Skip to content

Oritani Financial Posts a Solid Quarter

Three banks I follow, Oritani Financial, Oneida Financial and Eagle Bancorp or Montana reported earnings in the last couple days.  I want to look at each, and I will start here with Oritani.

I don’t own Oritani but it is a reasonably priced and well run regional that I follow closely.  Their CEO, Kevin Lynch, has an extremely low tolerance for non-performing loans, which is why non-performing assets are down to 0.50%.

With earnings of 0.52/share the bank is trading at  26x earnings, which isn’t particularly cheap on that metric.

Book value of the stock is $11.45, meaning the bank is trading at 1.13x book.  But not reflected in book is around $50M, or $1/share, in REO (real estate owned).  Now this isn’t foreclosed real estate owned, but instead its JV real estate that the company bought in the past for the purposes of capital appreciation.

The company is showing extremely strong loan and deposit growth.  The loan growth is particularly impressive because so few companies are growing their loan book right now.

Oritani pays a 3% dividend.
The company last presented at the Stifel Nicolaus conference late last year.  Its worth listening to.
Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: