.
The following pro forma information may not represent the financial effects of the stock
offering at the date on which the stock offering actually occurs and you should not use the table
to indicate future results of operations. Pro forma stockholders' equity represents the difference
between the stated amount of our assets and liabilities, computed in accordance with GAAP. We did
not increase or decrease stockholders' equity to reflect the difference between the carrying value
of loans and other assets and their market value. Pro forma stockholders' equity is not intended
to represent the fair market value of the shares of common stock and may be different than the
amounts that would be available for distribution to stockholders if we liquidated. Per share
figures have been calculated based on shares of Oritani Financial Corp. issued and outstanding as
of the date of this prospectus.
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Table of Contents
At or for the Six Months Ended December 31, 2009
Based Upon the Sale at $10.00 Per Share of
33,150,000
39,000,000
44,850,000
51,577,500
Shares
Shares
Shares
Shares (1)
(Dollars in thousands, except per share amounts)
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Market value of shares issued in the exchange
113,793
133,874
153,955
177,048
Pro forma market capitalization
$
445,293
$
523,874
$
602,455
$
692,823
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Less: Expenses
(13,131
)
(15,096
)
(17,062
)
(19,322
)
Plus: Assets received from MHC
$
209
$
209
$
209
$
209
Estimated net proceeds
$
318,578
$
375,113
$
431,647
$
496,662
Less: Common stock purchased by employee stock ownership plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock purchased by the stock-based incentive plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Estimated net proceeds, as adjusted
$
292,058
$
343,913
$
395,767
$
455,400
For the Six Months Ended December 31, 2009
Consolidated net income:
Historical
$
7,412
$
7,412
$
7,412
$
7,412
Pro forma adjustments:
Income on adjusted net proceeds
2,395
2,820
3,246
3,735
Employee stock ownership plan (2)
(202
)
(238
)
(274
)
(315
)
Shares granted under the stock-based incentive plan (3)
(809
)
(952
)
(1,095
)
(1,259
)
Options granted under the stock-based incentive plan (4)
(916
)
(1,077
)
(1,239
)
(1,424
)
Pro forma net income
$
7,880
$
7,966
$
8,051
$
8,150
Net income per share (5):
Historical
$
0.17
$
0.14
$
0.12
$
0.11
Pro forma adjustments:
Income on adjusted net proceeds
0.05
0.06
0.06
0.05
Employee stock ownership plan (2)
—
—
—
—
Shares granted under the stock-based incentive plan (3)
(0.02
)
(0.02
)
(0.02
)
(0.02
)
Options granted under the stock-based incentive plan (4)
(0.02
)
(0.02
)
(0.02
)
(0.02
)
Pro forma net income per share (5) (6)
$
0.18
$
0.16
$
0.14
$
0.12
Offering price to pro forma net income per share (annualized)
27.78
x
31.25
x
35.71
x
41.67
x
Number of shares used in net income per share calculations (5)
43,236,402
50,866,355
58,496,308
67,270,754
At December 31, 2009
Stockholders' equity:
Historical
$
247,950
$
247,950
$
247,950
$
247,950
Estimated net proceeds
318,369
374,904
431,438
496,453
Oritani Financial Corp., MHC capital contribution
209
209
209
209
Less: Common stock acquired by employee stock ownership plan (2)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock acquired by the stock-based incentive plan (3)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Pro forma tangible stockholders' equity
$
540,008
$
591,863
$
643,717
$
703,350
Stockholders' equity per share (7):
Historical
$
5.57
$
4.73
$
4.11
$
3.58
Estimated net proceeds
7.15
7.16
7.16
7.17
Oritani Financial Corp., MHC capital contribution
0.01
0.01
0.01
0.01
Less: Common stock acquired by employee stock ownership plan (2)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Less: Common stock acquired by the stock-based incentive plan (3)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Pro forma tangible stockholders' equity per share (7)
$
12.13
$
11.30
$
10.68
$
10.15
Offering price as percentage of pro forma stockholders' equity per share
82.44
%
88.50
%
93.63
%
98.52
%
Offering price as percentage of pro forma tangible stockholders' equity per share
82.44
%
88.50
%
93.63
%
98.52
%
Number of shares outstanding for pro forma book value per share calculations (8).
44,529,252
52,387,355
60,245,458
69,282,277
82
Table of Contents
(1)
As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market or
financial conditions following the commencement of the offering.
(2)
Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire these
shares are assumed to have been borrowed by the employee stock ownership plan from Oritani.
The loan will have a term of 20 years and an interest rate equal to the prime rate as
published in
The Wall Street Journal
. Oritani Bank intends to make annual contributions to
the employee stock ownership plan in an amount at least equal to the required principal and
interest payments on the debt. Oritani Bank's total annual payments on the employee stock
ownership plan debt are based upon 20 equal annual
installments of principal and interest. Statement of Position 93-6, "Employers' Accounting for
Employee Stock Ownership Plans" ("SOP 93-6"), requires that an employer record compensation
expense in an amount equal to the fair value of the shares committed to be released to
employees. The pro forma adjustments assume that: (i) the employee stock ownership plan shares
are allocated in equal annual installments based on the number of loan repayment installments
assumed to be paid by Oritani Bank, (ii) the fair value of the common stock remains equal to the
$10.00 subscription price; and (iii) the employee stock ownership plan expense reflects an
effective combined federal and state tax rate of 39.0%. The unallocated employee stock
ownership plan shares are reflected as a reduction of stockholders' equity. No reinvestment is
assumed on proceeds contributed to fund the employee stock ownership plan. The pro forma net
income further assumes that 33,150, 39,000, 44,850 and 51,578 shares were committed to be
released during the period at the minimum, midpoint, maximum, and adjusted maximum of the
offering range, respectively, and in accordance with SOP 93-6, only the employee stock ownership
plan shares committed to be released during the period were considered outstanding for purposes
of net income per share calculations.
(3)
Gives effect to the grant of restricted stock awards pursuant to the stock-based incentive
plan expected to be adopted by following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that at the minimum, midpoint, maximum and maximum as adjusted, of the offering range this
plan acquires a number of shares of restricted common stock equal to 4.0% of the shares sold
in the offering, either through open market purchases, from authorized but unissued shares of
common stock or treasury stock. Funds used by the stock-based incentive plan to purchase the
shares of common stock will be contributed by Oritani. In calculating the pro forma effect of
the stock-based incentive plan, it is assumed that the shares of restricted stock were
acquired by the plan in open market purchases at the beginning of the period presented for a
purchase price equal to the price for which the shares are sold in the offering, and that
10.0% of the amount contributed was an amortized expense (20.0% annually based upon a
five-year vesting period) during the six months ended December 31, 2009. There can be no
assurance that the actual purchase price of the shares of common stock granted under the
stock-based incentive plan will be equal to the $10.00 subscription price. If shares are
acquired from authorized but unissued shares of common stock or from treasury shares, our net
income per share and stockholders' equity per share will decrease. This will also have a
dilutive effect of approximately 2.89% (at the maximum of the offering range) on the ownership
interest of stockholders. The impact on pro forma net income per share and pro forma
stockholders' equity per share is not material.
(4)
Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by Oritani following the offering and presented to stockholders for
approval not earlier than twelve months after the completion of the offering. We have assumed
that options will be granted to acquire shares of common stock equal to 10.0% of the shares
sold in the offering. In calculating the pro forma effect of the stock options, it is assumed
that the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant-date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i) the trading price on date of grant was $10.00 per share;
(ii) exercise price is equal to the trading price on the date of grant; (iii) dividend yield
of 3.0%; (iv) expected life of ten years; (v) expected volatility of 36.45%; (vi) risk-free
interest rate of 3.85%, and (vii) 50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders' equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.
(5)
The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, and subtracting the
employee stock ownership plan shares which have not been committed for release during the
period in accordance with SOP 93-6. See footnote 2, above.
(6)
The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See "Our Policy Regarding Dividends," "The Conversion and Offering—Liquidation Rights" and
"Supervision and Regulation."
(7)
Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders' equity
per share calculations are based upon the sum of (i) the number of subscription shares assumed
to be sold in the offering; and (ii) shares to be issued in exchange for publicly held shares.
(8)
The number of shares used to calculate pro forma stockholders' equity per share is equal to
the total number of shares to be outstanding upon completion of the offering.
83
Table of Contents
At or for the Year Ended June 30, 2009
Based Upon the Sale at $10.00 Per Share of
33,150,000
39,000,000
44,850,000
51,577,500
Shares
Shares
Shares
Shares (1)
(Dollars in thousands, except per share amounts)
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Market value of shares issued in the exchange
113,793
133,874
153,955
177,048
Pro forma market capitalization
$
445,293
$
523,874
$
602,455
$
692,823
Gross proceeds of offering
$
331,500
$
390,000
$
448,500
$
515,775
Less: Expenses
(13,131
)
(15,096
)
(17,062
)
(19,322
)
Plus: Assets received from MHC
209
209
209
209
Estimated net proceeds
$
318,578
$
375,113
$
431,647
$
496,662
Less: Common stock purchased by employee stock ownership plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock purchased by the stock-based incentive plan
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Estimated net proceeds, as adjusted
$
292,058
$
343,913
$
395,767
$
455,400
For the Year Ended June 30, 2009
Consolidated net income:
Historical
$
5,552
$
5,552
$
5,552
$
5,552
Pro forma adjustments:
Income on adjusted net proceeds
4,522
5,325
6,129
7,053
Employee stock ownership plan (2)
(404
)
(476
)
(547
)
(629
)
Shares granted under the stock-based incentive plan (3)
(1,618
)
(1,903
)
(2,189
)
(2,517
)
Options granted under the stock-based incentive plan (4)
(1,831
)
(2,154
)
(2,477
)
(2,848
)
Pro forma net income
$
6,221
$
6,344
$
6,468
$
6,611
Net income per share (5):
Historical
$
0.13
$
0.11
$
0.10
$
0.08
Pro forma adjustments:
Income on adjusted net proceeds
0.10
0.10
0.10
0.11
Employee stock ownership plan (2)
(0.01
)
(0.01
)
(0.01
)
(0.01
)
Shares granted under the stock-based incentive plan (3)
(0.04
)
(0.04
)
(0.04
)
(0.04
)
Options granted under the stock-based incentive plan (4)
(0.04
)
(0.04
)
(0.04
)
(0.04
)
Pro forma net income per share (5) (6)
$
0.14
$
0.12
$
0.11
$
0.10
Offering price to pro forma net income per share (annualized)
71.43
x
83.33
x
90.91
x
100.00
x
Number of shares used in net income per share calculations (5)
42,269,552
50,905,355
58,541,158
67,322,332
At June 30, 2009
Stockholders' equity:
Historical
$
240,098
$
240,098
$
240,098
$
240,098
Estimated net proceeds
318,369
374,904
431,438
496,453
Oritani Financial Corp., MHC capital contribution
209
209
209
209
Less: Common stock acquired by employee stock ownership plan (2)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Less: Common stock acquired by the stock-based incentive plan (3)
(13,260
)
(15,600
)
(17,940
)
(20,631
)
Pro forma tangible stockholders' equity
$
532,156
$
584,011
$
635,865
$
695,498
Stockholders' equity per share (7):
Historical
$
5.39
$
4.58
$
3.98
$
3.46
Estimated net proceeds
7.15
7.16
7.16
7.17
Oritani Financial Corp., MHC capital contribution
0.01
0.01
0.01
0.01
Less: Common stock acquired by employee stock ownership plan (2)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Less: Common stock acquired by the stock-based incentive plan (3)
(0.30
)
(0.30
)
(0.30
)
(0.30
)
Pro forma tangible stockholders' equity per share (7)
$
11.95
$
11.15
$
10.55
$
10.04
Offering price as percentage of pro forma stockholders' equity per share
83.68
%
89.69
%
94.79
%
99.60
%
Offering price as percentage of pro forma tangible stockholders' equity per share
53.68
%
89.69
%
94.79
%
99.60
%
Number of shares outstanding for pro forma book value per share calculations (8).
44,529,252
52,387,355
60,245,458
69,282,277
84
Table of Contents
(1)
As adjusted to give effect to an increase in the number of shares that could occur due to a
15% increase in the offering range to reflect demand for the shares, or changes in market and
financial conditions following the commencement of the offering.
(2)
Assumes that 4.0% of shares of common stock sold in the offering will be purchased by the
employee stock ownership plan. For purposes of this table, the funds used to acquire
these shares are assumed to have been borrowed by the employee stock ownership plan from
Oritani. The loan will have a term of 20 years and an interest rate equal to the prime
rate as published in
The Wall Street Journal
. Oritani Bank intends to make annual
contributions to the employee stock ownership plan in an amount at least equal to the
required principal and interest payments on the debt. Oritani Bank's total annual
payments on the employee stock ownership plan debt are based upon 20 equal annual
installments of principal and interest. SOP 93-6 requires that an employer record
compensation expense in an amount equal to the fair value of the shares committed to be
released to employees. The pro forma adjustments assume that: (i) the
employee stock ownership plan shares are allocated in equal annual installments based on the
number of loan repayment installments assumed to be paid by Oritani Bank; (ii) the fair
value of the common stock remains equal to the $10.00 subscription price and (iii) the
employee stock ownership plan expense reflects an effective combined federal and state tax
rate of 39%. The unallocated employee stock ownership plan shares are reflected as a
reduction of stockholders' equity. No reinvestment is assumed on proceeds contributed to
fund the employee stock ownership plan. The pro forma net income further assumes that
66,300, 78,000, 89,700 and 103,155 shares were committed to be released during the year at
the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively,
and in accordance with SOP 93-6, only the employee stock ownership plan shares committed to
be released during the year were considered outstanding for purposes of net income per share
calculations.
(3)
Gives effect to the grant of restricted stock awards pursuant to the stock-based
incentive plan expected to be adopted by following the offering and presented to
stockholders for approval not earlier than six months after the completion of the
offering. We have assumed that at the midpoint, maximum and maximum as adjusted, of the
offering range this plan acquires a number of shares of restricted common stock equal to
4.0% of the shares sold in the stock offering, either through open market purchases, from
authorized but unissued shares of common stock or treasury stock. Funds used by the
stock-based incentive plan to purchase the shares of restricted stock will be contributed
by Oritani. In calculating the pro forma effect of the stock-based incentive plan, it is
assumed that the shares of common stock were acquired by the plan in open market purchases
at the beginning of the period presented for a purchase price equal to the price for which
the shares are sold in the offering, and that 20.0% of the amount contributed was an
amortized expense (based upon a five-year vesting period) during the year ended June 30,
2009. There can be no assurance that the actual purchase price of the shares of common
stock granted under the stock-based incentive plan will be equal to the $10.00
subscription price. If shares are acquired from authorized but unissued shares of common
stock or from treasury shares, our net income per share and stockholders' equity per share
will decrease. This will also have a dilutive effect of approximately 2.89% (at the
maximum of the offering range) on the ownership interest of stockholders. The impact on
pro forma net income per share and pro forma stockholders' equity per share is not
material.
(4)
Gives effect to the granting of options pursuant to the stock-based incentive plan, which is
expected to be adopted by following the offering and presented to stockholders for approval
not earlier than twelve months after the completion of the offering. We have assumed that
options will be granted to acquire shares of common stock equal to 10.0% of the shares sold in
the offering. In calculating the pro forma effect of the stock options, it is assumed that
the exercise price of the stock options and the trading price of the stock at the date of
grant were $10.00 per share, and the estimated grant date fair value pursuant to the
application of the Black-Scholes option pricing model was $3.43 for each option. The pro
forma net income assumes that the options granted under the stock-based incentive plan have a
value of $3.43 per option, which was determined using the Black-Scholes option pricing formula
using the following assumptions: (i) the trading price on date of grant was $10.00 per share;
(ii) exercise price is equal to the trading price on the date of grant; (iii) dividend yield
of 3.00%; (iv) expected life of ten years; (v) expected volatility of 36.45%; (vi) risk-free
interest rate of 3.85%, and (vii) 50% of the options awarded are non-qualified options. If
the fair market value per share on the date of grant is different than $10.00, or if the
assumptions used in the option pricing formula are different from those used in preparing this
pro forma data, the value of options and the related expense recognized will be different.
The aggregate grant-date fair value of the stock options was amortized to expense on a
straight-line basis over a five-year vesting period of the options. There can be no assurance
that the actual exercise price of the stock options will be equal to the $10.00 price per
share. If a portion of the shares to satisfy the exercise of options under the stock-based
incentive plan is obtained from the issuance of authorized but unissued shares of common
stock, our net income and stockholders' equity per share will decrease. This also will have a
dilutive effect of up to 6.93% on the ownership interest of persons who purchase shares of
common stock in the offering.
(5)
The number of shares used to calculate pro forma net income per share is equal to the total
number of shares to be outstanding upon completion of the offering, plus the shares
contributed, and subtracting the employee stock ownership plan shares which have not been
committed for release during the period in accordance with SOP 93-6. See footnote 2, above.
(6)
The retained earnings of Oritani Bank will be substantially restricted after the conversion.
See "Our Policy Regarding Dividends," "The Conversion and Offering—Liquidation Rights" and
"Supervision and Regulation."
(7)
Per share figures include publicly held shares of Oritani Financial Corp. common stock that
will be exchanged for shares of Oritani common stock in the conversion. Stockholders' equity
per share calculations are based upon the sum of (i) the number of subscription shares assumed
to be sold in the offering; and (ii) shares to be issued in exchange for publicly held shares.
The number of subscription shares actually sold and the corresponding number of exchange
shares may be more or less than the assumed amounts.
(8)
The number of shares used to calculate pro forma stockholders' equity per share is equal to
the total number of shares to be outstanding upon completion of the offering.
85
Table of Contents
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This discussion and analysis reflects our consolidated financial statements and other relevant
statistical data. The information in this section has been derived from the audited and unaudited
consolidated financial statements, which appear beginning on page F-1 of this prospectus. You
should read the information in this section in conjunction with the business and financial
information regarding Oritani Financial Corp. provided in this prospectus.
Business Strategy
We intend to continue to operate as a well-capitalized and profitable financial institution
dedicated to understanding the banking needs of both our individual and business customers, and
tailoring our products and services accordingly. This approach enables us to be more flexible and
responsive to our customers and to provide an exceptional level of personal service.
Highlights of our business strategy are discussed below:
Continue our focus on multi-family and commercial real estate lending
. Unlike many
traditional thrifts, we have focused on the origination of multi-family and commercial real estate
loans. Such loans comprise 66.9% of our total loan portfolio at December 31, 2009. We have
focused on this type of lending because the interest rates earned for such loans are higher than
the prevailing rates for residential loans, resulting in a greater level of interest income
potential. We are also able to generate significantly higher fee income on such loans. In
addition, the repayment terms usually expose us to less interest rate risk than fixed-rate
residential loans. While our actual origination volume will depend on market conditions, we intend
to continue our emphasis on multi-family and commercial real estate lending.
We have experienced substantial growth in our combined multi-family and commercial real estate
loan portfolio in recent years. The growth rate of the portfolio has been 20.27%; 40.62%; 32.37%;
18.97% and 39.71% for the six months ended December 31, 2009 (annualized) and years ended June 30,
2009, 2008, 2007 and 2006, respectively. In addition, despite our more stringent underwriting
standards discussed below, we believe that the exit of many larger banks and conduit lenders from
the commercial real estate lending market due to the financial crisis has enabled us, as a
community bank, to increase the number and size of the commercial real estate loans that we
originate while lending to a higher quality of borrower.
We have been involved in multi-family lending for over thirty years. Over the past seven
years, we have assembled a department exclusively devoted to the origination and administration of
multi-family and commercial real estate loans. Over the past two years, we have established a
separate credit department to review all such originations and ensure compliance with our
underwriting standards. There are presently eight loan officers as well as support staff in the
origination department and three officers as well as support staff in the credit department. Our
business plan projects continued growth of the portfolio and continued additions to our staff to
support such growth. In addition, due to current economic conditions and related risks, management
has been applying stricter underwriting guidelines, including requiring higher debt service
coverage ratios and lower loan to value ratios, to these loans. We have also focused our
multi-family and commercial real estate lending on more seasoned and experienced developers.
Reduce problem assets and aggressively remedy delinquent loans
. One of management's primary
objectives is to reduce our level of problem assets. While no assurances can be provided regarding
results, management will focus a significant amount of its time on the resolution of problem
86
Table of Contents
assets. Management's tactics toward delinquent borrowers are considered aggressive. We have
commenced legal action against virtually all borrowers who are more than 45 days delinquent. We
have generally refused to extend the maturity date of any construction loan, even if the interest
payments are current, unless the borrower agrees to reduce our exposure through additional
principal payments and/or additional collateral, and agrees to an additional fee if the loan is not
paid in full on or before the new maturity date. We realize that such actions contribute to the
high level of delinquencies but believe this is the most prudent path to addressing delinquent
loans. Since June 30, 2009 our level of non-performing assets to total assets has declined from
2.74% to 2.62% at December 31, 2009. Additionally, $13.9 million of our delinquent loans are
expected to be resolved in the coming months as the underlying collateral are under contracts for
sale.
Increase core deposits
. During the past two years, we have devoted significant internal
attention to growing our deposits. We hired key, experienced personnel and have implemented an
incentive program that rewards branch personnel for attracting core deposit relationships. We have
also begun to emphasize obtaining deposits from our commercial borrowers, reexamined our pricing
strategies and promoted our status as a local community bank. As a result of these efforts, we
have recently experienced a period of unprecedented deposit growth. Our deposit balances grew
61.3% from June 30, 2008 to June 30, 2009. The growth has continued as our annualized growth for
the six month period ended December 31, 2009 was 14.7%. Much of the increase came in the areas of
certificates of deposit and money market accounts. Our ongoing focus will be to build upon this
success, with a particular emphasis on growing core commercial and retails deposits. In addition
to continuing to attract new customers to Oritani Bank, we will also focus on cross-selling core
deposit accounts to customers who have limited deposit services with Oritani Bank and seeking to
further develop the relationship by providing quality customer service.
Expand our market share within our primary market area.
Our deposit growth significantly
boosted our market penetration in Bergen County, the primary county of our operations. We
increased our percentage of Bergen County deposits from 1.8%, or the 14
th
highest
financial institution, at June 30, 2008 to 2.6%, or the 9
th
highest financial
institution, at June 30, 2009. In October 2008, Oritani Bank opened two de novo branches. These
branches had combined deposit totals of $49.6 million at December 31, 2009. In February 2010, we
opened a de novo branch in Bergenfield, New Jersey. We intend to continue the strategy of
opportunistic de novo branching. We typically seek de novo branch locations in under-banked areas
that are either a contiguous extension or fill-in of our existing branch network. We also have
budgeted monies for infrastructure improvements in our existing branches. We may also consider the
acquisition of branches from other financial institutions in our market area. We believe these
strategies, along with continued growth, will help us achieve our goal of deposit growth and market
expansion.
Continue to emphasize operating efficiencies and cost control
. One of the hallmarks of our
operations has been expense control as evidenced by an efficiency ratio of 46.5% for the six months
ended December 31, 2009. Our efficiency ratio as well as numerous other expense measurement
ratios, have consistently outperformed peers. We intend to maintain our posture on expense control
while continuing to make prudent investments in our operations by effectively managing costs in
relation to revenues. We realize that our expense ratios will be challenged in the future with the
intended implementation of stock benefit plans. However, we have recently been able to generate
favorable peer comparisons with such plans in place.
Remain true to our core competencies
. We are very proud of the institution we have helped to
build. We realize many of our peers have ventured into other areas of banking operations, such as
C&I lending, leasing and sales of alternative investment products. While these areas may be
profitable, they also have inherent risks and require significant expertise separate from our core
lending and deposit gathering operations. For the foreseeable future, we do not intend to utilize
our capital to enter into new
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types of lending or other areas of operations that we consider to be risky. We believe that
we possess expertise in our current types of lending and operations and intend to rely on this
existing expertise for future growth and profitability.
Critical Accounting Policies
We consider accounting policies that require management to exercise significant judgment or
discretion or to make significant assumptions that have, or could have, a material impact on the
carrying value of certain assets or on income, to be critical accounting policies. We consider the
following to be our critical accounting policies.
Allowance for Loan Losses
. The allowance for loan losses is the estimated amount considered
necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The
allowance is established through the provision for loan losses that is charged against income. The
allowance for loan losses is considered a critical accounting policy by management because of the
high degree of judgment involved, the subjectivity of the assumptions used, and the potential for
changes in the economic environment that could result in changes to the amount of the recorded
allowance for loan losses.
The allowance for loan losses has been determined in accordance with U.S. generally accepted
accounting principles, under which we are required to maintain an allowance for probable losses at
the balance sheet date. We are responsible for the timely and periodic determination of the amount
of the allowance required. We believe that our allowance for loan losses is adequate to cover
specifically identifiable losses, as well as estimated losses inherent in our portfolio for which
certain losses are probable but not specifically identifiable.
Management performs a quarterly evaluation of the adequacy of the allowance for loan losses.
The analysis of the allowance for loan losses has two components: specific and general allocations.
Specific allocations may be made for loans that are criticized or impaired. Management will
identify loans that have demonstrated issues that cause concern regarding full collectibility in
the required time frame. Delinquency is a key indicator of such issues. In addition, we utilize
the services of an external loan review firm to review a significant portion of new originations
and the existing portfolio over the course of the year. Their scope is determined by the Audit
Committee. This firm prepares quarterly reports that include recommendations for classification.
Their services assist in identifying loans that should be classified, particularly prior to
delinquency issues. Management summarizes all problem loans and classifies such loans within the
following industry standard categories: Watch; Special Mention; Substandard; Doubtful or Loss. In
addition, a classified loan may be considered impaired. Impairment is measured by determining the
present value of expected future cash flows or, for collateral-dependent loans, the fair value of
the collateral adjusted for market conditions and selling expenses. The general allocation is
determined by segregating the remaining loans by type of loan, and specific collateral category.
We also analyze historical loss experience, delinquency trends, general economic conditions and
geographic concentrations. This analysis establishes factors that are applied to the loan groups
to determine the amount of the general allocation. This evaluation is inherently subjective, as it
requires material estimates that may be susceptible to significant revisions based upon changes in
economic and real estate market conditions. Actual loan losses may be significantly more than the
allowance for loan losses we have established, which could have a material negative effect on our
financial results.
On a quarterly basis, the Chief Financial Officer reviews the current status of various loan
assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation
process, specific loans are analyzed to determine their risk of loss. This process includes all
loans, concentrating on non-accrual and classified loans. Each non-accrual or classified loan is
evaluated for loss exposure. To determine the adequacy of collateral on a particular loan, an
estimate of the fair market value of the
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collateral is based on the most current appraised value available. This appraised value is
then reduced to reflect estimated liquidation expenses. Any shortfall results in a charge to the
allowance if the likelihood of loss is evaluated as probable.
The results of this quarterly process are summarized along with recommendations and presented
to executive management for their review. Based on these recommendations, specific loan loss
reserves are approved by executive management. All supporting documentation with regard to the
evaluation process, loan loss experience, allowance levels and the schedules of classified loans
are maintained by the Chief Financial Officer. A summary of specific loan loss reserves is
presented to the Board of Directors on a quarterly basis.
We have a concentration of loans secured by real property located in New Jersey. As a
substantial amount of our loan portfolio is collateralized by real estate, appraisals of the
underlying value of property securing loans are critical in determining the amount of the allowance
required for specific loans. Assumptions for appraisal valuations are instrumental in determining
the value of properties. Overly optimistic assumptions or negative changes to assumptions could
significantly impact the valuation of a property securing a loan and the related allowance
determined. Only Board-approved appraisers are utilized. The assumptions supporting such
appraisals are carefully reviewed by management to determine that the resulting values reasonably
reflect amounts realizable on the related loans. Based on the composition of our loan portfolio,
we believe the primary risks are increases in interest rates, a decline in the economy generally,
and a decline in real estate market values in New Jersey. Any one or combination of these events
may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and
future levels of loan loss provisions. We consider it important to maintain the ratio of our
allowance for loan losses to total loans at an adequate level. Factors such as current economic
conditions, interest rates, and the composition of the loan portfolio will effect our determination
of the level of this ratio for any particular period.
Our allowance for loan losses in recent years reflects probable future losses resulting from
the actual growth in our loan portfolio. We recognize that our overall delinquencies, impaired
loans and nonaccrual loans have increased significantly over the past two years. We believe the
allowance for loan losses at December 31, 2009 adequately reflects our portfolio credit risk.
Although we believe we have established and maintained the allowance for loan losses at
adequate levels, additions may be necessary if future economic and other conditions differ
substantially from the current operating environment. Although management uses the best
information available, the level of the allowance for loan losses remains an estimate that is
subject to significant judgment and short-term change. In addition, the FDIC and the New Jersey
Department of Banking and Insurance, as an integral part of their examination process, will
periodically review our allowance for loan losses. Such agencies may require us to recognize
adjustments to the allowance based on its judgments about information available to them at the time
of their examination.
Deferred Income Taxes
. We use the asset and liability method of accounting for income taxes.
Under this method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. If current available
information raises doubt as to the realization of the deferred tax assets, a valuation allowance
may be established. We consider the determination of this valuation allowance to be a critical
accounting policy because of the need to exercise significant judgment in evaluating the amount and
timing of recognition of deferred tax liabilities and assets, including projections of future
taxable income. These judgments and estimates are reviewed on a quarterly basis as
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regulatory and business factors change. A valuation allowance for deferred tax assets may be
required if the amounts of taxes recoverable through loss carry backs decline, or if we project
lower levels of future taxable income. Such a valuation allowance would be established through a
charge to income tax expense that would adversely affect our operating results.
Asset Impairment Judgments
. Some of our assets are carried on our consolidated balance sheets
at cost, fair value or at the lower of cost or fair value. Valuation allowances or write-downs are
established when necessary to recognize impairment of such assets. We periodically perform
analyses to test for impairment of such assets. In addition to the impairment analyses related to
our loans discussed above, another significant impairment analysis is the determination of whether
there has been an other-than-temporary decline in the value of one or more of our securities.
Our available-for-sale securities portfolio is carried at estimated fair value, with any
unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or
loss in stockholders' equity. Our held-to-maturity securities portfolio, consisting of debt
securities for which we have a positive intent and ability to hold to maturity, is carried at
amortized cost. We conduct a periodic review and evaluation of the securities portfolio to
determine if the value of any security has declined below its cost or amortized cost, and whether
such decline is other-than-temporary. If such decline is deemed other-than-temporary, we would
adjust the cost basis of the security by writing down the security to fair market value through a
charge to current period operations.
Stock-Based Compensation
. We recognize the cost of employee services received in exchange for
awards of equity instruments based on the grant-date fair value of those awards in accordance with
SFAS No. 123(R) and its successor, FASB ASC Topic 718.
We estimate the per share fair value of option grants on the date of grant using the
Black-Scholes option pricing model using assumptions for the expected dividend yield, expected
stock price volatility, risk-free interest rate and expected option term. These assumptions are
subjective in nature, involve uncertainties and, therefore, cannot be determined with precision.
The Black-Scholes option pricing model also contains inherent limitations when applied to options
that are not traded on public markets.
The per share fair value of options is highly sensitive to changes in assumptions. In general,
the per share fair value of options will move in the same direction as changes in the expected
stock price volatility, risk-free interest rate and expected option term, and in the opposite
direction as changes in the expected dividend yield. For example, the per share fair value of
options will generally increase as expected stock price volatility increases, risk-free interest
rate increases, expected option term increases and expected dividend yield decreases. The use of
different assumptions or different option pricing models could result in materially different per
share fair values of options.
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Comparison of Financial Condition at December 31, 2009 and June 30, 2009
Balance Sheet Summary
Total Assets.
Total assets increased $93.4 million, or 4.9%, to $2.01 billion at December 31,
2009, from $1.91 billion at June 30, 2009. The increase was due primarily to the growth of loans
and securities AFS.
Cash and Cash Equivalents.
Cash and cash equivalents (which includes fed funds and short term
investments) decreased $109.1 million to $26.3 million at December 31, 2009 from $135.4 million at
June 30, 2009 as excess liquidity was deployed primarily into securities available for sale.
Loans, net.
Net loans increased $78.5 million, or 6.1%, to $1.36 billion at December 31, 2009 from
$1.28 billion at June 30, 2009. We continued our emphasis on loan originations, particularly
multi-family and commercial real estate loans. Loan originations and purchases totaled $192.1
million for the six months ended December 31, 2009.
The allowance for loan losses increased $1.5 million to $22.2 million at December 31, 2009 from
$20.7 million at June 30, 2009. We charged off loans of $3.6 million and recovered $3,000 in
previously charged off loans during the six months ended December 31, 2009. There were no
charge-offs or recoveries during the six months ended December 31, 2008. The delinquency and
nonaccrual totals, along with charge-offs and economic factors, remain the primary contributors to
the current level of provision for loan losses. Loan growth was also a component of the provision
for loan losses.
Delinquency information is provided below:
Delinquency Totals
December 31, 2009
September 30, 2009
June 30, 2009
March 31, 2009
December 31, 2008
(Dollars in thousands)
30 — 59 days past due
$
9,613
$
14,318
$
6,727
$
4,897
4,979
60 — 89 days past due
1,974
1,049
17,825
2,130
5,942
Nonaccrual
51,907
52,557
52,465
52,260
44,067
Total
$
63,494
$
67,924
$
77,017
$
59,287
$
54,988
Total delinquent loans decreased by $13.5 million during the six months ended December
31, 2009 and by $4.4 million over the three months ended December 31, 2009. While the totals
decreased over the 2009 periods, nonaccrual and total delinquent loan totals remain at elevated
levels. The nonaccrual loan total was fairly stable from September 30, 2009 to December 31, 2009.
However, as further described below, $13.9 million of this total is expected to be resolved shortly
as the underlying collateral is currently under contracts for sale. We have been utilizing all
legal remedies reasonably possible to expedite these closings, however, circumstances may occur
that could cause closings to be deferred or not occur at all. The $3.1 million property described
below was originally estimated for a March, 2010 closing, but that has now been postponed until
April. We have continued our aggressive posture toward delinquent borrowers. We have commenced
legal action against virtually all borrowers who are more than 45 days delinquent. The Company has
refused to extend the maturity date of any construction loan, even if the interest payments are
current, unless the borrower agrees to reduce the Company's exposure through additional principal
payments and/or additional collateral, and agrees to an additional fee if the loan is not paid in
full on or before the new maturity date. We realize that such actions contribute to the high level
of delinquencies but believe this is the most prudent path to addressing problem loans.
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A discussion of the significant components of the nonaccrual loan total at December 31, 2009
follows. These loans comprise $50.2 million of total nonaccrual loans at December 31, 2009.
•
Two of these loans are to one borrower and totaled $15.9 million at December 31, 2009. The
loans are secured by a condominium construction project and raw land with all building approvals,
both of which are in Northern New Jersey. The borrower declared bankruptcy and Oritani Bank has
provided debtor in possession financing for the completion of the condominium construction project.
While significant costs and delays have been encountered in finalizing the project and obtaining
certificates of occupancy ("CO") for the residential units, we believe that the final matters
necessary to realize these items are in the final phases of completion. Numerous residential units
remain under contract and new sales are continuing, providing a clear indicator of current value.
These contracts are not included in the $13.9 million of loans described above that are expected to
be resolved shortly through the sale of the underlying collateral. They were not included in this
total due to prior disappointments regarding the attainment of a CO and uncertainty regarding the
ultimate closing dates. Prior charge offs of the construction loan total $4.0 million. During
the quarter ended December 31, 2009, Oritani Bank charged off $661,000 of the land loan. Both
loans are classified as impaired as of December 31, 2009. In addition, specific reserves totaling
$1.7 million have been recorded against these loans.
•
A $7.9 million loan secured by a retail mall in Northern New Jersey is classified as
nonaccrual and impaired at December 31, 2009. The borrower has declared bankruptcy. Foreclosure
proceedings are progressing and the bankruptcy trustee has accepted a contract for sale of this
property. In accordance with the results of the impairment analyses, no reserve was required for
this loan as it was considered to be well collateralized. Foreclosure auction date was scheduled
for February of 2010 but has been postponed until March. Management currently expects that the
current contract will close shortly after the auction date. However, an investor in the original
project is attempting to use legal remedies to postpone or cancel this sale.
•
Three loans to one borrower totaling $5.8 million, secured by various warehouse properties
in Rockland, Nassau and Westchester counties, New York, are classified as nonaccrual and impaired
at December 31, 2009. Oritani Bank is in litigation with the borrower and the guarantor.
Foreclosure auctions have occurred for two of the three properties and, in both instances, the
properties were sold at the auction. These two sales have closed and proceeds have been received
in the current quarter. Foreclosure proceedings are progressing on the third property and a
foreclosure date has been scheduled for April, 2010. During the quarter ended December 31, 2009,
Oritani Bank charged off $785,000 of the loans associated with the properties sold at auction. In
addition, specific reserves totaling $355,000 have been recorded against the loan on the remaining
property.
•
A $14.1 million loan secured by a multi-tenant commercial property in Hudson County, New
Jersey. The borrower has experienced cash flow difficulties. Oritani Bank is in litigation with
this borrower, foreclosure proceedings are progressing and all tenant rent payments are being made
directly to Oritani Bank. The rents received were sufficient to make each of the monthly payments
during the quarter. Specific reserves totaling $1.1 million have been recorded against this loan.
•
A $3.1 million loan secured by a commercial property located in Bergen County, New Jersey.
The borrower and guarantor on this loan have declared bankruptcy. A contract for the sale of the
property has been accepted by the bankruptcy trustee. This contract is currently expected to close
in April, 2010. In accordance with the results of the impairment analysis for this loan, no
reserve was required as the loan is considered to be well collateralized.
•
A $1.1 million multi-family loan located in Hudson County, New Jersey. Oritani Bank and the
borrower have signed a forbearance agreement and the borrower continues to make payments in
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accordance with the agreement. The loan was removed from nonaccrual classification in
February as a sufficient history of satisfactory payment under the forbearance agreement has been
demonstrated.
•
A $2.3 million residential construction loan for two luxury homes and an improved lot
located in Essex County, New Jersey. The borrower encountered cash flow difficulties due to an
extended construction and marketing period. An extension request was declined, and we are now
pursuing legal remedies.
Securities Available for Sale ("AFS").
Securities AFS increased $176.0 million to $320.4 million
at December 31, 2009, from $144.4 million at June 30, 2009. As described in the discussion of
total interest income in the "Comparison of Operating Results for the Six Months ended December 31,
2009 and 2008," we believe this investment option currently presents the best risk/reward profile.
Mortgage-Backed Securities ("MBS") Held to Maturity ("HTM").
Mortgage-backed securities held to
maturity decreased $32.6 million, or 27.5%, to $86.2 million at December 31, 2009 from $118.8
million at June 30, 2009. This decrease was primarily due to principal repayments received.
Mortgage-Backed Securities Available for Sale.
Mortgage-backed securities available for sale
decreased $30.1 million, or 23.4%, to $98.5 million at December 31, 2009 from $128.6 million at
June 30, 2009. This decrease was primarily due to principal repayments received.
Deposits.
Deposits increased $82.9 million, or 7.3%, to $1.21 billion at December 31, 2009 from
$1.13 million at June 30, 2009. Oritani Bank has implemented several initiatives designed to
achieve deposit growth. A new branch location opened in February, 2010. Strong deposit growth
remains one of our strategic objectives.
Stockholders' Equity.
Stockholders' equity increased $7.9 million, or 3.3%, to $248.0 million at
December 31, 2009 from $240.1 million at June 30, 2009. The increase was primarily the result of
net income of $7.4 million for the six months ended December 31, 2009. On March 18, 2009, we
announced the commencement of a fourth (967,828 shares) 10.0% repurchase program. As of December
31, 2009, we had repurchased a total of 3,669,937 shares at a total cost of $57.1 million and an
average cost of $15.57 per share.
Comparison of Operating Results for the Six Months Ended December 31, 2009 and 2008
Net Income.
Net income increased $4.9 million to $7.4 million for the six months ended December
31, 2009 from net income of $2.5 million for the corresponding 2008 period. The primary cause of
the increased income in the 2009 period was increased net interest income and decreased impairment
charges related to equity investments. Our annualized return on average assets was .76% for the
six months ended December 31, 2009, and .33% for the corresponding 2008 period. Our annualized
return on average equity was 6.19% for the six months ended December 31, 2009, and 1.94% for the
corresponding 2008 period.
Total Interest Income.
Total interest income increased by $8.7 million, or 20.5%, to $51.2 million
for the six months ended December 31, 2009, from $42.5 million for the six months ended December
31, 2008. The largest increase occurred in interest on loans, which increased $7.4 million or
21.4%, to $42.1 million for the six months ended December 31, 2009, from $34.6 million for the six
months ended December 31, 2008. Over that same period, the average balance of loans increased
$213.4 million and the yield on the portfolio increased 13 basis points. Included in total
interest income for the 2009 period is $1.3 million in interest income, prepayment penalties,
default interest and deferred fee earnings recovered on the resolution of three classified loans.
