Provident New York Bancorp Announces Third Quarter 2012 Earnings of $0.17 per Diluted ShareMONTEBELLO, NY -- (Marketwire - July 23, 2012) - Provident New York Bancorp (NYSE: PBNY), the parent company of Provident Bank, today announced third fiscal quarter results for the period ended June 30, 2012. Net income for the quarter was $6.2 million, or $0.17 per diluted share, compared to net income of $1.9 million, or $0.05 per diluted share for same quarter last year and $5.7 million, or $0.15 per diluted share for the linked quarter ended March 31, 2012.
President's Comments
Jack Kopnisky, President and CEO, commented: "In the third fiscal quarter, we continued to see the impact of our growth strategy in all areas of the Bank as a result of our focus on strong, consistent execution. This focus has resulted in historically high loan growth, which generated $206.2 million in total loan originations during the third quarter; of which a record $107 million were originated and funded during the month of June 2012. We have been able to accomplish this growth while maintaining strong credit underwriting standards, and increasing our net interest margin to 3.59% at June 30, 2012 from 3.57% in the previous quarter. Commercial loans balances have grown 29.1%, excluding ADC, and deposits are up 11.2% year over year as a result of our team based strategy in our legacy and New York City markets.
We continue to see strong earnings, bolstered by our strategy and the efficiencies that we have been able to gain over the last 9 months. Earnings for the quarter ending June 30, 2012, of $0.17 cents per diluted share, represents an increase of 240% over the $0.5 cents per diluted share reported for the same quarter last year. Year to date earnings of $17.6 million at June 30, 2012, represents a 44.1% increase over the prior year amount of $12.2 million. Our efficiency ratio has also improved as of June 30, 2012, to 65.5% from 71% at June 30, 2011.
Our focused management of non-performing loans showed significant progress during the third fiscal quarter, reducing to $44.5 million at June 30, 2012 from $52 million at March 31, 2012. This represents a 14.4% decrease in non-performing loans quarter over quarter. Net charge offs as a percentage of average loans improved to 55 basis points compared to 74 basis points last quarter and 103 basis points last year. The level of criticized/classified loans was down as are delinquency levels at June 30, 2012.
We received federal regulatory approval for our acquisition of Gotham Bank in July, 2012. We expect to complete the Gotham acquisition in August 2012."
Key items for the quarter
- Total loan originations were $206.2 million compared to $166.6 million in the linked quarter.
- Non-performing loans reduced by $7.5 million from $52 million at March 31, 2012, to $44.5 million at June 30, 2012.
- Provision for loan losses were $2.3 million compared to $2.9 million for the linked quarter, and $3.6 million for the same quarter last year.
- Coverage of allowance for loan losses to non-performing loans increased to 62% for the quarter as compared to 53% in the linked quarter, while the allowance for loan losses to total loans ended the period at 1.49%.
- Net interest margin improved by 2 basis points over the linked quarter to 3.59 percent.
- Securities gains were $1.4 million, after tax.
Net Interest Income and Margin
Third quarter fiscal 2012 compared with third quarter fiscal 2011
Net interest income was $24.1 million for the third quarter of fiscal 2012, up $1.3 million from the same quarter of fiscal 2011. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 8 basis points and loan yields were down 40 basis points compared to the third quarter fiscal 2011. As a result, the yield on interest-earning assets declined 30 basis points. The cost of deposits decreased 7 basis points to 0.22 percent, and the cost of borrowings increased by 10 basis points to 3.77 percent. The resulting net interest margin on a tax-equivalent basis was 3.59 percent for the third quarter of fiscal 2012, compared to 3.70 percent for the same period a year ago.
Third quarter fiscal 2012 compared with linked quarter ended March 31, 2012
Net interest income for the quarter ended June 30, 2012 increased compared to the linked quarter ended March 31, 2012 by $177,000. The tax-equivalent net interest margin increased to 3.59% from 3.57% in the linked quarter. Overall, loan yields remained above 5% throughout the quarter, while investment yields held steady at approximately 2.8%. Deposit costs increased by 1 basis point, while borrowings increased by a modest amount -- albeit at a lower borrowing volume, neither of which had a significant impact on the margin.
Noninterest Income
Third quarter fiscal 2012 compared with third quarter fiscal 2011
Noninterest income totaled $8.0 million for the third quarter, an increase of $2.8 million over the third quarter of fiscal 2011. The primary driver of the increase was higher gains on sales of securities of $1.9 million and higher gains on sales of loans of $569,000.
