		Page

Part I
Item 1.	Business	2
Item 1A.	Risk Factors	37
Item 1B.	Unresolved Staff Comments	41
Item 2.	Properties	41
Item 3.	Legal Proceedings	41
Item 4.	Submission of Matters to a Vote of Security Holders	41

Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters
	and Issuer Purchases of Equity Securities	42
Item 6.	Selected Financial Data	44
Item 7.	Management’s Discussion and Analysis of Financial Condition
	and Results of Operations	45
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 8.	Financial Statements and Supplemental Data	61
Item 9.	Changes in and Disagreements with Accountants on Accounting and
	Financial Disclosure	61
Item 9A.	Controls and Procedures	61
Item 9B.	Other Information	62

Part III
Item 10.	Directors, Executive Officers and Corporate Governance	62
Item 11.	Executive Compensation	62
Item 12.	Security Ownership of Certain Beneficial Owners and Management
	and Related Stockholder Matters	62
Item 13	Certain Relationships and Related Transactions, and Director Independence	62
Item 14.	Principal Accountant Fees and Services	62

Part IV
Item 15.	Exhibits and Financial Statement Schedules	62

Signatures		107

This Annual Report contains certain “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which Oritani Financial Corp. (“the Company”) operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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 Office of Thrift Supervision (“OTS”).

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 June 30, 2009, Oritani Financial Corp. had consolidated assets of $1.91 billion, consolidated deposits of $1.13 billion and consolidated stockholders’ equity of $240.1 million. Its consolidated net income for the fiscal year ended June 30, 2009 was $5.6 million.

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 through internal growth as well as through a series of business combinations. 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 20 branch offices located in the New Jersey Counties of Bergen, Hudson and Passaic. The telephone number at its main office is (201) 664-5400. At June 30, 2009, our assets totaled $1.91 billion and our deposits totaled $1.13 billion. 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 (15 branches, including our main office), Hudson (5 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.

Oritani Financial Corp. 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, which represented 68.0% of the Company’s outstanding common stock at the conclusion of the initial public offering. 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. 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. So long as Oritani Financial Corp., MHC exists, it is required to own a majority of the voting stock of Oritani Financial Corp.

From our headquarters in the Township of Washington, New Jersey, we operate twenty one 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, fifteen, and deposits are located in Bergen County. In addition, we operate five branches in Hudson County and one branch in Passaic County. We are in the process of opening an additional branch in Bergen County.

In terms of population rank, Bergen County ranks as the largest county in New Jersey while Hudson County ranks fifth and Passaic County ranks ninth out of twenty-one counties. Based upon household income statistics, Bergen County ranks fourth out of the twenty-one counties in New Jersey while Passaic ranks seventeenth and Hudson County ranks twentieth. The three counties are a part of New Jersey, which is referred to as the “Gateway Region.” 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 is typical for counties surrounding the New York metropolitan area. 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. The June 2009 unemployment rate for New Jersey of 9.2% was slightly lower than the national rate of 9.5%. See “Item 1A, Risk Factors – Current Market and Economic Conditions May Significantly Affect Our Operations and Financial Condition.”

Hudson County has always been a gateway for many immigrants to the United States. It is also recognized as one of the Northeast’s major transportation and industrial hubs as the New York metropolitan area’s three major airports – John F. Kennedy International Airport, LaGuardia Airport, and Newark Liberty International Airport – are within a relatively short distance of Hudson County.

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, 2008, the latest date for which statistics are available, our market share of deposits was approximately 1.8% 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.

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 curtailed construction lending in 2009 due to current market and economic conditions and expect to maintain this posture for the foreseeable future. Second mortgage and equity loans consist primarily of home equity loans and home equity lines of credit. Multi-family and commercial real estate loans represented $839.7 million, or 64.5%, of our total loan portfolio at June 30, 2009. One- to four-family residential real estate mortgage loans represented $266.0 million, or 20.4%, of our total loan portfolio at June 30, 2009. We also offer second mortgages and equity loans. At June 30, 2009, such loans totaled $54.8 million, or 4.2%, of our loan portfolio. At June 30, 2009, construction and land loans totaled $130.8 million, or 10.0%, of our loan portfolio. At June 30, 2009, other loans, which primarily consist of business and to a smaller extent, account loans, totaled $11.0 million, or less than 1.0%, of our loan portfolio.