These recoveries occurred during the quarter ended
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September 30, 2009. There were also significant changes to income on securities AFS; MBS HTM and
MBS AFS. Over the period, excess liquidity was generally deployed in securities classified as
available for sale as management felt such investments provided the best risk/reward profile
considering the current and projected cash needs of the Company. Such investments were typically
callable notes of government sponsored agencies with limited optionality and call features that
made the notes likely to be called when management estimated we would need the liquidity.
Management classified the investments as AFS so they could be sold should unexpected liquidity
needs develop. Interest on securities AFS increased by $3.1 million to $3.7 million for the six
months ended December 31, 2009, from $633,000 for the six months ended December 31, 2008. The
average balance of securities AFS increased $231.3 million over that same period. The yield on the
portfolio decreased considerably due to current market rates as well as the conservative structure
of the new investments. Cash flows from other investment categories were redeployed into
securities AFS because, as described above, management felt securities AFS provided the best
risk/reward profile given current economic circumstances and investment options. Interest on MBS
HTM decreased by $1.1 million to $1.9 million for the six months ended December 31, 2009, from $3.0
million for the six months ended December 31, 2008. Interest on MBS AFS decreased by $955,000 to
$2.7 million for the six months ended December 31, 2009, from $3.7 million for the six months ended
December 31, 2008. The combined average balances of the two MBS portfolios decreased $81.7 million
over the period.
Total Interest Expense.
Total interest expense increased by $1.6 million, or 7.4%, to $22.6 million
for the six months ended December 31, 2009, from $21.1 million for the six months ended December
31, 2008. Interest expense on deposits increased by $1.0 million, or 9.1%, to $12.1 million for
the six months ended December 31, 2009, from $11.1 million for the six months ended December 31,
2008. The average balance of interest bearing deposits increased $426.7 million while the average
cost of these funds decreased 88 basis points over this period. Market interest rates allowed
Oritani Bank to reprice many maturing time deposits, as well as other interest bearing deposits, at
lower rates, decreasing the cost of funds. Interest expense on borrowings increased by $554,000,
or 5.6%, to $10.5 million for the six months ended December 31, 2009, from $9.9 million for the six
months ended December 31, 2008. The average balance of borrowings increased $5.8 million and the
cost increased 17 basis points over this period. The primary reason for this increased cost was
that we had greater reliance on short term borrowings in the 2008 period. Short term borrowings
are generally lower cost.
Net Interest Income Before Provision for Loan Losses.
Net interest income increased by $7.2
million, or 33.4%, to $28.6 million for the six months ended December 31, 2009, from $21.5 million
for the six months ended December 31, 2008. Our net interest rate spread increased to 2.61%
(normalized) for the six months ended December 31, 2009, from 2.42% for the six months ended
December 31, 2008. The normalized spread calculation does not include the $1.3 million in loan
interest income realized on the resolution of three classified loans in the September 30, 2009
quarter. Our actual net interest rate spread for the six months ended December 31, 2009 was 2.75%.
Our actual and normalized net interest margin for the six months ended December 31, 2009 were
3.03% and 2.89%, respectively, versus 2.90% for the six months ended December 31, 2008. Our net
interest income was reduced by $1.3 million and $1.4 million for the six months ended December 31,
2009 and 2008, respectively, due to the impact of nonaccrual loans.
Provision for Loan Losses.
We recorded provisions for loan losses of $5.1 million for the six
months ended December 31, 2009 as compared to $5.4 million for the six months ended December 31,
2008. See discussion of the allowance for loan losses in "Comparison of Financial Condition at
December 31, 2009 and June 30, 2009" and note 7 of the financial statements.
Other Income.
Other income increased to $3.6 million for the six months ended December 31, 2009
from $668,000 for the six months ended December 31, 2008. The 2008 period was muted by an $1.8
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million impairment charge taken regarding equity securities in our AFS portfolio, compared to a
$202,000 charge in the 2009 period. In addition, in the 2009 period, we realized a $1.0 million
gain on the sale of a commercial office property that had been held and operated as a real estate
investment.
Other Expense.
Other expense increased by $2.6 million or 20.8% to $15.0 million for the six
months ended December 31, 2009, from $12.4 million for the six months ended December 31, 2008. The
increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.2
million, or 13.1%, over the period. This increase consisted of various components. There was an
increase of $550,000 directly pertaining to compensation, due to additional staff and merit
increases. Bonus expense increased $356,000 as management met all goals and the maximum bonus
level was achieved in our incentive compensation plan. Payroll taxes increased $115,000, primarily
due to social security tax on the increased pay. Expenses and accruals associated with the
Company's qualified and nonqualified benefit plans increased $67,000. There was also a $66,000
increase in health care insurance expense. Federal deposit insurance premiums increased
significantly over six months ended December 31, 2009 due to an increase in FDIC deposit insurance
rates, an increase in insurable deposits and the depletion of a credit against FDIC deposit
insurance charges. Federal deposit insurance premiums increased $1.1 million, to $1.2 million for
the six months ended December 31, 2009, from $60,000 for the six months ended December 31, 2008.
Other expenses increased by $29,000 during the six months ended December 31, 2009 as compared to
the six months ended December 31, 2008. In the 2009 period, a recovery of legal expenses in
conjunction with the resolution of three classified loans partially offset increased problem asset
expense.
Income Tax Expense
. Income tax expense for the six months ended December 31, 2009, was $4.8
million, due to pre-tax income of $12.2 million, resulting in an effective tax rate of 39.2%. For
the six months ended December 31, 2008, income tax expense was $1.8 million, due to pre-tax income
of $4.3 million, resulting in an effective tax rate of 41.4%.
Comparison of Operating Results for the Years Ended June 30, 2009 and June 30, 2008
Net Income
. Net income decreased $3.4 million, or 38.0%, to $5.6 million for the year ended June
30, 2009, versus $9.0 million for the corresponding 2008 period. The items primarily impacting the
twelve month period ended June 30, 2009 were provision for loan losses totaling $9.9 million, a
pre-tax charge of $2.0 million as a result of an other than temporary impairment in the value of
investment securities available for sale, and increased FDIC expense of $1.7 million. The items
primarily impacting the year ended June 30, 2008 were provision for loan losses totaling $4.7
million, a pre-tax charge of $998,000 as a result of an other than temporary impairment in the
value of investment securities available for sale, and a $1.1 million gain on the sale of a real
estate held for investment property.
Total Interest Income
. For the year ended June 30, 2009, total interest income increased by $16.8
million, or 23.5%, to $88.4 million, from $71.6 million for the year ended June 30, 2008. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $17.1
million, or 31.1%, to $72.2 million for the year ended June 30, 2009, from $55.1 million for the
year ended June 30, 2008. The average balance of loans, net increased $323.2 million while the
yield on the portfolio decreased 31 basis points. The yield on the portfolio in 2009 was
negatively impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest
in nonaccrual loans), the yield remained stable. Interest on federal funds sold and short term
investments decreased by $1.6 million to $73,000 for the year ended June 30, 2009, from $1.7
million for the year ended June 30, 2008. The decrease is related to a $20.3 million decrease in
the average balance and a decrease in yield of 347 basis points. The Federal Open Market Committee
has significantly decreased the federal funds target rate over the period. While the Company seeks
to prudently deploy cash inflows as quickly as possible, the significant growth in deposits has
increased liquidity above an optimal level. Our primary asset investment had been loans.
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However, for this period, deposit growth outpaced loan growth. Excess cash flows were initially
invested in MBS AFS. Over the course of the year, as the risk/reward profiles of the investment
options changed, and our current and projected cash needs changed, the primary investment vehicle
for the excess cash became securities AFS. Interest on MBS AFS increased by $2.3 million to $7.0
million for the year ended June 30, 2009, from $4.7 million for the year ended June 30, 2008. The
average balance increased $54.7 million while the yield decreased 34 basis points. Interest on the
other investment related captions of securities HTM, securities AFS and MBS HTM decreased by
$972,000, or 9.6%, to $9.2 million for the year ended June 30, 2009, from $10.1 million for the
year ended June 30, 2008. The decrease was primarily due to a decrease in the combined average
balance of $10.8 million and a decreased yield.
Interest Expense.
Total interest expense increased by $7.3 million, or 19.6%, to $44.5 million for
the year ended June 30, 2009, from $37.2 million for the year ended June 30, 2008. The vast
majority of the increase was due to borrowings as interest expense on deposits increased by
$397,000 while interest expense on borrowings increased by $6.9 million. The average balance of
deposits increased 27.0% to $880.8 million for the year ended June 30, 2009 from $693.3 million for
the year ended June 30, 2008. The cost of deposits decreased to 2.75% for the year ended June 30,
2009 from 3.44% for the year ended June 30, 2008. The average balance of borrowings increased to
$505.6 million for the year ended June 30, 2009 from $310.2 million for the year ended June 30,
2008. The cost of borrowings decreased to 4.00% for the year ended June 30, 2009 from 4.30% for the
year ended June 30, 2008.
Net Interest Income.
Net interest income increased by $9.5 million, or 27.8%, to $43.9 million for
the year ended June 30, 2009, from $34.4 million for the year ended June 30, 2008. Our net
interest income and net interest rate spread were both negatively impacted for the year ended June
30, 2009 due to the reversal of accrued interest income on loans delinquent more than 90 days. The
total of such income reversed was $3.7 million for the year ended June 30, 2009 compared to
$521,000 for the year ended June 30, 2008. Our net interest rate spreads for the years ended June
30, 2009 and June 30, 2008 were 2.36% and 2.06%, respectively.
Provision for Loan Losses
.
We recorded provisions for loan losses of $9.9 million for the year
ended June 30, 2009 as compared to $4.7 million for the year ended June 30, 2008. We charged off a
total of $2.7 million in loans during the year ended June 30, 2009 related to losses deemed
probable. There were no recoveries in any of the periods. Our allowance for loan losses is
analyzed quarterly and many factors are considered. As in prior periods, loan growth was a
component of the provision for loan losses in the 2009 periods. The delinquency and nonaccrual
totals, however, were the primary contributors to the increased level of provision for loan losses
Delinquency information is provided below:
Delinquency Totals
June 30, 2009
June 30, 2008
June 30, 2007
(In thousands)
30 — 59 days past due
$
6,727
$
27,985
$
555
60 — 89 days past due
17,825
18
39
Nonaccrual
47,839
13,876
—
Total
$
72,391
$
41,879
$
594
Other Income
.
Other income decreased by $2.2 million to $2.8 million for the year ended June
30, 2009, from $4.9 million for the year ended June 30, 2008, primarily due to impairment charges
during the 2009 fiscal year and gain on sale of assets recognized during the 2008 fiscal year. Net
gain on sale of assets decreased $1.1 million for the year ended June 30, 2009, due to the sale of
a multi-family property that had been held and operated as a real estate investment during fiscal
2008. Writedowns due to investment impairments increased by $1.0 million to $2.0 million for the
year ended June 30, 2009, from $1.0 million for the year ended June 30, 2008. The writedowns in
the 2009 period primarily pertain to impairment charges recorded in relation to equity securities
in our AFS portfolio.
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Other Expenses.
Other expenses increased by $7.8 million, or 39.8%, to $27.3 million for the year
ended June 30, 2009, from $19.5 million for the year ended June 30, 2008. Compensation, payroll
taxes and fringe benefits increased by $4.7 million to $18.7 million for the year ended June 30,
2009, from $13.9 million for the year ended June 30, 2008. In May 2008, stock and options grants
that had been approved in our 2008 Equity Incentive Plan were awarded. The amortization of the
cost of this plan began in May 2008. The increase in the amortization of the costs of Equity
Incentive Plan costs are greater as an entire 12 months worth of expense is included in the 2009
period. Such expenses totaled $3.8 million for the year ended June 30, 2009, versus $610,000 for
the year ended June 30, 2008. Compensation costs increased $1.0 million primarily due to increased
personnel to assist with implementing the organic growth strategy. Another significant component
of the increase was FDIC insurance premiums increasing $1.7 million to $1.8 million for the year
ended June 30, 2009, versus $92,000 for the year ended June 30, 2008. Other significant factors
contributing to the 2009 increase were an increase of $493,000 in office occupancy expense
primarily due to cost associated with the branch openings in October 2008 and an increase of
$668,000 in other expense primarily due to expenses associated with problem loans, such as legal
costs related to foreclosure actions.
Income Taxes.
For the year ended June 30, 2009, income tax expense of $4.0 million was recognized
against pre-tax income of $9.6 million. For the year ended June 30, 2008, income tax expense of
$6.2 million was recognized against pre-tax income of $15.2 million.
Comparison of Operating Results for the Years Ended June 30, 2008 and June 30, 2007
Net Income
. Net income decreased $2.1 million, or 18.8%, to $9.0 million for the year ended June
30, 2008, versus $11.0 million for the corresponding 2007 period. There were several atypical
items that affected the Company's results of operations in both periods.
The items primarily impacting the twelve month period ended June 30, 2008 were provision for loan
losses totaling $4.7 million, a pre-tax charge of $998,000 as a result of an other than temporary
impairment in the value of investment securities available for sale, and a $1.1 million gain on the
sale of a real estate held for investment property. The items primarily impacting the twelve month
period ended June 30, 2007 were the reversal of a $3.2 million valuation allowance related to
certain New Jersey State deferred tax assets, the reinvestment of the proceeds related to the stock
subscription offering, a gain of $514,000 regarding the sale of our former headquarters, and a $9.1
million pre-tax charitable contribution to the OritaniBank Charitable Foundation.
Total Interest Income
. For the year ended June 30, 2008, total interest income increased by $8.2
million, or 13.0%, to $71.6 million, from $63.3 million for the year ended June 30, 2007. The
largest increase was in interest on mortgage loans. Interest on mortgage loans increased by $10.8
million, or 24.3%, to $55.1 million for the year ended June 30, 2008, from $44.3 million for the
year ended June 30, 2007. The average balance of loans, net increased $164.3 million and the yield
on the portfolio increased 3 basis points. The yield on the portfolio in 2008 was negatively
impacted by interest on nonaccrual loans. On a normalized basis (inclusive of interest in
nonaccrual loans), the yield increased 10 basis points. Interest on federal funds sold and short
term investments decreased by $5.1 million to $1.7 million for the year ended June 30, 2008, from
$6.8 million for the year ended June 30, 2007. The decrease is related to an $81.9 million
decrease in the average balance and a decrease in yield of 162 basis points. The federal funds
rate decreased over the year from 5.25% at June 30, 2007 to 2.00% at June 30, 2008. Partially due
to this decreased return, we shifted liquid assets into longer term assets. Interest on MBS AFS
increased by $3.9 million to $4.7 million for the year ended June 30, 2008, from $813,000 for the
year ended June 30, 2007. The average balance increased $74.9 million and the yield increased 14
basis points. Interest on the other investment related captions of securities HTM, securities AFS
and MBS HTM decreased by
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$1.3 million, or 11.3%, to $10.1 million for the year ended June 30, 2008, from $11.4 million for
the year ended June 30, 2007. The decrease was primarily due to a decrease in the combined
average balance of $34.8 million.
Interest Expense.
Total interest expense increased by $4.4 million, or 13.3%, to $37.2 million for
the year ended June 30, 2008, from $32.8 million for the year ended June 30, 2007. Interest
expense on deposits and stock subscription proceeds was relatively stable, increasing by $183,000
in fiscal 2008 versus fiscal 2007. Results for the 2007 period were enhanced by the lower rate of
interest paid on stock subscription proceeds. The average balance of deposits decreased $51.5
million and the cost increased 26 basis points. Interest expense on borrowings increased by $4.2
million to $13.3 million for the year ended June 30, 2008, from $9.1 million for the year ended
June 30, 2007. The average balance of borrowings increased by $99.6 million over the period while
the cost decreased 4 basis points.
Net Interest Income.
Net interest income increased by $3.9 million, or 12.7%, to $34.4 million for
the year ended June 30, 2008, from $30.5 million for the year ended June 30, 2007. Our net
interest income and net interest rate spread were both negatively impacted in the three month
period ended June 30, 2008 due to the reversal of accrued interest income on loans delinquent more
than 90 days. Our net interest rate spreads for the years ended June 30, 2008 and June 30, 2007
were 2.06% and 2.23%, respectively. Our net interest rate margins for the years ended June 30,
2008 and June 30, 2007 were 2.77% and 2.73%, respectively.
Provision for Loan Losses
.
We recorded provisions for loan losses of $4.7 million for the year
ended June 30, 2008 as compared to $1.2 million for the year ended June 30, 2007. There were no
recoveries or charge-offs in either period. A significant component of the increased 2008
provisions was loan growth during the periods. Loans, net increased $248.5 million during the year
ended June 30, 2008, as compared to growth of $115.5 million during the year ended June 30, 2007.
Another significant component of the increased 2008 provisions was increased delinquent and
impaired loans.
Delinquency information is provided below:
Delinquency Totals
June 30, 2008
June 30, 2007
(In thousands)
30 — 59 days past due
$
27,985
$
555
60 — 89 days past due
18
39
Nonaccrual
13,876
—
Total
$
41,879
$
594
Other Income
.
Other income decreased by $373,000, or 7.0%, to $4.9 million for the year ended
June 30, 2008, from $5.3 million for the year ended June 30, 2007. Net gain on sale of assets
increased by $582,000 to $1.1 million for the year ended June 30, 2008, from $514,000 for the year
ended June 30, 2007. The 2008 total is due to a $1.1 million gain on the sale of a multi-family
property that had been held and operated as a real estate investment. The 2007 gain pertains to
the sale of our former headquarters in Hackensack, New Jersey. Writedowns due to investment
impairments totaled $998,000 for the year ended June 30, 2008. The writedowns consisted of a
$646,000 impairment charge taken on Oritani Bank's investment in a mutual fund investment as well
as a $352,000 impairment charge related to equity securities that we recorded in the March 31, 2008
period. There were no impairment charges taken in 2007. The mutual fund invests primarily in
agency and private label MBS. The market values of the fund's holdings have been steadily
decreasing which has caused a corresponding decrease in the fund's net asset value. Oritani Bank
has a $7.8 million investment remaining in this asset. The "other" caption within other income
decreased by $257,000 to $146,000 for the year ended June 30, 2008, from $403,000 for the year
ended June 30, 2007. The decrease in this caption was primarily due to float earnings on the
oversubscription funds returned to subscribers that was realized in 2007.
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Table of Contents
Other Expenses.
Other expenses decreased by $5.8 million to $19.5 million for the year ended June
30, 2008, from $25.2 million for the year ended June 30, 2007. The primary reason for the decrease
was the $9.1 million contribution to the OritaniBank Charitable Foundation in the 2007 period.
Compensation, payroll taxes and fringe benefits increased by $2.7 million, or 24.2%, to $13.9
million for the year ended June 30, 2008, from $11.2 million for the year ended June 30, 2007. In
May 2008, stock and options grants that had been approved in our 2007 Equity Incentive Plan were
awarded. The amortization of the cost of this plan began in May 2008 and totaled $610,000 for the
year ended June 30, 2008. Employee stock ownership plan-related expenses increased $758,000 to
$1.4 million for the year ended June 30, 2008 from $607,000 for the twelve months June 30, 2007.
Expenses for the 2007 period were reduced due to a $492,000 refund of a prior period pension
contribution. Other significant factors contributing to the 2008 increase (versus 2007) were an
increase in Director related costs of $218,000; payroll tax expenses of $103,000 and employee
health insurance expenses of $120,000. The balance of the increase is due to increased
compensation costs as we have increased personnel to assist with implementing the organic growth
strategy. Insurance, Legal, Audit and Accounting expenses increased by $477,000 to $1.3 million
for the year ended June 30, 2008, from $779,000 for the year ended June 30, 2007. The increase is
primarily related to increased external auditing fees and costs associated with implementation and
compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
Income Taxes.
For the year ended June 30, 2008, income tax expense of $6.2 million was recognized
against pre-tax income of $15.2 million. For the year ended June 30, 2007, income tax benefit of
$1.7 million was recognized against pre-tax income of $9.4 million. The tax benefit was due to the
$3.2 million valuation allowance reversal as well as a decreased effective tax rate. The
contribution to OritaniBank Charitable Foundation resulted in a decrease in the effective tax rate
for 2007.
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Table of Contents
Average Balances and Yields
.
The following tables set forth average balance sheets, average
yields and costs, and certain other information for the periods indicated. No tax-equivalent yield
adjustments were made, as the effect thereof was not material. All average balances are daily
average balances. Non-accrual loans were included in the computation of average balances, but have
been reflected in the table as loans carrying a zero yield. The yields set forth below include the
effect of deferred fees, discounts and premiums that are amortized or accreted to interest income
or expense.
For the Six Months Ended (unaudited)
December 31, 2009
December 31, 2008
Average
Average
Average
Average Outstanding
Interest
Yield/
Outstanding
Interest
Yield/
Balance
Earned/Paid
Rate
Balance
Earned/Paid
Rate
(Dollars in thousands)
Interest-earning assets:
Loans
(1)
$
1,336,861
$
42,065
6.29
%
$
1,123,438
$
34,645
6.17
%
Securities held to maturity
(2)
25,513
717
5.62
24,646
535
4.34
Securities available for sale
260,372
3,738
2.87
29,035
633
4.36
Mortgage-backed securities held to maturity
103,686
1,918
3.70
153,587
3,032
3.95
Mortgage-backed securities available for sale
117,249
2,718
4.64
149,065
3,673
4.93
Federal funds sold and short term investments
48,471
90
0.37
258
1
0.78
Total interest-earning assets
1,892,152
51,246
5.42
1,480,029
42,519
5.75
%
Non-interest-earning assets
86,387
77,036
Total assets
$
1,978,539
$
1,557,065
Interest-bearing liabilities:
Savings accounts
$
146,313
675
0.92
%
$
144,709
1,069
1.48
%
Money market
237,403
2,008
1.69
70,882
1,076
3.04
NOW accounts
101,795
404
0.79
75,084
323
0.86
Time deposits
702,046
9,036
2.57
470,220
8,648
3.68
Total deposits
1,187,557
12,123
2.04
760,895
11,116
2.92
Borrowings
508,145
10,494
4.13
502,393
9,940
3.96
Total interest-bearing liabilities
1,695,702
22,617
2.67
%
1,263,288
21,056
3.33
%
Non-interest-bearing liabilities
39,125
32,051
Total liabilities
1,734,827
1,295,339
Stockholders' equity
243,712
261,726
Total liabilities and stockholders' equity
$
1,978,539
$
1,557,065
Net interest income
$
28,629
$
21,463
Net interest rate spread
(3)
2.75
%
2.42
%
Net interest-earning assets
(4)
$
196,450
$
216,741
Net interest margin
(5)
3.03
%
2.90
%
Average of interest-earning assets to
interest-bearing liabilities
111.59
%
117.16
%
(1)
Includes nonaccrual loans.
(2)
Includes Federal Home Loan Bank Stock.
(3)
Net interest rate spread represents the difference between the yield on average
interest-earning assets and the cost of average interest-bearing liabilities.
(4)
Net interest-earning assets represents total interest-earning assets less total
interest-bearing liabilities.
(5)
Net interest margin represents net interest income divided by average total interest-earning
assets.
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Table of Contents
For the Years Ended June 30,
2009
2008
2007
Average
Average
Average
Outstanding
Yield/
Outstanding
Yield/
Outstanding
Yield/
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
(Dollars in thousands)
Interest-earning assets:
Loans, net
(1)
$
1,181,385
$
72,158
6.11
%
$
858,223
$
55,053
6.41
%
$
693,902
$
44,278
6.38
%
Securities available for sale at market value
67,479
2,468
3.66
34,464
1,716
4.98
15,789
868
5.50
Securities held to maturity
24,937
1,069
4.29
19,192
999
5.21
19,093
1,073
5.62
Mortgage-backed securities available for
sale at market value
145,713
7,046
4.84
91,060
4,710
5.17
16,147
813
5.03
Mortgage-backed securities held to maturity
142,484
5,615
3.94
192,007
7,409
3.86
245,625
9,475
3.86
Federal Funds sold and short term investments
25,021
73
0.29
45,292
1,704
3.76
127,215
6,842
5.38
Total interest-earning assets
1,587,019
88,429
5.57
1,240,238
71,591
5.77
1,117,771
63,349
5.67
%
Non-interest-earning assets
84,535
69,806
62,293
Total assets
$
1,671,554
$
1,310,044
$
1,180,064
Interest-bearing liabilities:
Savings accounts
$
144,810
1,979
1.37
%
$
151,068
2,427
1.61
%
$
211,397
3,093
1.46
%
Money market deposit accounts
103,932
2,626
2.53
50,263
1,730
3.44
32,673
1,195
3.66
NOW accounts
75,324
628
0.83
71,176
812
1.14
75,153
868
1.15
Time deposits
556,730
19,029
3.42
420,787
18,896
4.49
425,563
18,526
4.35
Total deposits
880,796
24,262
2.75
693,294
23,865
3.44
744,786
23,682
3.18
Borrowings
505,599
20,238
4.00
310,231
13,343
4.30
210,598
9,147
4.34
Total interest-bearing liabilities
1,386,395
44,500
3.21
%
1,003,525
37,208
3.71
%
955,384
32,829
3.44
%
Non-interest-bearing liabilities
33,071
27,438
23,319
Total liabilities
1,419,466
1,030,963
978,703
Stockholders' Equity
252,088
279,081
201,361
Total liabilities and Stockholders' Equity
$
1,671,554
$
1,310,044
$
1,180,064
Net interest income
$
43,929
$
34,383
$
30,520
Net interest rate spread
(2)
2.36
%
2.06
%
2.23
%
Net interest-earning assets
(3)
$
200,624
$
236,713
$
162,387
Net interest margin
(4)
2.77
%
2.77
%
2.73
%
Ratio of interest-earning assets to
interest-bearing liabilities
114.47
%
123.59
%
117.00
%
(1)
Includes nonaccrual loans.
(2)
Net interest rate spread represents the difference between the weighted-average yield on
interest-earning assets and the weighted- average cost of interest-bearing liabilities for the
period.
(3)
Net interest-earning assets represents total interest-earning assets less interest-bearing
liabilities.
(4)
Net interest margin represents net interest income as a percent of average interest-earning
assets for the period.
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Table of Contents
Rate/Volume Analysis
The following table presents the effects of changing rates and volumes on our net interest
income for the periods indicated. The rate column shows the effects attributable to changes in
rate (changes in rate multiplied by prior volume). The volume column shows the effects
attributable to changes in volume (changes in volume multiplied by prior rate). The total increase
(decrease) column represents the sum of the prior columns. For purposes of this table, changes
attributable to both rate and volume which can not be segregated have been allocated to volume.
Six Months Ended December 31,
Years Ended June 30,
Years Ended June 30,
2009 vs. 2008
2009 vs. 2008
2008 vs. 2007
Increase (Decrease)
Total
Increase (Decrease)
Total
Increase (Decrease) Due
Total
Due to
Increase
Due to
Increase
to
Increase
Volume
Rate
(Decrease)
Volume
Rate
(Decrease)
Volume
Rate
(Decrease)
(In thousands)
Interest-earning assets:
Loans, net
$
6,582
$
838
$
7,420
$
20,730
$
(3,625
)
$
17,105
$
10,485
$
290
$
10,775
Securities available for sale
5,043
(1,938
)
3,105
1,644
(892
)
752
1,027
(179
)
848
Securities held to maturity
19
163
182
299
(229
)
70
6
(80
)
(74
)
Mortgage-backed securities
available for sale
(784
)
(171
)
(955
)
2,827
(491
)
2,336
3,772
125
3,897
Mortgage-backed securities held
to maturity
(985
)
(129
)
(1,114
)
(1,911
)
117
(1,794
)
(2,068
)
2
(2,066
)
Federal Funds sold and short
term investments
187
(98
)
89
(763
)
(868
)
(1,631
)
(4,406
)
(732
)
(5,138
)
Total interest-earning assets
10,062
(1,335
)
8,727
22,826
(5,988
)
16,838
8,816
(574
)
8,242
Interest-bearing liabilities:
Savings accounts
12
(406
)
(394
)
(101
)
(347
)
(448
)
(883
)
217
(666
)
Money market
2,528
(1,596
932
1,847
(951
)
896
643
(108
)
535
NOW accounts
115
(34
)
81
47
(231
)
(184
)
(46
)
(10
)
(56
)
Time deposits
4,264
(3,876
)
388
6,105
(5,972
)
133
(208
)
578
370
Total deposits
6,918
(5,911
)
1,007
7,898
(7,501
)
397
(494
)
677
183
Borrowings
114
440
554
8,403
(1,508
)
6,895
4,327
(131
)
4,196
Total interest-bearing
liabilities
7,032
(5,471
)
1,561
16,301
(9,009
)
7,292
3,833
546
4,379
Change in net interest income
$
3,030
$
4,136
$
7,166
$
6,525
$
3,021
$
9,546
$
4,983
$
(1,120
)
$
3,863
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Table of Contents
Management of Market Risk
General
. The majority of our assets and liabilities are monetary in nature. Consequently,
our most significant form of market risk is interest rate risk. Our assets, consisting primarily
of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits.
As a result, a principal part of our business strategy is to manage interest rate risk and reduce
the exposure of our net interest income to changes in market interest rates. Accordingly, our
Board of Directors has the authority and responsibility for managing interest rate risk. Oritani
Bank has established an Asset/Liability Management Committee, comprised of various members of its
senior management, which is responsible for evaluating the interest rate risk inherent in our
assets and liabilities, for recommending to the Board of Directors the level of risk that is
appropriate, given our business strategy, operating environment, capital, liquidity and performance
objectives, and for managing this risk consistent with the guidelines approved by the Board of
Directors. The Asset/Liability Management Committee reports its activities to the Board of
Directors on a monthly basis. An interest rate risk analysis is presented to the Board of
Directors on a quarterly basis.
We have sought to manage our interest rate risk in order to minimize the exposure of our
earnings and capital to changes in interest rates. As part of our ongoing asset-liability
management, we currently use the following strategies to manage our interest rate risk:
(i)
originating multi-family and commercial real estate loans that generally tend
to have shorter interest duration and generally reset at five years;
(ii)
investing in shorter duration securities and mortgage-backed securities; and
(iii)
obtaining general financing through FHLB advances with either a fixed long
term or with call options that are considered unlikely.
Shortening the average maturity of our interest-earning assets by increasing our investments
in shorter-term loans and securities, as well as loans and securities with variable rates of
interest, helps to better match the maturities and interest rates of our assets and liabilities,
thereby reducing the exposure of our net interest income to changes in market interest rates. By
following these strategies, we believe that we are well-positioned to react to increases in market
interest rates. However, in conjunction with the growth of our net interest spread, and net
interest income, we recognize that our interest rate risk has increased. We accept the current
level of interest rate risk.
Net Portfolio Value
.
We compute the amounts by which our net present value of cash flow from
assets, liabilities and off balance sheet items (the institution's net portfolio value or "NPV")
would change in the event of a range of assumed changes in market interest rates. A basis point
equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in
interest rates from 3% to 4.0% would mean, for example, a 100 basis point increase in the "Change
in Interest Rates" column below.
The table below sets forth, as of December 31, 2009, the estimated changes in our net
portfolio value that would result from the designated instantaneous changes in the United States
Treasury yield curve. Computations of prospective effects of hypothetical interest rate changes
are based on numerous assumptions, including relative levels of market interest rates and loan
prepayment and deposit decay rates, and should not be relied upon as indicative of actual results.
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NPV as a Percentage of Present
Estimated Increase
Value of Assets (3)
(Decrease) in
Increase
Change in Interest
Estimated
NPV
(Decrease)
Rates (basis points) (1)
NPV (2)
Amount
Percent
NPV Ratio (4)
(basis points)
(Dollars in thousands)
+200
203,351
(53,593
)
(20.86
)%
10.59
%
(209
)
0
256,944
—
—
12.68
—
-100
278,886
21,942
8.54
13.42
74
(1)
Assumes an instantaneous uniform change in interest rates at all maturities.
(2)
NPV is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet contracts.
(3)
Present value of assets represents the discounted present value of incoming
cash flows on interest-earning assets.
(4)
NPV Ratio represents NPV divided by the present value of assets.
The table above indicates that at December 31, 2009 in the event of a 100 basis point
decrease in interest rates, we would experience a 8.5% increase in net portfolio value. In the
event of a 200 basis point increase in interest rates, we would experience a 20.9% decrease in net
portfolio value. These changes in net portfolio value are within the limitations established in
our asset and liability management policies. This data does not reflect any future actions we may
take in response to changes in interest rates, such as changing the mix of our assets and
liabilities, which could change the results of the NPV and net interest income calculations.
Certain shortcomings are inherent in the methodology used in the above interest rate risk
measurement. Modeling changes in net portfolio value require making certain assumptions that may
or may not reflect the manner in which actual yields and costs respond to changes in market
interest rates. In this regard, the net portfolio value table presented assumes that the
composition of our interest-sensitive assets and liabilities existing at the beginning of a period
remains constant over the period being measured and assumes that a particular change in interest
rates is reflected uniformly across the yield curve regardless of the duration or repricing of
specific assets and liabilities. Accordingly, although the net portfolio value table provides an
indication of our interest rate risk exposure at a particular point in time, such measurements are
not intended to and do not provide a precise forecast of the effect of changes in market interest
rates on our net interest income and will differ from actual results.
Liquidity and Capital Resources
Liquidity is the ability to meet current and future financial obligations of a short-term
nature. Our primary sources of funds consist of deposit inflows, loan and mortgage-backed security
repayments, maturities and sales of securities and FHLB borrowings. While maturities and scheduled
amortization of loans and securities are predictable sources of funds, deposit flows and mortgage
prepayments are greatly influenced by general interest rates, economic conditions and competition.
Our Asset/Liability Management Committee is responsible for establishing and monitoring our
liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting
the borrowing needs of our customers as well as unanticipated contingencies. Our Asset/Liability
Management Committee focuses on our level of liquid assets as well as our borrowing capacity with
the FHLB. Funds can be obtained from the FHLB on a same day basis, significantly reducing the need
to maintain excess liquid assets to address liquidity concerns.
We regularly adjust our investments in liquid assets based upon our assessment of:
•
expected loan demand;
•
expected deposit flows;
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•
expected payments from the loan and investment portfolios;
•
funds available through borrowings;
•
yields available on interest-earning deposits and securities;
•
yields and structures available on alternate investments; and
•
the objectives of our asset/liability management program
Excess liquid assets are invested generally in interest-earning deposits and short- and
intermediate-term securities.
Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent
on our operating, financing, lending and investing activities during any given period. At December
31, 2009, cash and cash equivalents totaled $26.3 million. Securities and mortgage-backed
securities classified as available for sale, which provide additional sources of liquidity, totaled
$419.0 million at December 31, 2009.
Our cash flows are derived from operating activities, investing activities and financing
activities as reported in our Consolidated Statements of Cash Flows included in our Consolidated
Financial Statements.
In the normal course of business, we routinely enter into various commitments, primarily
relating to the origination of loans. At December 31, 2009, outstanding commitments to originate
loans totaled $47.6 million and outstanding commitments to extend credit totaled $62.3 million. We
expect to have sufficient funds available to meet current commitments in the normal course of
business. Time deposits due within one year of December 31, 2009 totaled $583.8 million, or 48.2%
of total deposits. If these deposits do not remain with us, we will be required to seek other
sources of funds, including other time deposits and FHLB advances. Depending on market conditions,
we may be required to pay higher rates on such deposits or other borrowings than we currently pay
on the time deposits. We believe, however, based on past experience, that a significant portion of
our time deposits will remain with us. We have the ability to attract and retain deposits by
adjusting the interest rates offered.
Our primary investing activity currently is the origination of loans and the purchase of loans
and securities. During the six months ended December 31, 2009, we originated $188.4 million of
loans, purchased $3.7 million of loans and purchased $251.0 million of securities. During the year
ended June 30, 2009, we originated $412.8 million of loans, purchased $37.0 million of loans, and
purchased $174.9 million of securities. During the year ended June 30, 2008, we originated $359.3
million of loans, purchased $11.83 million of loans, and purchased $141.8 million of securities.
Financing activities consist primarily of activity in deposit accounts and FHLB advances. We
experienced a net increase in total deposits of $428.7 million and $3.2 million for the fiscal
years ended June 30, 2009 and 2008, respectively. Deposit flows are affected by the overall level
of interest rates, the interest rates and products offered by us and our local competitors and
other factors.
Liquidity management is both a daily and long-term function of business management. If we
require funds beyond our ability to generate them internally, borrowing agreements exist with the
FHLB-NY, which provide an additional source of funds. FHLB advances reflected a net increase of
$75.3 million and a net increase of $237.0 million during the fiscal years ended June 30, 2009 and
2008, respectively. Our total borrowings at December 31, 2009, consisted of the $507.1 million in
longer term
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borrowings with the FHLB and minor amounts due to Oritani Financial Corp., MHC. FHLB advances
have primarily been used to fund loan demand and provide longer-term sources of funding. At
December 31, 2009, we had a commitment for an overnight line of credit with the FHLB totaling
$200.0 million, of which there were no balances. The line of credit is priced at federal funds
rate plus a spread (generally between 20 and 40 basis points) and re-prices daily. At December 31,
2009, we also had $45.0 million in discount window borrowing capacity through the Federal Reserve
Bank of New York, of which there were no balances.
On September 29, 2009, the FDIC issued a rule pursuant to which all insured depository
institutions would be required to prepay their estimated assessments for the fourth quarter of
2009, and for all of 2010, 2011 and 2012. On December 30, 2009, we paid $8.2 million in estimated
assessments, of which $7.6 million is prepaid for the 2010, 2011and 2012 assessment periods.
Oritani Bank is subject to various regulatory capital requirements, including a risk-based
capital measure. The risk-based capital guidelines include both a definition of capital and a
framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance
sheet items to broad risk categories. As of December 31, 2009, Oritani Bank exceeded all regulatory
capital requirements as follows:
Actual
Required
Amount
Ratio
Amount
Ratio
Total capital (to risk-weighted assets)
$
209,882
15.8
%
$
106,101
8.0
%
Tier I capital (to risk-weighted assets)
193,248
14.6
53,050
4.0
Tier I capital (to average assets)
193,248
10.6
72,963
4.0
On October 14, 2008, the United States Department of the Treasury announced a voluntary
Capital Purchase Program under the Troubled Asset Relief Program to encourage U.S. financial
institutions to build capital and increase financing. We are not participating in this program.
We currently support very strong capital ratios and capital levels have not been, and are not
anticipated to be, a hindrance on our ability to lend. The United States Department of the
Treasury and the FDIC have also announced an insurance guarantee program, whereby all funds in
non-interest bearing transaction deposit account, regardless of their balance, would be covered by
FDIC insurance through June 30, 2010. Oritani Bank is a participant in this program.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Commitments.
As a financial services provider, we routinely are a party to various financial
instruments with off-balance-sheet risks, such as commitments to extend credit, standby letters of
credit and unused lines of credit. While these contractual obligations represent our future cash
requirements, a significant portion of commitments to extend credit may expire without being drawn
upon. Such commitments are subject to the same credit policies and approval process accorded to
loans we make. We consider commitments to extend credit in determining our allowance for loan
losses.
Contractual Obligations.
In the ordinary course of our operations, we enter into certain
contractual obligations. Such obligations include operating leases for premises and equipment.
The following table summarizes our significant fixed and determinable contractual obligations
and other funding needs by payment date at December 31, 2009. The payment amounts represent those
amounts due to the recipient and do not include any unamortized premiums or discounts or other
similar carrying amount adjustments.
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Payments Due by Period
Less than
One to Three
Three to Five
More than
Contractual Obligations
One Year
Years
Years
Five Years
Total
(In thousands)
Federal Home Loan Bank advances
$
10,341
$
56,413
$
130,685
$
310,000
$
507,439
Operating leases
289
546
375
370
1,580
Total
$
10,630
$
56,959
$
131,060
$
310,370
$
509,019
Commitments to extend credit
$
49,888
$
—
$
1,700
$
—
$
47,588
Unadvanced construction loans
$
27,722
$
—
$
—
$
—
$
27,722
Unused lines of credit
$
34,673
$
—
$
—
$
—
$
34,673
Commitments to purchase securities
$
15,000
$
—
$
—
$
—
$
15,000
The following table summarizes our significant fixed and determinable contractual
obligations and other funding needs by payment date at June 30, 2009. The payment amounts
represent those amounts due to the recipient and do not include any unamortized premiums or
discounts or other similar carrying amount adjustments.
