Forward Looking Statements

This Quarterly 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.

Executive Summary

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 and two limited liability companies that own a variety of real estate investments. In addition, Oritani Financial Corp. has engaged in limited lending to the real estate investment properties in which (either directly or through one of its subsidiaries) Oritani Financial Corp. has an ownership interest. Oritani Bank's principal business consists of attracting retail and commercial bank deposits from the general public 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 primary sources of funds are deposits, borrowings and principal and interest payments on loans and securities. 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 results of operations depend primarily on our net interest income which is the difference between the interest we earn on interest-earning assets and the interest paid on our interest-bearing liabilities. Our net interest income is primarily affected by the market interest rate environment, the shape of the U.S. Treasury yield curve, the timing of the placement of interest-earning assets and interest-bearing liabilities, and the prepayment rate on our mortgage-related assets. Provisions for loan losses and asset impairment charges can also have a significant impact on our results of operations. Other factors that may affect our results of operations are general and local economic and competitive conditions, government policies and actions of regulatory authorities.

Our business strategy is to operate as a well-capitalized and profitable financial institution dedicated to providing exceptional personal service to our individual and business customers. Our primary focus has been, and will continue to be, growth in multi-family and commercial real estate lending. We do not originate or purchase sub-prime loans, and our loan portfolio does not include any such loans.

Comparison of Financial Condition at March 31, 2009 and June 30, 2008

Balance Sheet Summary

Total Assets. Total assets increased $349.1 million, or 24.2%, to $1.79 billion at March 31, 2009, from $1.44 billion at June 30, 2008. The increases were primarily in the captions of loans and securities available for sale ("AFS"), and were primarily funded through increased deposits and borrowings.

Cash and cash equivalents. Cash and cash equivalents increased $48.7 million to $57.6 million at March 31, 2009, from $8.9 million at June 30, 2008. The increase in liquid funds is primarily attributable to the sharp increase in deposits. Excess liquid assets are typically redeployed into loans or investments and increases in both of these captions have occurred over the nine month period. A reduction in liquid assets through further deployment, particularly in loans, is expected in the coming months.

Net Loans. Loans, net increased $227.0 million, or 22.5%, to $1.23 billion at March 31, 2009, from $1.01 billion at June 30, 2008. The Company continued its emphasis on loan originations, particularly multi-family and commercial real estate loans. Loan originations and purchases totaled $356.5 million for the nine months ended March 31, 2009.

The allowance for loan losses increased $7.8 million to $21.3 million at March 31, 2009, from $13.5 million at June 30, 2008. There were no recoveries or charge-offs during the nine month periods ending March 31, 2009 and 2008.. A component of the increased provision in the 2009 period was loan growth. Loans, net increased $227.0 million over the nine months ended March 31, 2009, versus growth of $151.8 million over the comparable 2008 period. The delinquency and nonaccrual totals, however, also had a considerable impact on the provision for loan losses.

Delinquency Totals (in thousands)
                                    03/31/09        12/31/08       09/30/08       06/30/08       03/31/08
30 - 59 days past due              $     4,897     $    4,979     $   16,624     $   25,367     $   23,531
60 - 89 days past due                    2,130          5,942          1,381             18         14,034
90+ days past due and accruing               -              -              -              -              -
Nonaccrual                              52,260         44,067         25,337         14,211            384
Total                              $    59,287     $   54,988     $   43,342     $   39,596     $   37,949

The level and magnitude of the delinquent loan total have increased since the last quarter. The Company has continued its aggressive posture toward delinquent borrowers. The Company has 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 and agrees to an additional fee if the loan is not paid in full on or before the new maturity date.