Third quarter fiscal 2012 compared with linked quarter ended March 31, 2012
Noninterest income was stable on a linked quarter basis.
Noninterest Expense
Third quarter fiscal 2012 compared with third quarter fiscal 2011
Noninterest expense decreased $1.5 million, when compared to the third quarter fiscal 2011, mostly due to charges incurred during the third quarter of fiscal 2011 related to the change in our CEO. The third fiscal quarter of 2012 also included $451,000 of merger related expenses.
Third quarter fiscal 2012 compared with the linked quarter ended March 31, 2012
On a linked quarter basis, noninterest expense decreased $128,000. Compensation and benefits decreased due to a true up in accruals for the incentive compensation plan. Increases of $152,000 were seen in one-time expenses related to Gotham acquisition, totaling approximately $997,000 year to date.
Income Taxes
The Company recorded income tax expense for the third fiscal quarter of 2012 at an effective tax rate of 27.7 percent compared to (10.7) percent for the same period in fiscal 2011. The difference is primarily due to an increased write-off of credits in 2011, as well as larger tax-exempt municipal security interest relative to pre-tax income for fiscal 2011.
Credit Quality
Nonperforming loans decreased to $44.5 million at June 30, 2012 from $52.0 million at March 31, 2012. This improvement came primarily from returning one ADC relationship to performing status based on payment performance. Net charge-offs for the quarter ended June 30, 2012 were $2.5 million compared to $3.3 million for the linked quarter and $4.3 million for the third quarter of fiscal 2011. Charge-offs resulted primarily from write-downs of residential and commercial real estate in the process of foreclosure. The provision was $2.3 million for the current quarter, resulting in an allowance for loan losses of $27.6 million, or 62 percent of non-performing loans at June 30, 2012. This compares to 53 percent at March 31, 2012 and 61 percent at June 30, 2011. The provision was less than charge-offs as all of the charge-offs were previously considered in our allowance for loan loss methodologies and processes. Substandard loans decreased $2.1 million during the third fiscal quarter due to improvement in a number of loans which were ultimately upgraded. Special mention loans remained flat.
Key Balance Sheet Changes
- The balance sheet decreased $60.8 million or 1.9 percent compared to March 31, 2012 due primarily to decreases in investment securities of $142.1 million, partially offset by an increase in gross loans of $51.9 million.
- Deposits increased $74.2 million compared to March 31, 2012, excluding municipal and wholesale deposits, with the majority coming from transaction and money market accounts. Wholesale deposits were $50.4 million and $34.1 million at June 30, 2012 and March 31, 2012, respectively.
- Total loan originations during third quarter fiscal 2012 were $206.2 million compared to $166.6 million in the linked quarter. Commercial real estate balances including multi-family loans increased by $52.1 million or 6.1% over March 31, 2012 levels, more than offsetting declines in other categories.
- Securities decreased $142.1 million over March 31, 2012 levels, primarily due to purchases of $33.2 million in securities during the third fiscal quarter partially offset by sales of $82.5 million, with associated gains of $2.4 million, and $95.7 million in calls, maturities and principal pay downs.
- Foreclosed properties increased 25% over March 31, 2012 to $7.3 million at June 30, 2012, as we continue to actively manage our portfolios and move to resolution through foreclosure in a prudent and timely manner.
Capital and Liquidity
Provident Bank remained well-capitalized at June 30, 2012 with a Tier 1 Leverage ratio of approximately 8.41 percent. Tangible book value per share increased to $7.35 at June 30, 2012 from $7.25 at March 31, 2012. Total capital increased $3.4 million from March 31, 2012, to $443.1 million at June 30, 2012, due primarily to a net increase of $2.4 million in the Company's retained earnings and $698,000 in accumulated other comprehensive income.
About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.2 billion in assets, specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City marketplace through teams of dedicated and experienced relationship managers. Our franchise includes 36 Financial Centers. Provident Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit the Provident Bank web site at www.providentbanking.com.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS
In addition to historical information, this earnings release may contain forward-looking statements for purposes of applicable securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. There are a number of important factors described in documents previously filed by the Company with the Securities and Exchange Commission, and other factors that could cause the Company's actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Financial information contained in this release should be considered to be an estimate pending the filing with the Securities and Exchange Commission of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require adverse information received by management between the date of this release and the filing of the 10-Q to be reflected in the results of the fiscal period, even though the new information was received by management subsequent to the date of this release.