Payments Due by Period
Less than
One to Three
Three to Five
More than
Contractual Obligations
One Year
Years
Years
Five Years
Total
(In thousands)
Federal Home Loan Bank advances
$
10,372
$
57,934
$
110,685
$
330,000
$
508,991
Operating leases
289
570
418
448
1,725
Total
$
10,661
$
58,504
$
111,103
$
330,448
$
510,716
Commitments to extend credit
$
77,729
$
—
$
—
$
—
$
77,729
Unadvanced construction loans
$
39,708
$
—
$
—
$
—
$
39,708
Unused lines of credit
$
33,800
$
—
$
—
$
—
$
33,800
Commitments to purchase securities
$
20,000
$
—
$
—
$
—
$
20,000
Impact of Inflation and Changing Prices
Our consolidated financial statements and related notes have been prepared in accordance with
U.S. Generally Accepted Accounting Principles ("GAAP"). GAAP generally requires the measurement of
financial position and operating results in terms of historical dollars without consideration for
changes in the relative purchasing power of money over time due to inflation. The impact of
inflation is reflected in the increased cost of our operations. Unlike industrial companies, our
assets and liabilities are primarily monetary in nature. As a result, changes in market interest
rates have a greater impact on performance than the effects of inflation.
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BUSINESS OF ORITANI FINANCIAL CORP., MHC, ORITANI FINANCIAL CORP. AND ORITANI BANK
Oritani Financial Corp., MHC
Oritani Financial Corp., MHC is a federally chartered mutual holding company and currently
owns 74.4% of the outstanding shares of common stock of Oritani Financial Corp. Oritani Financial
Corp., MHC has not engaged in any significant business activity other than owning the common stock
of Oritani Financial Corp., and does not intend to expand its business activities. So long as
Oritani Financial Corp., MHC exists, it is required to own a majority of the voting stock of
Oritani Financial Corp. The executive office of Oritani Financial Corp., MHC, is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp., MHC is subject to comprehensive regulation and examination by
the OTS.
Oritani Financial Corp.
Oritani Financial Corp. is the federally chartered mid-tier stock holding company of Oritani
Bank. Oritani Financial Corp. owns 100% of the outstanding shares of common stock of Oritani Bank.
Since being formed in 1998, Oritani Financial Corp. has engaged primarily in the business of
holding the common stock of Oritani Bank as well as two limited liability companies that own a
variety of real estate investments. Oritani Financial Corp.'s executive office is located at 370
Pascack Road, in the Township of Washington, New Jersey 07676, and its telephone number is (201)
664-5400. Oritani Financial Corp. is subject to comprehensive regulation and examination by the
OTS. At December 31, 2009, Oritani Financial Corp. had consolidated assets of $2.01 billion,
consolidated deposits of $1.21 billion and consolidated stockholders' equity of $248.0 million.
Oritani Bank
General
Oritani Bank is a New Jersey-chartered savings bank headquartered in the Township of
Washington, New Jersey. Oritani Bank was originally founded in 1911, as a New Jersey building and
loan association. Over the years, Oritani Bank has expanded primarily through internal growth. In
1997, Oritani Bank converted to a mutual savings bank charter, and in March 1998, reorganized into
the two-tier mutual holding company structure. Oritani Bank conducts business from its main office
located at 370 Pascack Road, in the Township of Washington, New Jersey 07676, and its 21 branch
offices located in the New Jersey counties of Bergen, Hudson and Passaic. The telephone number at
its main office is (201) 664-5400. Oritani Bank was formerly known as Oritani Savings Bank.
Effective September 8, 2008, the name was changed to Oritani Bank.
Our principal business consists of attracting retail and commercial bank deposits from the
general public in the areas surrounding our main office in the Township of Washington, New Jersey
and our branch offices located in the New Jersey counties of Bergen (16 branches, including our
main office), Hudson (five branches) and Passaic (one branch), and investing those deposits,
together with funds generated from operations, in multi-family and commercial real estate loans,
one- to four-family residential mortgage loans as well as in second mortgage and equity loans,
construction loans, business loans, other consumer loans, and investment securities. We originate
loans primarily for investment and hold such loans in our portfolio. Occasionally, we will also
enter into loan participations. Our revenues are derived principally from interest on loans and
securities as well as our investments in real estate and real estate joint ventures. We also
generate revenues from fees and service charges and other income.
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Our primary sources of funds are deposits, borrowings and principal and interest payments on
loans and securities.
Our website address is
www.oritani.com
. Information on our website should not be
considered a part of this report.
Market Area
From our headquarters in the Township of Washington, New Jersey, we operate 22 full service
branches, including our main office. We operate branches in three separate counties of New Jersey:
Bergen, Hudson and Passaic. The majority of our branches (sixteen) and deposits are located in
Bergen County. In addition, we operate five branches in Hudson County and one branch in Passaic
County. Our market area for lending is broader and includes the state of New Jersey, the broader
New York metropolitan area, eastern Pennsylvania, and southern Connecticut.
In terms of population, Bergen County ranks as the largest county in New Jersey (out of
twenty-one counties) while Hudson County ranks fifth and Passaic County ranks ninth. The economy
in our primary market area has benefited from being varied and diverse. It is largely urban and
suburban with a broad economic base. As one of the wealthiest states in the nation, New Jersey,
with a population of 8.7 million, is considered one of the most attractive banking markets in the
United States. As of December 2009, the unemployment rate for New Jersey increased to 10.1% which
was slightly higher than the national rate of 10.0%. Despite the recent downturn, a total of 3.9
million New Jersey residents remain employed as of December 2009. Bergen County is considered part
of the New York metropolitan area. Its county seat is Hackensack. Bergen County ranks 16th among
the highest-income counties in the United States in 2009 in terms of per-capita income. Some of
Bergen County's major employers are: Hackensack University Medical Center; New Jersey Sports and
Expo Authority; Merck-Medco Managed Care; AT&T Wireless Services, Inc.; Becton Dickinson & Company;
Mellon Investor Services; Marcal Paper Mills; Mercedes-Benz of North America, Inc.; KPMG, LLP and
United States Postal Service. See "Risk Factors — Current Market and Economic Conditions May
Significantly Affect Our Operations and Financial Condition."
Bergen County is bordered by Rockland County, New York to the north, the Hudson River to the
east, Hudson County to the south, a small border with Essex County also to the south and Passaic
County to the west.
Passaic County is bordered by Orange County, New York to the north, Rockland County, New York
to the northeast, Bergen County to the east, Essex County to the south, Morris County to the
southwest and Sussex County to the west.
Hudson County's only land border is with Bergen County to the north and west. It is bordered
by the Hudson River and Upper New York Bay to the east; Kill van Kull (which connects Newark Bay
with Upper New York Bay) to the south and Newark Bay and the Hackensack River or the Passaic River
to the west.
Competition
We face intense competition within our market area both in making loans and attracting
deposits. Our market area has a high concentration of financial institutions including large money
center and regional banks, community banks and credit unions. Some of our competitors offer
products and services that we currently do not offer, such as trust services and private banking.
As of June 30, 2009, the latest
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date for which statistics are available, our market share of deposits was approximately 2.6%
in Bergen County, and less than 1.0% in each of Hudson and Passaic Counties.
Our competition for loans and deposits comes principally from locally owned and out-of-state
commercial banks, savings institutions, mortgage banking firms, insurance companies and credit
unions. We face additional competition for deposits from short-term money market funds, brokerage
firms, mutual funds and insurance companies. Our primary focus is to build and develop profitable
customer relationships across all lines of business while maintaining our role as a community bank.
Lending Activities
Our principal lending activity is the origination of multi-family loans and commercial real
estate loans as well as residential real estate mortgage loans and construction loans secured by
property located primarily in our market area. Our multi-family loans consist primarily of
mortgage loans secured by apartment buildings. Our commercial real estate loans consist primarily
of mortgage loans secured by commercial offices, retail space, warehouses and mixed-use buildings.
Our residential real estate mortgage loans consist of one- to four-family residential real property
and consumer loans. Construction loans consist primarily of one- to four-family development,
condominiums and commercial development projects. We significantly curtailed construction lending
in 2009 due to current market and economic conditions and expect to maintain this posture for the
foreseeable future. Construction loans are now only approved on an exception basis and are subject
to arduous underwriting requirements. Second mortgage and equity loans consist primarily of home
equity loans and home equity lines of credit. Commercial real estate loans represented $628.5
million, or 45.5%, of our total loan portfolio at December 31, 2009. Multi-family loans represented
$296.3 million, or 21.4%, of our total loan portfolio at December 31, 2009. One- to four-family
residential real estate mortgage loans represented $260.1 million, or 18.8%, of our total loan
portfolio at December 31, 2009. We also offer second mortgages and equity loans. At December 31,
2009, such loans totaled $51.0 million, or 3.7%, of our loan portfolio. At December 31, 2009,
construction and land loans totaled $124.9 million, or 9.0%, of our loan portfolio. At December
31, 2009, other loans, which primarily consist of secured business and to a smaller extent, account
loans, totaled $21.6 million, or 1.6%, of our loan portfolio.
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Table of Contents
Loan Portfolio Composition.
The following table sets forth the composition of our loan
portfolio, by type of loan at the dates indicated.
At December 31,
At June 30,
2009
2009
2008
2007
2006
2005
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
First mortgage loans:
Conventional one- to four-family
$
260,056
18.8
%
$
265,962
20.4
%
$
223,087
21.8
%
$
188,941
24.6
%
$
165,070
25.3
%
$
147,284
29.4
%
Multi-family
296,314
21.4
277,589
21.3
237,490
23.2
210,587
27.4
205,351
31.5
183,118
36.5
Commercial real estate
628,507
45.5
562,139
43.2
359,681
35.2
240,544
31.3
173,857
26.6
88,306
17.6
Second mortgage and equity loans
51,036
3.7
54,768
4.2
59,886
5.8
65,240
8.5
66,198
10.2
55,672
11.1
Construction and land loans
124,898
9.0
130,831
10.0
138,195
13.5
62,704
8.1
38,722
5.9
24,629
4.9
Other loans
21,612
1.6
10,993
0.8
4,880
0.5
1,140
0.1
3,291
0.5
2,321
0.5
Total loans
1,382,423
100.0
%
1,302,282
100.0
%
1,023,219
100.0
%
769,156
100.0
%
652,489
100.0
%
501,330
100.0
%
Other items:
Net deferred loan origination fees
3,102
2,979
2,610
1,732
1,753
1,604
Allowance for loan losses
22,164
20,680
13,532
8,882
7,672
6,172
Total loans, net
$
1,357,157
$
1,278,623
$
1,007,077
$
758,542
$
643,064
$
493,554
Loan Portfolio Maturities and Yields.
The following table summarizes the scheduled
repayments of our loan portfolio at June 30, 2009.
First Mortgage
Second Mortgage
Construction and Land
Other Loans
Total
Weighted
Amount
Average Rate
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Due During the Years Ending June 30,
2010
$
6,500
6.92
%
$
89
5.04
%
$
103,885
7.21
%
$
7,989
3.87
%
$
118,463
6.97
%
2011
6,140
6.54
340
5.25
24,011
5.41
1,581
6.93
32,072
5.70
2012 to 2013
51,852
6.10
2,215
5.70
—
—
481
7.85
54,548
6.10
2014 to 2018
282,566
6.24
12,172
5.35
2,406
6.52
548
6.85
297,692
6.21
2019 to 2023
284,603
6.12
17,741
5.61
—
—
—
—
302,344
6.09
2024 and beyond
474,028
6.12
22,212
5.89
529
5.09
394
6.28
497,163
6.11
Total
$
1,105,689
6.16
%
$
54,769
5.67
%
$
130,831
6.86
%
$
10,993
4.72
$
1,302,282
6.20
%
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The following table sets forth at June 30, 2009 the dollar amount of all fixed- and
adjustable-rate loans that are contractually due after June 30, 2010.
Due After June 30, 2010
Fixed
Adjustable
Total
(In thousands)
First mortgage loan balances:
Conventional one- to four family
$
219,743
$
46,194
$
265,937
Multi-family
71,789
205,245
277,034
Commercial real estate
291,122
265,096
556,218
Second mortgage and equity loans
46,785
7,895
54,680
Construction and land loans
3,637
23,309
26,946
Other loans
1,626
1,378
3,004
Total loans
$
634,702
549,117
$
1,183,819
First Mortgage Loans:
Conventional One- to Four-Family Residential Loans.
We originate one- to four-family
residential mortgage loans substantially all of which are secured by properties located in our
primary market area. At December 31, 2009, $260.1 million, or 18.8% of our loan portfolio,
consisted of one- to four-family residential mortgage loans. We generally retain for our portfolio
substantially all of these loans that we originate. One- to four-family mortgage loan originations
are generally obtained from existing or past customers, through advertising, and through referrals
from local builders, real estate brokers, and attorneys and are underwritten pursuant to Oritani
Bank's policies and standards. In 2008, we began a program where a fee is paid to a broker for a
loan referral that results in an origination or a purchase of a recently closed loan. Generally,
one- to four-family residential mortgage loans are originated in amounts up to 80% of the lesser of
the appraised value or purchase price of the property, with private mortgage insurance required on
loans with a loan-to-value ratio in excess of 80%. We generally will not make loans with a
loan-to-value ratio in excess of 90%. Fixed rate mortgage loans are originated for terms of up to
40 years. Generally, fixed rate residential mortgage loans are underwritten according to Freddie
Mac guidelines, policies and procedures, with a maximum origination amount of $2.0 million. Our
fixed rate origination volume decreased in calendar 2009. Management felt that the market rates
for such products did not provide adequate compensation for the interest rate risk associated with
the products. Consequently, the pricing of our products were higher than market, causing a
negative impact on origination volumes. This situation is expected to sustain as long as the
market rates for fixed rate residential loans remain at approximately their current levels (or
lower). We do not originate or purchase, and our loan portfolio does not include, any sub-prime
loans.
We also offer adjustable rate mortgage loans for one- to four-family properties, with an
interest rate based on the weekly average yield on U.S. Treasuries adjusted to a constant maturity
of one-year, which adjust either annually or every three years from the outset of the loan or which
adjusts annually after a five-, seven- or ten-year initial fixed rate period. Originations and
purchases of adjustable rate one- to four-family residential loans totaled $27.7 million during the
fiscal year ended June 30, 2009 as compared to total originations and purchases of $89.9 million of
one- to four-family residential loans during the same fiscal year. Our adjustable rate mortgage
loans generally provide for maximum rate adjustments of 2% per adjustment, with a lifetime maximum
adjustment up to 6%, regardless of the initial rate. Our adjustable rate mortgage loans amortize
over terms of up to 30 years.
Adjustable rate mortgage loans decrease the risk associated with changes in market interest
rates by periodically repricing, but involve other risks because, as interest rates increase, the
underlying payments by the borrower increase, thus increasing the potential for default by the
borrower. At the same time, the marketability of the underlying collateral may be adversely
affected by higher interest rates.
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Upward adjustment of the contractual interest rate is also limited by the maximum periodic and
lifetime interest rate adjustments permitted by our loan documents and, therefore, the
effectiveness of adjustable rate mortgage loans may be limited during periods of rapidly rising
interest rates. At June 30, 2009, $46.2 million, or 17.4% of our one- to four-family residential
real estate loans, had adjustable rates of interest.
In an effort to provide financing for first-time homebuyers, we offer our own first-time
homebuyer loan program. This program offers one- to four-family residential mortgage loans to
qualified individuals. These loans are offered with terms and adjustable and fixed rates of
interest similar to our other one- to four-family mortgage loan products. With this program,
borrowers receive a discounted mortgage interest rate and do not pay certain loan origination fees.
Such loans must be secured by an owner-occupied residence. These loans are originated using
similar underwriting guidelines as our other one- to four-family mortgage loans. Such loans are
originated in amounts of up to 90% of the lower of the property's appraised value or the sale
price. Private mortgage insurance is not required for such loans. The maximum amount of such loan
is $275,000.
We also offer our directors, officers and employees who satisfy certain criteria and our
general underwriting standards fixed or adjustable rate loan products with reduced interest rates.
Employee loans adhere to all other terms and conditions contained in the loan policy.
All residential mortgage loans that we originate include "due-on-sale" clauses, which give us
the right to declare a loan immediately due and payable in the event that, among other things, the
borrower sells or otherwise disposes of the real property subject to the mortgage and the loan is
not repaid. Regulations limit the amount that a savings bank may lend relative to the appraised
value of the real estate securing the loan, as determined by an appraisal of the property at the
time the loan is originated. All borrowers are required to obtain title insurance for the benefit
of Oritani Bank. We also require homeowner's insurance and fire and casualty insurance and, where
circumstances warrant, flood insurance on properties securing real estate loans.
Multi-Family and Commercial Real Estate Loans.
We originate non-residential commercial real
estate mortgage loans and loans on multi-family dwellings. At December 31, 2009, $628.5 million,
or 45.5% of our loan portfolio, consisted of commercial real estate loans and $296.3 million, or
21.4% of our loan portfolio, consisted of multi-family loans. Our commercial real estate mortgage
loans are primarily permanent loans secured by improved property such as mixed-use properties,
office buildings, retail stores and commercial warehouses. Our multi-family mortgage loans are
primarily permanent loans secured by apartment buildings. The typical loan has a fixed rate of
interest for the first five years, after which the loan reprices to a market index plus a spread.
The fixed rate period is occasionally extended to as much as ten years. These loans typically
amortize over 25 years and the maximum amortization period is 30 years. We also offer such loans
on a self-amortizing basis with fixed rate terms up to 20 years. Originations with these terms are
monitored and limited. References to commercial real estate loans below refer to multi-family and
commercial real estate.
The terms and conditions of each loan are tailored to the needs of the borrower and based on
the financial strength of the project and any guarantors. In reaching a decision on whether to
make a commercial real estate loan, we consider the net operating income of the property, the
borrower's expertise and credit history and the value of the underlying property. Loan to value
ratios are a very important consideration. Generally, however, commercial real estate loans
originated by us will not exceed 80% of the appraised value or the purchase price of the property,
whichever is less. Other factors we consider, with respect to commercial real estate rental
properties, include the term of the lease(s) and
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the quality of the tenant(s). We generally require that the properties securing these real
estate loans have debt service coverage ratios (the ratio of earnings before debt service to debt
service) of at least 1.2 times. Environmental reports are generally required for commercial real
estate loans. Commercial real estate loans made to corporations, partnerships and other business
entities may require personal guarantees by the principals as warranted. Property inspections are
conducted no less than every three years, or more frequently as warranted. Oritani Bank lending
policies allow lending up to the 80% loan to value level and 1.2 times debt service coverage ratio.
Over the course of 2009, however, we informally reduced our maximum loan to value ratios and
increased our maximum debt service coverage ratio, as well as taking a more conservative approach
on other underwriting issues. We believe these actions have resulted in originations that are more
conservative in nature than Oritani Bank policy allows. We intend to maintain this conservative
posture at least as long as we perceive a heightened economic risk in this type of lending.
A commercial borrower's financial information is monitored on an ongoing basis by requiring
periodic financial statement updates, payment history reviews and periodic face-to-face meetings
with the borrower. We require commercial borrowers to provide annually updated financial
statements and federal tax returns. These requirements also apply to the individual principals of
our commercial borrowers. We also require borrowers with rental investment property to provide an
annual report of income and expenses for the property, including a tenant list and copies of
leases, as applicable. The largest commercial real estate loan in our portfolio at December 31,
2009 was a $21.0 million loan located in Ocean County, New Jersey and secured by a shopping mall.
This loan was performing according to its terms at December 31, 2009. Our largest commercial real
estate relationship consisted of properties located mainly in our primary market area with a real
estate investor. The aggregate outstanding loan balance for this relationship is $47.6 million,
and these loans are all performing in accordance with their terms.
Loans secured by commercial real estate, including multi-family properties, generally involve
larger principal amounts and a greater degree of risk than one- to four-family residential mortgage
loans. Because payments on loans secured by commercial real estate are often dependent on
successful operation or management of the properties, repayment of such loans may be affected by
adverse conditions in the real estate market or the economy.
Second Mortgage and Equity Loans
. We also offer second mortgage and equity loans and home
equity of lines of credit, each of which are secured by one- to four-family residences,
substantially all of which are located in our primary market area. At December 31, 2009, second
mortgage and equity loans totaled $51.0 million, or 3.7% of total loans. Additionally, at December
31, 2009, the unadvanced amounts of home equity lines of credit totaled $17.3 million. The
underwriting standards utilized for home equity loans and equity lines of credit include a
determination of the applicant's credit history, an assessment of the applicant's ability to meet
existing obligations and payments on the proposed loan and the value of the collateral securing the
loan. The combined (first and second mortgage liens) loan-to-value ratio for home equity loans and
equity lines of credit is generally limited to 80%. Home equity loans are offered with fixed and
adjustable rates of interest and with terms of up to 30 years. Our home equity lines of credit
have adjustable rates of interest which are indexed to the prime rate, as reported in
The Wall
Street Journal
.
Equity loans entail greater risk than do residential mortgage loans, particularly if they are
secured by an asset that has a superior security interest. In addition, equity loan collections
depend on the borrower's continuing financial stability, and thus are more likely to be adversely
affected by job loss, divorce, illness or personal bankruptcy.
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Construction Loans.
We originate construction loans for the development of one- to
four-family residential properties located in our primary market area. Residential construction
loans are generally offered to experienced local developers operating in our primary market area
and to individuals for the construction of their personal residences. At December 31, 2009,
residential construction loans amounted to $90.5 million, or 6.6% of total loans.
Our residential construction loans generally provide for the payment of interest only during
the construction phase, but in no event exceeding 24 months. Residential construction loans can be
made with a maximum loan-to-value ratio of 75% of the appraised value of the land and 100% of the
costs associated with the construction. Residential construction loans are generally made on the
same terms as our one- to four-family mortgage loans.
We also make construction loans for commercial development projects. The projects include
multi-family, apartment, retail and office buildings. We generally require that a commitment for
permanent financing be in place prior to closing the construction loan. The maximum loan-to-value
ratio limit applicable to these loans is generally 80%. At December 31, 2009, commercial
construction loans totaled $34.4 million, or 2.5% of total loans. At December 31, 2009, the
largest outstanding commercial construction loan balance was for $13.9 million and is secured by a
condominium project. This loan is one of two loans to the same borrower totaling $15.9 million
that are classified as non-accrual and considered impaired with a specific reserve of $1.7 million
at December 31, 2009. Oritani charged off $4.5 million of the construction loan as of December 31,
2009, as this portion has been determined to be an incurred loss.
Before making a commitment to fund a construction loan, we require an appraisal on the
property by an independent licensed appraiser. We require title insurance and, if applicable, an
environmental survey prior to making a commitment to fund a construction loan. We generally also
review and inspect each property before disbursement of funds during the terms of the construction
loan. Loan proceeds are disbursed after inspection based on the percentage of completion method.
Construction and development financing is generally considered to involve a higher degree of
credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a
construction loan depends largely upon the accuracy of the initial estimate of the value of the
property at completion of construction compared to the estimated cost (including interest) of
construction and other assumptions. If the estimate of construction cost proves to be inaccurate,
we may be required to advance funds beyond the amount originally committed in order to protect the
value of the property. Additionally, if the estimate of value proves to be inaccurate, we may be
confronted with a project, when completed, having a value which is insufficient to assure full
repayment.
We chose to reduce our exposure to construction lending in 2009 due to current market and
economic conditions. Construction originations for the year ended June 30, 2009 were $45.1
million, compared to $99.2 million for the comparable 2008 period. Construction originations for
the six month period ended December 31, 2009 were $7.4 million.
Other Loans.
Other loans totaled $21.6 million, or 1.6% of our total loan portfolio, at
December 31, 2009. Other loans primarily consist of business loans secured by cash or other
business assets, account loans, and commercial line of credit loans. Commercial line of credit
loans totaled $3.1 million at December 31, 2009. In 2009, Oritani decided to limit new line of
credit lending to well-established customers.
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Loan Originations, Purchases, Sales, Participations and Servicing of Loans.
Lending
activities are conducted primarily by our loan personnel operating at our main office. All loans
originated by us are underwritten pursuant to our policies and procedures. We originate both
adjustable rate and fixed rate loans. Our ability to originate fixed or adjustable rate loans is
dependent upon the relative customer demand for such loans, which is affected by the current and
expected future levels of market interest rates.
We retain in our portfolio substantially all loans that we originate, although we have
occasionally sold longer-term, fixed-rate one- to four-family residential mortgage loans into the
secondary market. There were no sales of residential mortgage loans in fiscal 2008 or 2009.
Occasionally, we will also participate in loans, sometimes as the "lead lender." Whether we
are the lead lender or not, we underwrite our participation portion of the loan according to our
own underwriting criteria and procedures. At December 31, 2009, we had $60.5 million in loan
participation interests.
At December 31, 2009, we were servicing loans sold in the amount of $9.9 million. Loan
servicing includes collecting and remitting loan payments, accounting for principal and interest,
contacting delinquent mortgagors, supervising foreclosures and property dispositions in the event
of unremedied defaults, making certain insurance and tax payments on behalf of the borrowers and
generally administering the loans.
During the six months ended December 31, 2009, we originated $27.0 million of fixed- and
adjustable-rate one- to four-family residential mortgage loans, all of which were retained by us.
The fixed-rate loans retained by us consisted primarily of loans with terms of 30 years or less.
Non-performing and Problem Assets
We commence collection efforts for residential loans (excluding multi-family) when a loan
becomes ten days past due with system generated reminder notices. Subsequent late charges and
delinquent notices are issued and the account is monitored on a regular basis thereafter. Personal,
direct contact with the borrower is attempted early in the collection process as a courtesy
reminder and later to determine the reason for the delinquency and to safeguard our collateral.
When a loan is more than 45 days past due, the credit file is reviewed and, if deemed necessary,
information is updated or confirmed and collateral re-evaluated. We make every effort to contact
the borrower and develop a plan of repayment to cure the delinquency. If no repayment plan is in
process and the loan is delinquent at least two payments, the file is referred to counsel for the
commencement of foreclosure or other collection efforts. A very similar process is followed for
non-residential and multi-family loans. However, the direct, personal contact begins earlier in
the process. Contact is attempted as soon as a late charge is incurred. Also, for such loans, a
plan of repayment to cure the delinquency is not necessarily the only remediation process pursued.
In such instances, counsel is consulted and an approach for resolution is determined and
aggressively pursued. A summary report of all loans 30 days or more past due is reported to the
Board of Directors. The status of each of these loans is discussed with the Board of Directors on
a monthly basis.
Loans are placed on non-accrual status when they are more than 90 days delinquent. When loans
are placed on a non-accrual status, unpaid accrued interest is fully reversed. Once the
outstanding principal balance is brought current, income is recognized to the extent it is deemed
collectible. If the
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deficiencies causing the delinquency are resolved, such loans may be placed on accrual status
once all arrearages are resolved. See additional discussion regarding our non-performing assets at
December 31, 2009 in "Management Discussion and Analysis of Financial Condition and Results of
Operations."
Non-Performing Assets
.
The table below sets forth the amounts and categories of our
non-performing assets at the dates indicated. At each date presented, we had no troubled debt
restructurings (loans for which a portion of interest or principal has been forgiven and loans
modified at interest rates materially less than current market rates).
At December
At June 30,
31, 2009
2009
(1)
2008
(2)
2007
2006
2005
(Dollars in thousands)
Non-accrual loans:
First mortgage loan balances:
Conventional
$
1,760
$
98
$
67
$
—
$
458
$
147
Multi-family loans
1,076
6,291
—
—
—
—
Commercial real estate
30,871
25,685
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
44
Construction and land loans
18,200
20,391
14,143
—
—
—
Other loans
—
—
—
—
—
—
Total non-accrual loans
51,907
$
52,465
$
14,210
$
—
$
458
$
191
Loans greater than 90 days delinquent and still accruing:
First mortgage loan balances:
Conventional
$
—
$
—
$
—
$
—
$
—
$
—
Multi-family loans
—
—
—
—
—
—
Commercial real estate
—
—
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
—
Construction and land loans
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total loans 90 days and still accruing
—
$
—
$
—
$
—
$
—
$
—
Total non-performing loans
$
51,907
$
52,465
$
14,210
$
—
$
458
$
191
Real estate owned
600
—
—
—
—
—
Total non-performing assets
$
52,507
$
52,465
$
14,210
$
—
$
458
$
191
Ratios:
Non-performing loans to total loans
3.75
%
4.03
%
1.39
%
—
%
0.07
%
0.04
%
Non-performing assets to total assets
2.62
%
2.74
%
0.98
%
—
%
0.04
%
0.02
%
(1)
Two construction loans totaling $4.2 million are less than 60 days delinquent at June 30,
2009 and are classified as non-accrual.
(2)
One construction loan totaling $335,000 was less than 60 days delinquent at June 30, 2008 and
was classified as non-accrual.
As noted in the above table, there were nonaccrual loans of $51.9 million at December 31,
2009, $52.5 million at June 30, 2009 and $14.2 million at June 30, 2008. Additional interest
income of $2.1 million, $3.6 million and $521,000 would have been recorded during the six months
ended December 31, 2009 and the years ended June 30, 2009 and 2008, respectively, if the loans had
performed in accordance with their original terms.
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Delinquent Loans
. The following table sets forth our loan delinquencies by type, by amount and
by percentage of type at the dates indicated.
Loans Delinquent For
60-89 Days
90 Days and Over
Total
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
At December 31, 2009
First mortgage loan balances:
Conventional
1
$
196
3
$
1,341
4
$
1,537
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
3
704
7
31,948
10
32,652
Second mortgage and equity loans
1
62
—
—
1
62
Construction and land loans
1
1,012
4
18,618
5
19,630
Other loans
—
—
—
—
—
—
Total
6
$
1,974
14
$
51,907
20
$
53,881
At June 30, 2009
First mortgage loan balances:
Conventional
1
$
197
2
$
98
3
$
295
Multi-family loans
—
—
2
6,291
2
6,291
Commercial real estate loans
3
17,209
6
25,685
9
42,894
Second mortgage and equity loans
—
—
—
—
—
—
Construction and land loans
1
419
6
20,391
7
20,810
Other loans
—
—
—
—
—
—
Total
5
$
17,825
16
$
47,839
21
$
65,664
At June 30, 2008
First mortgage loan balances:
Conventional
—
$
—
2
$
68
2
$
68
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
—
—
—
—
—
—
Second mortgage and equity loans
1
18
—
—
1
18
Construction and land loans
—
—
2
13,808
2
13,808
Other loans
—
—
—
—
—
—
Total
1
$
18
4
$
13,876
5
$
13,894
At June 30, 2007
First mortgage loan balances:
Conventional
—
$
—
—
$
—
—
$
—
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
Second mortgage and equity loans
1
39
—
—
1
39
Construction and land loans
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total
1
$
39
—
$
—
1
$
39
At June 30, 2006
First mortgage loan balances:
Conventional
5
$
180
2
$
348
7
$
528
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
—
—
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
Construction and land loans
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total
5
$
180
2
$
348
7
$
528
At June 30, 2005
First mortgage loan balances:
Conventional
3
$
139
3
$
140
6
$
279
Multi-family loans
—
—
—
—
—
—
Commercial real estate loans
—
—
—
—
—
—
Second mortgage and equity loans
1
29
1
44
2
73
Construction and land loans
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
Total
4
$
168
4
$
184
8
$
352
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In addition to the delinquent loans listed above, we had loans that were delinquent 90
days or more past due as to principal. Such loans had passed their maturity date but continued
making monthly payments, keeping their interest current. All such loans have subsequently been
paid in full or were extended by us, which negated their past due maturity status. These loans
totaled $2.7 million, $3.1 million, $316,000, and $3.2 million at December 31, 2009, June 30, 2009,
2008 and 2007, respectively.
Real Estate Owned
. Real estate acquired by us as a result of foreclosure or by deed in lieu
of foreclosure is classified as real estate owned until sold. When property is acquired it is
recorded at the lower of cost or fair market value at the date of foreclosure, establishing a new
cost basis. Holding costs and declines in fair value result in charges to expense after
acquisition. At June 30, 2009 and 2008, we had no real estate owned. During the six months ended
December 31, 2009, Oritani Bank obtained title to a property which secured a $877,000
non-performing loan which had been classified as impaired. The property was written down to
$800,000 upon acquisition and was subsequently written down further to $600,000. The property is
currently being marketed for sale.
Classified Assets.
Federal regulations provide that loans and other assets of lesser quality
should be classified as "substandard," "doubtful" or "loss" assets. 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." Assets classified as "loss" are those considered "uncollectible" and
of such little value that their continuance as assets without the establishment of a specific loss
reserve is not warranted.
We are required to establish general allowances for loan losses for loans classified
substandard or doubtful, as well as for other problem loans. General allowances represent loss
allowances which have been established to recognize the inherent losses associated with lending
activities, but which, unlike specific allowances, have not been allocated to particular problem
assets. When we classify problem assets as "loss," we are required either to establish a specific
allowance for losses equal to 100% of the amount of the asset so classified or to charge off such
amount. Our determination as to the classification of our assets and the amount of our valuation
allowances is subject to review by the FDIC and the New Jersey Department of Banking and Insurance
which can order the establishment of additional general or specific loss allowances. Such
examinations typically occur annually. Our last examination was as of March 31, 2009 by the FDIC.
The following table shows the aggregate amounts of our classified assets at the date indicated
for both residential real estate and non-residential real estate loans.
Classified Assets At
December 31, 2009
June 30, 2009
June 30, 2008
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
Substandard assets:
First mortgage loan balances:
Conventional
3
$
1,341
2
$
109
3
$
85
—
$
—
Multi-family loans
1
1,076
5
7,602
—
—
—
—
Commercial real estate loans
9
36,199
9
28,827
4
14,375
2
238
Construction and land loans
5
1,012
4
19,273
18,618
—
—
Other loans
1
141
—
—
—
—
—
—
Total
19
$
58,388
20
$
55,811
7
$
14,460
2
$
238
Allowance allocated to total classified assets
$
4,460
$
3,896
$
1,497
$
24
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The loan portfolio is reviewed on a regular basis to determine whether any loans require
classification in accordance with applicable regulations.
We also utilize additional classification for assets that do not meet the definition of any of
the classified assets yet contain an element that warrants a rating that is less than "pass." We
classify an asset as "special mention" if the asset has a potential weakness that warrants
management's close attention. While such assets are not impaired, management has concluded that if
the potential weakness in the asset is not addressed, the value of the asset may deteriorate,
adversely affecting the repayment of the asset. Our assets classified as "special mention" totaled
$9.8 million, $24.2 million, $21.7 million and $9.8 million at December 31, 2009 and June 30, 2009,
2008 and 2007, respectively. Effective September 30, 2009, we began to also utilize the
classification of "watch" for assets where complete current information has not been procured or a
minor weakness is indicated. Our assets classified as "watch" totaled $9.8 million at December 31,
2009.
Impaired Loans
. In accordance with Statement of Financial Accounting Standards 114 ("FAS
114"), we define an impaired loan as a loan for which it is probable, based on current information,
that we will not collect all amounts due under the contractual terms of the loan agreement. We
generally classify qualifying loans as impaired if they exceed 90 days delinquency, as principal
and interest would not be being repaid under the contractual terms in such a situation. Loans we
individually classify as impaired include multi-family, commercial mortgage and construction loans.
Impaired loans are individually assessed to determine that each loan's carrying value is not in
excess of the fair value of the related collateral or the present value of the expected future cash
flows. If the loan's carrying value does exceed the fair value, specific reserves are established
to reduce the loan's carrying value. For classification purposes, impaired loans are typically
classified as substandard. Residential mortgage and consumer loans are deemed smaller balance
homogeneous loans which are evaluated collectively for impairment and are therefore excluded from
the population of impaired loans.
Allowance for Loan Losses
Our allowance for loan losses is maintained at a level necessary to absorb loan losses that
are both probable and reasonably estimable. Management, in determining the allowance for loan
losses, considers the losses inherent in our loan portfolio and changes in the nature and volume of
loan activities, along with the general economic and real estate market conditions. A description
of our methodology in establishing our allowance for loan losses is set forth in the section
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical
Accounting Policies—Allowance for Loan Losses." The allowance for loan losses as of December 31,
2009 was maintained at a level that represents management's best estimate of losses inherent in the
loan portfolio, and such losses were both probable and reasonably estimable. However, this analysis
process is inherently subjective, as it requires us to make estimates that are susceptible to
revisions as more information becomes available. Although we believe that we have established the
allowance at levels to absorb probable and estimable losses, future additions may be necessary if
economic or other conditions in the future differ from the current environment.
In addition, as an integral part of their examination process, the FDIC, OTS, and the New
Jersey Department of Banking and Insurance has authority to periodically review our allowance for
loan losses. Such agencies may require that we recognize additions to the allowance based on their
judgments of information available to them at the time of their examination.
Allowance for Loan Losses
.
The following table sets forth activity in our allowance for loan
losses for the fiscal years indicated.
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For the Six Months Ended
December 31,
At or For the Years Ended June 30,
2009
2008
2009
2008
2007
2006
2005
(Dollars in thousands)
Balance at beginning of period
$
20,681
$
13,532
$
13,532
$
8,882
$
7,672
$
6,172
$
5,372
Charge-offs:
First mortgage loan balances:
Conventional
—
—
—
—
—
—
—
Multi-family
16
—
260
—
—
—
—
Commercial real estate
785
—
—
Second mortgage and equity loans
—
—
—
—
—
—
—
Construction and land loans
2,726
—
2,250
—
—
—
—
Other loans
43
—
222
—
—
—
—
Total charge-offs
3,570
—
2,732
—
—
—
—
Recoveries:
First mortgage loan balances:
Conventional
—
—
—
—
—
—
—
Multi-family and commercial
real estate
—
—
—
—
—
—
—
Second mortgage and equity loans
—
—
—
—
—
—
—
Construction and land loans
3
—
—
—
—
—
—
Other loans
—
—
—
—
—
—
—
Total recoveries
3
—
—
—
—
—
—
Net (charge-offs) recoveries
(3,567
)
—
(2,732
)
—
—
—
—
Provision for loan losses
5,050
5,375
9,880
4,650
1,210
1,500
800
Balance at end of year
$
22,164
$
18,907
$
20,680
$
13,532
$
8,882
$
7,672
$
6,172
Ratios:
Net charge-offs to average loans
outstanding (annualized)
0.53
%
—
%
0.23
%
—
%
—
%
—
%
—
%
Allowance for loan losses to total
loans at end of period
1.60
%
1.54
%
1.59
%
1.32
%
1.15
%
1.18
%
1.23
%
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Allocation of Allowance for Loan Losses.
The following table sets forth the allowance
for loan losses allocated by loan category, the total loan balances by category (including loans
held for sale), and the percent of loans in each category to total loans at the dates indicated.
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.
At December 31,
At June 30,
2009
2009
2008
2007
Percent of Loans
Percent of
Percent of
Percent of Loans in
in Each
Allowance
Loans in Each
Allowance
Loans in Each
Allowance for Loan
Each Category to
Allowance for Loan
Category to
for Loan
Category to
for Loan
Category to
Losses
Total Loans
Losses
Total Loans
Losses
Total Loans
Losses
Total Loans
(Dollars in thousands)
First mortgage loan balances:
Conventional
$
1,167
18.8
%
$
1,012
20.4
%
$
845
21.8
%
$
709
24.6
%
Multi-family
3,073
21.4
2,912
21.3
2,535
23.2
2,254
27.4
Commercial real estate
11,501
45.5
9,683
43.3
5,560
35.2
3,889
31.3
Second mortgage and equity loans
261
3.7
274
4.2
299
5.8
326
8.5
Construction and land loans
4,889
9.0
5,791
10.0
3,883
13.5
979
8.1
Other loans
544
1.6
268
0.8
92
0.5
15
0.1
Unallocated
729
—
740
—
318
—
710
—
Total
$
22,164
100.0
%
$
20,680
100.0
%
$
13,532
100.0
%
$
8,882
100.0
%
At June 30,
2006
2005
Percent of Loans
Percent of
Allowance
in Each
Loans in Each
for Loan
Category to
Allowance for
Category to
Losses
Total Loans
Loan Losses
Total Loans
(Dollars in thousands)
First mortgage loan balances:
Conventional
$
749
25.3
%
$
684
29.4
%
Multi-family
2,243
31.5
2,117
36.5
Commercial real estate
2,591
26.6
1,440
17.6
Second mortgage and equity
loans
312
10.2
512
11.1
Construction and land loans
758
5.9
475
4.9
Other loans
57
0.5
37
0.5
Unallocated
962
—
907
—
Total
$
7,672
100.0
%
$
6,172
100.0
%
The increase in the allowance for loan losses, and related provision, is primarily due to
the large increases in delinquent and impaired loans at December 31, 2009. Such loans are
discussed in "Management's Discussion and Analysis of Financial Condition and Results of
Operations." In addition, the continued increase in the multi-family and commercial real estate
loan portfolio was also a factor. These types of loans inherently contain more credit risk than
one- to four-family residential loans.
