Provident New York Bancorp Announces First Quarter 2013 Earnings of $0.16 per Diluted ShareMONTEBELLO, NY -- (Marketwire - January 23, 2013) - Provident New York Bancorp (the "Company") (NYSE: PBNY), the parent company of Provident Bank, today announced first quarter results for the period ended December 31, 2012. Net income for the quarter was $7.0 million, or $0.16 per diluted share, compared to net income of $5.7 million, or $0.15 per diluted share for the same quarter last year; and $2.3 million, or $0.06 per diluted share for the linked quarter ended September 30, 2012.
President's Comments
Jack Kopnisky, President and CEO, commented: "We had a strong first quarter to kick-off our year. Earnings for the quarter were $7.0 million or $0.16 per share, a 23% increase compared to the first quarter of 2012 and an increase of 210% over the linked quarter, which had been significantly impacted by merger-related expenses related to the acquisition of Gotham Bank of New York. Earnings were driven by strong commercial loan growth, solid core deposit growth and our continued management of expenses. We also continue to improve our operating efficiency as our growth in revenues outpaced expenses. Our efficiency ratio was 62.9% for the first quarter of 2013.
"Our credit quality continued to improve across the most important metrics. Non-performing loans of $34 million at December 31, 2012 are down $6.3 million compared to the linked quarter. Our ratio of non-performing loans to total loans declined by 106 basis points to 1.53% at December 31, 2012 as compared to the year ago period. Our allowance for loan losses to non-performing loans increased to 84% at December 31, 2012, and the positive trend in the risk ratings of our loan portfolio continued as well.
"Our overall strategy of focusing primarily on middle market clients has strong momentum. We continue to see significant opportunities for full relationships in the market. Our pipelines of loans, deposits and fee income opportunities continue to be at record highs. These volumes are enabling us to diversify our loan portfolio from higher concentrations of real estate loans to a more balanced portfolio. Overall we are originating approximately 50% of our commercial loans and deposits in our new markets and approximately 50% in our legacy markets.
"We are pleased to report that the integration of the Gotham Bank acquisition is going as planned and is assisting us in accelerating our growth in the New York City market area.
"Finally we continue to maintain strong levels of capital and liquidity. Tier 1 leverage ratio was approximately 8.2% at the Bank level and our total risk-based capital ratio was approximately 13.5%."
Key highlights for the quarter
- Total loan originations were $291.1 million compared to $205.7 million in the linked quarter, and $231.6 million for the first fiscal quarter of 2012.
- Total loans reached $2.2 billion at December 31, 2012, a $73.7 million increase compared to September 30, 2012.
- Our allowance for loan losses remained relatively unchanged at $28.1 million at December 31, 2012, in large part due to the growth in our loan portfolio. The allowance for loan losses as a percentage of total loans was 1.28% at December 31, 2012, compared to 1.33% in the linked quarter. The allowance ratios are inclusive of acquired Gotham loans that were recorded at fair value at acquisition date and for which there is no additional allowance for loan losses at either December 31, 2012 or September 30, 2012.
- Non-performing loans decreased from $39.8 million at September 30, 2012, to $33.6 million at December 31, 2012. The reduction in non-performing loans improved the allowance for loan losses to non-performing loans ratio to 84% at December 31, 2012.
- Provision for loan losses was $3.0 million and decreased by $550 thousand compared to the linked quarter. For the first quarter of fiscal 2012, our provision for loan losses was $2.0 million.
- Net interest margin was 3.37% for the first quarter of fiscal 2013 compared to 3.38% in the linked quarter and 3.54% in the first quarter of fiscal 2012.
Net Interest Income and Margin
First quarter fiscal 2013 compared with first quarter fiscal 2012
Net interest income was $27.9 million for the first quarter of fiscal 2013, up $4.7 million compared to the first quarter of fiscal 2012 due to higher average loan volumes. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 67 basis points and loan yields declined nine basis points compared to the first quarter of fiscal 2012. As a result, the yield on interest-earning assets declined 28 basis points to 3.98% on a tax equivalent basis for the first quarter of fiscal 2013. The cost of deposits increased five basis points to 28 basis points from the year ago quarter, while the cost of borrowings decreased by seven basis points to 3.58%. The resulting net interest margin on a tax-equivalent basis was 3.37% for the first quarter of fiscal 2013 compared to 3.54% for the same period a year ago.