The nonaccrual total of $52.3 million at March 31, 2009, includes all of the loans ($44.1 million) that were classified as nonaccrual at December 31, 2008. These loans have been discussed in prior reports. Two of these loans are to one borrower and totaled $18.3 million at December 31, 2008. The loans are secured by a condominium construction project and raw land with all building approvals, both of which are in Northern New Jersey. Oritani has been working with the borrower. The construction of the condominium project is virtually complete and the individual unit sales process has commenced. Several units are currently under contract with closings expected to begin in late May 2009. As of March 31, 2009, the total outstanding on these loans was $19.4 million. These two loans were considered impaired as of March 31, 2009. In accordance with the results of the Company's Statement of Financial Accounting Standards #114 ("FAS 114") impairment analyses, a specific reserve of $4.8 million has been recorded against these loans. In January, 2009, the borrower for these loans filed for Chapter 11 bankruptcy protection. In the filing, the borrower named Oritani Bank as its largest creditor with a balance owed of $20 million. This $20 million amount pertains to the two loans described above. Delinquent interest and other amounts due on the loans bring the total owed by the borrower to approximately the amount noted on his filing. These two loans have been reported as delinquent by Oritani since March 31, 2008; and they have been classified as impaired and placed on nonaccrual since June 30, 2008. The bankruptcy filing has not had a material impact on the completion of the project or the individual unit sales process. No additional reserves were considered necessary due to the bankruptcy filing as the Company had not ascribed any value to the borrower's guarantee in its impairment analyses. Another significant component of nonaccrual loans at March 31, 2009, were three loans to another borrower. One of these loans is a $7.9 million loan secured by a retail mall in Northern New Jersey. The other two loans total $10.2 million and are secured by a golf course in Bergen County, New Jersey. All three of these loans are classified as nonaccrual and impaired, in accordance with FAS#114, at March 31, 2009. Oritani is in litigation with this borrower, foreclosure proceedings have commenced and a rent receiver has been placed in control of the operations of these properties. Net cash generated from the operation of these properties is being forwarded from the rent receiver to Oritani. In accordance with the results of the impairment analyses, no reserve was required for these loans as they were considered to be well collateralized. Another significant portion of the nonaccrual total at March 31, 2009, were three loans to one borrower that totaled $6.6 million. These loans were secured by various warehouse properties in Rockland, Nassau and Westchester counties, New York. All three of these loans are classified as nonaccrual and impaired, in accordance with FAS 114, at March 31, 2009. Oritani is in litigation with this borrower and foreclosure proceedings have commenced. A rent receiver has been appointed on two of the properties and we are attempting to have a rent receiver appointed on the other property. In accordance with the results of the impairment analyses, a specific reserve of $40,000 has been recorded against one of these loans. No reserve was required for the other loans as they were considered to be well collateralized. The largest addition to the nonaccrual total at March 31, 2009 was a $5.9 million multifamily loan located in Bergen County, New Jersey. This loan was included in the 60-89 days past due total at December 31, 2008. The borrower on this loan has declared bankruptcy, a rent receiver is in place, net cash flows from the operation of the property are being forwarded to Oritani, and the bankruptcy trustee is actively marketing the property for sale. 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. The nonaccrual total at March 31, 2009 also includes two loans that required an impairment reserve as of March 31, 2009. One of these loans is a $1.1 million condominium construction loan located in Morris County, New Jersey. This loan was not delinquent at December 31, 2008. The other loan is a $609,000 multifamily loan located in Middlesex County, New Jersey. This loan was included in the 60-89 days past due total at December 31, 2008. In accordance with the impairment analyses performed for these two loans, specific reserves of $315,000 and $300,000, respectively, have been recorded against these two loans

Securities Available for Sale. Securities available for sale increased $96.9 million to $119.2 million at March 31, 2009 from $22.3 million at June 30, 2008. This increase was due to purchases during the period partially offset by maturities, an impairment charge of $2.0 million and sales. The purchases made over the period were primarily to deploy excess liquid funds in structures that are likely to return the funds to the Company within one year. The Company felt the returns for longer term investments were insufficient to compensate for the additional interest rate risk.

Mortgage-Backed Securities Held to Maturity. Mortgage-backed securities held to maturity decreased $30.4 million, or 18.5%, to $133.6 million at March 31, 2009, from $164.0 million at June 30, 2008. This decreased was primarily due to principal repayments received.

Investments in real estate joint ventures, net. Investments in real estate joint ventures, net increased $353,000 to $5.9 million at March 31, 2009, from $5.6 million at June 30, 2008. The Company invested in two new joint venture projects over the period. The investments in these projects were partially offset by distributions from existing investments.

Real Estate Held for Investment. Real estate held for investment decreased $2.3 million, or 63.7%, to $1.3 million at March 31, 2009, from $3.7 million at June 30, 2008. This decrease was due to the completion of construction of the Emerson de novo branch location during the 2009 period and the subsequent transfer of the property to office properties and equipment.

Office Properties and Equipment, net. Office properties and equipment increased $4.5 million, or 48.2%. to $13.8 million at March 31, 2009, from $9.3 million at June 30, 2008. This increase is due to the opening of two de novo branch locations, one of which was previously classified as real estate held for investment while in the construction phase.

Deposits. Deposits increased $303.1 million, or 43.4%, to $1.00 billion at March 31, 2009, from $698.9 million at June 30, 2008. Deposits increased $122.1 million during the quarter ended March 31, 2009. The Bank has implemented several initiatives designed to achieve deposit growth. Two new branch locations have recently been opened. Strong deposit growth remains a strategic objective of the Company.

Borrowings. Borrowings increased $76.1 million, or 17.5%, to $509.7 million at March 31, 2009, from $433.7 million at June 30, 2008. The Company committed to various long term advances from the FHLB-NY over the period.

Stockholders' Equity. Stockholders' equity decreased $36.8 million, or 13.2%, to $242.2 million at March 31, 2009, from $279.0 million at June 30, 2008. On March 18, 2009, the Company announced the completion of its third 10% repurchase program as well as the commencement of a fourth (967,828 shares) 10% repurchase program. As of March 31, 2009, the Company had repurchased a total of 3,319,500 shares at a total cost of $52.3 million and an average cost of $15.76 per share. Through April 21, 2009, the Company had repurchased a total of 3,376,600 shares at a total cost of $53.1 million and an average cost of $15.73 per share.

Average Balance Sheets for the Three Months and Nine Months Ended March 31, 2009 and 2008

The following tables present certain information regarding Oritani Financial Corp.'s financial condition and net interest income for the three and nine months ended March 31, 2009 and 2008. The table presents the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. We derived average balances from daily balances over the periods indicated. Interest income includes fees that we consider adjustments to yields.

                                                   Oritani Financial Corp. and Subsidiaries
                                               Average Balance Sheet and Yield/Rate Information
                                                    For the Three Months Ended (unaudited)
                                         March 31, 2009                                 March 31, 2008

                             Average         Interest       Average         Average         Interest       Average
                           Outstanding       Earned/         Yield/       Outstanding       Earned/         Yield/
                             Balance           Paid           Rate          Balance           Paid           Rate
                                                            (Dollars in thousands)

Interest-earning assets:
Loans                      $  1,220,390     $   18,553           6.08 %   $    885,223     $   14,173           6.40 %
Securities held to
maturity                         24,909            190           3.05 %         20,075            349           6.95 %
Securities available for
sale                             73,025            713           3.91 %         31,419            373           4.75 %
Mortgage backed
securities held to
maturity                        138,493          1,373           3.97 %        185,414          1,787           3.86 %
Mortgage backed
securities available for
sale                            147,157          1,763           4.79 %         99,854          1,285           5.15 %
Federal funds sold and
short term investments            5,107              6           0.47 %         44,737            351           3.14 %
Total interest-earning
assets                        1,609,081         22,598           5.62 %      1,266,722         18,318           5.78 %
Non-interest-earning
assets                          120,435                                         73,147
Total assets               $  1,729,516                                   $  1,339,869

Interest-bearing
liabilities:
Savings deposits                143,321            469           1.31 %        149,229            587           1.57 %
Money market                    108,444            659           2.43 %         48,793            439           3.60 %
NOW accounts                     73,047            161           0.88 %         73,862            203           1.10 %
Time deposits                   620,470          5,391           3.48 %        418,681          4,714           4.50 %
Total deposits                  945,282          6,680           2.83 %        690,565          5,943           3.44 %
Borrowings                      508,368          5,118           4.03 %        340,138          3,651           4.29 %
Total interest-bearing
liabilities                   1,453,650         11,798           3.25 %      1,030,703          9,594           3.72 %
Non-interest-bearing
liabilities                      32,709                                         27,751
Total liabilities             1,486,359                                      1,058,454
Stockholders' equity            243,157                                        281,415
Total liabilities and
stockholders' equity       $  1,729,516                                   $  1,339,869