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
June 30, September 30, March 31,
2012 2011 2012
------------ ------------- ------------
Assets:
Cash and due from banks $ 111,400 $ 281,512 $ 89,019
Total securities 885,433 849,884 1,027,541
Loans held for sale 5,369 4,176 1,736
Loans:
One- to four-family residential
mortgage loans 357,943 389,765 366,675
Commercial real estate,
commercial business 1,114,764 913,279 1,053,208
Acquisition, development and
construction loans 165,125 175,931 163,808
Consumer loans 213,195 224,824 215,421
------------ ------------- ------------
Total loans, gross 1,851,027 1,703,799 1,799,112
Allowance for loan losses (27,587) (27,917) (27,787)
------------ ------------- ------------
Total loans, net 1,823,440 1,675,882 1,771,325
Federal Home Loan Bank stock, at
cost 18,207 17,584 17,129
Premises and equipment, net 38,877 40,886 39,162
Goodwill 160,861 160,861 160,861
Other amortizable intangibles 3,718 4,629 4,001
Bank owned life insurance 58,506 56,967 57,987
Foreclosed properties 7,292 5,391 5,828
Other assets 36,937 39,630 36,282
------------ ------------- ------------
Total assets $ 3,150,040 $ 3,137,402 $ 3,210,871
============ ============= ============
Liabilities:
Deposits
Retail $ 167,527 $ 194,299 $ 167,247
Commercial 320,849 296,505 314,177
Municipal 15,936 160,422 20,339
Personal NOW deposits 203,290 164,637 198,084
Business NOW deposits 39,170 37,092 34,407
Municipal NOW deposits 180,433 200,773 182,098
------------ ------------- ------------
Total transaction accounts 927,205 1,053,728 916,352
Savings 476,349 429,825 479,648
Money market deposits 673,498 509,483 698,899
Certificates of deposit 255,039 303,659 274,089
------------ ------------- ------------
Total deposits 2,332,091 2,296,695 2,368,988
Borrowings 314,154 323,522 313,849
Borrowings Senior Note - 51,499 -
Mortgage escrow funds and other
liabilities 60,667 34,552 88,335
------------ ------------- ------------
Total liabilities 2,706,912 2,706,268 2,771,172
Stockholders' equity 443,128 431,134 439,699
------------ ------------- ------------
Total liabilities and
stockholders' equity $ 3,150,040 $ 3,137,402 $ 3,210,871
============ ============= ============
Shares of common stock
outstanding at period end 37,899,007 37,864,008 37,899,007
Book value per share $ 11.69 $ 11.39 $ 11.60
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
Three
Months
Three Months Ended Ended Nine Months Ended
June 30, March 31, June 30,
2012 2011 2012 2012 2011
----------- ----------- ----------- ----------- -----------
Interest and
dividend
income:
Loans and loan
fees $ 22,312 $ 22,261 $ 22,153 $ 66,614 $ 67,505
Securities
taxable 4,224 3,607 4,415 12,629 10,668
Securities
non-taxable 1,581 1,829 1,599 4,954 5,655
Other earning
assets 228 237 244 727 968
----------- ----------- ----------- ----------- -----------
Total interest
income 28,345 27,934 28,411 84,924 84,796
Interest
expense:
Deposits 1,262 1,493 1,217 3,792 4,720
Borrowings 3,001 3,637 3,289 9,907 11,578
----------- ----------- ----------- ----------- -----------
Total interest
expense 4,263 5,130 4,506 13,699 16,298
----------- ----------- ----------- ----------- -----------
Net interest
income 24,082 22,804 23,905 71,225 68,498
Provision for
loan losses 2,312 3,600 2,850 7,112 7,800
----------- ----------- ----------- ----------- -----------
Net interest
income after
provision for
loan losses 21,770 19,204 21,055 64,113 60,698
Non-interest
income:
Deposit fees
and service
charges $ 2,816 $ 2,674 $ 2,706 $ 8,312 $ 8,085
Net gain on
sales of
securities 2,412 542 2,899 7,300 5,492
Other than
temporary
loss on
securities (6) (27) - (44) (27)