	At June 30,
	2009					2008					2007					2006					2005
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
First mortgage loans:
Conventional one- to four-family	$	265,962		20.4	%	$	223,087		21.8	%	$	188,941		24.6	%	$	165,070		25.3	%	$	147,284		29.4	%
Multifamily and commercial real estate		839,727		64.6			597,171		58.4			451,131		58.7			379,208		58.1			271,424		54.1
Second mortgage and equity loans		54,769		4.2			59,886		5.8			65,240		8.5			66,198		10.2			55,672		11.1
Construction and land loans		130,831		10.0			138,195		13.5			62,704		8.1			38,722		5.9			24,629		4.9
Other loans		10,993		0.8			4,880		0.5			1,140		0.1			3,291		0.5			2,321		0.5

Total loans		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		2,979					2,610					1,732					1,753					1,604
Allowance for loan losses		20,680					13,532					8,882					7,672					6,172

Total loans, net	$	1,278,623				$	1,007,077				$	758,542				$	643,064				$	493,554

	First Mortgage					Second Mortgage					Construction and Land					Other Loans					Total
	Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(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			-		0.00			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			-		0.00			-		-			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	%

	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
Multifamily and commercial real estate		362,911		470,341		833,252
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

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 June 30, 2009, $266.0 million, or 20.4% 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, the Company 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. 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. 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.

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 June 30, 2009, $839.7 million, or 64.6% of our loan portfolio, consisted of multi-family and commercial real estate 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. The self-amortization loans are generally subject to a $2.0 million maximum loan amount. 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 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. 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 have 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 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 June 30, 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 June 30, 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 $40.5 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. See “Item 1A, Risk Factors – Current Market and Economic Conditions May Significantly Affect Our Operations and Financial Condition.”

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 June 30, 2009, second mortgage and equity loans totaled $54.8 million, or 4.2% of total loans. Additionally, at June 30, 2009, the unadvanced amounts of home equity lines of credit totaled $33.8 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.

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 June 30, 2009, residential construction loans amounted to $65.8 million, or 5.1% 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 June 30, 2009, commercial construction loans totaled $65.0 million, or 5.0% of total loans. At June 30, 2009, the largest outstanding commercial construction loan balance was for $15.3 million and is secured by a condominium project. This loan is one of two loans to the same borrower totaling $18.0 million that are classified as non-accrual and considered impaired with a specific reserve of $2.8 million at June 30, 2009. Oritani charged off $2.0 million of the construction loan as of June 30, 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.

Other Loans. Other loans primarily consist of business loans and to a smaller extent, account loans. Other Loans includes $10.7 million of commercial loans to businesses. These loans are unsecured or secured by business assets. In 2009, Oritani curtailed this type of lending. Other loans totaled $11.0 million, or less than 1% of our total loan portfolio at June 30, 2009.

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.

At June 30, 2009, we were servicing loans sold in the amount of $15.3 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.

We commence collection efforts 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. A summary report of all loans 30 days or more past due is reported to the Board of Directors. 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.

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 arrearages are resolved. See additional discussion regarding our non-performing assets at June 30, 2009 in “Management Discussion and Analysis.”

	At June 30,
	2009(1)			2008(2)			2007			2006			2005
	(Dollars in thousands)
Non-accrual loans:
First mortgage loan balances:
Conventional	$	1,160		$	67		$	—		$	458		$	147
Multifamily and commercial real estate		33,994			—			—			—			—
Second mortgage and equity loans		—			—			—			—			44
Construction and land loans		17,311			14,143			—			—			—
Other loans		—			—			—			—			—

Total non-accrual loans	$	52,465		$	14,210		$	—		$	458		$	191

Loans greater than 90 days delinquent and still accruing:
First mortgage loan balances:
Conventional	$	—		$	—		$	—		$	—		$	—
Multifamily and 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	$	—		$	—		$	—		$	458		$	191

Real estate owned		—			—			—			—			—
Total non-performing assets	$	52,465		$	14,210		$	—		$	458		$	191