Investments
The Board of Directors is responsible for adopting our investment policy. The investment
policy is reviewed periodically by management and any changes to the policy are recommended to and
subject to the approval of the Board of Directors. Authority to make investments under the
approved investment policy guidelines is delegated to appropriate officers. While general
investment strategies are developed and authorized by the Board of Directors, the execution of
specific actions primarily rests with Oritani Bank's President, Chief Financial Officer and
Asset/Liability Committee, which have responsibility for ensuring that the guidelines and
requirements included in the investment policy are followed and that all
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Table of Contents
securities are considered prudent for investment. Each of our Chief Financial Officer,
President and Asset/Liability Committee have increasing authority to purchase various types of
investments; all individual investment purchases in excess of $20.0 million and all daily purchases
in excess of $30.0 million must be approved by our Board of Directors. All investment transactions
are reviewed and ratified or approved (as the case may be) at regularly scheduled meetings of the
Board of Directors. Any investment which, subsequent to its purchase, fails to meet the guidelines
of the policy is reported to the Board of Directors at its next meeting where the Board of
Directors decides whether to hold or sell the investment.
New Jersey chartered savings banks have authority to invest in various types of assets,
including U.S. Treasury obligations, securities of various federal agencies, mortgage-backed
securities, certain certificates of deposit of insured financial institutions, overnight and
short-term loans to other banks, corporate debt instruments, and Fannie Mae and Freddie Mac equity
securities. Oritani Financial Corp., as a federally chartered mid-tier stock holding company, may
invest in equity securities subject to certain limitations.
The investment policy requires that all securities transactions be conducted in a safe and
sound manner. Investment decisions must be based upon a thorough analysis of each security
instrument to determine if its quality and inherent risks fit within Oritani Bank's overall
asset/liability management objectives, the effect on its risk-based capital measurement and the
prospects for yield and/or appreciation. The investment policy provides that Oritani Bank may
invest in U.S. treasury notes, U.S. and state agency securities, mortgage-backed securities, and
other conservative investment opportunities. Typical investments are currently in U.S. agency
securities and government sponsored mortgage-backed securities.
Our investment portfolio at December 31, 2009, consisted of $311.2 million in federal agency
obligations, a $5.4 million investment in a mutual fund, $2.1 million of corporate debt instruments
and $1.8 million in equity securities. We also invest in mortgage-backed securities, all of which
are guaranteed by government sponsored enterprises. At December 31, 2009, our mortgage-backed
securities portfolio totaled $184.7 million, or 9.2% of total assets, and consisted of $144.1
million in fixed-rate securities and $40.6 million in adjustable-rate securities, guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. Securities can be classified as held to maturity or
available for sale at the date of purchase.
U.S. Government and Federal Agency Obligations.
At December 31, 2009, our U.S. Government and
federal agency securities portfolio totaled $311.2 million, all of which was classified as
available for sale.
Corporate Bonds
. At December 31, 2009, our corporate bond portfolio totaled $2.1 million,
which consisted of one security, rated BBB- and was classified as available for sale. The industry
represented by our corporate bond issuer was financial. Although corporate bonds may offer higher
yields than U.S. Treasury or agency securities of comparable duration, corporate bonds also have a
higher risk of default due to possible adverse changes in the credit-worthiness of the issuer.
Mutual Funds.
At December 31, 2009, our mutual fund portfolio totaled $5.4 million, and was
classified as available for sale. The portfolio consisted of an investment in a mutual fund that
holds adjustable-rate mortgage loans and similar securities. During fiscal 2009, the portfolio was
deemed other-than-temporarily impaired and we recorded a non-cash impairment charge to earnings of
$1.7 million for the year ended June 30, 2009. No further impairment charges were required on this
investment.
Equity Securities.
At December 31, 2009, our equity securities portfolio totaled $1.8
million, all of which were classified as available for sale. The portfolio consists of financial
industry common stocks.
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During fiscal 2009, several of these holdings were deemed other-than-temporarily impaired and
we recorded a non-cash impairment charge to earnings of $399,000. A further impairment charge
totaling $202,000 was recognized regarding these securities during the quarter ended December 31,
2009. Equity securities are not insured or guaranteed investments and are affected by market
interest rates and stock market fluctuations. Such investments are carried at their fair value and
fluctuations in the fair value of such investments, including temporary declines in value, directly
affect our net capital position.
Mortgage-Backed Securities.
We purchase mortgage-backed securities primarily insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We invest in mortgage-backed securities to
achieve positive interest rate spreads with minimal administrative expense, to lower our credit
risk as a result of the guarantees provided by Freddie Mac, Fannie Mae or Ginnie Mae and to offset
a portion of the interest rate risk inherent in our loan portfolio. Our investment policy also
authorizes the investment in collateralized mortgage obligations ("CMOs"), also insured or issued
by Freddie Mac, Fannie Mae and Ginnie Mae. We limit CMO investments to those classes of CMOs
carrying the most stable cash flows and lowest prepayment risk of any class of CMOs and which pass
the Federal Financial Institutions Examination Council's average life restriction tests at the time
of purchase.
At December 31, 2009, our mortgage-backed securities totaled $184.7 million or 9.2%, of total
assets. At December 31, 2009, 22.0% of the mortgage-backed securities were backed by adjustable
rate mortgage loans and 78.0% were backed by fixed rate mortgage loans. The mortgage-backed
securities portfolio had a weighted average yield of 4.3% at December 31, 2009. The estimated fair
value of our mortgage-backed securities at December 31, 2009 was $186.7 million, which is $5.4
million more than the amortized cost of $181.4 million. Investments in mortgage-backed securities
involve a risk that actual prepayments may differ from estimated prepayments over the life of the
security, which may require adjustments to the amortization of any premium or accretion of any
discount relating to such instruments thereby changing the net yield on such securities. There is
also reinvestment risk associated with the cash flows from such securities or if such securities
are redeemed by the issuer. In addition, the market value of such securities may be adversely
affected by changes in interest rates. All of our mortgage-backed securities are insured or
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
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Securities Portfolios.
The following table sets forth the composition of our investment
securities portfolio at the dates indicated.
Securities and Mortgage-Backed Securities Held to Maturity
At December 31,
At June 30,
2009
2009
2008
2007
Amortized
Amortized
Amortized
Amortized
Cost
Fair Value
Cost
Fair Value
Cost
Fair Value
Cost
Fair Value
(In thousands)
United States Government and
federal agency obligations
$
—
$
—
$
—
$
—
$
—
$
—
$
5,415
$
5,347
Mortgage-backed securities:
Freddie Mac
15,740
16,135
18,783
19,063
25,082
24,902
31,365
30,329
Ginnie Mae
2,423
2,426
5,161
5,157
6,055
6,040
8,895
8,907
Fannie Mae
24,589
25,301
31,329
31,943
42,066
42,094
58,479
57,314
Collateralized mortgage obligations
43,430
44,461
63,544
64,218
90,747
89,636
118,667
113,955
Total securities held to maturity
$
86,182
$
88,223
$
118,817
$
120,381
$
163,950
$
162,672
$
222,821
$
215,582
Securities and Mortgage-Backed Securities Available for Sale
At December 31,
At June 30,
2009
2009
2008
2007
Amortized
Amortized
Amortized
Amortized Cost
Fair Value
Cost
Fair Value
Cost
Fair Value
Cost
Fair Value
(In thousands)
United States Government and
federal agency obligations
310,775
311,194
$
134,754
$
134,837
$
10,000
$
9,865
$
25,000
$
25,007
Corporate bonds
2,000
2,083
2,000
2,156
2,000
2,184
2,000
2,024
Mutual funds
5,148
5,361
5,636
5,676
7,782
7,782
8,429
8,412
Equity securities
1,763
1,801
1,965
1,750
2,364
2,454
—
—
Mortgage-backed securities:
Freddie Mac
22,352
23,300
26,979
27,875
28,672
28,837
1,363
1,363
Fannie Mae
20,267
21,245
27,023
27,911
31,084
30,895
5,891
5,918
Ginnie Mae
—
—
2,537
2,557
3,134
3,143
4,502
4,548
Collateralized mortgage
obligations
52,566
53,968
68,571
70,260
85,351
86,334
27,024
26,964
Total securities available for sale
$
414,871
$
418,952
$
269,465
$
273,022
$
170,387
$
171,494
$
74,209
$
74,236
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Table of Contents
Portfolio Maturities and Yields.
The composition and maturities of the investment
securities portfolio at December 31, 2009 are summarized in the following table. Maturities are
based on the final contractual payment dates, and do not reflect the impact of prepayments or early
redemptions that may occur.
More than One Year
More than Five Years
One Year or Less
through Five Years
through Ten Years
More than Ten Years
Total Securities
Weighted
Weighted
Weighted
Weighted
Weighted
Amortized
Average
Amortized
Average
Amortized
Average
Amortized
Average
Amortized
Average
Cost
Yield
Cost
Yield
Cost
Yield
Cost
Yield
Cost
Fair Value
Yield
(Dollars in thousands)
Mortgage-backed securities:
Freddie Mac
$
2,341
3.5
%
$
3,423
4.1
%
$
9,976
3.7
%
$
—
—
%
$
15,740
$
16,135
3.8
%
Ginnie Mae
—
—
—
—
2,423
3.0
2,423
2,426
3.0
Fannie Mae
—
—
—
—
24,589
3.8
24,589
25,301
3.8
Collateralized mortgage obligations
—
43,430
4.0
—
—
—
—
43,430
44,361
4.0
Total securities held to maturity
$
2,341
3.5
%
$
43,430
4.0
%
$
9,976
3.7
%
$
27,012
3.7
%
$
86,182
$
88,223
3.9
%
United States Government and federal
agency obligations
$
—
—
%
$
310,775
2.8
%
$
—
—
%
$
—
—
%
$
310,775
$
311,194
2.8
%
Corporate bonds
—
—
2,000
8.1
—
—
—
—
2,000
2,083
8.1
Mutual funds
5,148
3.7
—
—
—
—
—
—
5,148
5,361
3.7
Equity securities
1,763
—
—
—
—
—
—
1,763
1,801
—
Mortgage-backed securities:
Freddie Mac
2,800
3.5
12,274
4.6
—
—
7,278
4.6
22,352
23,300
4.5
Fannie Mae
—
—
—
—
—
—
20,267
4.9
20,267
21,245
4.9
Collateralized mortgage obligations
—
—
52,566
4.9
—
—
—
—
52,566
53,968
4.9
Total securities available for sale
$
9,711
3.0
%
$
377,615
3.1
%
$
—
%
$
27,545
4.8
%
$
414,871
$
418,952
3.3
%
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Table of Contents
Sources of Funds
General.
Deposits have traditionally been the primary source of funds for use in lending and
investment activities. We also use borrowings, primarily FHLB advances, to supplement cash flow
needs, to lengthen the maturities of liabilities for interest rate risk management purposes and to
manage the cost of funds. In addition, funds are derived from scheduled loan payments,
mortgaged-backed securities scheduled payments and prepayments, investment maturities, loan
prepayments, retained earnings and income on other earning assets. While scheduled loan payments
and income on earning assets are relatively stable sources of funds, deposit inflows and outflows
can vary widely and are influenced by prevailing interest rates, market conditions and levels of
competition.
Deposits.
Our deposits are generated primarily from residents and businesses within our
primary market area. We offer a selection of deposit accounts, including demand accounts, NOW
accounts, money market deposit accounts, savings accounts, retirement accounts and time deposits.
Deposit account terms vary, with the principal differences being the minimum balance required, the
amount of time the funds must remain on deposit and the interest rate.
Interest rates, maturity terms, service fees and other account features are established on a
periodic basis. Deposit rates and terms are based primarily on current operating strategies and
market rates, liquidity requirements, rates paid by competitors and growth goals. Personalized
customer service, attractive account features, long-standing relationships with customers,
convenient locations, competitive rates of interest and an active marketing program are relied upon
to attract and retain deposits.
The flow of deposits is influenced significantly by general economic conditions, changes in
prevailing interest rates and competition. The variety of deposit accounts offered allows us to be
competitive in obtaining funds and responding to changes in consumer demand while managing interest
rate risk and minimizing interest expense. At December 31, 2009, $685.5 million, or 56.6% of our
deposit accounts were time deposits, of which $583.8 million had maturities of one year or less.
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Table of Contents
The following table sets forth the distribution of total deposits by account type, at the
dates indicated.
At December 31,
At June 30,
At June 30,
2009
2009
2008
Weighted Average
Weighted Average
Weighted Average
Balance
Percent
Ratio
Balance
Percent
Ratio
Balance
Percent
Ratio
(Dollars in thousands)
Deposit type:
NOW accounts
$
106,968
8.82
%
0.75
%
$
88,759
7.87
%
0.90
%
$
73,949
10.58
%
0.89
%
Money market deposit accounts
271,583
22.44
1.43
199,965
17.73
2.07
57,117
8.17
2.92
Savings accounts
146,442
12.10
0.79
147,669
13.10
1.04
149,062
21.33
1.35
Time deposits
685,514
56.64
2.32
691,237
61.30
2.84
418,804
59.92
3.84
Total deposits
$
1,210,507
100.00
%
1.80
%
$
1,127,630
100.00
%
2.32
%
$
698,932
100.00
%
2.92
%
At June 30,
2007
Balance
Percent
Weighted Average
Rate
(Dollars in thousands)
Deposit type:
NOW accounts
$
75,510
10.85
%
1.12
%
Money market deposit accounts
41,029
5.90
4.00
Savings accounts
156,670
22.52
1.56
Time deposits
422,548
60.73
4.75
Total deposits
$
695,757
100.00
%
3.59
%
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Table of Contents
As of December 31, 2009, the aggregate amount of outstanding time deposits in amounts
greater than or equal to $100,000 was approximately $240.3 million. The following table sets forth
the maturity of those deposits as of December 31, 2009.
At
December 31, 2009
(In thousands)
Three months or less
$
99,723
Over three months through six months
58,214
Over six months through one year
46,990
Over one year to three years
32,688
Over three years
2,730
Total
$
240,345
Borrowings.
Our borrowings primarily consist of advances from the FHLB-NY. As of
December 31, 2009, we had total borrowings in the amount of $507.4 million, which represented 28.8%
of total liabilities, with an estimated weighted average maturity of 5.5 years and a weighted
average rate of 3.96%. The weighted average maturity is estimated because several of our
borrowings, under certain circumstances, can be called by the FHLB prior to the scheduled maturity.
If this were to occur, our weighted average maturity would decrease. At December 31, 2009,
advances from the FHLB constituted 99.9% of borrowings. At December 31, 2009, borrowings are
secured by mortgage-backed securities and investment securities with a book value of $352.6 million
and performing mortgage loans with an outstanding balance of $881.7 million.
The following table sets forth information concerning balances and interest rates on our FHLB
advances and other borrowings at and for the periods shown:
At December 31,
At or For the Years Ended June 30,
2009
2009
2008
2007
(Dollars in thousands)
Balance at end of period
$
507,439
$
508,991
$
433,672
$
196,661
Average balance during period
$
508,145
$
505,599
$
310,231
$
210,598
Maximum outstanding at any month end
$
508,708
$
544,238
$
433,672
$
233,797
Weighted average interest rate at
end of period
3.96
%
3.96
%
4.00
%
4.17
%
Average interest rate during period
4.13
%
4.00
%
4.30
%
4.34
%
Subsidiary Activities and Joint Venture Information
Oritani Financial Corp. is the owner of Oritani Bank, Hampshire Financial LLC and Oritani LLC.
Hampshire Financial LLC and Oritani LLC are New Jersey limited liability companies that own real
estate and investments in real estate as described below. In addition, at December 31, 2009,
Oritani Financial Corp., either directly or through one of its subsidiaries, had loans with an
aggregate balance of $29.4 million on 12 of the properties in which it (either directly or through
one of its subsidiaries) had an ownership interest. All such loans are performing in accordance
with their terms.
During the year ended June 30, 2009, we invested in two new joint venture projects. We
invested in an additional project during the six months ended December 31, 2009. All of the new
projects were made through Oritani LLC. We will continue to opportunistically invest in real
estate investments and joint venture projects.
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Table of Contents
Oritani Bank has the following subsidiaries: Ormon LLC and Oritani Asset Corporation. Ormon
LLC is a New Jersey limited liability company that owns real estate investments in New Jersey as
well as investments in joint ventures that own income-producing commercial and residential rental
properties in New Jersey as described below.
Oritani Asset Corporation is a real estate investment trust formed in 1998 for the sole
purpose of acquiring mortgage loans and mortgage-backed securities from Oritani Bank. Oritani
Asset Corporation's primary objective is to maximize long-term returns on equity. At December 31,
2009, Oritani Asset Corporation had $351.2 million in assets. Oritani Asset Corporation is taxed
and operates in a manner that enables it to qualify as a real estate investment trust under the
Internal Revenue Code of 1986, as amended.
Through these various subsidiaries and pursuant to regulatory authority permitting Oritani
Bank to conduct such activities on a "grandfathered" basis, we maintain investments in real estate
and investment in joint ventures. Detailed below is a summary of these various investments by
subsidiary and by type.
Ormon LLC
Ormon LLC is a wholly-owned subsidiary of Oritani Bank. Ormon LLC maintains the following
investments in real estate and joint ventures:
Investments in Real Estate
Park Lane Associates
- Ormon LLC maintains a 50% undivided ownership interest in Park Lane
Associates. Park Lane Associates is a 142-unit apartment complex located in Little Falls, New
Jersey. Our initial investment was made in March 1980. For the year ended June 30, 2009, we
recognized net income of $396,000 on this investment and received cash distributions of $321,000
during this period. At December 31, 2009, we had a loan to Park Lane Associates totaling $1.9
million.
Park View Apartments
- Ormon LLC maintains a 50% undivided ownership interest in Park View
Apartments. Park View Apartments is a 114-unit apartment complex located in White Hall,
Pennsylvania. We initially invested in Park View in December 1986. For the year ended June 30,
2009, we recognized net income of $82,000 on its investment in Park View and received cash
distributions of $39,000 during this period. At December 31, 2009, we had a loan to Park View
Apartments totaling $1.2 million.
Winstead Village
- Ormon LLC maintains a 50% undivided ownership interest in Winstead Village.
Winstead Village is a 40-unit apartment complex located in Moorestown, New Jersey. We initially
invested in Winstead in December 1986. For the year ended June 30, 2009 we recognized net income
of $50,000 on its investment and also received cash distributions of $67,000 during that period.
At December 31, 2009, we had a loan to Winstead Village totaling $817,000.
Parkway East
- Ormon LLC maintains a 50% undivided ownership interest in Parkway East. Parkway
East is a 43-unit apartment complex located in Caldwell, New Jersey. We initially invested in
Parkway East in July 1981. For the year ended June 30, 2009, we recognized net income of $92,000
on its investment in Parkway East and received cash distributions of $94,000 during this period.
We have no loan to this entity.
Marine View Apartments
- Ormon LLC maintains a 75% undivided ownership interest in Marine View
Apartments. Marine View is an 85-unit apartment complex located in Perth Amboy, New Jersey. We
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initially invested in Marine View in October 1993. For the year ended June 30, 2009, we recognized
net income of $219,000 on its investment in Marine View and received cash distributions of $203,000
over that period. We have no loans to this entity.
Ormon LLC also wholly owns one property that is held and operated for investment purposes. The
property is a 54-unit mixed-use property (49 residential units and 5 store fronts) located in
Palisades Park, New Jersey. We recognized net income of $457,000 for the year ended June 30, 2009
from the operation of this property.
During the quarter ended September 30, 2009, Ormon LLC sold a 19-unit office building located in
Hillsdale, New Jersey and recognized a net gain of $1.0 million. During the fourth quarter of the
fiscal year ended June 30, 2008, Ormon LLC sold an 18-unit apartment complex located in Englewood,
New Jersey and recognized a net gain of $1.1 million.
Investments
in Joint Ventures
Oaklyn Associates
- Oaklyn Associates is a 50% owned joint venture on a 100-unit apartment complex
located in Oaklyn, New Jersey. We initially invested in this joint venture in February 1978. For
the year ended June 30, 2009, we recognized net income of $67,000 on this investment and received
cash distributions of $42,000 over that period. At December 31, 2009, we had a loan to Oaklyn
Associates totaling $873,000.
Madison Associates
- Madison Associates is a 50% owned joint venture on 30-unit apartment complex
located in Madison, New Jersey. We initially invested in this joint venture in January 1989. For
the year ended June 30, 2009, we recognized net income of $77,000 on this investment and received
cash distribution of $80,000 over that period. We have no loans to this entity.
Brighton Court Associates
- Brighton Court Associate is a 50% owned joint venture on a 47-unit
apartment complex located in Bethlehem, Pennsylvania. We initially invested in Brighton Court in
July 1996. For the year ended June 30, 2009, we recognized a net income of $9,000 on this
investment and received cash distributions totaling $37,000 over that period. At December 31,
2009, our loans to Brighton Court Associates totaled $1.5 million.
Plaza 23 Associates
- Plaza 23 Associates is 50% owned joint venture on a shopping center in
Pequannock, New Jersey. We initially invested in Plaza 23 Associates in October 1983. For the
year ended June 30, 2009, we recognized net income of $816,000 related to this investment and
received cash distributions of $1.1 million during that period. We have no loans to Plaza 23
Associates but had $10.3 million loan to its partner in this joint venture, Plains Plaza Ltd. at
December 31, 2009. Plains Plaza Ltd. has pledged its equity interest in Plaza 23 Associates as
collateral for this loan.
Oritani, LLC
Oritani, LLC is a wholly-owned limited liability corporation of Oritani Financial Corp. The
primary business of Oritani, LLC is real estate investments.
Investments in Joint Ventures
Ridge Manor Associates
- Ridge Manor Associates is a 50% owned joint venture on a 44-unit apartment
complex located in Park Ridge, New Jersey. We initially invested in Ridge Manor Associates in May
2004. For the year ended June 30, 2009, we recognized net income of $11,000 related to this
investment,
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and also received cash distributions of $24,000 during that period. At December 31, 2009, we had a
loan to this entity that totaled $4.3 million.
Van Buren Apartments
- Van Buren Apartments is a 50% owned joint venture on a 32-unit apartment
complex located in River Edge, New Jersey. We initially invested in Van Buren in March 2002. For
the year ended June 30, 2009, we recognized a net income on this investment of $37,000 and received
cash distributions of $49,000 during that period. At December 31, 2009, we had a loan to Van Buren
Apartments that totaled $2.3 million.
10 Landing Lane
- 10 Landing Lane is a 50% owned joint venture on a 143-unit apartment complex
located in New Brunswick, New Jersey. We initially invested in 10 Landing Lane in August 1998.
For the year ended June 30, 2009, we recognized net income of $204,000 related to this investment
and received cash distributions of $62,000 during that period. We have no loans to this entity.
FAO Hasbrouck Heights
- FAO Hasbrouck Heights is a 50% owned joint venture on 93 mixed-use units
(primarily residential) in Hasbrouck Heights, New Jersey. We initially invested in FAO Hasbrouck
Heights in November 2005. For the year ended June 30, 2009, we recognized a net loss of $55,000
related to this investment and received cash distributions of $365,000 over that period. In
February, 2009, the loan to this entity was refinanced and the amount outstanding was increased.
This was the primary reason for the cash distribution despite the net loss. At December 31, 2009,
we had a loan to FAO Hasbrouck Heights that totaled $7.8 million.
FAO Terrace Associates
- FAO Terrace Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hasbrouck Heights, New Jersey. We initially invested in FAO Terrace Associates
in January 2009. For the year ended June 30, 2009, we recognized a net income of $7,000 related to
this investment and received cash distributions of $28,000 over that period. At December 31, 2009,
we had a loan to FAO Terrace Associates that totaled $2.6 million.
FAO Gardens Associates
- FAO Garden Associates is a 50% owned joint venture on a 34-unit apartment
complex located in Hackensack, New Jersey. We initially invested in FAO Garden Associates in
February 2009. For the year ended June 30, 2009, we recognized a net income of $1,000 related to
this investment and received cash distributions of $18,000 over that period. At December 31, 2009,
we had a loan to FAO Garden Associates that totaled $2.6 million.
River Villa Mews
- River Villa Mews is a 50% owned joint venture on a 44-unit apartment complex
located in Palmyra, New Jersey. We initially invested in River Villa Mews in August 2009. At
December 31, 2009, we had a loan to River Villa Mews that totaled $624,000.
Hampshire Financial
Hampshire Financial is a wholly-owned subsidiary of Oritani Financial Corp. The primary
business of Hampshire Financial is real estate investments.
Investments in Joint Ventures
Hampshire Realty
- Hampshire Realty is a 50% owned joint venture on an 81-unit apartment complex
located in Allentown, Pennsylvania. We initially invested in Hampshire in June 2002. For the year
ended June 30, 2009, we recognized a net loss of $49,000 related to this investment and received
cash distributions of $6,000 over that period. At December 31, 2009, we had a loan to Hampshire
that totaled $3.0 million.
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The following table presents a summary of our investments in real estate and investments in
joint ventures for the periods presented.
For the Six Months Ended December 31, 2009
Book
Book Value at
Profit/
Distributions
Additional
Value at
Property Name
June 30, 2009
(Loss)
Received
Investment
December 31, 2009
Real Estate Held for Investment
Ormon, LLC — Undivided Interests in Real Estate
Park Lane
$
(428
)
$
184
$
(185
)
$
—
$
(429
)
Park View
(439
)
23
(16
)
—
(432
)
Winstead Village
(228
)
46
(25
)
—
(207
)
Parkway East
(334
)
37
(45
)
—
(342
)
Marine View
869
151
(127
)
—
894
Ormon, LLC — Wholly Owned Properties
Palisades Park
(1)
328
266
328
Hillsdale
(1)
140
3
—
—
Real Estate Held For Investment Summary
Assets
(1)
$
1,337
$
420
$
(127
)
$
—
$
1,222
Liabilities
$
(1,429
)
$
390
$
(271
)
$
—
$
(1,410
)
Investments in Joint Ventures
Ormon, LLC
Oaklyn Associates
$
(203
)
$
55
$
(24
)
$
—
$
(172
)
Madison Associates
(23
)
33
(40
)
—
(30
)
Brighton Court Associates
141
(6
)
(8
)
—
127
Plaza 23 Associates
3,329
375
(681
)
—
3,023
Oritani, LLC
Ridge Manor Associates
554
1
(32
)
—
523
Van Buren Apartments
167
30
(27
)
—
170
10 Landing Lane
18
85
(100
)
—
3
FAO Hasbrouck Heights
436
(17
)
—
—
419
FAO Terrace Associates
579
26
—
—
605
FAO Gardens
443
10
—
—
453
River Villas Mews
—
16
—
387
403
Hampshire Financial
Hampshire Realty
118
—
(6
)
—
114
Investments in Joint Ventures Summary
Assets
$
5,767
$
435
$
(753
)
$
387
$
5,836
Liabilities
$
(208
)
$
173
$
(164
)
$
—
$
(199
)
(1)
The book values for wholly owned properties represent the costs of the fixed assets
associated with the property, less accumulated depreciation.
At December 31, 2009, the net book value of real estate held for investment is $(188,000).
The gross appraised value and equity is $42.0 million and $37.0 million, respectively. Our share
of the equity is $23.9 million, or $24.1 million in excess of the book value. At December 31, 2009,
the net book value of real estate joint ventures is $5.6 million. The gross appraised value and
equity is $96.3 million and $62.3 million, respectively. Our share of the equity is $31.2 million,
or $25.5 million in excess of the book value.
Personnel
As of December 31, 2009, we had 148 full-time employees and 54 part-time employees. Our
employees are not represented by any collective bargaining group. Management believes that we have
good relations with our employees.
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SUPERVISION AND REGULATION
General
Federal law allows a state savings bank, such as Oritani Bank, that qualifies as a "qualified
thrift lender" (discussed below), to elect to be treated as a savings association for purposes of
the savings and loan holding company provisions of the Home Owners' Loan Act, as amended ("HOLA").
Such an election results in the savings bank's holding company being regulated as savings and loan
holding companies by the OTS rather than as bank holding company regulated by the Board of
Governors of the Federal Reserve System. At the time of its reorganization into a holding company
structure, Oritani Bank elected to be treated as a savings association under the applicable
provisions of the HOLA. Accordingly, Oritani Financial Corp. and Oritani Financial Corp., MHC are
savings and loan holding companies and are required to file certain reports with, and are subject
to examination by, and otherwise must comply with the rules and regulations of, the OTS. Oritani
Financial Corp. is also subject to the rules and regulations of the Securities and Exchange
Commission under the federal securities laws.
Oritani Bank is a New Jersey-chartered savings bank, and its deposit accounts are insured up
to applicable limits by the FDIC. Oritani Bank is subject to extensive regulation, examination and
supervision by the Commissioner of the New Jersey Department of Banking and Insurance (the
"Commissioner") as the issuer of its charter, and by the FDIC as the deposit insurer and its
primary federal regulator. Oritani Bank must file reports with the Commissioner and the FDIC
concerning its activities and financial condition, and it must obtain regulatory approval prior to
entering into certain transactions, such as mergers with, or acquisitions of, other depository
institutions and opening or acquiring branch offices. The Commissioner and the FDIC conduct
periodic examinations to assess Oritani Bank's compliance with various regulatory requirements.
This regulation and supervision establishes a comprehensive framework of activities in which a
savings bank may engage and is intended primarily for the protection of the deposit insurance fund
and depositors. The regulatory structure also gives the regulatory authorities extensive
discretion in connection with their supervisory and enforcement activities and examination
policies, including policies with respect to the classification of assets and the establishment of
adequate loan loss reserves for regulatory purposes.
Any change in these laws or regulations, whether by the New Jersey Department of Banking and
Insurance, the FDIC, the OTS or the U.S. Congress, could have a material adverse impact on Oritani
Financial Corp., Oritani Bank and their operations.
Certain of the regulatory requirements that are or will be applicable to Oritani Bank, Oritani
Financial Corp. and Oritani Financial Corp., MHC are described below. This description of statutes
and regulations is not intended to be a complete explanation of such statutes and regulations and
their effects on Oritani Bank, Oritani Financial Corp. and Oritani Financial Corp., MHC and is
qualified in its entirety by reference to the actual statutes and regulations.
New Jersey Banking Regulation
Activity Powers.
Oritani Bank derives its lending, investment and other powers primarily from
the applicable provisions of the New Jersey Banking Act and its related regulations. Under these
laws and regulations, savings banks, such as Oritani Bank, generally may invest in:
(1)
real estate mortgages;
(2)
consumer and commercial loans;
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(3)
specific types of debt securities, including certain corporate debt securities
and obligations of federal, state and local governments and agencies;
(4)
certain types of corporate equity securities; and
(5)
certain other assets.
A savings bank may also invest pursuant to a "leeway" power that permits investments not
otherwise permitted by the New Jersey Banking Act. "Leeway" investments must comply with a number
of limitations on the individual and aggregate amounts of "leeway" investments. Under this
"leeway" authority, New Jersey savings banks may exercise those powers, rights, benefits or
privileges authorized for national banks or out-of-state banks or for federal or out-of-state
savings banks or savings associations, provided that before exercising any such power, right,
benefit or privilege, prior approval by the Commissioner by regulation or by specific authorization
is required. A savings bank may also exercise trust powers upon approval of the Commissioner. The
exercise of these lending, investment and activity powers are limited by federal law and the
related regulations. See "—Federal Banking Regulation—Activity Restrictions on State Chartered
Banks" below.
Loans-to-One-Borrower Limitations.
With certain specified exceptions, a New Jersey-chartered
savings bank may not make loans or extend credit to a single borrower or to entities related to the
borrower in an aggregate amount that would exceed 15% of the bank's capital funds. A savings bank
may lend an additional 10.0% of its capital funds if the loan is secured by collateral meeting the
requirements of the New Jersey Banking Act. Oritani Bank currently complies with applicable
loans-to-one-borrower limitations.
Dividends.
Under the New Jersey Banking Act, a stock savings bank may declare and pay a
dividend on its capital stock only to the extent that the payment of the dividend would not impair
the capital stock of the savings bank. In addition, a stock savings bank may not pay a dividend
unless the savings bank would, after the payment of the dividend, have a surplus of not less than
50% of its capital stock, or alternatively, the payment of the dividend would not reduce the
surplus. Federal law may also limit the amount of dividends that may be paid by Oritani Bank. See
"—Federal Banking Regulation—Prompt Corrective Action" below.
Minimum Capital Requirements.
Regulations of the Commissioner impose on New Jersey-chartered
depository institutions, such as Oritani Bank, minimum capital requirements similar to those
imposed by the FDIC on insured state banks. See "—Federal Banking Regulation—Capital
Requirements" below.
Examination and Enforcement.
The New Jersey Department of Banking and Insurance may examine
Oritani Bank whenever it deems an examination advisable. The New Jersey Department of Banking and
Insurance examines Oritani Bank at least every two years. The Commissioner may order any savings
bank to discontinue any violation of law or unsafe or unsound banking practice, and may direct any
director, officer, attorney or employee of a savings bank engaged in an objectionable activity,
after the Commissioner has ordered the activity to be terminated, to show cause at a hearing before
the Commissioner why such person should not be removed.
Federal Banking Regulation
Capital Requirements.
FDIC regulations require banks to maintain minimum levels of capital.
The FDIC regulations define two tiers, or classes, of capital.
Tier 1 capital is comprised of the sum of:
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•
common stockholders' equity, excluding the unrealized appreciation or
depreciation, net of tax, from available for sale securities;
•
non-cumulative perpetual preferred stock, including any related retained
earnings; and
•
minority interests in consolidated subsidiaries minus all intangible assets,
other than qualifying servicing rights and any net unrealized loss on marketable
equity securities.
The components of Tier 2 capital currently include:
•
cumulative perpetual preferred stock;
•
certain perpetual preferred stock for which the dividend rate may be reset
periodically;
•
hybrid capital instruments, including mandatory convertible securities;
•
term subordinated debt;
•
intermediate term preferred stock;
•
allowance for loan losses; and
•
up to 45% of pretax net unrealized holding gains on available for sale equity
securities with readily determinable fair market values.
The allowance for loan losses includible in Tier 2 capital is limited to a maximum of 1.25% of
risk-weighted assets (as discussed below). Overall, the amount of Tier 2 capital that may be
included in total capital cannot exceed 100% of Tier 1 capital. The FDIC regulations establish a
minimum leverage capital requirement for banks in the strongest financial and managerial condition
of not less than a ratio of 3% of Tier 1 capital to total assets. For all other banks, the minimum
leverage capital requirement is 4%, unless a higher leverage capital ratio is warranted by the
particular circumstances or risk profile of the depository institution.
The FDIC regulations also require that banks meet a risk-based capital standard. The
risk-based capital standard requires the maintenance of a ratio of total capital, which is defined
as the sum of Tier 1 capital and Tier 2 capital, to risk-weighted assets of at least 8% and a ratio
of Tier 1 capital to risk-weighted assets of at least 4%. In determining the amount of
risk-weighted assets, all assets, plus certain off balance sheet items, are multiplied by a
risk-weight of 0% to 100%, based on the risks the FDIC believes are inherent in the type of asset
or item.
The federal banking agencies, including the FDIC, have also adopted regulations to require an
assessment of an institution's exposure to declines in the economic value of a bank's capital due
to changes in interest rates when assessing the bank's capital adequacy. Under such a risk
assessment, examiners evaluate a bank's capital for interest rate risk on a case-by-case basis,
with consideration of both quantitative and qualitative factors. Institutions with significant
interest rate risk may be required to hold additional capital. According to the agencies,
applicable considerations include:
•
the quality of the bank's interest rate risk management process;
•
the overall financial condition of the bank; and
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•
the level of other risks at the bank for which capital is needed.
The following table shows Oritani Bank's Core capital, Tier 1 risk-based capital, and Total
risk-based capital ratios at December 31, 2009:
As of December 31, 2009
Capital
Percent of Assets
(1)
(Dollars in thousands)
Core capital
$
193,183
9.76
%
Tier 1 risk-based capital
193,183
13.49
Total risk-based capital
211,236
14.75
(1)
For purposes of calculating Core capital, assets
are based on adjusted total leverage assets. In calculating Tier 1
risk-based capital and total risk-based capital, assets are based on
total risk-weighted assets.
As the table shows, as of December 31, 2009, Oritani Bank was considered "well
capitalized" under FDIC guidelines.
Prompt Corrective Action.
Federal law requires, among other things, that the federal bank
regulatory authorities take "prompt corrective action" with respect to institutions that do not
meet minimum capital requirements. For these purposes, the law establishes five categories: well
capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and
critically undercapitalized. The FDIC's regulations define the five capital categories as follows:
An institution will be treated as "well capitalized" if:
•
its ratio of total capital to risk-weighted assets is at least 10% ;
•
its ratio of Tier 1 capital to risk-weighted assets is at least 6%; and
•
its ratio of Tier 1 capital to total assets is at least 5%, and it is not
subject to any order or directive by the FDIC to meet a specific capital level.
An institution will be treated as "adequately capitalized" if:
•
its ratio of total capital to risk-weighted assets is at least 8%; or
•
its ratio of Tier 1 capital to risk-weighted assets is at least 4%; and
•
its ratio of Tier 1 capital to total assets is at least 4% (3% if the bank
receives the highest rating under the Uniform Financial Institutions Rating System)
and it is not a well-capitalized institution.
An institution will be treated as "undercapitalized" if:
•
its total risk-based capital is less than 8%; or
•
its Tier 1 risk-based-capital is less than 4%; and
•
its leverage ratio is less than 4% (or less than 3% if the institution receives
the highest rating under the Uniform Financial Institutions Rating System).
An institution will be treated as "significantly undercapitalized" if:
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•
its total risk-based capital is less than 6%;
•
its Tier 1 capital is less than 3%; or
•
its leverage ratio is less than 3%.
An institution that has a tangible capital to total assets ratio equal to or less than 2%
would be deemed to be "critically undercapitalized."
The FDIC is required, with some exceptions, to appoint a receiver or conservator for an
insured state bank if that bank is "critically undercapitalized." For this purpose, "critically
undercapitalized" means having a ratio of tangible capital to total assets of less than 2%. The
FDIC may also appoint a conservator or receiver for a state bank on the basis of the institution's
financial condition or upon the occurrence of certain events, including:
•
insolvency, or when the assets of the bank are less than its liabilities to
depositors and others;
•
substantial dissipation of assets or earnings through violations of law or
unsafe or unsound practices;
•
existence of an unsafe or unsound condition to transact business;
•
likelihood that the bank will be unable to meet the demands of its depositors or
to pay its obligations in the normal course of business; and
•
insufficient capital, or the incurring or likely incurring of losses that will
deplete substantially all of the institution's capital with no reasonable prospect
of replenishment of capital without federal assistance.
Activity Restrictions on State Chartered Banks.
Federal law and FDIC regulations generally
limit the activities and investments of state chartered FDIC insured banks and their subsidiaries
to those permissible for national banks and their subsidiaries, unless such activities and
investments are specifically exempted by law or consented to by the FDIC.
Before making a new investment or engaging in a new activity that is not permissible for a
national bank or otherwise permissible under federal law or FDIC regulations, an insured bank must
seek approval from the FDIC to make such investment or engage in such activity. The FDIC will not
approve the activity unless the bank meets its minimum capital requirements and the FDIC determines
that the activity does not present a significant risk to the FDIC insurance funds. Certain
activities of subsidiaries that are engaged in activities permitted for national banks only through
a "financial subsidiary" are subject to additional restrictions.
Federal law permits a state chartered savings bank to engage, through financial subsidiaries,
in any activity in which a national bank may engage through a financial subsidiary and on
substantially the same terms and conditions. In general, the law permits a national bank that is
well-capitalized and well-managed to conduct, through a financial subsidiary, any activity
permitted for a financial holding company other than insurance underwriting, insurance investments,
real estate investment or development or merchant banking. The total assets of all such financial
subsidiaries may not exceed the lesser of 45% of the bank's total assets or $50 billion. The bank
must have policies and procedures to assess the
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financial subsidiary's risk and protect the bank from such risk and potential liability, must
not consolidate the financial subsidiary's assets with the bank's and must exclude from its own
assets and equity all equity investments, including retained earnings, in the financial subsidiary.
State chartered savings banks may retain subsidiaries in existence as of March 11, 2000 and may
engage in activities that are not authorized under federal law. Although Oritani Bank meets all
conditions necessary to establish and engage in permitted activities through financial
subsidiaries, it has not yet determined whether or the extent to which it will seek to engage in
such activities.
Insurance of Deposit Accounts.
Oritani Bank is a member of the DIF, which is administered by
the FDIC. Deposit accounts at Oritani Bank are insured by the FDIC, generally up to a maximum of
$100,000 for each separately insured depositor and up to a maximum of $250,000 for self-directed
retirement accounts. However, the FDIC increased the deposit insurance available on all deposit
accounts to $250,000, effective until December 31, 2013. In addition, certain noninterest-bearing
transaction accounts maintained with financial institutions participating in the FDIC's Temporary
Liquidity Guarantee Program ("TLG") are fully insured regardless of the dollar amount until June
30, 2010. Oritani Bank has opted to participate in the FDIC's TLG Program.