Title
insurance
fees 249 312 265 774 949
Bank owned
life
insurance 518 488 502 1,538 1,535
Gain on sale
of loans 578 9 450 1,468 861
Investment
management
fees 802 815 800 2,367 2,347
Fair value
gain (loss)
on interest
rate caps (14) (259) (40) (57) (27)
Other 624 663 389 1,468 1,681
----------- ----------- ----------- ----------- -----------
Total non-
interest
income 7,979 5,217 7,971 23,126 20,896
Non-interest
expense:
Compensation
and benefits 10,845 11,122 11,395 33,165 33,533
Stock-based
compensation
plans 326 284 284 885 859
Merger related
expenses 451 - 299 997 -
Restructuring
charge(severa
nce/branch
relocation) - 1,494 - - 1,772
Occupancy and
office
operations 3,388 3,423 3,409 10,498 10,815
Advertising
and promotion 440 855 427 1,480 2,651
Professional
fees 1,128 1,137 1,056 3,111 3,242
Data and check
processing 705 712 710 2,087 2,045
Amortization
of intangible
assets 283 305 305 911 1,088
FDIC insurance
and
regulatory
assessments 782 587 743 2,253 2,274
ATM/debit card
expense 437 400 425 1,273 1,159
Foreclosed
property
expense 428 461 412 1,045 494
Other 1,949 1,889 1,825 5,468 5,797
----------- ----------- ----------- ----------- -----------
Total non-
interest
expense 21,162 22,669 21,290 63,173 65,729
----------- ----------- ----------- ----------- -----------
Income before
income tax
expense 8,587 1,752 7,736 24,066 15,865
Income tax
expense 2,378 (187) 2,035 6,439 3,633
----------- ----------- ----------- ----------- -----------
Net income $ 6,209 $ 1,939 $ 5,701 $ 17,627 $ 12,232
=========== =========== =========== =========== ===========
Basic earnings
per common
share $ 0.17 $ 0.05 $ 0.15 $ 0.47 $ 0.33
Diluted
earnings per
common share 0.17 0.05 0.15 0.47 0.33
Dividends
declared 0.06 0.06 0.06 0.18 0.18
Weighted
average common
shares:
Basic 37,302,693 37,368,391 37,280,651 37,278,507 37,472,548
Diluted 37,330,467 37,370,213 37,316,778 37,292,366 37,473,167
Selected Financial
Condition Data: Three Months Ended
-------------------------------------------------------
(in thousands except
share and per share
data) 06/30/12 03/31/12 12/31/11 09/30/11 06/30/11
---------- ---------- ---------- ---------- ----------
End of Period
Total assets $3,150,040 $3,210,871 $3,084,166 $3,137,402 $2,976,057
Loans, gross (1) 1,851,027 1,799,112 1,775,893 1,703,799 1,685,272
Securities available
for sale 714,200 852,717 785,462 739,844 919,805
Securities held to
maturity 171,233 174,824 182,076 110,040 25,425
Bank owned life
insurance 58,506 57,987 57,485 56,967 56,454
Goodwill 160,861 160,861 160,861 160,861 160,861
Other amortizable
intangibles 3,718 4,001 4,306 4,629 4,967
Other non-earning
assets 83,106 80,020 78,710 85,907 88,321
Deposits 2,332,091 2,368,988 2,135,555 2,296,695 2,098,073
Borrowings 314,154 313,849 468,543 375,021 401,831
Equity 443,128 439,699 437,682 431,134 429,037
Other comprehensive
income related to
investment
securities
reflected in
stockholders'
equity 14,141 13,780 15,823 13,604 5,769
Average Balances
Total assets $3,133,958 $3,131,854 $3,062,520 $2,978,273 $2,915,988
Loans, gross:
Real estate-
residential
mortgage 360,487 374,498 385,269 398,420 384,582
Real estate-
commercial
mortgage 868,963 838,935 752,325 681,165 648,371
Real estate-
Acquisition,
Development &
Construction 165,442 163,116 172,155 186,398 198,120
Commercial and
industrial 205,051 197,507 203,929 208,181 222,128
Consumer loans 215,555 220,537 224,422 226,687 228,993
Loans total (1) 1,815,498 1,794,593 1,738,100 1,700,851 1,682,194
Securities (taxable) 778,782 799,753 696,293 717,893 688,445
Securities (non-
taxable) 182,003 185,062 205,366 208,692 208,643
Total earning assets 2,797,093 2,792,042 2,715,027 2,634,941 2,580,429