Ratios:
Non-performing loans to total loans		4.03	%		1.39	%		—	%		0.07	%		0.04	%
Non-performing assets to total assets		2.74	%		0.98	%		—	%		0.04	%		0.02	%

As noted in the above table, there were nonaccrual loans of $52.5 million at June 30, 2009 and $14.2 million at June 30, 2008. Additional interest income of $3.6 million and $521,000 would have been recorded during the years ended June 30, 2009 and 2008, respectively, if the loans had performed in accordance with their original terms. Interest income on these loans of $787,000 and $188,000 was included in net income for the years ended June 30, 2009 and 2008, respectively. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Comparison of Operating Results for the Years Ended June 30, 2009 and June 30, 2008, Provision for Loan Losses.”

	Loans Delinquent For
	60-89 Days				90 Days and Over				Total
	Number		Amount		Number		Amount		Number		Amount
	(Dollars in thousands)
At June 30, 2009
First mortgage loan balances:
Conventional		2	$	616		2	$	1,160		4	$	1,776
Multifamily and commercial real estate		3		17,209		11		33,994		14		51,203
Second mortgage and equity loans		—		—		—		—		—		—
Construction and land loans		—		—		3		12,685		3		12,685
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
Multifamily and commercial real estate		—		—		—		—		—		—
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		—	$	—		—	$	—		—	$	—
Multifamily and commercial real estate		—		—		—		—		—		—
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
Multifamily and commercial real estate		—		—		—		—		—		—
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
Multifamily and commercial real estate		—		—		—		—		—		—
Second mortgage and equity loans		1		29		1		44		2		73
Construction and land loans		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total		4	$	168		4	$	184		8	$	352

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 $3.1 million, $316,000, and $3.2 million at 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. Subsequent to June 30, 2009, Oritani obtained title to the property securing the $877,000 non-performing loan classified as impaired. The property is currently being marketed for sale. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Comparison of Operating Results for the Years Ended June 30, 2009 and June 30, 2008, Provision for Loan Losses.”

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 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.

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 Federal Deposit Insurance Corporation (“FDIC”) and the New Jersey Department of Banking and Insurance (“the Department”) 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. The amount of assets classified as “substandard” in the table includes nine commercial real estate loans at June 30, 2009, three residential and four commercial real estate loans at June 30, 2008 and two commercial real estate loans at June 30, 2007.

	At June 30, 2009		At June 30, 2008		At June 30, 2007
			(In thousands)

Residential Real Estate (1):
Special mention assets	$	197	$	—	$	—
Substandard assets		—		85		—
Doubtful assets		—		—		—
Total residential real estate		197		85		—

All Other Loans:
Special mention assets		23,967		21,722		9,790
Substandard assets		55,811		14,375		238
Total all other loans		79,778		36,097		10,028

Total classified assets	$	79,975	$	36,182	$	10,028
Allowance allocated to total classified assets	$	5,118	$	2,149	$	317

The loan portfolio is reviewed on a regular basis to determine whether any loans require classification in accordance with applicable regulations. Not all classified assets constitute non-performing assets. The increases in Special Mention and Substandard assets is primarily due to increased delinquent, nonaccrual and impaired loans. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Comparison of Operating Results for the Years Ended June 30, 2009 and June 30, 2008, Provision for Loan Losses.”

Impaired Loans. The Company defines an impaired loan as a loan for which it is probable, based on current information, that the Company will not collect all amounts due under the contractual terms of the loan agreement. Loans we individually classify as impaired include multifamily, commercial mortgage and construction loans. 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.

Potential Problem Loans. Although we believe that substantially all risk elements at June 30, 2009 have been disclosed in the categories presented above, it is possible that for a variety of reasons, including economic conditions, certain borrowers may be unable to comply with the contractual repayment terms on certain real estate and commercial loans. As part of the analysis of the loan portfolio, management determined that there were approximately $14.0 million in potential problem loans at June 30, 2009. There is one large loan in the 60-89 day past due total at June 30, 2009. Subsequent to June 30, 2009, the delinquency of this loan exceeded 90 days and it was placed on non-accrual status. This is a $14.0 million loan secured by a commercial property in Hudson County, New Jersey. The borrower has experienced cash flow difficulties. Foreclosure proceedings have commenced although Oritani is in negotiations with the borrower regarding potential resolution. It is presently unknown whether these negotiations will be successful, or whether continued pursuit of legal remedies will be necessary.