The FDIC imposes an assessment against all depository institutions for deposit insurance.
This assessment is based on the risk category of the institution and, prior to 2009, ranged from 5
to 43 basis points of the institution's deposits. On February 27, 2009, the FDIC published a final
rule raising the current deposit insurance assessment rates to a range from 12 to 45 basis points
beginning April 1, 2009.
On May 22, 2009, the FDIC adopted a final rule imposing a 5 basis point special assessment on
each insured depository institution's assets minus Tier 1 capital as of June 30, 2009. The amount
of the special assessment for any institution will not exceed 10 basis points times the
institution's assessment base for the second quarter 2009. Our total expense for the special
assessment was $845,000.
The deposit insurance assessment rates are in addition to the assessments for payments on the
bonds issued in the late 1980s by the Financing Corporation, or FICO, to recapitalize the now
defunct Federal Savings and Loan Insurance Corporation. The FICO payments will continue until the
FICO bonds mature in 2017 through 2019. Excluding the special assessment noted above, our expense
for the assessment of deposit insurance and the FICO payments was $928,000 for the year ended June
30, 2009 and $92,000 for the year ended June 30, 2008. The FDIC also established 1.25% of
estimated insured deposits as the designated reserve ratio of the DIF. The FDIC is authorized to
change the assessment rates as necessary, subject to the previously discussed limitations, to
maintain the required reserve ratio of 1.25%.
The FDIC also approved a One-Time Assessment Credit to institutions that were in existence on
December 31, 1996 and paid deposit insurance assessments prior to that date, or are a successor to
such an institution. The Bank received a $2.8 million One-Time Assessment Credit, all of which was
used to offset substantially all of our deposit insurance assessment, excluding the FICO payments,
for the period from January 1, 2007 through March 31, 2009.
The Company is participating in the FDIC's Temporary Account Guarantee ("TAG") program, which
is a part of the FDIC's TLG program. The purpose of the TLG is to strengthen confidence and
encourage liquidity in the banking system. Under the TAG, funds in non-interest-bearing accounts,
in interest-bearing transaction accounts with interest rate of 0.50% or less and in Interest on
Lawyers Trust Accounts will have a temporary unlimited guarantee from the FDIC until June 30, 2010.
The coverage of the TAG is in addition to and separate from coverage available under the FDIC's
general deposit insurance rules, which insure accounts up to $250,000.
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Federal Home Loan Bank System.
Oritani Bank is a member of the Federal Home Loan Bank System,
which consists of 12 regional FHLBs. The Federal Home Loan Bank System provides a central credit
facility primarily for member institutions. As a member of the FHLB-NY, Oritani Bank is required
to acquire and hold shares of capital stock in the FHLB in an amount at least equal to 1% of the
aggregate principal amount of its unpaid residential mortgage loans and similar obligations at the
beginning of each year, 4.5% of its borrowings from the FHLB, or 0.3% of assets, whichever is
greater. As of December 31, 2009, Oritani Bank was in compliance with this requirement.
Enforcement.
The FDIC has extensive enforcement authority over insured savings banks,
including Oritani Bank. This enforcement authority includes, among other things, the ability to
assess civil money penalties, to issue cease and desist orders and to remove directors and
officers. In general, these enforcement actions may be initiated in response to violations of laws
and regulations and to unsafe or unsound practices.
Transactions with Affiliates of Oritani Bank.
Transactions between an insured bank, such as
Oritani Bank, and any of its affiliates are governed by Sections 23A and 23B of the Federal Reserve
Act and implementing regulations. An affiliate of a insured bank is any company or entity that
controls, is controlled by or is under common control with the bank. Generally, a subsidiary of a
bank that is not also a depository institution or financial subsidiary is not treated as an
affiliate of the bank for purposes of Sections 23A and 23B.
Section 23A:
•
limits the extent to which the bank or its subsidiaries may engage in "covered
transactions" with any one affiliate to an amount equal to 10.0% of such bank's
capital stock and retained earnings, and limits all such transactions with all
affiliates to an amount equal to 20% of such capital stock and retained earnings;
and
•
requires that all such transactions be on terms that are consistent with safe
and sound banking practices.
The term "covered transaction" includes the making of loans, purchase of assets, issuance of
guarantees and other similar types of transactions. Further, most loans by a bank to any of its
affiliates must be secured by collateral in amounts ranging from 100% to 130% of the loan amounts.
In addition, any covered transaction by a bank with an affiliate and any purchase of assets or
services by a bank from an affiliate must be on terms that are substantially the same, or at least
as favorable to the bank, as those that would be provided to a non-affiliate.
Prohibitions Against Tying Arrangements.
Banks are subject to the prohibitions of 12 U.S.C.
Section 1972 on certain tying arrangements. A depository institution is prohibited, subject to
some exceptions, from extending credit to or offering any other service, or fixing or varying the
consideration for such extension of credit or service, on the condition that the customer obtain
some additional service from the institution or its affiliates or not obtain services of a
competitor of the institution.
Privacy Standards.
FDIC regulations require Oritani Bank to disclose their privacy policy,
including identifying with whom they share "non-public personal information," to customers at the
time of establishing the customer relationship and annually thereafter. Oritani Bank does not
share "non-public personal information" with third parties.
In addition, Oritani Bank is required to provide its customers with the ability to "opt-out"
of having Oritani Bank share their non-public personal information with unaffiliated third parties
before they
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can disclose such information, subject to certain exceptions.
The FDIC and other federal banking agencies adopted guidelines establishing standards for
safeguarding customer information. The guidelines describe the agencies' expectations for the
creation, implementation and maintenance of an information security program, which would include
administrative, technical and physical safeguards appropriate to the size and complexity of the
institution and the nature and scope of its activities. The standards set forth in the guidelines
are intended to insure the security and confidentiality of customer records and information,
protect against any anticipated threats or hazards to the security or integrity of such records and
protect against unauthorized access to or use of such records or information that could result in
substantial harm or inconvenience to any customer.
Community Reinvestment Act and Fair Lending Laws.
All FDIC insured institutions have a
responsibility under the Community Reinvestment Act and related regulations to help meet the credit
needs of their communities, including low- and moderate-income neighborhoods. In connection with
its examination of a state chartered savings bank, the FDIC is required to assess the institution's
record of compliance with the Community Reinvestment Act. Among other things, the current
Community Reinvestment Act regulations replace the prior process-based assessment factors with a
new evaluation system that rates an institution based on its actual performance in meeting
community needs. In particular, the current evaluation system focuses on three tests:
•
a lending test, to evaluate the institution's record of making loans in its
service areas;
•
an investment test, to evaluate the institution's record of investing in
community development projects, affordable housing, and programs benefiting low or
moderate income individuals and businesses; and
•
a service test, to evaluate the institution's delivery of services through its
branches, ATMs and other offices.
An institution's failure to comply with the provisions of the Community Reinvestment Act
could, at a minimum, result in regulatory restrictions on its activities. Oritani Bank received a
"satisfactory" Community Reinvestment Act rating in our most recently completed federal
examination, which was conducted by the FDIC in September 2008.
In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from
discriminating in their lending practices on the basis of characteristics specified in those
statutes. The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act
could result in enforcement actions by the FDIC, as well as other federal regulatory agencies and
the Department of Justice.
Loans to a Bank's Insiders
Federal Regulation.
A bank's loans to its executive officers, directors, any owner of more
than 10.0% or more of its stock (each, an insider) and any of certain entities affiliated with any
such persons (an insider's related interest) are subject to the conditions and limitations imposed
by Section 22(h) of the Federal Reserve Act and its implementing regulations. Under these
restrictions, the aggregate amount of the loans to any insider and the insider's related interests
may not exceed the loans-to-one-borrower limit applicable to national banks, which is comparable to
the loans-to-one-borrower limit applicable to Oritani Bank. See "-New Jersey Banking
Regulation-Loans-to-One Borrower Limitations." All loans by a bank to all insiders and insiders'
related interests in the aggregate generally may not exceed the bank's unimpaired capital and
unimpaired surplus. With certain exceptions, loans to an executive officer, other
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than loans for the education of the officer's children and certain loans secured by the
officer's primary residence, may not exceed the lesser of (1) $100,000 or (2) the greater of
$25,000 or 2.5% of the bank's unimpaired capital and surplus. Federal regulation also requires
that any proposed loan to an insider or a related interest of that insider be approved in advance
by a majority of the Board of Directors of the bank, with any interested directors not
participating in the voting, if such loan, when aggregated with any existing loans to that insider
and the insider's related interests, would exceed either (1) $500,000 or (2) the greater of $25,000
or 5% of the bank's unimpaired capital and surplus.
Generally, loans to insiders must be made on substantially the same terms as, and follow
credit underwriting procedures that are not less stringent than, those that are prevailing at the
time for comparable transactions with other persons. An exception is made for extensions of credit
made pursuant to a benefit or compensation plan of a bank that is widely available to employees of
the bank and that does not give any preference to insiders of the bank over other employees of the
bank.
In addition, federal law prohibits extensions of credit to a bank's insiders and their related
interests by any other institution that has a correspondent banking relationship with the bank,
unless such extension of credit is on substantially the same terms as those prevailing at the time
for comparable transactions with other persons and does not involve more than the normal risk of
repayment or present other unfavorable features.
New Jersey Regulation.
Provisions of the New Jersey Banking Act impose conditions and
limitations on the liabilities to a savings bank of its directors and executive officers and of
corporations and partnerships controlled by such persons that are comparable in many respects to
the conditions and limitations imposed on the loans and extensions of credit to insiders and their
related interests under federal law, as discussed above. The New Jersey Banking Act also provides
that a savings bank that is in compliance with federal law is deemed to be in compliance with such
provisions of the New Jersey Banking Act.
Other Regulations
Interest and other charges collected or contracted for by Oritani Bank are subject to state
usury laws and federal laws concerning interest rates. Oritani Bank's operations are also subject
to federal laws applicable to credit transactions, such as the:
•
Truth-In-Lending Act, governing disclosures of credit terms to consumer
borrowers;
•
Home Mortgage Disclosure Act of 1975, requiring financial institutions to
provide information to enable the public and public officials to determine whether
a financial institution is fulfilling its obligation to help meet the housing needs
of the community it serves;
•
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race,
creed or other prohibited factors in extending credit;
•
Fair Credit Reporting Act of 1978, governing the use and provision of
information to credit reporting agencies;
•
Fair Debt Collection Act, governing the manner in which consumer debts may be
collected by collection agencies; and
•
Rules and regulations of the various federal agencies charged with the
responsibility of implementing such federal laws.
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•
The operations of Oritani Bank also are subject to the:
•
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality
of consumer financial records and prescribes procedures for complying with
administrative subpoenas of financial records;
•
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which
govern automatic deposits to and withdrawals from deposit accounts and customers'
rights and liabilities arising from the use of automated teller machines and other
electronic banking services;
•
Check Clearing for the 21
st
Century Act (also known as "Check 21"),
which gives "substitute checks," such as digital check images and copies made from
that image, the same legal standing as the original paper check;
•
Title III of The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred to as the
"USA PATRIOT Act"), which significantly expanded the responsibilities of financial
institutions, including savings banks, in preventing the use of the U.S. financial
system to fund terrorist activities. Among other provisions, the USA PATRIOT Act
and the related regulations of the OTS require savings associations operating in
the United States to develop new anti-money laundering compliance programs, due
diligence policies and controls to ensure the detection and reporting of money
laundering. Such required compliance programs are intended to supplement existing
compliance requirements, also applicable to financial institutions, under the Bank
Secrecy Act and the Office of Foreign Assets Control Regulations; and
•
The Gramm-Leach-Bliley Act, which placed limitations on the sharing of consumer
financial information by financial institutions with unaffiliated third parties.
Specifically, the Gramm-Leach-Bliley Act requires all financial institutions
offering financial products or services to retail customers to provide such
customers with the financial institution's privacy policy and provide such
customers the opportunity to "opt out" of the sharing of certain personal financial
information with unaffiliated third parties.
Holding Company Regulation
General
. Oritani Financial Corp., MHC and Oritani Financial Corp. are non-diversified savings
and loan holding companies within the meaning of the HOLA. As such, Oritani Financial Corp., MHC
and Oritani Financial Corp. are registered with the OTS and subject to OTS regulations,
examinations, supervision and reporting requirements. In addition, the OTS has enforcement
authority over Oritani Financial Corp. and Oritani Financial Corp., MHC, and their subsidiaries.
Among other things, this authority permits the OTS to restrict or prohibit activities that are
determined to be a serious risk to the subsidiary savings institution. As federal corporations,
Oritani Financial Corp. and Oritani Financial Corp., MHC are generally not subject to state
business organization laws.
Permitted Activities
. Pursuant to Section 10(o) of the HOLA and OTS regulations and policy, a
mutual holding company and a federally chartered mid-tier holding company such as Oritani Financial
Corp. may engage in the following activities:
(i)
investing in the stock of a savings bank;
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(ii)
acquiring a mutual association through the merger of such
association into a savings bank subsidiary of such holding company or an
interim savings bank subsidiary of such holding company;
(iii)
merging with or acquiring another holding company, one of
whose subsidiaries is a savings bank;
(iv)
investing in a corporation, the capital stock of which is
available for purchase by a savings bank under federal law or under the law of
any state where the subsidiary savings bank or associations share their home
offices;
(v)
furnishing or performing management services for a savings bank
subsidiary of such company;
(vi)
holding, managing or liquidating assets owned or acquired from
a savings subsidiary of such company;
(vii)
holding or managing properties used or occupied by a savings
bank subsidiary of such company;
(viii)
acting as trustee under deeds of trust;
(ix)
any other activity:
A.
that the Federal Reserve Board, by regulation, has determined to be
permissible for bank holding companies under Section 4(c) of the Bank
Holding Company Act of 1956, unless the Director, by regulation, prohibits
or limits any such activity for savings and loan holding companies; or
B.
in which multiple savings and loan holding companies were authorized (by
regulation) to directly engage on March 5, 1987;
(x)
any activity permissible for financial holding companies under
Section 4(k) of the Bank Holding Company Act, including securities and
insurance underwriting; and
(xi)
purchasing, holding, or disposing of stock acquired in
connection with a qualified stock issuance if the purchase of such stock by
such savings and loan holding company is approved by the Director. If a mutual
holding company acquires or merges with another holding company, the holding
company acquired or the holding company resulting from such merger or
acquisition may only invest in assets and engage in activities listed in (i)
through (x) above, and has a period of two years to cease any nonconforming
activities and divest any nonconforming investments.
The HOLA prohibits a savings and loan holding company, including Oritani Financial Corp. and
Oritani Financial Corp., MHC, directly or indirectly, or through one or more subsidiaries, from
acquiring more than 5% of another savings institution or holding company thereof, without prior
written approval of the OTS. It also prohibits the acquisition or retention of, with certain
exceptions, more than 5% of a nonsubsidiary company engaged in activities other than those
permitted by the HOLA, or acquiring or retaining control of an institution that is not federally
insured. In evaluating applications by holding companies to acquire savings institutions, the OTS
must consider the financial and managerial resources, future prospects of the company and
institution involved, the effect of the acquisition on the risk to the
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federal deposit insurance fund, the convenience and needs of the community and
competitive factors.
The OTS is prohibited from approving any acquisition that would result in a multiple savings
and loan holding company controlling savings institutions in more than one state, subject to two
exceptions:
(i)
the approval of interstate supervisory acquisitions by savings and loan holding companies;
and
(ii)
the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisitions.
The states vary in the extent to which they permit interstate savings and loan holding company
acquisitions.
Waivers of Dividends by Oritani Financial Corp., MHC
. Until the completion of the
reorganization and stock offering, OTS regulations require Oritani Financial Corp., MHC to notify
the OTS of any proposed waiver of its receipt of dividends from Oritani Financial Corp. The OTS
reviews dividend waiver notices on a case-by-case basis, and, in general, does not object to any
such waiver if:
(i)
the waiver would not be detrimental to the safe and sound operation of the
subsidiary savings association; and
(ii)
the mutual holding company's Board of Directors determines that such waiver is
consistent with such directors' fiduciary duties to the mutual holding company's
members.
Oritani Financial Corp., MHC, applied for, and was granted, permission from the OTS to waive
the dividend paid by Oritani Financial Corp. on July 24, 2009. We anticipate that Oritani
Financial Corp., MHC will waive any additional dividends paid by Oritani Financial Corp. Under OTS
regulations, our public stockholders would not be diluted because of any dividends waived by
Oritani Financial Corp., MHC (and waived dividends would not be considered in determining an
appropriate exchange ratio) in the event Oritani Financial Corp., MHC converts to stock form.
Qualified Thrift Lender Test.
In order for Oritani Financial Corp. and Oritani Financial
Corp., MHC to continue to be regulated as savings and loan holding companies by the OTS (rather
than as a bank holding companies by the Board of Governors of the Federal Reserve System), Oritani
Bank must qualify as a "qualified thrift lender" under OTS regulations or satisfy the "domestic
building and loan association" test under the Internal Revenue Code. Under the qualified thrift
lender test, a savings institution is required to maintain at least 65% of its "portfolio assets"
(total assets less: (i) specified liquid assets up to 20% of total assets; (ii) intangible,
including goodwill; and (iii) the value of property used to conduct business) in certain "qualified
thrift investments" (primarily residential mortgages and related investments, including certain
mortgage-backed and related securities) in at least nine out of each 12 month period. Oritani Bank
currently maintains the majority of its portfolio assets in qualified thrift investments and has
met the qualified thrift lender test in each of the last 12 months.
Federal Securities Laws
Oritani Financial Corp.'s common stock is registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended. Oritani Financial Corp. is
subject to the information, proxy solicitation, insider trading restrictions and other requirements
under the
Securities Exchange Act of 1934.
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Oritani Financial Corp. common stock held by persons who are affiliates (generally officers,
directors and principal stockholders) of Oritani Financial Corp. may not be resold without
registration or unless sold in accordance with certain resale restrictions. If Oritani Financial
Corp. meets specified current public information requirements, each affiliate of Oritani Financial
Corp. is able to sell in the public market, without registration, a limited number of shares in any
three-month period.
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 addresses, among other issues, corporate governance, auditing
and accounting, executive compensation, and enhanced and timely disclosure of corporate
information. As directed by the Sarbanes-Oxley Act of 2002, our Chief Executive Officer and Chief
Financial Officer each will be required to certify that our quarterly and annual reports do not
contain any untrue statement of a material fact. The rules adopted by the Securities and Exchange
Commission under the Sarbanes-Oxley Act of 2002 have several requirements, including having these
officers certify that: they are responsible for establishing, maintaining and regularly evaluating
the effectiveness of our internal controls; they have made certain disclosures to our auditors and
the audit committee of the Board of Directors about our internal controls; and they have included
information in our quarterly and annual reports about their evaluation and whether there have been
significant changes in our internal controls or in other factors that could significantly affect
internal controls. Oritani Financial Corp is required to report under Section 404 of the
Sarbanes-Oxley Act and has reported that it complies with such in all material respects.
FEDERAL AND STATE TAXATION
Federal Taxation
General
.
Oritani Financial Corp. and Oritani Bank are subject to federal income taxation in
the same general manner as other corporations, with some exceptions discussed below. Neither
Oritani Financial Corp.'s nor Oritani Bank's federal tax returns are currently under audit, and
neither entity has been audited during the past five years. The following discussion of federal
taxation is intended only to summarize certain pertinent federal income tax matters and is not a
comprehensive description of the tax rules applicable to Oritani Financial Corp. or Oritani Bank.
Method of Accounting
.
For federal income tax purposes, Oritani Financial Corp. currently
reports its income and expenses on the accrual method of accounting and uses a tax year ending
December 31 for filing its federal and state income tax returns.
Bad Debt Reserves
.
Historically, Oritani Bank has been subject to special provisions in the
tax law regarding allowable tax bad debt deductions and related reserves. Tax law changes were
enacted in 1996, pursuant to the Small Business Protection Act of 1996 (the "1996 Act"), that
eliminated the use of the percentage of taxable income method for tax years after 1995 and required
recapture into taxable income over a six year period of all bad debt reserves accumulated after
1988. Oritani Bank recaptured its reserve balance over the six-year period ended December 31,
2003.
Currently, the Oritani Bank consolidated group uses the specific charge-off method to account
for bad debt deductions for income tax purposes.
Taxable Distributions and Recapture
.
Prior to the 1996 Act, bad debt reserves created prior
to January 1, 1988 were subject to recapture into taxable income should Oritani Bank fail to meet
certain
thrift asset and definitional tests.
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At December 31, 2009, our total federal pre-base year reserve was approximately $15.1 million.
However, under current law, pre-base year reserves remain subject to recapture should Oritani Bank
make certain non-dividend distributions, repurchase any of its stock, pay dividends in excess of
tax earnings and profits, or cease to maintain a bank charter.
Alternative Minimum Tax
.
The Internal Revenue Code of 1986, as amended (the "Code") imposes
an alternative minimum tax ("AMT") at a rate of 20% on a base of regular taxable income plus
certain tax preferences ("alternative minimum taxable income" or "AMTI"). The AMT is payable to
the extent such AMTI is in excess of an exemption amount and the AMT exceeds the regular income
tax. Net operating losses can offset no more than 90% of AMTI. Certain payments of alternative
minimum tax may be used as credits against regular tax liabilities in future years. Oritani
Financial Corp. and Oritani Bank have not been subject to the AMT and have no such amounts
available as credits for carryover.
Net Operating Loss Carryforwards
.
A financial institution may carry back net operating losses
to the preceding two taxable years and forward to the succeeding 20 taxable years. At December 31,
2009, Oritani Bank had no net operating loss carryforwards for federal income tax purposes.
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MANAGEMENT
The Board of Directors of Oritani will consist of six individuals who currently serve as
directors of Oritani Financial Corp., Oritani Financial Corp., MHC and Oritani Bank. The Board of
Directors of Oritani will be divided into three classes, as nearly equal as possible, with
one-third of the directors elected each year. The directors will be elected by the stockholders of
Oritani for three-year terms, and until their successors are elected and have qualified. The terms
of the directors of each of Oritani and Oritani Bank are identical. The executive officers of
Oritani are also executive officers of Oritani Financial Corp. We expect that Oritani and Oritani
Bank will continue to have common directors until there is a business reason to establish separate
management structures.
The following individuals will serve as the executive officers of Oritani and hold the offices
set forth below opposite their name.
Name
Positions Held
Kevin J. Lynch
President and Chief Executive Officer
Michael A. DeBernardi
Executive Vice President and Chief Operating Officer
John M. Fields, Jr.
Executive Vice President and Chief Financial Officer
Thomas Guinan
Executive Vice President and Chief Lending Officer
Philip M. Wyks
Senior Vice President and Corporate Secretary
Executive officers of Oritani are elected annually and hold office until their respective
successors have been elected or until death, resignation or removal by the Board of Directors.
The following table provides the positions, ages and terms of office as applicable to our
directors and executive officers, along with the beneficial ownership of our common stock held by
our directors and executive officers, individually and as a group, as of December 31, 2009.
Percentages are based on 37,041,184 shares outstanding.
Unvested Stock
Awards included in
Shares Owned Directly and
Options Exercisable
Beneficial
Name (1)
Indirectly (1)
within 60 days
Beneficial Ownership
Percent of Class
Ownership
DIRECTORS
Nicholas Antonaccio
72,150
47,689
119,839
*
30,998
Michael A. DeBernardi
122,371
71,534
193,905
*
57,227
Robert S. Hekemian, Jr.
101,904
47,689
149,593
*
30,998
Kevin J. Lynch
269,083
158,964
428,047
1.16
%
119,224
James J. Doyle, Jr.
82,063
47,689
129,752
*
30,998
John J. Skelly, Jr.
119,213
47,689
166,902
*
30,998
NAMED EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
John M. Fields, Jr.
122,227
71,534
193,761
*
57,227
Thomas G. Guinan
107,394
71,534
178,928
*
57,227
Philip M. Wyks
26,404
10,598
37,002
*
9,000
All Directors and
Executive Officers as
a Group (13 persons)
1,173,722
(2)
612,013
1,785,734
4.82
%
453,897
*
Less than 1%.
(1)
Unless otherwise indicated, each person effectively exercises sole, or shared with spouse,
voting and dispositive power as to the shares reported. Totals include unvested stock awards
that were granted pursuant to the 2007 Equity Incentive Plan. The totals for Messrs. Skelly
and Hekemian include 50,000 shares and 16,241 shares, respectively, owned through a company in
which each individual has a beneficial ownership.
(2)
Includes 38,724 shares of common stock allocated to the accounts of executive officers under
the Oritani Bank Employee Stock Ownership Plan.
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The Business Background of Our Directors and Executive Officers.
The business experience for the past five years, as well as the experience, qualifications,
attributes and skills, of each of our directors and executive officers are set forth below. Unless
otherwise indicated, directors and executive officers have held their positions for the past five
years.
Directors
The principal occupation during the past five years of each of our directors is set forth
below. All directors have held their present positions for five years unless otherwise stated.
Nicholas Antonaccio,
age 62, is President of CMA Enterprises LLC, a financial advisory firm
founded by Mr. Antonaccio in 2000. Previously, Mr. Antonaccio was the chief financial officer at a
variety of public and private companies, including serving for five years as senior vice president
and chief financial officer of Copelco Capital, Inc. Mr. Antonaccio has extensive financial and
public company expertise, with responsibilities that have spanned all major areas of financial
management, including financial operations and contract, tax, treasury, financial planning, credit,
information technology, human resources and risk management.
Michael A. DeBernardi,
age 55, served as Lead Director until April 2008 when he was appointed
Executive Vice President and Chief Operating Officer of Oritani Bank. Mr. DeBernardi has
previously served in executive positions with AT&T Capital Corporation, Newcourt Credit Group, CIT
Global Vendor Finance, Aternus Partners, LLC, and US Express Leasing. Mr. DeBernardi is also a
trustee of Chilton Memorial Hospital in Pompton Plains, New Jersey where he serves as Vice-Chairman
of the Audit Committee and Co-Chairman of the Strategic Planning Committee. Mr. DeBernardi has
held executive positions at a variety of capital finance companies throughout his career.
James J. Doyle, Jr.,
age 59, served as the President and Chief Executive Officer of Chilton
Memorial Hospital from 1991 until 2004, and also as a consultant to The Chilton Memorial Hospital's
Foundation Board until 2008. Mr. Doyle has also served as Executive Vice President of Atlantic
Health System from 1994 until 1998, and Executive Vice President of the Valley Health System from
1998 until 2002. Mr. Doyle has significant executive management experience, overseeing
administrative, finance, marketing and human resources activities.
Robert S. Hekemian, Jr.,
age 49, has been with the 75-year-old, family-owned Hekemian & Co.,
Inc. since 1982, becoming President and Chief Operating Officer in 2004. Hekemian & Co. and its
affiliates own, manage and develop apartments, shopping centers and mixed-use projects primarily
throughout New Jersey, Maryland, Virginia, New York and Pennsylvania. Mr. Hekemian has been
involved in all aspects of real estate development and acquisitions throughout his career.
Kevin J. Lynch,
age 63, has been the President and Chief Executive Officer of Oritani Bank
since 1993 and has served as President and Chief Executive Officer of Oritani Financial Corp. since
its creation in 1998. Mr. Lynch is a director of the FHLB-NY and serves on its Executive,
Compensation, and Housing Committees. He is also a director of Pentegra Retirement Services
Financial Institutions Retirement Fund, a national provider of full-service retirement programs.
Mr. Lynch is a former Chairman of the New Jersey League of Community and Savings Bankers and served
as a member of its Board of Governors for several years, and also served on the Board of Directors
of Thrift Institutions Community Investment Corp. Mr. Lynch is a member of the Professional
Development and Education Committee of the American Bankers Association. He is a member of the
American Bar Association and a former member of the Board of Directors of Bergen County Habitat for
Humanity.
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John J. Skelly, Jr.,
age 69, is the President and Chief Executive Officer of West Side
Management, which owns and manages affordable and low-income housing developments throughout New
Jersey, New York and Maryland. Mr. Skelly also served as the Deputy Commissioner of Housing for
the City of New York and was a founding Board Member for Habitat for Humanity of Greater Jersey
City. Mr. Skelly has extensive experience with real estate development and finance.
Executive Officers of the Bank Who Are Not Also Directors
John M. Fields, Jr.
, age 46, has been employed by Oritani Financial Corp. since 1999 and
currently serves as Executive Vice President and Chief Financial Officer. He is also responsible
for information technology, electronic banking and deposit operations, as well as investment and
treasury functions. Prior to 1999, Mr. Fields, Jr. was chief accounting officer and controller at
a local publicly-traded financial institution. Mr. Fields, Jr. is a certified public accountant.
Thomas Guinan
, age 45, has been employed by the Oritani Financial Corp since 2003 and
currently serves as Executive Vice President and Chief Lending Officer. Prior to that, Mr. Guinan
served as a senior vice president of commercial lending at a local financial institution. Mr.
Guinan is responsible for overseeing all aspects of the retail and commercial lending operations of
Oritani Bank, including originations, portfolio growth and developing strategies to enhance Oritani
Bank's market share and profitability.
Philip M. Wyks
, age 55, has been employed by Oritani Financial Corp. since 1976 and currently
serves as Senior Vice President and Secretary. Mr. Wyks is also responsible for facilities
management. In addition, Mr. Wyks is a director of Thrift Institutions Community Investment
Corporation, a subsidiary of the New Jersey League of Community Bankers that assists League members
in forming consortia to originate loans on low to moderate income housing loans and initiate
economic development projects throughout the State of New Jersey.
Anthony V. Bilotta, Jr.
, age 49, began employment with Oritani Financial Corp. in 2008 as
Senior Vice President Retail Banking. Prior to that, Mr. Bilotta served as senior vice president
of retail banking at a local financial institution. Mr. Bilotta is responsible for all aspects
of retail branch banking, sales development, and Oritani Financial Corp.'s marketing program.
Rosanne P. Buscemi
, age 57, has been employed by Oritani Bank since 1978 and currently serves
served as Senior Vice President–Chief Compliance Officer. Ms. Buscemi also assists with training
as well as oversight of new branch development and renovations.
Anne Mooradian
, age 48, has been employed by Oritani Bank since 1985 and currently serves as
Senior Vice President and Human Resources Officer. Ms. Mooradian has also held branch retail
positions at Oritani Bank.
Paul M. Cordero
, age 54, has been employed by Oritani Bank since 1980 and currently serves as
Vice President and Chief Residential Lending Officer.
Ann Marie Jetton
, age 43, has been employed by Oritani Bank since 2000 and currently serves as
Vice President and Principal Accounting Officer.
Paul C. Skinner
, age 47, began employment with Oritani Financial Corp. in 2008 as Vice
President/Chief Information Officer. Prior to that, Mr. Skinner served as senior vice president of
information technology and operations at a local financial institution. Mr. Skinner is responsible
for
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information technology, deposit operations, electronic banking and also serves as the
Company's privacy officer.
Corporate Governance, Code of Ethics and Business Conduct
Oritani Financial Corp. is committed to maintaining sound corporate governance principles and
the highest standards of ethical conduct and is in compliance with applicable corporate governance
laws and regulations.
The Board of Directors has adopted a code of ethics for the principal executive officer,
principal financial officer, principal accounting officer and all persons performing similar
functions, and corporate governance guidelines for directors. These codes are designed to deter
wrongdoing and to promote honest and ethical conduct, the avoidance of conflicts of interest, full
and accurate disclosure and compliance with all applicable laws, rules and regulations. Both of
these documents are available on Oritani Financial Corp.'s website at
www.oritani.com.
Amendments
to and waivers from the code of ethics and corporate governance guidelines for directors are
disclosed on Oritani Financial Corp.'s website.
Director Independence
The Board of Directors has determined that, except as to Mr. Lynch and Mr. DeBernardi, each
member of the Board of Directors is an "independent director" within the meaning of the Nasdaq
corporate governance listing standards and Oritani Financial Corp.'s corporate governance policies.
Mr. Lynch and Mr. DeBernardi are not considered independent as each is an executive officer of
Oritani Financial Corp.
In addition, the Board of Directors has appointed Mr. Antonaccio as Lead Director. The Lead
Director has the following functions:
•
Preside at executive session of the non-management directors.
•
Facilitate communications between other members of the Board of Directors and
the Chief Executive Officer. Any director is free to communicate directly with the
Chief Executive Officer. The Lead Director's role is to attempt to improve such
communications if they are not entirely satisfactory.
•
Work with the Chief Executive Officer in the preparation of the Board of
Directors meeting agenda and information to be provided to the Board of Directors.
•
Chair the annual review of the performance of the Chief Executive Officer.
•
Otherwise consult with the Chief Executive Officer on matters relating to
corporate governance and board performance.
Given the duties of the Lead Director, the Board of Directors has reaffirmed its position of
allowing one individual to serve as Chairman and Chief Executive Officer. Mr. Lynch has served as
Chairman, President and Chief Executive Officer since the inception of Oritani Financial Corp.
During fiscal 2009, each of Directors John J. Skelly, Jr., James J. Doyle, Jr. and Kevin J.
Lynch had residential mortgage loans with Oritani Bank. Additionally, Oritani Bank had loans
outstanding to entities in which Directors Hekemian and Skelly had an ownership interest in the
amounts of $25.2
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million and $8.8 million, respectively. These loans were made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for comparable
transactions with the general public. Oritani Financial Corp. also utilizes the property
management services of Hekemian & Co., Inc. to manage two properties owned by its subsidiaries.
Director Hekemian has a partial ownership interest in Hekemian & Co., Inc. During the fiscal year
ended June 30, 2009, Oritani Financial Corp., through its subsidiaries, paid $87,000 to Hekemian &
Co., Inc. for these management services. In addition, during the fiscal year ended June 30, 2009,
Oritani Bank made rent payments for its Cliffside Park branch totaling $88,080 to the landlord,
Willet & Co. Director Hekemian has a partial ownership interest in Willet & Co. The terms of these
agreements were determined in the ordinary course of business and were made on substantially the
same terms by us as could have been made with unaffiliated parties.
Board of Directors Meetings and Committees
The Board of Directors of Oritani Financial Corp. and Oritani Bank met 12 times during the
fiscal year ended June 30, 2009. All directors attended all Board of Directors and committee
meetings during fiscal 2009, including Board and committee meetings of Oritani Bank. Executive
sessions of the independent directors are regularly scheduled. Although not required, attendance
of directors at the Annual Meeting of Stockholders is encouraged. Each of Oritani Financial
Corp.'s directors attended the Oritani Financial Corp.'s 2009 Annual Meeting of Stockholders.
Oritani Financial Corp. and Oritani Bank have four standing committees of the Board of
Directors: Compensation and Corporate Governance Committee; Audit Committee; Loan Committee; and
CRA and Compliance Committee.
Transactions with Certain Related Persons
Federal law and regulation generally require that all loans or extensions of credit to
executive officers and directors must be made in the ordinary course of business on substantially
the same terms, including interest rates and collateral, as those prevailing at the time for
comparable loans with persons not related to Oritani Bank or Oritani Financial Corp. and must not
involve more than the normal risk of collectibility or present other unfavorable features.
However, applicable regulations permit executive officers and directors to receive the same terms
through loan programs that are widely available to other employees, as long as the director or
executive officer is not given preferential treatment compared to the other participating
employees.
Section 402 of the Sarbanes-Oxley Act of 2002 generally prohibits an issuer from: (1)
extending or maintaining credit; (2) arranging for the extension of credit; or (3) renewing an
extension of credit in the form of a personal loan for an officer or director. There are several
exceptions to this general prohibition, one of which is applicable to Oritani Bank. Sarbanes-Oxley
does not apply to loans made by a depository institution that is insured by the FDIC and is subject
to the insider lending restrictions of the Federal Reserve Act. All loans to the Company's
directors and officers are made in conformity with the Federal Reserve Act and Regulation O.
The aggregate amount of our loans to our executive officers and directors, and their related
entities, was $38.3 million at December 31, 2009. These loans were performing according to their
original terms at December 31, 2009.
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Executive Compensation
Compensation and Corporate Governance Committee Interlocks and Insider Participation
Our Compensation and Corporate Governance Committee ("C&CG Committee") determines the salaries
to be paid each year to the Chief Executive Officer and those executive officers who report
directly to the Chief Executive Officer. The C&CG Committee consists of Directors Doyle (Chair),
Antonaccio, Hekemian and Skelly. None of these individuals was an officer or employee of Oritani
Financial Corp. or Oritani Bank during the fiscal year ended June 30, 2009, or is a former officer
of Oritani Financial Corp. or Oritani Bank.
During the fiscal year ended June 30, 2009, (i) no executive of Oritani Financial Corp. served
as a member of the compensation committee (or other Board committee performing equivalent functions
or, in the absence of any such committee, the entire Board of Directors) of another entity, one of
whose executive officers served on the C&CG Committee of Oritani Financial Corp.; (ii) no executive
officer of Oritani Financial Corp. served as a director of another entity, one of whose executive
officers served on the C&CG Committee of Oritani Financial Corp.; and (iii) no executive officer of
Oritani Financial Corp. served as a member of the compensation committee (or other board committee
performing equivalent functions or, in the absence of any such committee, the entire Board of
Directors) of another entity, one of whose executive officers served as a director of Oritani
Financial Corp.
Compensation Discussion and Analysis
Compensation Philosophy and Objectives
The goal of the Executive Compensation Program is to enable us to attract, develop, and retain
strong executive officers capable of maximizing our performance for the benefit of its
stockholders. Our compensation philosophy is to provide competitive compensation opportunities
that are aligned with our financial performance and the generation of value for stockholders
through stock-price appreciation. Our focus is on retaining and motivating key executives,
maintaining profitability, asset quality and loan growth, while aggressively controlling expenses.
Role of the Compensation and Corporate Governance Committee
The C&CG Committee assists the Board of Directors in discharging its responsibilities
regarding the Company's compensation and benefit plans and practices. Authority granted to the
C&CG Committee is established in its charter, which is available on the Company's website at
www.oritani.com
. The C&CG Committee meets as necessary. One of the responsibilities of the C&CG
Committee is to provide, on an annual basis, final approval of the significant components of the
total compensation of the named executive officers. In making these determinations, the C&CG
Committee considers the executive's level of job responsibility, the compensation paid by peers for
similar levels of responsibility, industry survey data regarding executive compensation, the
financial condition and performance of the Company, and an assessment of the executive's individual
performance. The C&CG Committee also strongly considers the recommendations of the CEO regarding
the other named executive officers. The actions of the C&CG Committee are presented for discussion
at meetings of the full Board of Directors.
Use of Outside Advisors and Survey Data.
The C&CG Committee uses industry survey data from
independent sources and had previously engaged a consulting firm to assist it in performing its
duties. The independent sources of industry survey data utilized by the C&CG Committee are the
executive compensation reports prepared by the New Jersey League of Community Bankers and L.R.
Webber Associates, Inc. ("Webber Survey"). The Webber Survey provides timely and reliable
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information on wages, salaries, employee benefits, and compensation practices and trends for
financial institutions. It is widely utilized within the industry. The C&CG Committee engaged a
compensation consulting firm, GK Partners, to prepare a compensation report and analysis in
connection with the compensation package of the named executive officers. The report they produced
is dated September 28, 2007. GK Partners is an independent, executive compensation consulting firm
with experience in, and knowledge of, the financial services industry. The data contained in their
report were still considered pertinent and appropriate for usage by the C&CG Committee in
performing its responsibilities in calendar 2008. GK Partners was not engaged specifically for
calendar 2008 data in order to save costs. They were engaged for 2009. The peers selected for the
2007 GK Partners report for purposes of compiling peer data were local publically traded banks that
were considered reasonable competitors based on size, profitability, market capitalization and
lines of business. The specific peers were:
• Clifton Savings Bank
•
OceanFirst Financial Corp.
• Dime Community Bancshares
•
Partners Trust Financial
• Greater Community Bancorp
•
PennFed Financial Services, Inc.
• Investors Bancorp, Inc.
•
Provident Financial Services, Inc.
• Kearny Financial Corp.
•
Provident New York
• Lakeland Bancorp
•
Roma Financial Corp.
• NBT Bancorp Inc.
•
Synergy Financial Corp.
The C&CG Committee communicated directly with, and received certain reports directly from, GK
Partners. In addition to the raw peer data, the C&CG Committee also considered the relative
business models, loan growth, asset quality, and profitability of the banks and thrifts in the peer
groups. The report prepared by GK Partners included a peer median and average salary and cash
incentive for each of the named executive officers based on their title and responsibilities. The
C&CG Committee considered the executive's current base salary and historical annual cash incentive,
and compared these amounts to the median and average compensation detailed in the GK Partners
Report for the executive's title and responsibilities. The peer median and average compensation
were strongly considered by the C&CG Committee when contemplating the executive's salary and cash
incentive (described in the procedures below). The C&CG Committee decided that the acceptable
range for base salary increases was 0 – 20% and the acceptable range of target bonus opportunity
for annual cash incentives was 20 — 100% of the executive's current base salary. Given these
restrictions, and considering the information provided in the GK Partners Report, the C&CG
Committee determined a preliminary range of base salary and annual cash incentive for each of the
named executive officers. A final amount for each executive was determined using the procedures
described in the paragraphs below.