Net interest income                         $   10,800                                     $    8,724
Net interest rate spread
(1)                                                              2.37 %                                         2.06 %
Net interest-earning
assets (2)                 $    155,431                                   $    236,019
Net interest margin (3)                                          2.68 %                                         2.75 %
Average of
interest-earning assets
to interest-bearing
liabilities                                                      1.11 X                                         1.23 X

(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

                    Oritani Financial Corp. and Subsidiaries

                                                                                       Oritani Financial Corp. and Subsidiaries
                                                                                   Average Balance Sheet and Yield/Rate Information
                                                                                        For the Nine Months Ended (unaudited)
                                                                       March 31, 2009                                                 March 31, 2008

                                                        Average                 Interest           Average            Average            Interest           Average
                                                      Outstanding               Earned/             Yield/          Outstanding          Earned/             Yield/
                                                        Balance                   Paid               Rate             Balance              Paid               Rate
                                                                                                (Dollars in thousands)

Interest-earning assets:
Loans                                          $               1,155,755     $       53,198               6.14 %   $      829,967     $       40,417               6.49 %
Securities held to maturity                                       24,733                725               3.91 %           18,753                934               6.64 %
Securities available for sale                                     43,699              1,346               4.11 %           36,641              1,418               5.16 %
Mortgage backed securities held to
maturity                                                         148,556              4,405               3.95 %          199,225              5,766               3.86 %
Mortgage backed securities available for
sale                                                             148,429              5,436               4.88 %           79,163              3,147               5.30 %
Federal funds sold and short term
investments                                                        1,875                  7               0.50 %           41,622              1,401               4.49 %
Total interest-earning assets                                  1,523,047             65,117               5.70 %        1,205,371             53,083               5.87 %
Non-interest-earning assets                                       91,501                                                   69,018
Total assets                                   $               1,614,548                                           $    1,274,389

Interest-bearing liabilities:
Savings deposits                                                 144,247              1,536               1.42 %          152,576              1,885               1.65 %
Money market                                                      83,402              1,735               2.77 %           44,128              1,317               3.98 %
NOW accounts                                                      74,405                486               0.87 %           73,662                640               1.16 %
Time deposits                                                    520,303             14,039               3.60 %          419,109             14,622               4.65 %
Total deposits                                                   822,357             17,796               2.89 %          689,475             18,464               3.57 %
Borrowings                                                       504,384             15,058               3.98 %          280,181              9,213               4.38 %
Total interest-bearing liabilities                             1,326,741             32,854               3.30 %          969,656             27,677               3.81 %
Non-interest-bearing liabilities                                  32,271                                                   27,025
Total liabilities                                              1,359,012                                                  996,681
Stockholders' equity                                             255,536                                                  277,708
Total liabilities and stockholder's equity     $               1,614,548                                           $    1,274,389

Net interest income                                                          $       32,263                                           $       25,406
Net interest rate spread (1)                                                                              2.40 %                                                   2.06 %
Net interest-earning assets (2)                $                 196,306                                           $      235,715
Net interest margin (3)                                                                                   2.82 %                                                   2.81 %

(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

Comparison of Operating Results for the Three Months Ended March 31, 2009 and 2008.

Net Income. Net income decreased $862,000 to $1.5 million for the quarter ended March 31, 2009, from $2.4 million for the corresponding 2008 quarter. The most significant differences between the two periods is in the provision for loan losses and other expenses. Provision for loan losses increased $1.7 million over the periods. In addition, other expenses increased $1.9 million over the periods. These items were partially offset by a $2.1 million increase in net interest income before provision for loan losses. These changes are discussed in greater detail below. Our annualized return on average assets was 0.35% for the . . .