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 June 30, 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.

	At or For the Years Ended June 30,
	2009			2008			2007			2006			2005
	(Dollars in thousands)
Balance at beginning of period	$	13,532		$	8,882		$	7,672		$	6,172		$	5,372

Charge-offs:
First mortgage loan balances:
Conventional		—			—			—			—			—
Multifamily and commercial real estate		260			—			—			—			—
Second mortgage and equity loans		—			—			—			—			—
Construction and land loans		2,250			—			—			—			—
Other loans		222			—			—			—			—
Total charge-offs		2,732			—			—			—			—
Recoveries:
First mortgage loan balances:
Conventional		—			—			—			—			—
Multifamily and commercial real estate		—			—			—			—			—
Second mortgage and equity loans		—			—			—			—			—
Construction and land loans		—			—			—			—			—
Other loans		—			—			—			—			—
Total recoveries		—			—			—			—			—
Net (charge-offs) recoveries		(2,732	)		—			—			—			—
Provision for loan losses		9,880			4,650			1,210			1,500			800

Balance at end of year	$	20,680		$	13,532		$	8,882		$	7,672		$	6,172

Ratios:
Net charge-offs to average loans outstanding (annualized)		0.23	%		—	%		—	%		—	%		—	%
Allowance for loan losses to total loans at end of period		1.59	%		1.32	%		1.15	%		1.18	%		1.23	%

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 June 30,
	2009					2008					2007
	Allowance for Loan Losses		Percent of Loans in Each Category to Total Loans			Allowance for Loan Losses		Percent of Loans in Each Category to Total Loans			Allowance for Loan Losses		Percent of Loans in Each Category to Total Loans
	(Dollars in thousands)

First mortgage loan balances:
Conventional	$	1,012		20.4	%	$	845		21.8	%	$	709		24.6	%
Multifamily and commercial real estate		12,595		64.6			8,095		58.4			6,143		58.7
Second mortgage and equity loans		274		4.2			299		5.8			326		8.5
Construction and land loans		5,791		10.0			3,883		13.5			979		8.1
Other loans		268		0.8			92		0.5			15		0.1
Unallocated		740		—			318		—			710		—

Total	$	20,680		100.0	%	$	13,532		100.0	%	$	8,882		100.0	%

	At June 30,
	2006					2005
	Allowance for Loan Losses		Percent of Loans in Each Category to Total Loans			Allowance for Loan Losses		Percent of Loans in Each Category to Total Loans
	(Dollars in thousands)

First mortgage loan balances:
Conventional	$	749		25.3	%	$	684		29.3	%
Multifamily and commercial real estate		4,834		58.1			3,557		54.1
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 June 30, 2009, versus June 30, 2008. Such loans are discussed in Item 7, “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. Although we had some experience in this type of lending prior to this significant growth, the increased volume of such originations during the last six years heightens the credit risk associated with this portion of the loan portfolio. Therefore, in order to adequately establish the allowance at levels sufficient to absorb probable and estimable losses in the loan portfolio, we focus on the ratio of the allowance to total loans as well as other measurement factors. This analysis incorporates our review of various sources of industry data relating to the allowance for loan losses, including peer group reviews. Due to the continued focus on this type of lending, we have increased the allowance for loan losses, and related provision, during periods of significant multi-family and commercial loan growth.

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 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 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 June 30, 2009, consisted of $134.9 million in federal agency obligations, a $5.7 million investment in a mutual fund, $2.2 million of corporate debt instruments and $1.8 million in equity securities. We also invest in mortgage-backed securities, most of which are guaranteed by government sponsored enterprises. At June 30, 2009, our mortgage-backed securities portfolio totaled $247.4 million, or 12.9% of total assets, and consisted of $191.4 million in fixed-rate securities and $56.0 million in adjustable-rate securities, primarily 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.

Corporate Bonds. At June 30, 2009, our corporate bond portfolio totaled $2.2 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 June 30, 2009, our mutual fund portfolio totaled $5.7 million, or 0.3% of our total assets, all of which were 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 the Company recorded a non-cash impairment charge to earnings of $1.7 million for the year ended June 30, 2009.

Equity Securities. At June 30, 2009, our equity securities portfolio totaled $1.8 million, or 0.1% of our total assets, all of which were classified as available for sale. The portfolio consists of financial industry common stock. During fiscal 2009, several of these holdings were deemed other-than-temporarily impaired and the Company recorded a non-cash impairment charge to earnings of $399,000. 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 out 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, and to lower our credit risk as a result of the guarantees provided by Freddie Mac, Fannie Mae or Ginnie Mae. 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.

Mortgage-backed securities are created by the pooling of mortgages and the issuance of a security with an interest rate which is less than the interest rate on the underlying mortgages. Mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages, although we focus our investments on mortgage-backed securities backed by one- to four-family mortgages. The issuers of such securities (generally U.S. government agencies and government sponsored enterprises, including Fannie Mae, Freddie Mac and Ginnie Mae) pool and resell the participation interests in the form of securities to investors such as us, and guarantee the payment of principal and interest to investors. Mortgage-backed securities generally yield less than the loans that underlie such securities because of the cost of payment guarantees and credit enhancements. However, mortgage-backed securities are usually more liquid than individual mortgage loans and may be used to collateralize our specific liabilities and obligations.

At June 30, 2009, our mortgage-backed securities totaled $247.4 million or 12.9%, of total assets and 13.6% of interest earning assets. At June 30, 2009, 22.6% of the mortgage-backed securities were backed by adjustable rate mortgage loans and 77.4% were backed by fixed rate mortgage loans. The mortgage-backed securities portfolio had a weighted average yield of 4.43% at June 30, 2009. The estimated fair value of our mortgage-backed securities at June 30, 2009 was $249.0 million, which is $5.1 million more than the amortized cost of $243.9 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 the Company’s mortgage-backed securities are insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae except for one AAA rated private label CMO with an amortized cost of $1.0 million and a fair value of $860,000. The security was issued in 2003 and is performing in accordance with contractual terms.

	At June 30,
	2009				2008				2007
	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		18,783		19,063		25,082		24,902		31,365		30,329
Ginnie Mae		5,161		5,157		6,055		6,040		8,895		8,907
Fannie Mae		31,329		31,943		42,066		42,094		58,479		57,314
Collateralized mortgage obligations		63,544		64,218		90,747		89,636		118,667		113,955

Total securities held to maturity	$	118,817	$	120,381	$	163,950	$	162,672	$	222,821	$	215,582

	At June 30,
	2009				2008				2007
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)

United States Government and federal agency obligations	$	134,754	$	134,837	$	10,000	$	9,865	$	25,000	$	25,007
Corporate bonds		2,000		2,156		2,000		2,184		2,000		2,024
Mutual funds		5,636		5,676		7,782		7,782		8,429		8,412
Equity securities		1,965		1,750		2,364		2,454		—		—
Mortgage-backed securities:
Freddie Mac		26,979		27,875		28,672		28,837		1,363		1,363
Fannie Mae		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		68,571		70,260		85,351		86,334		27,024		26,964

Total securities available for sale	$	269,465	$	273,022	$	170,387	$	171,494	$	74,209	$	74,236

Portfolio Maturities and Yields. The composition and maturities of the investment securities portfolio at June 30, 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. State and municipal securities yields have not been adjusted to a tax-equivalent basis.

One Year or Less

More than One Year

through Five Years

More than Five Years

through Ten Years

More than Ten Years

Total Securities

Amortized

Cost

Weighted

Average

Yield

Amortized

Cost

Weighted

Average

Yield

Amortized

Cost

Weighted

Average

Yield

Amortized

Cost

Weighted

Average

Yield

Amortized

Cost

Fair Value

Weighted

Average

Yield

(Dollars in thousands)

Mortgage-backed securities:

Federal		22-3617966
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification Number)

370 Pascack Road, Township of Washington		07676
(Address of Principal Executive Offices)		Zip Code

Title of each class		Name of each exchange on which registered
Common Stock, $0.01 par value		The NASDAQ Stock Market, LLC

Large accelerated filer ¨	Accelerated filer x	Non-accelerated filer ¨	Smaller reporting company ¨
		(Do not check if a smaller reporting company)