Elements of The Compensation Package
Our 2008/2009 compensation program for named executive officers consisted of base salary,
annual cash incentives, equity incentive awards (such as stock options and restricted stock
awards), a comprehensive benefits package and perquisites.
Base Salary.
Executive base salary levels are generally reviewed on an annual basis and
adjusted as appropriate. We desire to compensate executives fairly. During the fiscal year ended
June 30, 2009 the C&CG Committee considered prevailing market conditions and approved certain
salary adjustments as indicated below. The C&CG Committee also considered the overall performance
of the individual, including their achievement of individual goals as well as their contribution to
our goals in making their determinations. The C&CG Committee relied on the data contained in the
GK Partners Report, as well as the data from independent surveys, in formulating its opinion of
prevailing market conditions. The
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C&CG Committee viewed this information as a broad database of the Company's peers with
detailed information on Base Salary and Incentive Compensation. The following table sets forth the
base salary increases for the named executive officers approved by the C&CG Committee during fiscal
year 2009.
Base Salary History at June 30, 2009
Base Salary
Increase Date
Increase
% Increase
New Base Salary
Kevin J. Lynch
$
500,000
11/10/08
$
45,000
9.00
%
$
545,000
Michael A. DeBernardi
$
250,000
11/10/08
$
22,500
9.00
%
$
272,500
John M. Fields, Jr.
$
200,000
11/10/08
$
18,000
9.00
%
$
218,000
Thomas Guinan
$
200,000
11/10/08
$
18,000
9.00
%
$
218,000
Philip M. Wyks
$
189,000
n/a
$
—
n/a
$
189,000
While the C&CG Committee considered the existing base salaries of the named executive
officers to be within a reasonable range based on their perception of existing market conditions,
it also felt that an adjustment was warranted. In general, the C&CG Committee was pleased with the
progress management made in quality balance sheet growth and capital deployment. It felt that our
growth, while adhering to strict quality and profitability standards, was exemplary. The
measurement period for this conclusion was primarily the fiscal year ended June 30, 2008. The C&CG
Committee awarded 9% base salary increases to the named executive officers that they felt were most
responsible for these achievements. In the instance of Mr. Wyks, the C&CG Committee decided that
no increase in base salary was appropriate at this time as they felt his current salary was
sufficient when considered in conjunction with his current responsibilities. The C&CG Committee
considered the ending base salaries of all of the named executive officers to be appropriate and
reasonable considering, their responsibilities, in comparison to their peers.
Annual Cash Incentives.
Annual cash incentive opportunities are provided to the named
executive officers as an incentive to achieve annual goals and objectives. For fiscal 2009 the
C&CG Committee determined each named executive officer's bonus based on a retrospective review of a
variety of corporate performance factors and each individual's contribution to us, taking in to
account the operating environment existing during the year. This review is in addition to our
actual performance against its operating budget, which is adopted at the beginning of the year
along with strategic objectives and projects to be accomplished during the year. At the November
21, 2008 Annual Meeting of Stockholders of Oritani Financial Corp., stockholders approved the
Executive Officer Annual Incentive Plan. This plan became effective at that time and formalized
the process of annual cash incentives for named executive officers. Prospective annual cash
incentives, if any, will be awarded in accordance with this plan.
The payments for the named executive officers were based on the achievement of certain goals
on a Bank-wide basis as well as individual performance goals. Bank-wide goals included financial
performance of Oritani Bank measured on a return-on-assets (ROA) and Efficiency Ratio basis as
compared to a peer group. The C&CG Committee held management to a "meet or beat peers" standard.
The peer group selected by the C&CG Committee consisted of area banks with a mutual holding company
structure. The specific group selected was:
• Kearny Federal Savings Bank
•
Roma Bank
• Investors Savings Bank
•
Northfield Bank
• Clifton Savings Bank
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Peer group results were determined using the FDIC Website for Statistics on Depository
Institutions. Peer data regarding ROA and Efficiency Ratio were obtained for the quarterly periods
ending September 30, 2008; June 30, 2008; March 31, 2008 and December 31, 2008. The twelve month
period ended September 30, 2008 was utilized as this was the most recent period of data available
when the cash incentives were being determined. The peer results were averaged and compared to the
average results for Oritani Bank (from the same source) for the same periods. Oritani's ROA was
0.58%, versus the peer result of 0.53%. Oritani Bank's Efficiency Ratio was 53.99%, versus the
peer result of 65.15% (a lower efficiency ratio is desired). Accordingly, the C&CG Committee felt
that management had met the goal for financial performance. The other bank-wide goals considered
were loan portfolio growth, delinquency levels, deployment of excess capital, staffing changes,
facility renovations, and new branch openings. In the opinion of the C&CG Committee, all the
bank-wide goals had been attained. In addition, the C&CG Committee also felt that the individual
performance goals were attained for all of the named executive officers. The C&CG Committee
determined that Mr. Lynch had the primary responsibility for the attainment of our Company-wide
goals. The C&CG Committee awarded Mr. Lynch an annual cash incentive equal to 50% of his base
salary in recognition of his accomplishments. A base annual cash incentive equal to 35% of their
respective base salaries was awarded to each of Messrs. DeBernardi, Fields and Guinan. The base
award for Mr. Guinan was increased to 40% due to his specific contributions regarding loan
originations and loan portfolio growth. The base award for Mr. DeBernardi was pro-rated to 26.25%
as he was not a full-time employee for the entire measurement period. The C&CG Committee awarded
Mr. Wyks an annual cash incentive equal to 20% of his base salary, primarily due to attainment of
his individual performance goals.
The C&CG Committee approved awards totaling $503,425 to our named executive officers during
the fiscal year ended June 30, 2009. The specific amount awarded to each named executive officer
for the fiscal year ended June 30, 2009 is set forth in the Bonus column of the table in the
"—Executive Officer Compensation—Summary Compensation Table."
Equity Incentives.
We did not have stock issued to the public prior to our initial public
offering which was consummated in 2007. In connection with the initial public offering, Oritani
Financial Corp. established an employee stock ownership plan that purchased 3.92% of the total
shares issued in the offering (including shares issued to Oritani Financial Corp., MHC and to the
OritaniBank Charitable Foundation) for the benefit of employees of Oritani Bank. The employee
stock ownership plan is a qualified retirement plan. Additionally, at a special meeting of
stockholders in April 2008, our stockholders approved our 2007 Equity Incentive Plan ("the Equity
Plan") which authorized the issuance of up to 2,781,878 shares of our common stock pursuant to
grants of incentive and non-statutory stock options, stock appreciation rights, and restricted
stock awards. The Equity Plan provides our officers, employees and directors with additional
incentives to promote growth and performance. The Equity Plan provides that individuals may
receive awards of common stock and grants of options to purchase common stock. The C&CG Committee
believes that officer stock ownership provides a significant incentive in building stockholder
value by aligning the interests of the officers, employees and directors with those of our
shareholders. In addition, stock option grants and stock awards vest over five years, thereby
aiding retention. We granted no awards to any named executive officer under the Equity Plan during
fiscal 2009. As of June 30, 2009, a total of 2,653,173 stock options and restricted stock awards
had been granted under the Equity Plan, representing 95.4% of the shares available.
Other
. Additionally, we provide certain fringe benefits, including retirement plans,
termination benefits, and perquisites. The retirement plans consist of:
•
A multi-employer defined benefit plan (a qualified plan). The plan was frozen as of
December 31, 2008. All employees who attained the age of 21 and completed one year of
service were eligible to participate in the plan.
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•
A nonqualified savings incentive plan covering employees whose salary deferrals to the
savings incentive plan are limited.
•
A nonqualified Benefit Equalization Plan which provides benefits to employees who are
disallowed certain benefits under our qualified benefit plans.
•
A nonqualified Post Retirement Medical Plan for directors and certain eligible
employees.
•
A nonqualified Executive Supplemental Retirement Income Agreement for our President and
Chief Executive Officer.
The C&CG Committee considered these items when contemplating the overall compensation package
awarded to the named executive officers. The C&CG Committee felt that these items were appropriate
given the level of responsibility for each named executive officer and that no changes to the
programs were warranted at the time.
Other Matters
Corporate Income Tax Considerations.
Section 162(m) of the Internal Revenue Code imposes a
$1,000,000 annual limit, per executive officer, on a company's federal tax deduction for certain
types of compensation paid to executive officers. Compensation that is "performance-based" under
the Internal Revenue Code's definition is exempt from this limit. Stock option grants are intended
to qualify as performance-based compensation. It has been the C&CG Committee's practice to
structure the compensation and benefit programs offered to the named executive officers in order to
maximize the tax deductibility of amounts paid. However, in structuring the compensation programs
and in reaching compensation decisions, the C&CG Committee considers a variety of factors,
including the Company's tax position, the materiality of the payments and tax deductions involved,
and the need for flexibility to address unforeseen circumstances. After considering these factors,
the C&CG Committee may decide to authorize compensation payments, all or part of which would be
nondeductible for federal tax purposes.
Section 4999 of the Code imposes a 20% excise tax on certain "excess parachute payments" made
to "disqualified individuals." Under Sections 280G of the Code, such excess parachute payments are
also nondeductible to us. If payments that are contingent on a change of control to a disqualified
individual (which includes the named executive officers) exceed three times the individual's "base
amount," they constitute "excess parachute payments" to the extent they exceed one time the
individual's base amount.
Severance payments to the named executive officers pursuant to their employment agreements
that are paid in connection with termination following a Change in Control are subject to reduction
in order to avoid an excess parachute payment under Section 280G of the Code.
Accounting Considerations.
The C&CG Committee is informed of the financial statement
implications of the elements of the named executive officers' compensation. However, the probable
contribution of a compensation element to the objectives of our named executive officers
compensation program and its projected economic cost, which may or may not be reflected on our
financial statements, are the primary determining factors of the named executive officers'
compensation decisions.
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Executive Officer Compensation
Summary Compensation Table.
The following table sets forth for the fiscal years ended June 30, 2009, 2008 and 2007 certain
information as to the total remuneration paid to Mr. Lynch, who serves as Chief Executive Officer,
Mr. Fields, who serves as Chief Financial Officer, and the three other most highly compensated
executive officers of Oritani Financial Corp. or Oritani Bank other than Messrs. Lynch and Fields,
who received total compensation in excess of $100,000. Each of the individuals listed in the table
below is referred to as a "named executive officer."
Change in pension
value and
non-qualified
deferred
All other
Option Awards ($)
compensation
compensation ($)
Name and principal position
Fiscal Year
Salary ($)(1)
Bonus ($)
Stock Awards ($)(2)
(3)
earnings ($) (4)
(5)
Total ($)
Kevin J. Lynch
2009
550,750
250,000
621,949
273,419
1,648,874
110,512
3,455,504
President and Chief
2008
530,769
250,000
103,658
45,570
919,491
111,241
1,960,730
Executive Officer
2007
494,327
200,000
—
—
702,360
63,356
1,460,043
Michael A. DeBernardi
2009
263,846
65,625
298,536
123,038
87,278
25,995
864,318
Executive Vice President and Chief Operating Officer
2008
57,692
—
49,756
20,506
22,884
8,312
159,150
John M. Fields, Jr.
2009
211,077
70,000
298,536
123,038
73,436
76,249
852,336
Executive Vice President
2008
196,192
56,700
49,756
20,506
19,149
77,649
419,952
and Chief Financial Officer
2007
189,627
59,150
—
—
18,414
28,645
295,836
Thomas Guinan
2009
211,077
80,000
298,536
123,038
115,092
77,776
905,519
Executive Vice President
2008
188,923
58,800
49,756
20,506
39,735
80,826
438,546
and Chief Lending Officer
2007
163,817
53,200
—
—
29,336
29,520
275,873
Philip M. Wyks
2009
191,181
37,800
46,950
18,228
192,800
76,239
563,198
Senior Vice President and
2008
192,635
47,250
7,825
3,038
60,577
78,649
389,973
Corporate Secretary
2007
187,270
46,000
—
—
64,599
28,098
325,967
(1)
Includes $23,058 and $2,181 of payments made in 2009 to Messrs. Lynch and Wyks, respectively,
for unused vacation days.
(2)
The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal years ended June 30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the
Equity Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.'s audited financial statements for the fiscal year ended June 30, 2009
included herein.
(3)
The amounts in this column reflect the dollar amount recognized for financial statement
reporting purposes, for the fiscal years ended June 30, 2009 and 2008, in accordance with SFAS
123(R) and its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity
Plan. Assumptions used in the calculation of this amount are included in footnote 14 to
Oritani Financial Corp.'s audited financial statements for the fiscal year ended June 30, 2009
included herein.
(4)
The amounts in this column reflect the actuarial increase in the present value at June 30,
2009 compared to June 30, 2008, of the named executive officer's benefits under the Defined
Benefit Plan and Benefit Equalization Plan and, in the case of Mr. Lynch, an Executive
Supplement Retirement Income Agreement and the Directors' Retirement Plan maintained by
Oritani Bank, and, in the case of Mr. DeBernardi, the Directors' Retirement Plan maintained by
Oritani Bank, determined using interest rate and mortality rate assumptions consistent with
those used in Oritani Financial Corp.'s financial statements and includes amounts for which
the named executive officer may not currently be entitled to receive because such amounts are
not vested. This column also includes $69,874, $73, $7,435, $2,091, and $5,799 of
preferential or above-market earnings on non tax-qualified deferred compensation for
non-qualified defined contribution plans for Messrs. Lynch, DeBernardi, Fields, Guinan and
Wyks, respectively, as well as $21,025 for Mr. DeBernardi of preferential earnings on a
similar plan for deferred director fees.
(5)
The amounts in this column represent the total of all perquisites (non-cash benefits and
perquisites such as the use of employer-owned automobiles, membership dues and other personal
benefits), employee benefits (employer cost of life insurance and health insurance), and
employer contributions to defined contribution plans (the 401(k) Plan, the ESOP and the
Benefit Equalization Plan). Amounts are reported separately under the "All Other
Compensation" table below.
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All Other Compensation
Company
Contribution on
Company
Medical, Dental,
Contribution to
Benefit
Disability and
ESOP and 401(k)
Equalization Plan
Insurance Benefits
Automobile
Plan Match
Match Contribution
Country Club Dues
Name
Fiscal Year
($)
Allowance ($)
Contribution ($)
($)
($)
Total ($)
Kevin J. Lynch
2009
16,846
16,521
48,430
20,561
8,154
110,512
2008
19,885
13,073
48,480
23,423
6,380
111,241
2007
20,037
15,844
3,462
17,368
6,645
63,356
Michael A. DeBernardi
2009
14,803
9,305
—
1,887
—
25,995
2008
8,312
—
—
—
—
8,312
John M. Fields, Jr.
2009
13,228
9,620
47,969
5,432
—
76,249
2008
12,102
9,581
48,815
7,151
—
77,649
2007
11,042
10,140
3,615
3,848
—
28,645
Thomas Guinan
2009
12,168
7,469
48,527
5,001
4,611
77,776
2008
11,079
7,458
53,612
2,299
6,377
80,826
2007
10,078
6,315
6,511
—
6,615
29,520
Philip M. Wyks
2009
16,879
7,522
49,767
2,072
—
76,239
2008
15,999
7,438
50,414
4,798
—
78,649
2007
14,515
6,585
6,998
—
—
28,098
Plan-Based Awards.
The following table sets forth the threshold, target and maximum
award amounts that could be earned by the named executive officers during fiscal 2010 that were
established during fiscal 2009 under our Executive Officer Annual Incentive Plan. There were no
grants made to the named executive officers during fiscal 2009 under our Stock Based Incentive
Plan.
Grants of Plan-Based Awards for the Fiscal Year Ended June 30, 2009
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards (1)
Threshold
Target
Maximum
Name
($)
($)
($)
Kevin J. Lynch
136,250
272,500
408,750
Michael A. DeBernardi
59,950
109,00
133,525
John M. Fields, Jr.
47,960
87,200
106,820
Thomas Guinan
47,960
87,200
106,820
Philip M. Wyks
30,712
37,800
47,250
(1)
Assumes full achievement of individual component of award total.
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Outstanding Equity Awards at Year End.
The following table sets forth information with
respect to outstanding equity awards as of June 30, 2009 for the named executive officers.
OUTSTANDING EQUITY AWARDS AT JUNE 30, 2009
Option Awards
Stock Awards
Number of
Number of
Market Value of
Securities
Securities
Shares or Units of
Underlying
Underlying
Number of Shares or
Stock That Have Not
Unexercised Options
Unexercised Options
Option Exercise
Option Expiration
Units of Stock That
Vested ($)
Name
(#) Exercisable
(#) Unexercisable
Price ($)
Date
(1)
Have Not Vested (#)
(2)
Kevin J. Lynch
79,482
317,929
15.65
05/05/18
158,965
2,179,410
Michael A. DeBernardi
35,767
143,068
15.65
05/05/18
76,303
1,046,114
John M. Fields, Jr.
35,767
143,068
15.65
05/05/18
76,303
1,046,114
Thomas Guinan
35,767
143,068
15.65
05/05/18
76,303
1,046,114
Philip M. Wyks
5,299
21,195
15.65
05/05/18
12,000
164,520
(1)
Stock options expire 10 years after the grant date.
(2)
This amount is based on the per share fair market value of Oritani Financial Corp.'s common
stock on June 30, 2009 of $13.71.
Option Exercises And Stock Vested.
None of the Company's named executive officers
exercised any stock options during the fiscal year ended June 30, 2009. During fiscal 2009, 20% of
the total number of shares of each officers' restricted shares vested.
Pension Benefits.
The following table sets forth information with respect to pension benefits
at and for the fiscal year ended June 30, 2009 for the named executive officers. See "Defined
Benefit Plan," "Director's Retirement Plan," "Benefit Equalization Plan" and "Executive
Supplemental Retirement Income Agreement" for a discussion of the plans referenced in this table.
Pension Benefits at and for the Fiscal Year Ended June 30, 2009
Number of Years
Present Value of
Payments During
Credited Service
Accumulated Benefit
Last Fiscal Year
Name
Plan Name
(#)
($)
(1)
($)
Kevin J. Lynch
Defined Benefit Plan
15.50
531,000
—
Directors' Retirement Plan
18.67
407,000
—
Benefit Equalization Plan
15.50
1,473,000
—
Executive Supplemental Income Agreement
4.50
2,314,000
—
Michael A. DeBernardi
Defined Benefit Plan
—
—
—
Benefit Equalization Plan
—
—
—
Directors' Retirement Plan
15.67
170,000
John M. Fields, Jr.
Defined Benefit Plan
10.67
128,000
—
Benefit Equalization Plan
10.67
27,000
—
Thomas Guinan
Defined Benefit Plan
21.17
303,000
—
Benefit Equalization Plan
5.50
8,000
—
Philip M. Wyks
Defined Benefit Plan
32.50
701,000
—
Benefit Equalization Plan
32.50
83,000
—
(1)
The figures shown are determined as of the plan's measurement date of
June 30, 2009 for purposes of Oritani Financial Corp.'s audited
financial statements. For mortality, discount rate and other
assumptions used for this purpose, please refer to note 13 in the
audited financial statements included herein.
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Nonqualified Deferred Compensation.
The following table sets forth information with respect to the portion of the Benefit
Equalization Plan that supplements the 401(k) Plan and the employee stock ownership plan at and for
the fiscal year ended June 30, 2009 for the named executive officers.
Nonqualified Deferred Compensation at and for the Fiscal Year Ended June 30, 2009
Registrant
Executive
Contributions in
Aggregate Earnings
Aggregate
Aggregate Balance at
Contributions in
Last Fiscal
in Last Fiscal
Withdrawals/
Last Fiscal Year End
Name
Last Fiscal Year
Year
(1)
Year
(2)
Distributions($)
($)
Kevin J. Lynch
127,199
20,561
106,093
—
1,318,161
Michael A. DeBernardi
12,632
1,887
144
—
14,662
John M. Fields, Jr.
33,312
5,432
15,470
—
199,995
Thomas Guinan
26,042
5,001
4,237
—
61,518
Philip M. Wyks
12,196
2,072
12,108
—
147,209
(1)
The amounts reported in this column were also reported as compensation under "All Other
Compensation" in the Summary Compensation Table.
(2)
For Messrs. Lynch, DeBernardi, Fields, Guinan and Wyks, $69,874, $73, $7,436, $2,092 and
$5,800 respectively, were reported as preferential or above-market earnings for each
individual under "Change in pension value and non-qualified deferred compensation earnings" in
the Summary Compensation Table.
Benefit Plans and Arrangements
Employment Agreements.
Oritani Bank entered into an employment agreement with Kevin J. Lynch
effective as of January 1, 2003. The agreement had an initial term of three years. Unless notice
of non-renewal is provided, the agreement renews annually. Under the agreement, the current base
salary is $545,000. The base salary is reviewed at least annually and may be increased, but not
decreased. In addition to base salary, the agreement provides for, among other things,
participation in bonus programs and other employee pension benefit and fringe benefit plans
applicable to executive employees, use of an automobile and reimbursement of expenses associated
with the use of such automobile. The executive is also entitled to reimbursement of business
expenses, including fees for membership in a country club, a health club, and such other clubs and
organizations as appropriate for business purposes. Upon retirement at age 70 (or at an earlier
age in accordance with any retirement arrangement established with the executive's consent) the
executive and his spouse would be entitled to continuing health care insurance coverage until the
death of the executive and his spouse.
The executive is entitled to severance payments and benefits in the event of his termination
of employment under specified circumstances. In the event the executive's employment is terminated
for reasons other than just cause, disability, death, retirement or a change in control, or in the
event the executive resigns during the term of the agreement following (1) the failure to elect or
reelect or to appoint or reappoint executive to his executive position, (2) a material change in
the executive's functions, duties, or responsibilities, which change would cause executive's
position to become one of lesser responsibility, importance or scope, (3) a relocation of the
executive's principal place of employment by more than 30 miles from its location at the effective
date of the employment agreement or a material reduction in the benefits and perquisites from those
being provided to the executive as of the effective date of the employment agreement, (4) the
liquidation or dissolution of Oritani Bank, or (5) a breach of the employment agreement by Oritani
Bank, the executive (or, in the event of the executive's death, his beneficiary) would be entitled
to a severance payment equal to three times the sum of the executive's highest base salary and
highest rate of bonus, and the executive would be entitled to the continuation of life, medical,
and dental coverage for 36 months or as provided in the Oritani Bank nonqualified senior officers
medical benefit plan. In the event of a termination following a change in control of Oritani
Financial Corp., the executive (or, in the event of the executive's death, his beneficiary) would
be entitled to a severance payment equal to three times the sum of the executive's highest base
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salary and highest rate of bonus paid to him during the term of the employment agreement, plus
continuation of insurance coverage for 36 months. In the event the severance payment provisions of
the employment agreement are triggered, the executive would be entitled to a cash severance benefit
in the amount of approximately $2.4 million, which amount is subject to reduction in order to avoid
an excess parachute payment under Section 280G of the Internal Revenue Code.
Upon termination of the executive's employment other than in connection with a change in
control, the executive agrees not to compete with Oritani Bank for one year following termination
of employment in any city, town or county in which Oritani Bank has an office or has filed an
application for regulatory approval to establish an office. Should the executive become disabled,
Oritani Bank would continue to pay the executive his base salary, bonuses and other cash
compensation for the longer of the remaining term of the employment agreement or one year, provided
that any amount paid to the executive pursuant to any disability insurance would reduce the
compensation he would receive. In the event the executive dies while employed by Oritani Bank, the
executive's beneficiary or estate will be paid the executive's base salary for the remaining term
of the employment agreement and the executive's family will be entitled to continuation of medical
and dental benefits.
Oritani Bank has entered into employment agreements with Messrs. DeBernardi, Fields, Guinan
and Wyks that are substantially similar to the employment agreement of Mr. Lynch, except that each
of these agreements has a term of two years and entitles the executive to a severance payment equal
to two times the sum of the executive's highest base salary and highest rate of bonus and to the
continuation of life, medical, and dental coverage for 24 months or as provided in the Oritani Bank
nonqualified senior officers medical benefit plan. In the event of a termination following a
change in control of Oritani Financial Corp., the executive (or, in the event of the executive's
death, his beneficiary) would be entitled to a severance payment equal to two times the sum of the
executive's highest base salary and highest rate of bonus paid to him or her during the term of the
employment agreement, plus continuation of insurance coverage for 24 months.
Benefit Equalization Plan.
Oritani Bank has adopted the 2005 Benefit Equalization Plan to
provide certain executives with benefits to which they would otherwise be entitled under Oritani
Bank's Defined Benefit Pension Plan, 401(k) Plan and Employee Stock Ownership Plan, but for the
limitations imposed by the Internal Revenue Code. The 2005 Benefit Equalization Plan was adopted
to incorporate the required provisions of Code Section 409A and was amended and restated in January
2008 in order to incorporate the final Department of Treasury regulations issued under Code Section
409A. Oritani Bank's prior Benefit Equalization Plan was frozen effective as of December 31, 2004.
The 2005 Benefit Equalization Plan is materially similar to the frozen Benefit Equalization Plan,
except that a participant's elections regarding distributions under the tax-qualified 401(k) Plan,
the Employee Stock Ownership Plan and Defined Benefit Pension Plan control the form and timing of
distributions of a participant's account in the frozen Benefit Equalization Plan. This provision
is no longer permitted with respect to deferrals or accruals subject to Code Section 409A and is
not included in the 2005 Benefit Equalization Plan. Employees who are president, executive vice
president, senior vice president and vice president of Oritani Bank are eligible to participate in
the plan. During fiscal 2009, eleven current employees and one retired employee participated in the
2005 Benefit Equalization Plan. A committee appointed by the Oritani Bank Board of Directors
administers the plan.
Under the 401(k) portion of the 2005 Benefit Equalization Plan, participants may make annual
deferrals of compensation in an amount up to the difference between the maximum amount the
participant would be permitted to contribute to Oritani Bank's 401(k) plan for the given year but
for the limitations of the Internal Revenue Code and the deferrals actually made to the 401(k) plan
by the participant for the plan year. Oritani Bank will establish a supplemental 401(k) plan
account for each participant and credit the account with such contributions. In addition, the
participant's account will be credited monthly with
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earnings at a rate equivalent to the greater of (i) the Citibank Prime Rate, or (ii) nine
percent (9%), plus matching contributions. For fiscal 2009, a total of $146,000 in interest was
credited to the accounts of current employees under this plan. Upon termination of service due to
any reason other than death, the supplemental 401(k) plan benefit will be payable either in a lump
sum or in up to 5 annual installments, as elected by the participant pursuant to his initial
deferral election. Upon termination of service due to death, the supplemental 401(k) plan benefit
under the 2005 Benefit Equalization Plan will be payable to the participant's beneficiary either in
a lump sum or in annual installments, pursuant to the participant's initial deferral election.
Upon termination of service due to any reason other than death, a participant will also be
entitled to a benefit equal to the difference between the actuarial present value of the
participant's normal retirement benefit under Oritani Bank's defined benefit plan and the actuarial
present value of his normal retirement benefit calculated pursuant to the terms of the defined
benefit plan, without the application of the limitations imposed by the Internal Revenue Code,
which amount will be reduced and offset by the corresponding benefit amount payable to the
participant under the frozen Benefit Equalization Plan. The supplemental defined benefit plan
benefit under the 2005 Benefit Equalization Plan will be payable to the participant in monthly
installments for the longer of 120 months or the remainder of the participant's life. In the event
of the participant's death before 120 installments have been paid, the participant's beneficiary
will receive the present value of the remaining monthly installments in a lump sum. Alternatively,
the participant may also make, prior to commencement of the supplemental defined benefit plan
benefit, a one-time irrevocable election to receive his benefit under the plan in the form of a
100% joint and survivor annuity or a 50% joint and survivor annuity. Upon termination of service
due to death, the supplemental defined benefit plan benefit under the 2005 Benefit Equalization
Plan will be payable to the participant's beneficiary either in a lump sum or in annual
installments, pursuant to the participant's initial deferral election. A participant's supplemental
defined benefit plan amount payable under the 2005 Benefit Equalization Plan will be reduced and
offset by the corresponding supplemental defined benefit plan amount payable under the frozen
Benefit Equalization Plan.
The supplemental employee stock ownership plan benefit under the 2005 Benefit Equalization
Plan is denominated in shares of phantom stock equal to the difference between the number of shares
of Oritani Financial Corp. common stock that would have been allocated to the participant under the
employee stock ownership plan, but for the limitations imposed by the Internal Revenue Code, and
the actual number of shares of Oritani Financial Corp. common stock allocated to the participant
under the Oritani Bank employee stock ownership plan for the relevant plan year, plus earnings on
the phantom shares deemed allocated to the participant's supplemental employee stock ownership plan
account, based on the fair market value of Oritani Financial Corp. stock on such date. Upon
termination of service due to any reason other than death, the supplemental employee stock
ownership plan benefit will be payable either in a lump sum or in up to five annual installments,
as elected by the participant pursuant to his initial deferral election. Upon termination of
service due to death, the supplemental employee stock ownership plan benefit under the 2005 Benefit
Equalization Plan will be payable to the participant's beneficiary either in a lump sum or in
annual installments, pursuant to the participant's initial deferral election.
In the event of a change in control of Oritani Bank or Oritani Financial Corp., the
participant's supplemental 401(k) plan benefit, supplemental employee stock ownership plan benefit,
and supplemental defined benefit plan will be paid to the participants in a lump sum at the time of
the change in control, unless a participant has selected an alternative form of distribution upon a
change in control. Such an election, if made, was required to be made by a participant not later
than December 31, 2008, or with respect to new plan participants within thirty days after the
participant first becomes eligible to participate in the 2005 Benefit Equalization Plan.
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Executive Supplemental Retirement Income Agreement
. Oritani Bank entered into an Executive
Supplemental Retirement Income Agreement (the "Agreement") for Kevin J. Lynch (the "Executive")
effective as of January 1, 2005. The Agreement was amended and restated during 2008 for the final
Department of Treasury regulations issued under Code Section 409A.The Agreement provides for the
payment of a supplemental retirement income benefit equal to 70% of the Executive's highest average
annual base salary and bonus (over a 36-consecutive month period within the last 120 consecutive
months of employment), reduced by the sum of the Executive's annuitized value of the benefits
payable from Oritani Bank's Defined Benefit Pension Plan, the annuitized value of the benefits
payable under the defined benefit portion of Oritani Bank's frozen Benefit Equalization Plan and
2005 Benefit Equalization Plan and the annuitized value of one-half of the Executive's Social
Security benefits attributable to Social Security taxes paid by Oritani Bank on behalf of the
Executive, reduced by the Social Security offset under the Oritani Bank's Defined Benefit Pension
Plan. In the event the Executive dies prior to termination of employment or after termination of
employment but prior to the payment of any portion of the supplemental retirement income benefit,
the Executive's beneficiary will be entitled to a survivor's benefit, payable in 240 monthly
installments, and equal to the greater of the annual amount of $327,446 reduced by the annuitized
value of the benefit payable under the Benefit Equalization Plan, or the supplemental retirement
income benefit determined as if the Executive retired on the day before his death and commenced
receiving benefits at such time. In the event the Executive dies while receiving benefits under
the Agreement, the unpaid balance of benefits will be paid to the Executive's beneficiary for the
remainder of the 240 installments. Upon the Executive's retirement, the Executive will be entitled
to a supplemental retirement income benefit payable in monthly installments over the longer of 240
months or the Executive's lifetime. In the event the Executive is a "specified employee," payments
will commence the first day of the 7
th
month following the Executive's retirement, but
only to the extent necessary to comply with Code Section 409A. Upon attainment of age 60, the
Executive may elect to retire and receive an early retirement benefit equal to the supplemental
retirement income benefit reduced by 5% per year for each year prior to the Executive's
65
th
birthday, payable monthly for the longer of 240 months or the Executive's lifetime.
In the event the Executive becomes disabled, he will be entitled to a supplemental disability
benefit equal to the supplemental retirement income benefit calculated as if the Executive retired
on the date of his termination of employment due to disability, reduced by 5% per year for each
year that such disability occurs prior to the Executive's 65
th
birthday. In the event
of the Executive's termination of employment within 3 years following a change in control, other
than due to termination for cause, the Executive will be entitled to a full supplemental retirement
income benefit calculated as if the Executive had retired following his normal retirement date.
Payments to the Executive in the event of a change in control generally will be made in 240 monthly
installments. During 2008 the Agreement was amended to permit the Executive to elect a lump sum
distribution on a change in control, provided that such election was made prior to December 31,
2008. Oritani Bank may establish a rabbi trust to fund its obligations under the Agreement.
Senior Officers and Directors Post-Retirement Medical Coverage
. Directors who qualify for
benefits under the Directors' Retirement Plan, and senior officers designated by the Board of
Directors who have attained age 52 and have at least five years of service, are eligible to
participate in the senior officers and directors post-retirement medical coverage program. If a
participant dies after becoming eligible for coverage but prior to retirement, the individual will
be deemed to have retired on the day before the individual died. Coverage will begin at the time
of retirement and continue at the same level as before retirement. Retirees who are eligible for
Medicare benefits will have benefits under the program coordinated with Medicare benefits. The
spouse of a senior officer or director covered under the program will be entitled to medical
coverage for life. Oritani Bank's contribution to the program will be limited to two times the
medical insurance premium at the time of the individual's retirement. During fiscal 2009, eight
current employees were eligible for participation in the Senior Officers and Directors
Post-Retirement Medical Coverage, and the total cost to Oritani Bank during fiscal 2009 was
$247,000.
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Group Life Insurance Retirement Plan.
In conjunction with its investment in Bank Owned Life
Insurance, Oritani Bank implemented this plan which provides selected employees and directors with
post-retirement life insurance. Coverage under this plan is only applicable to selected employees
and directors who retire from Oritani Bank under this plan (unless their termination is due to
disability or change in control). The post-retirement coverage provided under this plan is equal
to: two times annual base salary for vice presidents and above; one time annual base salary for
assistant vice presidents and below; and $50,000 for directors. This coverage was obtained in
conjunction with Oritani Financial Corp.'s purchase of Bank Owned Life Insurance. Oritani
Financial Corp. incurs no additional cost to provide the coverage, however, there is an expense
accrual associated with the benefit. This accrual totaled $99,000 during fiscal 2009.
4
01(k)
Plan
. Oritani Bank participates in the Pentegra Defined Contribution Plan for
Financial Institutions, a multiple-employer 401(k) plan, for the benefit of its employees.
Employees who have completed 1,000 hours of service during a 12-consecutive-month period are
eligible to participate in the plan. Participants may contribute up to 50% of their plan salary to
the plan. Oritani Bank will provide matching contributions at the rate of 50% of the participant's
contributions, up to 6% of each participant's monthly plan salary. Employee and employer
contributions are 100% vested at all times. In general, under federal tax law limits, the annual
contributions made to the plan may not exceed the lesser of 100% of the participant's total
compensation or $49,000 for calendar 2009. For this purpose, contributions include employer
contributions, participant 401(k) contributions and participant after-tax contributions.
Participants who have attained age 50 before the end of a calendar year will be eligible to make
catch-up contributions in accordance with Section 414(v) of the Internal Revenue Code. The maximum
catch-up contribution level for 2009 is $5,500. This amount is periodically adjusted for inflation.
Contributions are invested at the participant's direction in one or more of the investment funds
provided under the plan. A loan program is available to plan participants. In general,
participants may make only one withdrawal from their accounts per calendar year while they are
employed, subject to certain limitations; upon termination of employment, they may make withdrawals
from their accounts at any time. Participants who become disabled may withdraw from their vested
account balance as if they had terminated employment. In the event of a participant's death, the
participant's beneficiary will be entitled to the value of the participant's account. In
connection with the minority stock offering, Oritani Bank withdrew from the Pentegra plan and
established an individually designed 401(k) plan with terms substantially similar to the Pentegra
plan. In addition, an employer stock fund will be created within the 401(k) plan in order to
permit participants in the 401(k) plan to purchase shares of employer stock for their accounts.
Defined Benefit Plan
. Oritani Bank participates in the Financial Institutions Retirement
Fund, a multiple-employer defined benefit plan, for the benefit of its employees. Employees of
Oritani Bank who are age 21 or older and who have completed 12 months of employment are eligible to
participate in the plan. Participants become vested in their retirement benefit upon completion of
5 years of employment, provided that participants who have reached age 65 automatically become 100%
vested, regardless of the number of completed years of employment. Payments of benefits under the
plan are made in the form of a life annuity with 120 payments guaranteed unless one of the optional
forms of distribution has been selected. Upon termination of employment at or after age 65, a
participant will be entitled to an annual normal retirement benefit equal to 1.25% multiplied by
the number of years of benefit service, multiplied by the participant's average annual salary, up
to the covered compensation limits, for the 5 highest paid consecutive years of benefit service.
In addition, the participant will be entitled to an annual retirement benefit equal to 1.75%
multiplied by the number of years of benefit service, multiplied by the participant's average
annual salary in excess of the covered compensation limits, for the 5 highest paid consecutive
years. The covered compensation limit is the average of the maximum wage subject to FICA taxes
(i.e., the social security wage base) for the 35-year period preceding social security retirement
age. In the event a participant has more than 35 years of service, the benefit attributable to
benefit service completed in excess of 35 years will be calculated by using a 1.75% accrual rate
for the portion of a
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participant's high-5 year average salary below the covered compensation limit. Participants who
terminate employment prior to age 65 will be entitled to a reduced retirement benefit calculated by
applying an early retirement factor based on the participant's age when payments begin. The
earliest age at which a participant may receive retirement benefits is age 55. Normal and early
retirement benefits are payable over the longer of the lifetime of the retiree or 120 monthly
installments. In the event a retiree dies before 120 monthly installments have been paid, the
retiree's beneficiary will be entitled to the value of such unpaid installments paid in a lump sum.
The participant or beneficiary may elect to have benefits paid in the form of installments. In
the event a participant dies while in active service, his beneficiary will be entitled to a lump
sum death benefit equal to 100% of the participant's last 12 months' salary, plus an additional
10.0% of such salary for each year of benefit service until a maximum of 300% of such salary is
reached for 20 or more years, plus refund of the participant's contributions, if any, with
interest.
This plan was frozen as of January 1, 2009. Existing participants remain eligible to receive
their accrued benefit as of that date, however, no new benefits will accrue under the plan.
Stock Benefit Plans
Employee Stock Ownership Plan and Trust
. The employee stock ownership plan was adopted in
connection with our initial stock offering. Employees who are at least 21 years old with at least
one year of employment with Oritani Bank are eligible to participate. The employee stock ownership
plan trust borrowed funds from Oritani Financial Corp. and used those funds to purchase a shares of
our common stock equal to 3.92% of the outstanding shares of common stock, including shares of
common stock issued to Oritani Financial Corp., MHC and to the OritaniBank Charitable Foundation.
Collateral for the loan is the common stock purchased by the employee stock ownership plan. The
loan will be repaid principally from Oritani Bank discretionary contributions to the employee stock
ownership plan over a period of not more than 20 years. The loan documents provide that the loan
may be repaid over a shorter period, without penalty for prepayments. The interest rate for the
loan is a floating rate equal to the prime rate. Shares purchased by the employee stock ownership
plan are held in a suspense account for allocation among participants as the loan is repaid.
Contributions to the employee stock ownership plan and shares released from the suspense
account in an amount proportional to the repayment of the employee stock ownership plan loan are
allocated among employee stock ownership plan participants on the basis of compensation in the year
of allocation. Benefits under the plan become vested at the rate of 20% per year, starting upon
completion of two years of credited service, and are fully vested upon completion of six years of
credited service, with credit given to participants for up to three years of credited service with
Oritani Bank mutual predecessor prior to the adoption of the plan. A participant's interest in his
account under the plan will also fully vest in the event of termination of service due to a
participant's early or normal retirement, death, disability, or upon a change in control (as
defined in the plan). Vested benefits will be payable generally in the form of common stock, or to
the extent participants' accounts contain cash, benefits will be paid in cash. Oritani Bank's
contributions to the employee stock ownership plan are discretionary, subject to the loan terms and
tax law limits. Therefore, benefits payable under the employee stock ownership plan cannot be
estimated. Pursuant to SOP 93-6, we are required to record compensation expense each year in an
amount equal to the fair market value of the shares released from the suspense account. In the
event of a change in control, the employee stock ownership plan will terminate.
Stock-Based Incentive Plan
. We adopted the 2007 Equity Incentive Plan to provide our
officers, employees and directors with additional incentives to promote our growth and performance.
Stockholders approved the Equity Plan on April 22, 2008. Subject to permitted adjustments for
certain corporate transactions, the Equity Plan authorizes the issuance of up to 2,781,878 shares
of our common stock
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pursuant to grants of incentive and non-statutory stock options, stock appreciation rights, and
restricted stock awards. No more than 794,823 shares may be issued as restricted stock awards.
Employees and outside directors of Oritani Financial Corp. or its subsidiaries are eligible to
receive awards under the Equity Plan, except that non-employees may not be granted incentive stock
options. Awards may be granted in a combination of incentive and non-statutory stock options, stock
appreciation rights or restricted stock awards.
Potential Payments Under Termination or Change in Control Agreements.
The tables below reflect the amount of compensation to each of the named executive officers
pursuant to such individual's employment agreement in the event of termination of such executive's
employment. No payments are required due to a voluntary termination under the employment
agreements (prior to a change in control). The amount of compensation payable to each Named
Executive Officer upon involuntary not-for-cause termination, termination following a change of
control and in the event of disability or death is shown below. The amounts shown assume that such
termination was effective as of June 30, 2009, and thus include amounts earned through such time
and are estimates of the amounts which would be paid out to the executives upon their termination.
The actual amounts to be paid out can only be determined at the time of such executive's separation
from Oritani Financial Corp.
Termination Payments
Involuntary Termination after Change
Involuntary Termination
in Control
Retirement
Disability
Death
Kevin J. Lynch
Employment Agreement
$
2,435,537
(1)
$
1,037,789
(2)
$
—
(3)
$
1,314,719
(4)
$
1,303,546
(5)
Executive Supplemental Retirement Income Agreement
$
1,966,900
(6)
$
2,314,000
(6)
$
2,314,000
(6)
$
1,966,900
(6)
$
1,966,900
(6)
Benefit Equalization Plan
$
1,473,000
(7)
$
1,473,000
(7)
$
1,473,000
(7)
$
1,473,000
(7)
$
1,473,000
(7)
2005 Directors' Retirement Plan
$
407,000
(8)
$
407,000
(8)
$
407,000
(8)
$
407,000
(8)
$
407,000
(8)
2007 Equity Incentive Plan
$
—
(9)
$
2,179,410
(9)
$
—
(9)
$
2,179,410
(9)
$
2,179,410
(9)
Michael A. DeBernardi
Employment Agreement
$
705,857
(10)
$
—
(11)
$
—
(12)
$
384,986
(13)
$
382,801
(14)
Benefit Equalization Plan
$
—
(15)
$
—
(15)
$
—
(15)
$
—
(15)
$
—
(15)
2005 Directors' Retirement Plan
$
—
(16)
$
170,000
(16)
$
—
(16)
$
—
(16)
$
—
(16)
2007 Equity Incentive Plan
$
—
(17)
$
1,046,114
(17)
$
—
(17)
$
1,046,114
(17)
$
1,046,114
(17)
John M. Fields, Jr.
Employment Agreement
$
602,455
(18)
$
306,669
(19)
$
—
(20)
$
309,845
(21)
$
308,295
(22)
Benefit Equalization Plan
$
27,000
(23)
$
27,000
(23)
$
27,000
(23)
$
27,000
(23)
$
27,000
(23)
2007 Equity Incentive Plan
$
—
(24)
$
1,046,114
(24)
$
—
(24)
$
1,046,114
(24)
$
1,046,114
(24)
Thomas G. Guinan
Employment Agreement
$
620,336
(25)
$
272,881
(26)
$
—
(27)
$
308,425
(28)
$
306,875
(29)
Benefit Equalization Plan
$
8,000
(30)
$
8,000
(30)
$
8,000
(30)
$
8,000
(30)
$
8,000
(30)
2007 Equity Incentive Plan
$
—
(31)
$
1,046,114
(31)
$
—
(31)
$
1,046,114
(31)
$
1,046,114
(31)
Philip M. Wyks
Employment Agreement
$
487,358
(32)
$
487,358
(33)
$
—
(34)
$
275,878
(35)
$
274,427
(36)
Benefit Equalization Plan
$
83,000
(37)
$
83,000
(37)
$
83,000
(37)
$
83,000
(37)
$
83,000
(37)
2007 Equity Incentive Plan
$
—
(38)
$
164,520
(38)
$
—
(38)
$
164,520
(38)
$
164,520
(38)
(1)
This amount represents 3 times the sum of (i) Mr. Lynch's highest base salary plus (ii)
highest bonus, and (iii) Oritani Bank contributions to continued life, medical, dental and
disability insurance for 36 months following termination of employment.
(2)
This amount represents the maximum severance payments and other benefits to Mr. Lynch under
his employment agreement without incurring an "excess parachute payment" under Code Section
280G. Severance payments and other benefits provided to Mr. Lynch as a result of the change
in control are reduced by $1,397,749 in order to avoid an "excess parachute payment."
(3)
Mr. Lynch is entitled to no payments or benefits under his employment agreement as a result
of his retirement.
(footnotes continued on next
page)
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Table of Contents
(4)
In the event of his disability, Mr. Lynch would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Lynch's base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under bank sponsored disability programs.
(5)
In the event of his death, Mr. Lynch's beneficiary would be entitled to receive Mr. Lynch's
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.
(6)
This amount represents the present value of Mr. Lynch's accumulated benefit under his
Executive Supplemental Retirement Income Agreement. Under his Executive Supplemental
Retirement Income Agreement, Mr. Lynch is entitled to receive an annual supplemental
retirement benefit commencing at age 65 equal to 70% of his highest annual base salary and
bonus over the consecutive 36 month period within the last 120 consecutive calendar months of
employment, reduced by the sum of (i) the annuitized value of his benefits under the bank's
pension plan, (ii) the annuitized value of his benefits under the "defined benefit" portion of
the Bank's Benefit Equalization Plan, and (iii) the annuitized value of one-half of his Social
Security benefits attributable to taxes paid by the bank on his behalf. Upon a change in
control, Mr. Lynch is entitled to the full supplemental retirement income benefit as if he
worked through age 65. In the event of Mr. Lynch's death, disability, or termination prior to
reaching age 65, Mr. Lynch is entitled to his early retirement benefit equal to 85% of his
supplemental retirement benefit. Mr. Lynch is fully vested in his early retirement benefit.
(7)
Following Mr. Lynch's separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(8)
This amount represents the present value of Mr. Lynch's accumulated benefit under the 2005
Directors Retirement Plan. Under the 2005 Director s' Retirement Plan, Mr. Lynch is entitled
to receive an annual retirement benefit equal to 50% of the aggregate compensation paid to him
during the year of his retirement. Mr. Lynch is currently 100% vested in his annual
retirement benefit under the plan, and his benefits under the plan will commence following his
date of termination.
(9)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Lynch's involuntary termination after a change in control,
disability, or death. In the event of Mr. Lynch's involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
(10)
This amount represents 2 times the sum of (i) Mr. DeBernardi's highest base salary plus (ii)
highest bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(11)
This amount represents the maximum severance payments and other benefits to Mr. DeBernardi
under his employment agreement without incurring an "excess parachute payment" under Code
Section 280G. Severance payments and other benefits provided to Mr. DeBernardi as a result of
the change in control are reduced by $705,857 in order to avoid an "excess parachute payment."
(12)
Mr. DeBernardi is entitled to no payments or benefits under his employment agreement as a
result of his retirement.
(13)
In the event of his disability, Mr. DeBernardi would receive his base salary and continued
health care coverage for the longer of the remaining term of his employment agreement, or one
year, less amounts payable under any disability programs. This amount represents Mr.
DeBernardi's base salary and continued life, medical, dental and disability insurance for the
remaining term of the agreement, without any reduction for payments under Bank sponsored
disability programs.
(14)
In the event of his death, Mr. DeBernardi's beneficiary would be entitled to receive Mr.
DeBernardi's base salary and medical, dental, family and other benefits for the remaining term
of the employment agreement.
(15)
Mr. DeBernardi has not accumulated any benefits under the Benefit Equalization Plan.
(16)
Under the 2005 Director s' Retirement Plan, Mr. DeBernardi is entitled to receive an annual
retirement benefit equal to 50% of the aggregate compensation paid to Mr. DeBernardi during
the year of his retirement. Mr. DeBernardi is not currently vested in his annual retirement
benefit under the plan, which will occur when Mr. DeBernardi attains age 65. Upon a change in
control, Mr. DeBernardi will be entitled to receive his annual retirement benefit regardless
of his actual age.
(17)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. DeBernardi's involuntary termination after a change in control,
disability, or death. In the event of Mr. DeBernardi's involuntary termination or retirement,
his unvested outstanding equity awards would be forfeited.
(18)
This amount represents 2 times the sum of (i) Mr. Fields' highest base salary plus (ii)
highest bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(19)
This amount represents the maximum severance payments and other benefits to Mr. Fields under
his employment agreement without incurring an "excess parachute payment" under Code Section
280G. Severance payments and other benefits to Mr. Fields as a result of the change in
control are reduced by $295,786 in order to avoid an "excess parachute payment."
(20)
Mr. Fields is entitled to no payments or benefits under his employment agreement as a result
of his retirement.
(21)
In the event of his disability, Mr. Fields would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Fields' base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.
(22)
In the event of his death, Mr. Fields' beneficiary would be entitled to receive Mr. Fields'
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.
(23)
Following Mr. Fields' separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(24)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Fields' involuntary termination after a change in control,
disability, or death. In the event of Mr. Fields' involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
(25)
This amount represents 2 times the sum of (i) Mr. Guinan's highest base salary plus (ii)
highest bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(26)
This amount represents the maximum severance payments and other benefits to Mr. Guinan under
his employment agreement without incurring an "excess parachute payment" under Code Section
280G. Severance payments and other benefits to Mr. Guinan as a result of the change in
control are reduced by $347,455 in order to avoid an "excess parachute payment."
(27)
Mr. Guinan is entitled to no payments or benefits under his employment agreement as a result
of his retirement.
(28)
In the event of his disability, Mr. Guinan would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Guinan's base
salary and continued
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life, medical, dental and disability insurance for the remaining term of the agreement, without any
reduction for payments under Bank sponsored disability programs.
(29)
In the event of his death, Mr. Guinan beneficiary would be entitled to receive Mr. Guinan's
base salary and medical, dental, family and other benefits for the remaining term of the
employment agreement.
(30)
Following Mr. Guinan's separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(31)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Guinan's involuntary termination after a change in control,
disability, or death. In the event of Mr. Guinan's involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
(32)
This amount represents 2 times the sum of (i) Mr. Wyks' highest base salary plus (ii) highest
bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following termination of employment.
(33)
This amount represents 2 times the sum of (i) Mr. Wyks' highest base salary plus (ii) highest
bonus, and (iii) Bank contributions to continued life, medical, dental and disability
insurance for 24 months following his termination of employment in connection with a change in
control.
(34)
Mr. Wyks is entitled to no payments or benefits under his employment agreement as a result of
his retirement.
(35)
In the event of his disability, Mr. Wyks would receive his base salary and continued health
care coverage for the longer of the remaining term of his employment agreement, or one year,
less amounts payable under any disability programs. This amount represents Mr. Wyks's base
salary and continued life, medical, dental and disability insurance for the remaining term of
the agreement, without any reduction for payments under Bank sponsored disability programs.
(36)
In the event of his death, Mr. Wyks beneficiary would be entitled to receive Mr. Wyks's base
salary and medical, dental, family and other benefits for the remaining term of the employment
agreement.
(37)
Following Mr. Wyks's separation from service for any reason, he will be entitled to receive
his accrued benefit under the Benefit Equalization Plan as of his date of termination.
(38)
This amount represents the fair market value of the outstanding equity awards that become
exercisable as a result of Mr. Wyks's involuntary termination after a change in control,
disability, or death. In the event of Mr. Wyks's involuntary termination or retirement, his
unvested outstanding equity awards would be forfeited.
Director Compensation
Each of the individuals who serves as a director of Oritani Financial Corp. also serves as a
director of Oritani Bank and earns director fees in each capacity. Each non-employee director is
currently paid a fee of $1,750 for each Oritani Financial Corp. meeting attended and a fee of
$1,750 for each Oritani Bank meeting attended. There are no separate fees paid for committee
meetings attended. Additionally, each director receives a monthly retainer of $1,750 from each of
Oritani Financial Corp. and Oritani Bank. Additional annual retainers are paid to the Lead
Director/Chairman of the Audit Committee ($21,000) and the Chairmen of the other Board of Director
committees ($11,000). The Lead Director/Chairman of the Audit Committee is Director Antonaccio.
The following table sets forth the total fees received by the non-management directors during
fiscal year 2009. The amounts reported under the Stock Awards and Option Awards columns were
granted on May 5, 2008 pursuant to the 2007 Equity Incentive Plan approved by stockholders on April
22, 2008.
Change in Pension
Value and
Nonqualified
Fees Earned or Paid
Deferred
in Cash
Compensation
Name
($)
Stock Awards ($) (1)
Option Awards ($) (2)
Earnings ($) (3)
Total ($)
Nicholas Antonaccio
98,750
161,707
82,026
170,775
513,257
James J. Doyle
88,750
161,707
82,026
132,554
465,036
Robert S. Hekemian
88,750
161,707
82,026
55,885
388,377
John J. Skelly, Jr.
88,750
161,707
82,026
134,522
467,005
(1)
The amounts in this column reflect the dollar amount recognized for financial
statement reporting purposes for the fiscal year ended June 30, 2009, in accordance with FAS
123(R) and its successor, FASB ASC Topic 718, of restricted stock awards pursuant to the
Equity Plan that were made in 2008, which vest over five years. Assumptions used in the
calculation of these amounts are included in footnote 14 to Oritani Financial Corp.'s audited
financial statements for the fiscal year ended June 30, 2009 included in Oritani Financial
Corp.'s Annual Report on Form 10-K.
(2)
The amounts in this column reflect the dollar amount recognized for financial
statement reporting purposes for the fiscal year ended June 30, 2009, in accordance with FAS
123(R) and its successor, FASB ASC Topic 718, of stock option awards pursuant to the Equity
Plan that were made in 2008. Stock options vest over five years. Assumptions used in the
calculation of these amounts are included in footnote 14 to Oritani Financial Corp.'s audited
financial statements for the fiscal year ended June 30, 2009 included in Oritani Financial
Corp.'s Annual Report on Form 10-K.
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Table of Contents
(3)
The amounts in this column reflect the actuarial increase in the present value at
June 30, 2009 compared to June 30, 2008, of the directors' benefits under the Directors'
Retirement Plan maintained by Oritani Bank, determined using interest rate and mortality rate
assumptions consistent with those used in Oritani Financial Corp.'s financial statements and
include amounts for which the director may not currently be entitled to receive because such
amounts are not vested. Also includes $32,775, $31,554, $22,895 and $22,522 of preferential
or above-market earnings on non tax-qualified deferred compensation for Directors Antonaccio,
Doyle, Hekemian and Skelly, respectively, under the Directors' Deferred Fee Plan.
There were no grants of restricted stock or of stock options to non-executive directors
during fiscal 2009.
Directors Deferred Fee Plans
. Oritani Bank adopted the 2005 Directors Deferred Fee Plan,
effective as of January 1, 2005, in order to include the provisions required by Section 409A of the
Internal Revenue Code. Contributions to Oritani Bank's prior Directors Deferred Fee Plan were
frozen, effective as of December 31, 2004. Each month, Oritani Bank credits a director's account
under the 2005 Directors Deferred Fee Plan with the amount such director elects to defer. The
director's deferral election must generally be submitted to Oritani Bank prior to January 1 of the
plan year in which the fees to be deferred are otherwise payable to the director and is irrevocable
with respect to the fees covered by such election. Each director's account under the plans is
credited every month with interest at a rate equal to the greater of the Citibank Prime Rate or a
9% annualized rate. A committee appointed by the Oritani Bank Board of Directors administers the
plan. The committee may in its discretion permit a director to request that his deferred fee
account(s) be invested in an alternative investment such as equity securities, fixed income
securities, money market accounts and cash. The account of a director who has selected an
alternative investment is credited with earnings or losses based on the investment selected. A
director is 100% vested at all times in his deferred fee account(s). Upon retirement, the director
will receive the value of his benefit in a lump sum or in up to 10 annual installments, as elected
by the director in his deferral election form. In the event the director becomes a "specified
employee," payments under the plan will commence no earlier than the first day of the 7th month
following the director's separation from service. Following a director's cessation of service
prior to retirement or death, Oritani Bank will pay the director's benefit in a lump sum or in up
to 10 annual installments, as elected by the director in his deferral election form. A director
may elect to receive an in-service distribution, provided that such distribution will be no earlier
than the January 1
st
of the calendar year that is at least two years following the year
for which the deferral election is made. Payment will be made in a lump sum or in up to 10 annual
installments, as elected by the director at the time the election to defer was made. A director
may elect to receive amounts in his deferred account(s) upon his disability or upon a change in
control of Oritani Bank either in the form of a lump sum or in annual installments over a period of
up to 10 years. A director may elect to delay payment of his benefits or to change the form of
payment from a lump sum to installments within the limits of Code Section 409A requirements and
Treasury Regulations issued thereunder. In the event of a director's death prior to commencement
of benefit payments, payments will be made to the director's beneficiary, as elected by the
director in his deferral election form. In the event of a director's death after commencement of
benefit payments, the remaining balance of benefit payments will be paid to the director's
beneficiary in the manner and at the time elected by the director in his deferral election form.
In the event a director incurs a financial hardship, the director may request a financial hardship
benefit. If approved, the financial hardship payment will be made in a lump sum. During fiscal
year 2009, Oritani Bank credited $220,000 in interest to directors' accounts under the Directors
Deferred Fee Plans.
Director's Retirement Plan
. Oritani Bank maintains the 2005 Director's Retirement Plan that
was adopted as a restatement of the Directors Retirement Plan and is intended to comply with
section 409A of the Internal Revenue Code. Oritani Bank's prior Director's Retirement Plan was
frozen, effective as of December 31, 2004. Benefits payable under the 2005 Director's Retirement
Plan are reduced by the amount of the retirement benefits payable to the director under the frozen
director retirement plan. The 2005 Director's Retirement Plan provides retirement, medical and
death benefits to directors, including directors who are also employees, who have at least five
years of service and retire
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after attaining age 65, or who, after attaining age 60 retire, die or become disabled. Upon
retirement on or after attaining age 65 with at least ten years of cumulative service, an eligible
director's annual retirement benefit is equal to 50% of the director's aggregate annual
compensation with respect to his final year of service, including fees paid to the director for
attendance at regular monthly meetings and annual meetings of Oritani Bank and Oritani Financial
Corp., monthly retainers, and any additional annual retainers paid to the director for service as a
committee chair, lead director or otherwise. If, after attaining age 60, a director retires, dies
or becomes disabled, and such director has more than five years of service the director or his
beneficiary will be entitled to the following percentage of benefit: 50% if the director has 5 to 6
years of service, 60% if the director has 6 to 7 years of service, 70% if the director has 7 to 8
years of service, 80% if the director has 8 to 9 years of service, 90% if the director has 9 to 10
years of service and 100% if the director has more than 10 years of service. In the event of a
change in control, each director will be deemed to have 10 years of service and attained age 65 for
the purpose of calculating his benefit under the plan. A director who retires prior to age 60 for
any reason shall receive no benefit under the plan. Each director was entitled to elect prior to
December 31, 2006 to receive a lump sum payment upon a change in control in an amount equal to the
present value of his plan benefits. Benefits under the plan are generally payable in monthly
installments for the director's lifetime or as a joint and survivor form of benefit depending on
the director's marital status at the time of the payment triggering event. Notwithstanding the
foregoing, a director was permitted to elect prior to December 31, 2008, to receive his plan
benefits in the form of a lump sum payment in the event of his disability prior to termination of
service. In the event a director who has served on the Board of Directors for at least five years
dies while in service, the director's spouse will be entitled to a benefit calculated as if the
director had continued service until age 65. The amount of the survivor's benefit will be based on
the number of years the director would have served on the Board of Directors assuming the director
served on the Board of Directors until age 65. The benefit will be payable to the director's
spouse for the remainder of the spouse's life, along with medical benefits. As also described
under "Senior Officers and Directors Post-Retirement Medical Coverage," medical benefits provided
to directors and their spouses prior to the date of their retirement will continue to be provided
to retired directors and their spouses, as long as the director lives, or, in the event the
director dies while in office, the medical benefits will continue to be provided to the director's
spouse for his or her lifetime. In the event the cost of medical benefits provided under the plan
exceeds 200% of the cost of such benefits to Oritani Bank immediately prior to the director's
retirement, the cost in excess of 200% will be paid by the retired director or his or her spouse.
Benefits to be Considered Following Completion of the Conversion
Our current intention is to implement a new stock-based incentive plan no earlier than twelve
months after completion of the conversion. Stockholder approval of this plan will be required. If
implemented 12 months or more following completion of the conversion, the stock-based incentive
plan will reserve a number of shares equal to 4.0% of the shares of common stock sold in the
offering, or 2,063,100 shares of common stock at the maximum as adjusted of the offering range, for
awards of restricted stock to key employees and directors, at no cost to the recipients. If the
shares of restricted stock awarded under the stock-based incentive plan come from authorized but
unissued shares of common stock, stockholders would experience dilution of up to approximately
2.89% in their ownership interest in Oritani. If implemented 12 months or more following the
completion of the conversion, the stock-based incentive plan will also reserve a number of shares
equal to 10.0% of the shares of common stock sold in the offering, or 5,157,750 shares of common
stock at the maximum as adjusted of the offering range, for issuance pursuant to grants of stock
options to key employees and directors.
We may fund our plans through open market purchases, as opposed to issuing common stock;
however, if any options previously granted under our existing stock option plans are exercised
during the first year following completion of the offering, they will be funded with newly-issued
shares as OTS regulations do not permit us to repurchase our shares during the first year following
the completion of this
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Table of Contents
offering except to fund the grants of restricted stock under the stock-based incentive plan or
under extraordinary circumstances. The OTS has previously advised that the exercise of outstanding
options and cancellation of treasury shares in the conversion will not constitute an extraordinary
circumstance or a compelling business purpose for satisfying this test. The stock-based incentive
plan will not be established sooner than six months after the stock offering and if adopted within
one year after the stock offering would require the approval by stockholders owning a majority of
the outstanding shares of Oritani common stock eligible to be cast. If the stock-based incentive
plan is established after one year after the stock offering, it would require the approval of our
stockholders by a majority of votes cast. The following additional restrictions would apply to our
stock-based incentive plan only if the plan is adopted within one year after the stock offering:
•
non-employee directors in the aggregate may not receive more than 30% of
the options and restricted stock awards authorized under the plan;
•
any one non-employee director may not receive more than 5% of the options
and restricted stock awards authorized under the plan;
•
any officer or employee may not receive more than 25% of the options and
restricted stock awards authorized under the plan;
•
any tax-qualified employee stock benefit plans and management stock award
plans, in the aggregate, may not hold more than 10.0% of the shares sold in the
offering, unless Oritani Bank has tangible capital of 10.0% or more, in which case any
tax-qualified employee stock benefit plans and management stock award plans, may be
increased to up to 12% of the shares sold in the offering;
•
stock options and restricted stock awards may not vest more rapidly than
20% per year, beginning on the first anniversary of the grant;
•
accelerated vesting is not permitted except for death, disability or upon
a change in control of Oritani Bank or Oritani; and
•
our executive officers or directors must exercise or forfeit their options
in the event that Oritani Bank becomes critically undercapitalized, is subject to
enforcement action or receives a capital directive.
In the event either federal or state regulators change their regulations or policies regarding
stock-based incentive plans, including any regulations or policies restricting the size of awards
and vesting of benefits as described above, the restrictions described above may not be applicable.
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BENEFICIAL OWNERSHIP OF COMMON STOCK
Persons and groups who beneficially own in excess of 5% of our shares of common stock are
required to file certain reports with the Securities and Exchange Commission regarding such
ownership pursuant to the Securities Exchange Act of 1934. The following table sets forth, as of
, 2010, the shares of our common stock beneficially owned by each person known to us who
was the beneficial owner of more than 5% of the outstanding shares of our common stock.
Percentages are based on
shares outstanding.
Amount of Shares
Owned and Nature
Percent of Shares
Name and Address of
of Beneficial
of Common Stock
Beneficial Owners
Ownership (1)
Outstanding
Oritani Financial Corp., MHC
74.4
%
370 Pascack Road
Township of Washington, New Jersey 07676
Oritani Financial Corp., MHC,
and all directors and executive
officers of Oritani Financial Corp.
and Oritani Bank as a group
(__ directors and officers) (2)
%
(1)
In accordance with Rule 13d-3 under the Securities Exchange Act of 1934, a person is deemed
to be the beneficial owner for purposes of this table, of any shares of common stock if he has
shared voting or investment power with respect to such security, or has a right to acquire
beneficial ownership at any time within 60 days from the date as of which beneficial ownership
is being determined. As used herein, "voting power" is the power to vote or direct the voting
of shares and "investment power" is the power to dispose or direct the disposition of shares,
and includes all shares held directly as well as by spouses and minor children, in trust and
other indirect ownership, over which shares the named individuals effectively exercise sole or
shared voting or investment power.
(2)
Includes shares of common stock held by Oritani Financial Corp., MHC, of which our directors
are also trustees. Excluding shares of common stock held by Oritani Financial Corp., MHC,
directors and executive officers of Oritani Financial Corp. and Oritani Bank owned 791,600
shares of common stock, or 1.6% of the outstanding shares.
The following table provides the beneficial ownership of our common stock held by our
directors and executive officers, individually and as a group, as of
, 2010. The number
of shares beneficially owned by all directors and executive officers as a group totaled 1.6% of our
outstanding common stock as of
, 2010. Each director and named executive officer owned
less than 1% of our outstanding common stock as of that date. Percentages are based on
shares outstanding.
Shares of Common
Options Exercisable
Name (1)
Stock Held (2)
Within 60 Days
Total
Directors:
Nicholas Antonaccio
Michael A. DeBernardi
James J. Doyle, Jr.
Robert S. Hekemian, Jr.
Kevin J. Lynch
John J. Skelly, Jr.
Named Executive Officers:
John M. Fields
Thomas G. Guinan
Philip M. Wyks
All Directors and
Executive
Officers as a
Group (__ Persons)
*
Less than 1%.
(1)
The mailing address for each person listed is 370 Pascack Road, Township of Washington, New
Jersey 07676-2353.
(2)
In accordance with Rule 13d-3 under the Securities Exchange Act of 1934, a person is deemed
to be the beneficial owner for purposes of this table, of any shares of common stock if he has
shared voting or investment power with respect to such security, or has a right to acquire
beneficial ownership at any time within 60 days from the date as of which beneficial ownership
is being determined. As used herein, "voting power" is the power to vote or direct the voting
of shares and "investment power" is the power to dispose or direct the disposition of shares,
and includes all shares held directly as well as by spouses and minor children, in trust and
other indirect ownership, over which shares the named individuals effectively exercise sole or
shared voting or investment power.
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SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS
The table below sets forth, for each of Oritani's directors and executive officers and for all
of the directors and executive officers as a group, the following information:
(i)
the number of exchange shares to be held upon consummation of the conversion,
based upon their beneficial ownership of Oritani Financial Corp. common stock as of
;
(ii)
the proposed purchases of subscription shares, assuming sufficient shares of
common stock are available to satisfy their subscriptions; and
(iii)
the total amount of Oritani common stock to be held upon consummation of the
conversion.
In each case, it is assumed that subscription shares are sold at the midpoint of the offering
range. See "The Conversion and Offering—Additional Limitations on Common Stock Purchases."
Regulations of the OTS prohibit our directors and officers from selling the shares they purchase in
the offering for one year after the date of purchase. Subscriptions by management through our
401(k) plan will be counted as part of the maximum number of shares such individuals may subscribe
for in the stock offering.
Proposed Purchases of Stock in the
Number of
Offering (1)
Total Common Stock to be Held
Exchange Shares to
Percentage of Total
Name of Beneficial Owner
be Held (2)
Number of Shares
Amount
Number of Shares
Outstanding (2)
Directors:
Nicholas Antonaccio
$
Michael A. DeBernardi
James J. Doyle, Jr.
Robert S. Hekemian, Jr.
Kevin J. Lynch
John J. Skelly, Jr.
Total
$
%
Executive Officers:
John M. Fields, Jr.
$
Thomas G. Guinan
Philip M. Wyks
Total
$
%
Total for Directors and
Executive Officers
$
%
*
Less than 1%.
(1)
Includes proposed subscriptions, if any, through the director or officer's 401(k) account and
by associates.
(2)
Assumes an exchange ratio of
shares for each share of Oritani Financial Corp. and that
shares are outstanding after the conversion. Includes shares that may be acquired
upon the exercise of stock options.
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COMPARISON OF STOCKHOLDERS' RIGHTS FOR EXISTING
STOCKHOLDERS OF ORITANI FINANCIAL CORP.
General.
As a result of the conversion, existing stockholders of Oritani Financial Corp. will
become stockholders of Oritani. There are differences in the rights of stockholders of Oritani
Financial Corp. and stockholders of Oritani caused by differences between federal and Delaware law
and regulations and differences in Oritani Financial Corp.'s federal stock charter and bylaws and
Oritani Financial Corp.'s Delaware certificate of incorporation and bylaws.
This discussion is not intended to be a complete statement of the differences affecting the
rights of stockholders, but rather summarizes the material differences and similarities affecting
the rights of stockholders. See "Where You Can Find Additional Information" for procedures for
obtaining a copy of Oritani's certificate of incorporation and bylaws.
Authorized Capital Stock.
The authorized capital stock of Oritani Financial Corp. consists of
80,000,000 shares of common stock, $0.01 par value per share, and 10,000,000 shares of preferred
stock, par value $0.01 per share.
The authorized capital stock of Oritani consists of 150,000,000 shares of common stock, $0.01
par value per share, and 25,000,000 shares of preferred stock, $0.01par value per share.
Under the Delaware General Corporation Law and Oritani's certificate of incorporation, the
Board of Directors may increase or decrease the number of authorized shares without stockholder
approval. Stockholder approval is required to increase or decrease the number of authorized shares
of Oritani Financial Corp.
Oritani Financial Corp.'s charter and Oritani Financial Corp.'s certificate of incorporation
both authorize the Board of Directors to establish one or more series of preferred stock and, for
any series of preferred stock, to determine the terms and rights of the series, including voting
rights, dividend rights, conversion and redemption rates and liquidation preferences. As a result
of the ability to fix voting rights for a series of preferred stock, our Board of Directors has the
power, to the extent consistent with its fiduciary duty, to issue a series of preferred stock to
persons friendly to management in order to attempt to block a hostile tender offer, merger or other
transaction by which a third party seeks control. We currently have no plans for the issuance of
additional shares for such purposes.
Issuance of Capital Stock.
Pursuant to applicable laws and regulations, Oritani Financial
Corp., MHC is required to own not less than a majority of the outstanding shares of Oritani
Financial Corp. common stock. Oritani Financial Corp., MHC will no longer exist following
consummation of the conversion.
Oritani Financial Corp. Inc.'s certificate of incorporation does not contain restrictions on
the issuance of shares of capital stock to directors, officers or controlling persons, whereas
Oritani Financial Corp.'s stock charter restricts such issuances to general public offerings, or to
directors for qualifying shares, unless the share issuance or the plan under which they would
generally be issued has been approved by a majority of the total votes eligible to be cast at a
legal stockholders' meeting. However, stock-based compensation plans, such as stock option plans
and restricted stock plans, would have to be submitted for approval by Oritani stockholders due to
requirements of the Nasdaq Stock Market and in order to qualify stock options for favorable federal
income tax treatment.
Voting Rights.
Neither Oritani Financial Corp.'s stock charter or bylaws nor Oritani's
certificate of incorporation or bylaws provide for cumulative voting for the election of directors.
For additional
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information regarding voting rights, see "—Limitations on Voting Rights of Greater-than-10%
Stockholders" below.
Payment of Dividends.
Oritani Financial Corp.'s ability to pay dividends depends, to a large
extent, upon Oritani Bank's ability to pay dividends to Oritani Financial Corp. The New Jersey
Banking Code states, in part, that dividends may be declared and paid by Oritani Bank only out of
accumulated net earnings. A dividend may not be declared or paid unless the surplus, prior to the
transfer of net earnings, would not be reduced by the payment of such dividend. Dividends may also
not be declared or paid if Oritani Bank is in default in payment of any assessment due to the FDIC.
The same restrictions will apply to Oritani Bank's payment of dividends to Oritani. In
addition, Delaware law generally provides that Oritani is limited to paying dividends in an amount
equal to its capital surplus over payments that would be owed upon dissolution to stockholders
whose preferential rights upon dissolution are superior to those receiving the dividend, and to an
amount that would not make it insolvent.
Board of Directors
.
Oritani Financial Corp.'s bylaws and Oritani Financial Corp.'s certificate
of incorporation and bylaws require the Board of Directors to be divided into three classes and
that the members of each class shall be elected for a term of three years and until their
successors are elected and qualified, with one class being elected annually.
Under Oritani Financial Corp.'s bylaws, any vacancies on the Board of Directors of Oritani
Financial Corp. may be filled by the affirmative vote of a majority of the remaining directors
although less than a quorum of the Board of Directors. Persons elected by the Board of Directors of
Oritani Financial Corp. to fill vacancies may only serve until the next annual meeting of
stockholders. Under Oritani's bylaws, any vacancy occurring on the Board of Directors, including
any vacancy created by reason of an increase in the number of directors, may be filled only by a
majority of the remaining directors, and any director so chosen shall hold office for the remainder
of the term to which the director has been elected and until his or her successor is elected and
qualified.
Under Oritani Financial Corp.'s bylaws, any director may be removed for cause by the holders
of a majority of the outstanding voting shares. Oritani Financial Corp.'s certificate of
incorporation provide that any director may be removed for cause by the holders of at least a
majority of the outstanding voting shares of Oritani.
Limitations on Liability.
The charter and bylaws of Oritani Financial Corp. does not limit the
personal liability of directors.
Oritani's certificate of incorporation provides that directors will not be personally liable
for monetary damages to Oritani for certain actions as directors, except for (i) receipt of an
improper personal benefit from their positions as directors, (ii) actions or omissions that are
determined to have involved active and deliberate dishonesty, or (iii) to the extent allowed by
Delaware law. These provisions might, in certain instances, discourage or deter stockholders or
management from bringing a lawsuit against directors for a breach of their duties even though such
an action, if successful, might benefit Oritani.
Indemnification of Directors, Officers, Employees and Agents.
Under current OTS regulations,
Oritani Financial Corp. shall indemnify its directors, officers and employees for any costs
incurred in connection with any litigation involving such person's activities as a director,
officer or employee if such person obtains a final judgment on the merits in his or her favor. In
addition, indemnification is permitted in the case of a settlement, a final judgment against such
person, or final judgment other than on the merits, if a majority of disinterested directors
determines that such person was acting in good faith within
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the scope of his or her employment as he or she could reasonably have perceived it under the
circumstances and for a purpose he or she could reasonably have believed under the circumstances
was in the best interests of Oritani Financial Corp. or its stockholders. Oritani Financial Corp.
also is permitted to pay ongoing expenses incurred by a director, officer or employee if a majority
of disinterested directors concludes that such person may ultimately be entitled to
indemnification. Before making any indemnification payment, Oritani Financial Corp. is required to
notify the OTS of its intention, and such payment cannot be made if the OTS objects to such
payment.
The certificate of incorporation of Oritani provides that it shall indemnify its current and
former directors and officers to the fullest extent required or permitted by Delaware law,
including the advancement of expenses. Delaware law allows Oritani to indemnify any person for
expenses, liabilities, settlements, judgments and fines in suits in which such person has been made
a party by reason of the fact that he or she is or was a director, officer or employee of Oritani.
No such indemnification may be given if the acts or omissions of the person are adjudged to be in
bad faith and material to the matter giving rise to the proceeding, if such person is liable to the
corporation for an unlawful distribution, or if such person personally received a benefit to which
he or she was not entitled. The right to indemnification includes the right to be paid the
expenses incurred in advance of final disposition of a proceeding.
Special Meetings of Stockholders.
Oritani Financial Corp.'s bylaws provide that special
meetings of Oritani Financial Corp.'s stockholders may be called by the Chairman, the president, a
majority of the members of the Board of Directors or the holders of not less than one-tenth of the
outstanding capital stock of Oritani Financial Corp. entitled to vote at the meeting. Oritani's
bylaws provide that special meetings of the stockholders of Oritani may be called by the president,
by a majority vote of the total authorized directors, or upon the written request of stockholders
entitled to cast at least a majority of all votes entitled to vote at the meeting.
Stockholder Nominations and Proposals.
Oritani Financial Corp.'s bylaws generally provide that
stockholders may submit nominations for election of directors at an annual meeting of stockholders
and may propose any new business to be taken up at such a meeting by filing the proposal in writing
with Oritani Financial Corp. at least five days before the date of any such meeting.
Oritani's bylaws generally provide that any stockholder desiring to make a nomination for the
election of directors or a proposal for new business at a meeting of stockholders must submit
written notice to Oritani at least 80 days prior and not earlier than 90 days prior to such
meeting. However, if less than 90 days' notice or prior public disclosure of the date of the
meeting is given to stockholders, such written notice must be submitted by a stockholder not later
than the tenth day following the day on which notice of the meeting was mailed to stockholders or
such public disclosure was made.
Management believes that it is in the best interests of Oritani and its stockholders to
provide sufficient time to enable management to disclose to stockholders information about a
dissident slate of nominations for directors. This advance notice requirement may also give
management time to solicit its own proxies in an attempt to defeat any dissident slate of
nominations, should management determine that doing so is in the best interests of stockholders
generally. Similarly, adequate advance notice of stockholder proposals will give management time to
study such proposals and to determine whether to recommend to the stockholders that such proposals
be adopted. In certain instances, such provisions could make it more difficult to oppose
management's nominees or proposals, even if stockholders believe such nominees or proposals are in
their best interests.
Stockholder Action Without a Meeting.
The bylaws of Oritani Financial Corp. provide that any
action to be taken or which may be taken at any annual or special meeting of stockholders may be
taken if a consent in writing, setting forth the actions so taken, is given by the holders of all
outstanding shares
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entitled to vote. The bylaws of Oritani do not provide for action to be taken by stockholders
without a meeting. Under Delaware law, action may be taken by stockholders without a meeting if all
stockholders entitled to vote on the action consent to taking such action without a meeting.
Stockholder's Right to Examine Books and Records.
A federal regulation, which is applicable to
Oritani Financial Corp., provides that stockholders may inspect and copy specified books and
records after proper written notice for a proper purpose. Delaware law provides that a stockholder
may inspect a company's bylaws, stockholder minutes, annual statement of affairs and any voting
trust agreements. However, only a stockholder or group of stockholders who together, for at least
six months, hold at least 5% of the company's total shares, have the right to inspect a company's
stock ledger, list of stockholders and books of accounts.
Limitations on Voting Rights of Greater-than-10% Stockholders.
Oritani's certificate of
incorporation provides that no beneficial owner, directly or indirectly, of more than 10.0% of the
outstanding shares of common stock will be permitted to vote any shares in excess of such 10.0%
limit. Oritani Financial Corp.'s charter does not provide such a limit on voting common stock.
In addition, OTS regulations provide that for a period of three years following the date of
the completion of the offering, no person, acting singly or together with associates in a group of
persons acting in concert, may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10.0% of a class of Oritani's equity securities without the prior written
approval of the OTS. Where any person acquires beneficial ownership of more than 10.0% of a class
of Oritani's equity securities without the prior written approval of the OTS, the securities
beneficially owned by such person in excess of 10.0% may not be voted by any person or counted as
voting shares in connection with any matter submitted to the stockholders for a vote, and will not
be counted as outstanding for purposes of determining the affirmative vote necessary to approve any
matter submitted to the stockholders for a vote.
Mergers, Consolidations and Sales of Assets.
A federal regulation applicable to Oritani
Financial Corp. generally requires the approval of two-thirds of the Board of Directors of Oritani
Financial Corp. and the holders of two-thirds of the outstanding stock of Oritani Financial Corp.
entitled to vote thereon for mergers, consolidations and sales of all or substantially all of
Oritani Financial Corp.'s assets. Such regulation permits Oritani Financial Corp. to merge with
another corporation without obtaining the approval of its stockholders if:
(i)
it does not involve an interim savings institution;
(ii)
Oritani Financial Corp.'s federal stock charter is not changed;
(iii)
each share of Oritani Financial Corp.'s stock outstanding immediately prior to
the effective date of the transaction will be an identical outstanding share or a
treasury share of Oritani Financial Corp. after such effective date; and
(iv)
either:
(a)
no shares of voting stock of Oritani Financial Corp. and no
securities convertible into such stock are to be issued or delivered under the
plan of combination; or
(b)
the authorized but unissued shares or the treasury shares of
voting stock of Oritani Financial Corp. to be issued or delivered under the
plan of combination, plus those initially issuable upon conversion of any
securities to be issued or delivered under such plan, do not exceed 15% of the
total shares of voting stock of Oritani Financial Corp. outstanding immediately
prior to the effective date of the transaction.
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Under Delaware law, "business combinations" between Oritani and an interested stockholder or
an affiliate of an interested stockholder are prohibited for five years after the most recent date
on which the interested stockholder becomes an interested stockholder. These business combinations
include a merger, consolidation, statutory share exchange or, in circumstances specified in the
statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and
reclassifications involving interested stockholders and their affiliates or issuance or
reclassification of equity securities. Delaware law defines an interested stockholder as: (i) any
person who beneficially owns 10.0% or more of the voting power of Oritani's voting stock after the
date on which Oritani had 100 or more beneficial owners of its stock; or (ii) an affiliate or
associate of Oritani at any time after the date on which Oritani had 100 or more beneficial owners
of its stock who, within the two-year period prior to the date in question, was the beneficial
owner of 10.0% or more of the voting power of the then-outstanding voting stock of Oritani. A
person is not an interested stockholder under the statute if the Board of Directors approved in
advance the transaction by which the person otherwise would have become an interested stockholder.
However, in approving a transaction, the Board of Directors may provide that its approval is
subject to compliance, at or after the time of approval, with any terms and conditions determined
by the Board of Directors.
After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani, and (ii) two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani's common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
Evaluation of Offers.
The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
•
the economic effect, both immediate and long-term, upon Oritani's stockholders,
including stockholders, if any, who do not participate in the transaction;
•
the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;
•
whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;
•
whether a more favorable price could be obtained for Oritani's stock or other
securities in the future;
•
the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;
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•
the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;
•
any antitrust or other legal and regulatory issues that are raised by the proposal;
•
the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and
•
the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.
If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
Oritani Financial Corp.'s charter and bylaws do not contain a similar provision.
Dissenters' Rights of Appraisal
.
OTS regulations generally provide that a stockholder of a
federally chartered corporation that engages in a merger, consolidation or sale of all or
substantially all of its assets shall have the right to demand from such institution payment of the
fair or appraised value of his or her stock in the corporation, subject to specified procedural
requirements. The regulations also provide, however, that a stockholder of a federally chartered
corporation whose shares are listed on a national securities exchange or quoted on the Nasdaq stock
market are not entitled to dissenters' rights in connection with a merger if the stockholder is
required to accept only "qualified consideration" for his or her stock, which is defined to include
cash, shares of stock of any institution or corporation that at the effective date of the merger
will be listed on a national securities exchange or quoted on the Nasdaq stock market, or any
combination of such shares of stock and cash.
Under Delaware law, stockholders of Oritani will not have dissenters' appraisal rights in
connection with a plan of merger or consolidation to which Oritani is a party as long as the common
stock of Oritani trades on the Nasdaq Global Market.
Amendment of Governing Instruments
.
No amendment of Oritani Financial Corp.'s stock charter
may be made unless it is first proposed by the Board of Directors of Oritani Financial Corp., then
preliminarily approved by the OTS, and thereafter approved by the holders of a majority of the
total votes eligible to be cast at a legal meeting.
Oritani's certificate of incorporation may be amended, upon the submission of an amendment by
the Board of Directors to a vote of the stockholders, by the affirmative vote of at least
two-thirds of the outstanding shares of common stock, or by the affirmative vote of a majority of
the outstanding shares of common stock if at least two-thirds of the members of the whole Board of
Directors approves such amendment; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend the following provisions:
(i)
The limitation on voting rights of persons who directly or indirectly
beneficially own more than 10.0% of the outstanding shares of common stock;
(ii)
The division of the Board of Directors into three staggered classes;
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(iii)
The ability of the Board of Directors to fill vacancies on the board;
(iv)
The requirement that at least a majority of the votes eligible to be cast by
stockholders must vote to remove directors, and can only remove directors for cause;
(v)
The ability of the Board of Directors to amend and repeal the bylaws;
(vi)
The ability of the Board of Directors to evaluate a variety of factors in
evaluating offers to purchase or otherwise acquire Oritani;
(vii)
The authority of the Board of Directors to provide for the issuance of
preferred stock;
(viii)
The validity and effectiveness of any action lawfully authorized by the affirmative
vote of the holders of a majority of the total number of outstanding shares of common
stock;
(ix)
The number of stockholders constituting a quorum or required for stockholder
consent;
(x)
The indemnification of current and former directors and officers, as well as
employees and other agents, by Oritani;
(xi)
The limitation of liability of officers and directors to Oritani for money damages;
(xii)
The inability of stockholders to cumulate their votes in the election of directors;
(xiii)
The advance notice requirements for stockholder proposals and nominations; and
(xiv)
The provision of the certificate of incorporation requiring approval of at
least 80% of the outstanding voting stock to amend the provisions of the certificate of
incorporation provided in (i) through (xiii) of this list.
The certificate of incorporation also provides that the bylaws may be amended by the
affirmative vote of a majority of our directors or by the stockholders by the affirmative vote of
at least 80% of the total votes eligible to be voted at a duly constituted meeting of stockholders.
Any amendment of this super-majority requirement for amendment of the bylaws would also require
the approval of 80% of the outstanding voting stock.
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RESTRICTIONS ON ACQUISITION OF ORITANI
Although the Board of Directors of Oritani is not aware of any effort that might be made to
obtain control of Oritani after the conversion, the Board of Directors believes that it is
appropriate to include certain provisions as part of Oritani's certificate of incorporation to
protect the interests of Oritani and its stockholders from takeovers which our Board of Directors
might conclude are not in the best interests of Oritani Bank, Oritani or Oritani's stockholders.
The following discussion is a general summary of the material provisions of Oritani's
certificate of incorporation and bylaws, Oritani Bank's charter and bylaws and certain other
regulatory provisions that may be deemed to have an "anti-takeover" effect. The following
description of certain of these provisions is necessarily general and is not intended to be a
complete description of the document or regulatory provision in question. Oritani's certificate of
incorporation and bylaws are included as part of Oritani Financial Corp., MHC's application for
conversion filed with the OTS and Oritani's registration statement filed with the Securities and
Exchange Commission. See "Where You Can Find Additional Information."
Certificate of Incorporation and Bylaws of Oritani
Oritani's certificate of incorporation and bylaws contain a number of provisions relating to
corporate governance and rights of stockholders that may discourage future takeover attempts. As a
result, stockholders who might desire to participate in such transactions may not have an
opportunity to do so. In addition, these provisions will also render the removal of the Board of
Directors or management of Oritani more difficult.
Directors
.
The Board of Directors will be divided into three classes. The members of each
class will be elected for a term of three years and only one class of directors will be elected
annually. Thus, it would take at least two annual elections to replace a majority of our Board of
Directors. Further, the bylaws impose notice and information requirements in connection with the
nomination by stockholders of candidates for election to the Board of Directors or the proposal by
stockholders of business to be acted upon at an annual meeting of stockholders.
Restrictions on Call of Special Meetings
.
The certificate of incorporation and bylaws provide
that special meetings of stockholders can be called by the President, by a majority of the whole
Board of Directors or upon the written request of stockholders entitled to cast at least a majority
of all votes entitled to vote at the meeting.
Prohibition of Cumulative Voting
.
The certificate of incorporation prohibits cumulative
voting for the election of directors.
Limitation of Voting Rights
.
The certificate of incorporation provides that in no event will
any person who beneficially owns more than 10.0% of the then-outstanding shares of common stock, be
entitled or permitted to vote any of the shares of common stock held in excess of the 10.0% limit.
Restrictions on Removing Directors from Office
.
The certificate of incorporation provides
that directors may be removed only for cause, and only by the affirmative vote of the holders of at
least a majority of the voting power of all of our then-outstanding common stock entitled to vote
(after giving effect to the limitation on voting rights discussed above in "—Limitation of Voting
Rights.")
Authorized but Unissued Shares
. After the conversion, Oritani will have authorized but
unissued shares of common and preferred stock. See "Description of Capital Stock of Oritani
Following
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the Conversion." The certificate of incorporation authorizes 25,000,000 shares of serial
preferred stock. Oritani is authorized to issue preferred stock from time to time in one or more
series subject to applicable provisions of law, and the Board of Directors is authorized to fix the
designations, and relative preferences, limitations, voting rights, if any, including without
limitation, offering rights of such shares (which could be multiple or as a separate class). In
the event of a proposed merger, tender offer or other attempt to gain control of Oritani that the
Board of Directors does not approve, it might be possible for the Board of Directors to authorize
the issuance of a series of preferred stock with rights and preferences that would impede the
completion of the transaction. An effect of the possible issuance of preferred stock therefore may
be to deter a future attempt to gain control of Oritani. The Board of Directors has no present
plan or understanding to issue any preferred stock.
Amendments to Certificate of Incorporation and Bylaws.
Amendments to the certificate of
incorporation must be approved by our Board of Directors and also by at least a majority of the
outstanding shares of our voting stock; provided, however, that approval by at least 80% of the
outstanding voting stock is generally required to amend certain provisions. A list of these
provisions is provided under "Comparison of Stockholders' Rights For Existing Stockholders of
Oritani Financial Corp.—Amendment of Governing Instruments" above.
The certificate of incorporation also provide that the bylaws may be amended by the
affirmative vote of a majority of Oritani's directors or by the stockholders by the affirmative
vote of at least 80% of the total votes eligible to be voted at a duly constituted meeting of
stockholders. Any amendment of this super-majority requirement for amendment of the bylaws would
also require the approval of 80% of the outstanding voting stock.
Business Combinations with Interested Stockholders
.
Under Delaware law, "business
combinations" between Oritani and an interested stockholder or an affiliate of an interested
stockholder are prohibited for five years after the most recent date on which the interested
stockholder becomes an interested stockholder. These business combinations include a merger,
consolidation, statutory share exchange or, in circumstances specified in the statute, certain
transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications
involving interested stockholders and their affiliates or issuance or reclassification of equity
securities. Delaware law defines an interested stockholder as: (i) any person who beneficially owns
10.0% or more of the voting power of Oritani's voting stock after the date on which Oritani had 100
or more beneficial owners of its stock; or (ii) an affiliate or associate of Oritani at any time
after the date on which Oritani had 100 or more beneficial owners of its stock who, within the
two-year period prior to the date in question, was the beneficial owner of 10.0% or more of the
voting power of the then-outstanding voting stock of Oritani. A person is not an interested
stockholder under the statute if the Board of Directors approved in advance the transaction by
which the person otherwise would have become an interested stockholder. However, in approving a
transaction, the Board of Directors may provide that its approval is subject to compliance, at or
after the time of approval, with any terms and conditions determined by the Board of Directors.
After the five-year prohibition, any business combination between Oritani and an interested
stockholder generally must be recommended by the Board of Directors of Oritani and approved by the
affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of Oritani and (ii) two-thirds of the votes entitled to be cast by holders
of voting stock of Oritani other than shares held by the interested stockholder with whom or with
whose affiliate the business combination is to be effected or held by an affiliate or associate of
the interested stockholder. These super-majority vote requirements do not apply if Oritani's common
stockholders receive a minimum price, as defined under Delaware law, for their shares in the form
of cash or other consideration in the same form as previously paid by the interested stockholder
for its shares.
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Evaluation of Offers.
The certificate of incorporation of Oritani provides that its Board of
Directors, when evaluating a transaction that would or may involve a change in control of Oritani
(whether by purchases of its securities, merger, consolidation, share exchange, dissolution,
liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may,
in connection with the exercise of its business judgment in determining what is in the best
interests of Oritani and its stockholders and in making any recommendation to the stockholders,
give due consideration to all relevant factors, including, but not limited to:
•
the economic effect, both immediate and long-term, upon Oritani's stockholders,
including stockholders, if any, who do not participate in the transaction;
•
the social and economic effect on the present and future employees, creditors and
customers of, and others dealing with, Oritani and its subsidiaries and on the
communities in which Oritani and its subsidiaries operate or are located;
•
whether the proposal is acceptable based on the historical, current or projected
future operating results or financial condition of Oritani;
•
whether a more favorable price could be obtained for Oritani's stock or other
securities in the future;
•
the reputation and business practices of the other entity to be involved in the
transaction and its management and affiliates as they would affect the employees of
Oritani and its subsidiaries;
•
the future value of the stock or any other securities of Oritani or the other entity
to be involved in the proposed transaction;
•
any antitrust or other legal and regulatory issues that are raised by the proposal;
•
the business and historical, current or expected future financial condition or
operating results of the other entity to be involved in the transaction, including, but
not limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the proposed transaction, and other
likely financial obligations of the other entity to be involved in the proposed
transaction; and
•
the ability of Oritani to fulfill its objectives as a financial institution holding
company and on the ability of its subsidiary financial institution(s) to fulfill the
objectives of a federally insured financial institution under applicable statutes and
regulations.
If the Board of Directors determines that any proposed transaction should be rejected, it may
take any lawful action to defeat such transaction.
Purpose and Anti-Takeover Effects of Oritani's Certificate of Incorporation and Bylaws
.
Our
Board of Directors believes that the provisions described above are prudent and will reduce our
vulnerability to takeover attempts and certain other transactions that have not been negotiated
with and approved by our Board of Directors. These provisions also will assist us in the orderly
deployment of the offering proceeds into productive assets during the initial period after the
conversion. Our Board of Directors believes these provisions are in the best interests of Oritani
and its stockholders. Our Board of Directors believes that it will be in the best position to
determine the true value of Oritani and to negotiate more effectively for what may be in the best
interests of its stockholders. Accordingly, our Board of
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Directors believes that it is in the best interests of Oritani and its stockholders to
encourage potential acquirers to negotiate directly with the Board of Directors and that these
provisions will encourage such negotiations and discourage hostile takeover attempts. It is also
the view of our Board of Directors that these provisions should not discourage persons from
proposing a merger or other transaction at a price reflective of the true value of Oritani and that
is in the best interests of all stockholders.
Takeover attempts that have not been negotiated with and approved by our Board of Directors
present the risk of a takeover on terms that may be less favorable than might otherwise be
available. A transaction that is negotiated and approved by our Board of Directors, on the other
hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value
of Oritani for our stockholders, with due consideration given to matters such as the management and
business of the acquiring corporation and maximum strategic development of Oritani's assets.
Although a tender offer or other takeover attempt may be made at a price substantially above
the current market price, such offers are sometimes made for less than all of the outstanding
shares of a target company. As a result, stockholders may be presented with the alternative of
partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be
similar to those of the remaining stockholders.
Despite our belief as to the benefits to stockholders of these provisions of Oritani's
certificate of incorporation and bylaws, these provisions may also have the effect of discouraging
a future takeover attempt that would not be approved by our Board of Directors, but pursuant to
which stockholders may receive a substantial premium for their shares over then current market
prices. As a result, stockholders who might desire to participate in such a transaction may not
have any opportunity to do so. Such provisions will also make it more difficult to remove our Board
of Directors and management. Our Board of Directors, however, has concluded that the potential
benefits outweigh the possible disadvantages.
Following the conversion, pursuant to applicable law and, if required, following the approval
by stockholders, we may adopt additional anti-takeover provisions in our certificate of
incorporation or other devices regarding the acquisition of our equity securities that would be
permitted for a Delaware business corporation.
The cumulative effect of the restrictions on acquisition of Oritani contained in our
certificate of incorporation and bylaws and in Delaware law may be to discourage potential takeover
attempts and perpetuate incumbent management, even though certain stockholders of Oritani may deem
a potential acquisition to be in their best interests, or deem existing management not to be acting
in their best interests.
Conversion Regulations
OTS regulations prohibit any person from making an offer, announcing an intent to make an
offer or participating in any other arrangement to purchase stock or acquiring stock or
subscription rights in a converting institution or its holding company from another person prior to
completion of its conversion. Further, without the prior written approval of the OTS, no person may
make an offer or announcement of an offer to purchase shares or actually acquire shares of an OTS
regulated holding company of a converted institution for a period of three years from the date of
the completion of the conversion if, upon the completion of such offer, announcement or
acquisition, the person would become the beneficial owner of more than 10.0% of the outstanding
stock of the holding company. The OTS has defined "person" to include any individual, group acting
in concert, corporation, partnership, association, joint stock company, trust, unincorporated
organization or similar company, a syndicate or any other group formed
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for the purpose of acquiring, holding or disposing of securities of an insured institution.
However, offers made exclusively to a bank or its holding company, or an underwriter or member of a
selling group acting on the converting institution's or its holding company's behalf for resale to
the general public are excepted. The regulation also provides civil penalties for willful violation
or assistance in any such violation of the regulation by any person connected with the management
of the converting institution or its holding company or who controls more than 10.0% of the
outstanding shares or voting rights of a converted institution or its holding company.
Change in Control Regulations
Under the Change in Bank Control Act, no person may acquire control of an insured federal
savings bank or its parent holding company unless the OTS has been given 60 days' prior written
notice and has not issued a notice disapproving the proposed acquisition. In addition, OTS
regulations provide that no company may acquire control of a savings bank without the prior
approval of the OTS. Any company that acquires such control becomes a "savings and loan holding
company" subject to registration, examination and regulation by the OTS.
Control, as defined under federal law, means ownership, control of or holding irrevocable
proxies representing more than 25% of any class of voting stock, control in any manner of the
election of a majority of the institution's directors, or a determination by the OTS that the
acquiror has the power to direct, or directly or indirectly to exercise a controlling influence
over, the management or policies of the institution. Acquisition of more than 10.0% of any class of
a savings bank's voting stock, if the acquiror is also subject to any one of eight "control
factors," constitutes a rebuttable determination of control under the regulations. Such control
factors include the acquiror being one of the two largest stockholders. The determination of
control may be rebutted by submission to the OTS, prior to the acquisition of stock or the
occurrence of any other circumstances giving rise to such determination, of a statement setting
forth facts and circumstances which would support a finding that no control relationship will exist
and containing certain undertakings. The regulations provide that persons or companies which
acquire beneficial ownership exceeding 10.0% or more of any class of a savings bank's stock who do
not intend to participate in or seek to exercise control over a savings bank's management or
policies may qualify for a safe harbor by filing with the OTS a certification form that states,
among other things, that the holder is not in control of such institution, is not subject to a
rebuttable determination of control and will take no action which would result in a determination
or rebuttable determination of control without prior notice to or approval of the OTS, as
applicable. There are also rebuttable presumptions in the regulations concerning whether a group
"acting in concert" exists, including presumed action in concert among members of an "immediate
family."
The OTS may prohibit an acquisition of control if it finds, among other things, that:
(i)
the acquisition would result in a monopoly or substantially lessen competition;
(ii)
the financial condition of the acquiring person might jeopardize the financial
stability of the institution; or
(iii)
the competence, experience or integrity of the acquiring person indicates that
it would not be in the interest of the depositors or the public to permit the
acquisition of control by such person.
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DESCRIPTION OF CAPITAL STOCK OF ORITANI FOLLOWING THE CONVERSION
General
Oritani is authorized to issue 150,000,000 shares of common stock, par value of $0.01 per
share, and 25,000,000 shares of preferred stock, par value $0.01 per share. Oritani currently
expects to issue in the offering up to 44,850,000 shares of common stock, subject to adjustment,
and up to 51,577,500 shares, subject to adjustment, in exchange for the publicly held shares of
Oritani Financial Corp. Oritani will not issue shares of preferred stock in the conversion. Each
share of common stock will have the same relative rights as, and will be identical in all respects
to, each other share of common stock. Upon payment of the subscription price for the common stock,
in accordance with the plan of conversion and reorganization, all of the shares of common stock
will be duly authorized, fully paid and nonassessable.
The shares of common stock of Oritani will represent nonwithdrawable capital, will not be an
account of an insurable type, and will not be insured by the FDIC or any other government agency.
Common Stock
Dividends
.
Oritani may pay dividends to an amount equal to the excess of our capital surplus
over payments that would be owed upon dissolution to stockholders whose preferential rights upon
dissolution are superior to those receiving the dividend, and to an amount that would not make us
insolvent, as and when declared by our Board of Directors. The payment of dividends by Oritani is
subject to limitations that are imposed by law and applicable regulation. The holders of common
stock of Oritani will be entitled to receive and share equally in dividends as may be declared by
our Board of Directors out of funds legally available therefor. If Oritani issues shares of
preferred stock, the holders thereof may have a priority over the holders of the common stock with
respect to dividends.
Voting Rights
.
Upon consummation of the conversion, the holders of common stock of Oritani
will have exclusive voting rights in Oritani. They will elect Oritani's Board of Directors and act
on other matters as are required to be presented to them under Delaware law or as are otherwise
presented to them by the Board of Directors. Generally, each holder of common stock will be
entitled to one vote per share and will not have any right to cumulate votes in the election of
directors. Any person who beneficially owns more than 10.0% of the then-outstanding shares of
Oritani's common stock, however, will not be entitled or permitted to vote any shares of common
stock held in excess of the 10.0% limit. If Oritani issues shares of preferred stock, holders of
the preferred stock may also possess voting rights. Certain matters require an 80% stockholder
vote.
As a Delaware stock savings bank, corporate powers and control of Oritani Bank are vested in
its Board of Directors, who elect the officers of Oritani Bank and who fill any vacancies on the
Board of Directors. Voting rights of Oritani Bank are vested exclusively in the owners of the
shares of capital stock of Oritani Bank, which will be Oritani, and voted at the direction of
Oritani's Board of Directors. Consequently, the holders of the common stock of Oritani will not
have direct control of Oritani Bank.
Liquidation
.
In the event of any liquidation, dissolution or winding up of Oritani Bank,
Oritani, as the holder of 100% of Oritani Bank's capital stock, would be entitled to receive all
assets of Oritani Bank available for distribution, after payment or provision for payment of all
debts and liabilities of Oritani Bank, including all deposit accounts and accrued interest thereon,
and after distribution of the balance in the liquidation account to Eligible Account Holders and
Supplemental Eligible Account Holders. In the event of liquidation, dissolution or winding up of
Oritani, the holders of its common stock would be entitled to receive, after payment or provision
for payment of all its debts and liabilities, all of
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the assets of Oritani available for distribution. If preferred stock is issued, the holders
thereof may have a priority over the holders of the common stock in the event of liquidation or
dissolution.
Preemptive Rights
.
Holders of the common stock of Oritani will not be entitled to preemptive
rights with respect to any shares that may be issued. The common stock is not subject to
redemption.
Preferred Stock
None of the shares of Oritani's authorized preferred stock will be issued as part of the
offering or the conversion. Preferred stock may be issued with preferences and designations as our
Board of Directors may from time to time determine. Our Board of Directors may, without stockholder
approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights
that could dilute the voting strength of the holders of the common stock and may assist management
in impeding an unfriendly takeover or attempted change in control.
TRANSFER AGENT
The transfer agent and registrar for Oritani's common stock is Registrar and Transfer Company,
Cranford, New Jersey.
EXPERTS
The consolidated financial statements of Oritani Financial Corp. and subsidiaries as of
June 30, 2009 and 2008, and for each of the years in the three-year period ended June 30, 2009,
have been included herein in reliance upon the report of KPMG LLP, independent registered public
accounting firm, which is included herein and upon the authority of said firm as experts in
accounting and auditing.
The discussions related to state income taxes included under "The Conversion and
Offering—Material Income Tax Consequences" were prepared for us by KPMG LLP, independent
registered public accounting firm, and have been included herein upon the authority of said firm as
experts in tax matters.
RP Financial, LC. has consented to the publication herein of the summary of its report to
Oritani setting forth its opinion as to the estimated pro forma market value of the shares of
common stock upon completion of the offering and its letter with respect to subscription rights.
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LEGAL MATTERS
Luse Gorman Pomerenk & Schick, P.C., Washington, D.C., counsel to Oritani, Oritani Financial
Corp., MHC, Oritani Financial Corp. and Oritani Bank, will issue to Oritani its opinion regarding
the legality of the common stock and the federal income tax consequences of the conversion.
Certain legal matters will be passed upon for Stifel, Nicolaus & Company, Incorporated by
Sonnenschein Nath & Rosenthal LLP, Washington, D.C.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
Oritani has filed with the Securities and Exchange Commission a registration statement under
the Securities Act of 1933 with respect to the shares of common stock offered hereby. As permitted
by the rules and regulations of the Securities and Exchange Commission, this prospectus does not
contain all the information set forth in the registration statement. Such information, including
the appraisal report which is an exhibit to the registration statement, can be examined without
charge at the public reference facilities of the Securities and Exchange Commission located at 100
F Street, N.E., Washington, D.C. 20549, and copies of such material can be obtained from the
Securities and Exchange Commission at prescribed rates. The Securities and Exchange Commission
telephone number is 1-800-SEC-0330. In addition, the Securities and Exchange Commission maintains
a web site (
http://www.sec.gov
) that contains reports, proxy and information statements and
other information regarding registrants that file electronically with the Securities and Exchange
Commission, including Oritani. The statements contained in this prospectus as to the contents of
any contract or other document filed as an exhibit to the registration statement are, of necessity,
brief descriptions of the material terms of, and should be read in conjunction with, such contract
or document.
Oritani Financial Corp., MHC has filed with the OTS an Application on Form AC with respect to
the conversion. This prospectus omits certain information contained in the application. The
application may be examined at the principal office of the OTS, 1700 G Street, N.W., Washington,
D.C. 20552, and at the Northeast Regional Office of the OTS, Harborside Financial Center Plaza
Five, Suite 1600, Jersey City, New Jersey 07311. Our plan of conversion and reorganization is
available, upon request, at each of our banking offices.
In connection with the offering, Oritani will register its common stock under
Section 12(b)
of
the Securities Exchange Act of 1934 and, upon such registration, Oritani and the holders of its
common stock will become subject to the proxy solicitation rules, reporting requirements and
restrictions on common stock purchases and sales by directors, officers and greater than 10%
stockholders, the annual and periodic reporting and certain other requirements of the Securities
Exchange Act of 1934. Under the plan of conversion and reorganization, Oritani has undertaken that
it will not terminate such registration for a period of at least three years following the
offering.
OTHER MATTERS
As of the date of this document, the Board of Directors is not aware of any business to come
before the special meeting other than the matters described above in the proxy
statement/prospectus. However, if any matters should properly come before the special meeting, it
is intended that the holders of the proxies will act in accordance with their best judgment.
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PART II:
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13.
Other Expenses of Issuance and Distribution
Amount
*
Registrant's Legal Fees and Expenses
$
500,000
*
Registrant's Accounting Fees and Expenses
325,000
*
Marketing and Records Management Fees (1)
17,315,040
*
Marketing Agent Expenses (Including Legal Fees and Expenses)
155,000
*
Appraisal Fees and Expenses
150,000
*
Business Plan Fees and Expenses
51,000
*
Printing, Edgar and Mailing Fees (Excluding Postage)
140,000
*
Postage
200,000
*
Filing Fees (FINRA, Nasdaq, SEC, OTS)
76,400
*
Proxy Solicitation
75,000
*
Transfer Agent and registrar fees and expenses
35,000
*
Other
50,000
*     Total
$
19,072,440
*
Estimated
(1)
Oritani Financial Corp. has retained Stifel, Nicolaus & Company, Incorporated to assist in
the sale of common stock on a best efforts basis in the offerings, and to serve as records
management agent in connection with the conversion and offering. Fees are estimated at the
maximum, as adjusted, of the offering range.
Item 14.
Indemnification of Directors and Officers
Articles 9 and 10 of the Certificate of Incorporation of Oritani Financial Corp. (the
"Corporation") set forth circumstances under which directors, officers, employees and agents of the
Corporation may be insured or indemnified against liability which they incur in their capacities as
such:
NINETH
A.     Each person who was or is made a party or is threatened to be made a party to or is
otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or
investigative (hereinafter a "proceeding"), by reason of the fact that he or she is or was a
Director or an Officer of the Corporation or is or was serving at the request of the Corporation as
a Director, Officer, employee or agent of another corporation or of a partnership, joint venture,
trust or other enterprise, including service with respect to an employee benefit plan (hereinafter
an "indemnitee"), whether the basis of such proceeding is alleged action in an official capacity as
a Director, Officer, employee or agent or in any other capacity while serving as a Director,
Officer, employee or agent, shall be indemnified and held harmless by the Corporation to the
fullest extent authorized by the Delaware General Corporation Law, as the same exists or may
hereafter be amended (but, in the case of any such amendment, only to the extent that such
amendment permits the Corporation to provide broader indemnification rights than such law permitted
the Corporation to provide prior to such amendment), against all expense, liability and loss
(including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in
settlement) reasonably incurred or suffered by such indemnitee in connection therewith; provided,
however, that, except as provided in Section C hereof with respect to proceedings to enforce rights
to indemnification, the Corporation shall indemnify any such indemnitee in connection with a
proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof)
was authorized by the Board of Directors of the Corporation.
B.     The right to indemnification conferred in Section A of this Article NINETH shall include
the right to be paid by the Corporation the expenses incurred in defending any such proceeding in
advance of its final disposition (hereinafter an "advancement of expenses"); provided, however,
that, if the Delaware General Corporation Law requires an advancement of expenses incurred by an
indemnitee in his or her capacity as a Director of Officer (and not in any other capacity in which
service was or is rendered by such indemnitee, including, without
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limitation, service to an employee benefit plan) shall be made only upon delivery to the
Corporation of an undertaking (hereinafter an "undertaking"), by or on behalf of such indemnitee,
to repay all amounts so advanced if it shall ultimately be determined by final judicial decision
from which there is no further right to appeal (hereinafter a "final adjudication") that such
indemnitee is not entitled to be indemnified for such expenses under this Section or otherwise.
The rights to indemnification and to the advancement of expenses conferred in Sections A and B of
this Article NINETH shall be contract rights and such rights shall continue as to an indemnitee who
has ceased to be a Director, Officer, employee or agent and shall inure to the benefit of the
indemnitee's heirs, executors and administrators.
C.     If a claim under Section A or B of this Article NINETH is not paid in full by the
Corporation within sixty days after a written claim has been received by the Corporation, except in
the case of a claim for an advancement of expenses, in which case the applicable period shall be
twenty days, the indemnitee may at any time thereafter bring suit against the Corporation to
recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in
a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an
undertaking, the indemnitee also shall be entitled to be paid the expense of prosecuting or
defending such suit. In (i) any suit brought by the indemnitee to enforce a right to
indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an
advancement of expenses) it shall be a defense that, and (ii) in any suit by the Corporation to
recover an advancement of expenses pursuant to the terms of an undertaking the Corporation shall be
entitled to recover such expenses upon a final adjudication that, the indemnitee has not met any
applicable standard for indemnification set forth in the Delaware General Corporation Law. Neither
the failure of the Corporation (including its Board of Directors, independent legal counsel, or its
stockholders) to have made a determination prior to the commencement of such suit that
indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the
applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual
determination by the Corporation (including its Board of Directors, independent legal counsel, or
its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create
a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of
such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the
indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or by
the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the
burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of
expenses, under this Article NINTH or otherwise shall be on the Corporation.
D.     The rights to indemnification and to the advancement of expenses conferred in this Article
NINETH shall not be exclusive of any other right which any person may have or hereafter acquire
under any statute, the Corporation's Certificate of Incorporation, Bylaws, agreement, vote of
stockholders or disinterested Directors or otherwise.
E.     The Corporation may maintain insurance, at its expense, to protect itself and any Director,
Officer, employee or agent of the Corporation or another corporation, partnership, joint venture,
trust or other enterprise against any expense, liability or loss, whether or not the Corporation
would have the power to indemnify such person against such expense, liability or loss under the
Delaware General Corporation Law.
F.     The Corporation may, to the extent authorized from time to time by the Board of Directors,
grant rights to indemnification and to the advancement of expenses to any employee or agent of the
Corporation to the fullest extent of the provisions of this Article NINTH with respect to the
indemnification and advancement of expenses of Directors and Officers of the Corporation.
TENTH
: A Director of this Corporation shall not be personally liable to the Corporation or
its stockholders for monetary damages for breach of fiduciary duty as a Director, except for
liability (i) for any breach of the Director's duty of loyalty to the Corporation or its
stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct
or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or
(iv) for any transaction from which the Director derived an improper personal benefit. If the
Delaware General Corporation Law is amended to authorize corporate action further eliminating or
limiting the personal liability of Directors, then the liability of a Director of the Corporation
shall be eliminated or limited to the fullest extent permitted by the Delaware General Corporation
Law, as so amended.
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Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation
shall not adversely affect any right or protection of a Director of the Corporation existing at the
time of such repeal or modification.
Item 15.
Recent Sales of Unregistered Securities
Not Applicable.
Item 16.
Exhibits and Financial Statement Schedules:
The exhibits and financial statement schedules filed as part of this registration statement are as follows:
(a)
List of Exhibits
1.1
Engagement Letter between Oritani Financial Corp. and Oritani Financial Corp., MHC and Stifel,
Nicolaus & Company, Incorporated
1.2
Form of Agency Agreement between Oritani Financial Corp. and Stifel, Nicolaus & Company,
Incorporated
2
Oritani Financial Corp., MHC Plan of Conversion and Reorganization (Incorporated by reference
to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed with the SEC on February
22, 2010).
3.1
Certificate of Incorporation of Oritani Financial Corp.
3.2
Bylaws of Oritani Financial Corp.
4
Form of Common Stock Certificate of Oritani Financial Corp.
5
Opinion of Luse Gorman Pomerenk & Schick regarding legality of securities being registered
8
Form of Federal Tax Opinion of Luse Gorman Pomerenk & Schick
10.1
Employment Agreement between Oritani Financial Corp. and Kevin J. Lynch**
10.2
Form of Employment Agreement between Oritani Financial Corp. and executive officers**
10.3
Oritani Bank Director Retirement Plan**
10.4
Oritani Bank Benefit Equalization Plan**
10.5
Oritani Bank Executive Supplemental Retirement Income Agreement**
10.6
Form of Employee Stock Ownership Plan**
10.7
Director Deferred Fee Plan**
10.8
Oritani Financial Corp. 2007 Equity Incentive Plan**
21
Subsidiaries of Registrant (Incorporated by reference to Exhibit 21 to the Registrant's
Annual Report on Form 10-K filed with the SEC on September 11, 2009).
23.1
Consent of Luse Gorman Pomerenk & Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)
23.2
Consent of KPMG LLP
23.3
Consent of RP Financial, LC.
24
Power of Attorney (set forth on signature page)
99.1
Appraisal Agreement between Oritani Bank and RP Financial, LC.
99.2
Business Plan Agreement by and among Oritani Bank, Oritani Financial Corp. and FinPro, Inc.
99.3
Appraisal Report of RP Financial, LC.***
99.4
Letter of RP Financial, LC. with respect to subscription rights
99.5
Letter of RP Financial, LC with respect to liquidation rights
99.6
Marketing Materials*
99.7
Order and Acknowledgment Form*
*
To be filed supplementally or by amendment.
**
Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial
Corp. (file no. 333-137309), originally filed with the Securities and Exchange Commission on
September 14, 2006.
***
Supporting financial schedules filed in paper format only pursuant to Rule 202 of Regulation
S-T. Available for inspection, during business hours, at the principal offices of the SEC in
Washington, D.C.
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(b)     Financial Statement Schedules
No financial statement schedules are filed because the required information is not applicable
or is included in the consolidated financial statements or related notes.
Item 17.
Undertakings
The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may be reflected in the form
of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than a 20 percent change in the
maximum aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement;
(iii) To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such
information in the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(4) That, for purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to
Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
(5) That, for the purpose of determining any liability under the Securities Act of 1933,
each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
(6) That, for the purpose of determining liability of the registrant under the Securities
Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned
registrant undertakes that in a primary offering of securities of the undersigned registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the
securities to the purchaser, if the securities are offered or sold to such purchaser by means of
any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant
relating to the offering required to be filed pursuant to Rule 424 (§230.424 of this
chapter);
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(ii) Any free writing prospectus relating to the offering prepared by or on behalf
of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the
undersigned registrant to the purchaser.
(7) The undersigned registrant hereby undertakes to provide to the underwriter at the closing
specified in the underwriting agreement certificates in such denominations and registered in such
names as required by the underwriter to permit prompt delivery to each purchaser.
(8) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the Township of Washington, State of New Jersey on March 5, 2010.
ORITANI FINANCIAL CORP.
By:
/s/ Kevin J. Lynch
Kevin J. Lynch
Chairman, President and Chief Executive Officer
(Duly Authorized Representative)
POWER OF ATTORNEY
We, the undersigned directors and officers of Oritani Financial Corp. (the "Company") hereby
severally constitute and appoint Kevin J. Lynch as our true and lawful attorney and agent, to do
any and all things in our names in the capacities indicated below which said Kevin J. Lynch may
deem necessary or advisable to enable the Company to comply with the Securities Act of 1933, and
any rules, regulations and requirements of the Securities and Exchange Commission, in connection
with the registration statement on Form S-1 relating to the offering of the Company's common stock,
including specifically, but not limited to, power and authority to sign for us in our names in the
capacities indicated below the registration statement and any and all amendments (including
post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said Kevin
J. Lynch shall do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
Signatures
Title
Date
/s/ Kevin J. Lynch
Kevin J. Lynch
Chairman of the Board,
President
and Chief
Executive Officer
(Principal Executive
Officer)
March 5, 2010
/s/ John M. Fields
John M. Fields, Jr.
Executive Vice President
and
Chief Financial
Officer
(Principal
Financial and Accounting
Officer)
March 5, 2010
/s/ Michael A. DeBernardi
Michael A. DeBernardi
Director, Executive Vice
President and
Chief
Operating Officer
March 5, 2010
/s/ Nicholas Antonaccio
Nicholas Antonaccio
Director
March 5, 2010
/s/ James J. Doyle, Jr.
James J. Doyle, Jr.
Director
March 5, 2010
/s/ Robert S. Hekemian, Jr.
Robert S. Hekemian, Jr.
Director
March 5, 2010
/s/ John J. Skelly, Jr.
John J. Skelly, Jr.
Director
March 5, 2010
Table of Contents
As filed with the Securities and Exchange Commission on March___, 2010
Registration No. 333-________
_____________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
EXHIBITS
TO
REGISTRATION STATEMENT
ON
FORM S-1
Oritani Financial Corp.
Township of Washington, New Jersey
Table of Contents
EXHIBIT INDEX
1.1
Engagement Letter between Oritani Financial Corp. and Oritani Financial Corp., MHC and Stifel,
Nicolaus & Company, Incorporated
1.2
Form of Agency Agreement between Oritani Financial Corp. and Stifel, Nicolaus & Company,
Incorporated
2
Oritani Financial Corp., MHC Plan of Conversion and Reorganization (Incorporated by reference
to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed with the SEC on February
22, 2010).
3.1
Certificate of Incorporation of Oritani Financial Corp.
3.2
Bylaws of Oritani Financial Corp.
4
Form of Common Stock Certificate of Oritani Financial Corp.
5
Opinion of Luse Gorman Pomerenk & Schick regarding legality of securities being registered
8
Form of Federal Tax Opinion of Luse Gorman Pomerenk & Schick
10.1
Employment Agreement between Oritani Financial Corp. and Kevin J. Lynch**
10.2
Form of Employment Agreement between Oritani Financial Corp. and executive officers**
10.3
Oritani Bank Director Retirement Plan**
10.4
Oritani Bank Benefit Equalization Plan**
10.5
Oritani Bank Executive Supplemental Retirement Income Agreement**
10.6
Form of Employee Stock Ownership Plan**
10.7
Director Deferred Fee Plan**
10.8
Oritani Financial Corp. 2007 Equity Incentive Plan**
21
Subsidiaries of Registrant (Incorporated by reference to Exhibit 21 to the Registrant's
Annual Report on Form 10-K filed with the SEC on September 11, 2009).
23.1
Consent of Luse Gorman Pomerenk & Schick, P.C. (contained in Opinions included as Exhibits 5 and 8)
23.2
Consent of KPMG LLP
23.3
Consent of RP Financial, LC.
24
Power of Attorney (set forth on signature page)
99.1
Appraisal Agreement between Oritani Bank and RP Financial, LC.
99.2
Business Plan Agreement by and among Oritani Bank, Oritani Financial Corp. and FinPro, Inc.
99.3
Appraisal Report of RP Financial, LC.***
99.4
Letter of RP Financial, LC. with respect to subscription rights
99.5
Letter of RP Financial, LC with respect to liquidation rights
99.6
Marketing Materials*
99.7
Order and Acknowledgment Form*
*
To be filed supplementally or by amendment.
**
Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial
Corp. (file no. 333-137309), originally filed with the Securities and Exchange Commission on
September 14, 2006.
***
Supporting financial schedules filed in paper format only pursuant to Rule 202 of Regulation
S-T. Available for inspection, during business hours, at the principal offices of the SEC in
Washington, D.C.