Non earning assets 336,865 339,812 347,493 343,332 335,559
Non-interest bearing
checking 483,589 503,539 500,621 486,504 464,197
Interest bearing NOW
accounts 412,072 389,846 398,885 309,729 296,677
Total transaction
accounts 895,661 893,385 899,506 796,233 760,874
Savings (including
mortgage escrow
funds) 493,234 463,971 445,236 461,566 444,913
Money market
deposits 697,342 654,013 577,387 504,476 529,286
Certificates of
deposit 265,375 284,737 302,713 371,907 346,903
Total deposits and
mortgage escrow 2,351,612 2,296,106 2,224,842 2,134,182 2,081,976
Total interest
bearing deposits 1,868,023 1,792,567 1,724,221 1,647,678 1,617,779
Borrowings 320,237 375,766 392,785 391,391 397,531
Equity 441,956 439,384 431,129 433,841 424,961
Selected Operating
Data:
Condensed Tax
Equivalent Income
(Loss) Statement
Interest and
dividend income $ 28,345 $ 28,411 $ 28,168 $ 27,817 $ 27,934
Tax equivalent
adjustment* 852 861 955 962 985
Interest expense 4,263 4,506 4,930 5,026 5,130
---------- ---------- ---------- ---------- ----------
Net interest
income (tax
equivalent) 24,934 24,766 24,193 23,753 23,789
Provision for loan
losses 2,312 2,850 1,950 8,784 3,600
---------- ---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 22,622 21,916 22,243 14,969 20,189
Non-interest income 7,979 7,971 7,176 9,056 5,217
Non-interest expense 21,162 21,290 20,721 24,382 22,669
---------- ---------- ---------- ---------- ----------
Income (loss) before
income tax expense 9,439 8,597 8,698 (357) 2,737
Income tax expense
(tax equivalent)* 3,230 2,896 2,981 136 798
---------- ---------- ---------- ---------- ----------
Net income
(loss) $ 6,209 $ 5,701 $ 5,717 $ (493) $ 1,939
========== ========== ========== ========== ==========
(1) Does not reflect allowance for loan losses of $27,587, $27,787, $28,245,
$27,917, and $29,385.
* Tax exempt income assumed at a statutory 35% federal rate
Three Months Ended
-----------------------------------------------------------
06/30/12 03/31/12 12/31/11 09/30/11 06/30/11
----------- ----------- ----------- ----------- -----------
Performance
Ratios
(annualized)
Return on
Average Assets 0.80% 0.73% 0.74% -0.07% 0.27%
Return on
Average Equity 5.65% 5.22% 5.26% -0.45% 1.83%
Non-Interest
Income to
Average Assets 1.02% 1.02% 0.93% 1.21% 0.72%
Non-Interest
Expense to
Average Assets 2.72% 2.73% 2.68% 3.25% 3.12%
Operating
Efficiency
Adjusted (2) 65.53% 67.86% 67.80% 70.24% 70.99%
Analysis of Net
Interest
Income
Yield on Loans 5.01% 5.03% 5.13% 5.22% 5.41%
Yield on
Investment
Securities-
Tax Equivalent 2.79% 2.81% 2.96% 2.81% 2.87%
Yield on
Earning
Assets- Tax
Equivalent 4.20% 4.22% 4.26% 4.33% 4.50%
Cost of
Deposits 0.22% 0.21% 0.23% 0.26% 0.29%
Cost of
Borrowings 3.77% 3.52% 3.65% 3.69% 3.67%
Cost of
Interest
Bearing
Liabilities 0.78% 0.84% 0.92% 0.98% 1.02%
Net Interest
Rate Spread-
Tax Equivalent
Basis 3.42% 3.38% 3.34% 3.35% 3.48%
Net Interest
Margin- Tax
Equivalent
Basis 3.59% 3.57% 3.54% 3.58% 3.70%
Capital
Information
Data
Tier 1 Leverage
Ratio- Bank
Only
(Preliminary) 8.41% 8.30% 8.51% 8.14% 8.77%
Tier 1 Risk-
Based Capital-
Bank Only
(Preliminary) 250,164 252,586 247,433 241,196 246,291
Total Risk-
Based Capital-
Bank Only
(Preliminary) 274,751 277,512 273,967 265,307 271,483
Tangible
Capital
Consolidated
(3) 278,549 274,837 272,515 265,644 263,209
Tangible
Capital as a %
of Tangible
Assets
Consolidated
(3) 9.33% 9.02% 9.34% 8.94% 9.37%
Shares
Outstanding 37,899,007 37,899,007 37,883,008 37,864,008 38,005,866
Shares
Repurchased
during
qrtr(open
market) - - - 183,000 66,108
Basic weighted
common shares
outstanding 37,302,693 37,280,651 37,252,464 37,332,121 37,368,391
Diluted common
shares
outstanding 37,330,467 37,316,778 37,252,464 37,332,245 37,370,213
Basic (loss)
earnings per
common share $ 0.17 $ 0.15 $ 0.15 $ (0.01)$ 0.05
Diluted (loss)
earnings per
common share 0.17 0.15 0.15 (0.01) 0.05
Dividends Paid
per common
share 0.06 0.06 0.06 0.06 0.06
Book Value per
common share 11.69 11.60 11.55 11.39 11.29
Tangible Book
Value per
common share
(3) 7.35 7.25 7.19 7.02 6.93
Asset Quality
Measurements
Non-performing
loans (NPLs):
non-accrual $ 41,048 $ 47,269 $ 40,777 $ 36,477 $ 42,226
Non-performing
loans (NPLs):
still accruing 3,450 4,693 5,136 4,090 5,837
Other Real
Estate Owned 7,292 5,828 5,625 5,391 5,184
Non-performing
assets (NPAs) 51,790 57,790 51,538 45,958 53,247
Troubled Debt
Restructures
still accruing 12,110 7,939 8,543 9,326 7,447
Net Charge-offs 2,512 3,308 1,622 10,252 4,345
Net Charge-offs
as % of
average loans
(annualized) 0.55% 0.74% 0.37% 2.41% 1.03%
NPLs as % of
total loans 2.40% 2.89% 2.59% 2.38% 2.85%
NPAs as % of
total assets 1.64% 1.80% 1.67% 1.46% 1.79%
Allowance for
loan losses as
% of NPLs 62% 53% 62% 69% 61%
Allowance for
loan losses as
% of total
loans 1.49% 1.54% 1.59% 1.64% 1.74%
Special mention
loans 37,555 37,379 18,424 23,026 24,099
Substandard /
doubtful loans 86,907 89,135 99,383 93,989 103,825
----------- ----------- ----------- ----------- -----------
(2) The efficiency ratio represents non-interest expense divided by the sum
of net interest income and non-interest income. As in the case of net
interest income, generally, net interest income as utilized in calculating
the efficiency ratio is typically expressed on a tax-equivalent basis.
Moreover, most institutions, in calculating the the efficiency ratio, also
adjust both noninterest expense and noninterest income to exclude from these
items (as calculated under generally accepted accounting principles) certain
component elements, such as non-recurring charges, other real estate expense
and amortization of intangibles (deducted from non interest expense) and
security transactions and other non-recurring items (excluded from non
interest income). We follow these practices.
(3) Provident Bank provides supplemental reporting of Non-GAAP tangible
equity ratios as management believes this information is useful to
investors.
The following table shows the reconciliation of tangible equity and the
tangible equity ratio:
06/30/12 03/31/12 12/31/11 09/30/11 06/30/11
----------- ----------- ----------- ----------- -----------
Total Assets $ 3,150,040 $ 3,210,871 $ 3,084,166 $ 3,137,402 $ 2,976,057
Goodwill and
other
amortizable
intangibles (164,579) (164,862) (165,167) (165,490) (165,828)
----------- ----------- ----------- ----------- -----------
Tangible Assets $ 2,985,461 $ 3,046,009 $ 2,918,999 $ 2,971,912 $ 2,810,229
----------- ----------- ----------- ----------- -----------
Stockholders'
equity 443,128 439,699 437,682 431,134 429,037
Goodwill and
other
amortizable
intangibles (164,579) (164,862) (165,167) (165,490) (165,828)
----------- ----------- ----------- ----------- -----------
Tangible
Stockholders'
equity $ 278,549 $ 274,837 $ 272,515 $ 265,644 $ 263,209
----------- ----------- ----------- ----------- -----------
Outstanding
Shares 37,899,007 37,899,007 37,883,008 37,864,008 38,005,866
Tangible
capital as a %
of tangible
assets
(consolidated) 9.33% 9.02% 9.34% 8.94% 9.37%
Tangible book
value per
share $ 7.35 $ 7.25 $ 7.19 $ 7.02 $ 6.93
PROVIDENT BANK CONTACT:
Stephen Masterson
EVP & Chief Financial Officer
845.369.8040
Provident New York Bancorp
400 Rella Boulevard
Montebello, NY 10901-4243
T 845.369.8040
F 845.369.8255
www.providentbanking.com