First quarter fiscal 2013 compared with linked quarter ended September 30, 2012
Net interest income for the quarter ended December 31, 2012 increased $2.7 million to $27.9 million, compared to $25.2 million for the linked quarter ended September 30, 2012. This was primarily due to higher volumes. The tax-equivalent net interest margin decreased to 3.37% from 3.38% in the linked quarter. Yield on loans increased seven basis points and was 5.04%. Yield on interest earning assets declined three basis points to 3.98% from 4.01% at September 30, 2012. Deposit costs increased by one basis point, while the cost of borrowings decreased seven basis points.
Non-interest Income
First quarter fiscal 2013 compared with first quarter fiscal 2012
Non-interest income increased $483 thousand to $7.7 million for the first quarter of fiscal 2013 compared with first quarter of fiscal 2012. The increase was mainly driven by an increase in gain on sale of loans of $306 thousand given strong residential loan origination volume during the quarter and increases in other loan fees included in other non-interest income of $744 thousand. Net gain on sales of securities decreased by $573 thousand to $1.4 million.
First quarter fiscal 2013 compared with linked quarter ended September 30, 2012
Non-interest income decreased $1.4 million to $7.7 million for the first fiscal quarter of 2013 compared to the linked quarter ended September 30, 2012. Net gain on sales of securities declined by $1.7 million to $1.4 million for the first quarter of fiscal 2013 compared to $3.2 million for the linked quarter. Partially offsetting this decline were higher gain on sale of loans and other loan fees included in other non-interest income.
Non-interest Expense
First quarter fiscal 2013 compared with first quarter fiscal 2012
Non-interest expense increased $1.8 million to $22.5 million, when compared to the first quarter of fiscal 2012. This was principally attributed to an increase in personnel associated with the continued growth in the number of our commercial banking teams.
First quarter fiscal 2013 compared with the linked quarter ended September 30, 2012
Non-interest expense decreased $6.2 million, or 21.7% over the linked quarter. The decrease was mainly related to the $4.9 million in merger related costs associated with the Gotham acquisition in the quarter ended September 30, 2012.
Income Taxes
The Company recorded income tax expense for the first quarter of fiscal 2013 at an effective tax rate of 30.4% compared to 26.2% for the same period in fiscal 2012. The increase in the tax rate is the result of increased operating revenue which causes the proportional impact of tax-exempt municipal securities interest and bank owned life insurance income to decline.
Credit Quality
Non-performing loans decreased to $33.6 million at December 31, 2012 compared to $39.8 million at September 30, 2012. We exited a large credit relationship in our Acquisition, Development and Construction ("ADC") portfolio that contributed to the decline. Net charge-offs for the quarter were $3.1 million compared to $2.8 million in the linked quarter. The allowance for loan losses at December 31, 2012 was $28.1 million, which represented 83.8% of non-performing loans and 1.28% of our total loan portfolio. This compares to the linked quarter, in which the allowance for loan losses was $28.3 million, which represented 71.0% of non-performing loans and 1.33% of our total loan portfolio. The allowance for loan losses to total loans, excluding loans acquired in the Gotham transaction that were recorded at fair value at the acquisition date and continue to carry no allowance was 1.41% and 1.47%, at December 31, 2012 and September 30, 2012, respectively. Please refer to the Company's reconciliation of this non-GAAP measure on page 9.
During the quarter, foreclosed properties increased $650 thousand to $7.1 million. Contributing to the increase were foreclosed ADC loans that totaled $1.3 million and one residential loan with a balance of $121 thousand. This was offset by sales and write-downs that totaled $731 thousand.
Key Balance Sheet Changes
- Assets at December 31, 2012, decreased $233.5 million or 5.80% compared to September 30, 2012, mainly related to decreases in our cash balances of $277.7 million. Our cash balance at September 30, 2012 was elevated due to municipal tax collections that were subsequently drawn down during the quarter.
- Loans increased $73.7 million in the first fiscal quarter of 2013 and reached $2.2 billion.
- Deposits decreased $206.8 million between September 30, 2012 and December 31, 2012. Municipal deposits decreased $363.5 million compared to September 30, 2012, as a result of seasonal tax deposits, offset by increases in our commercial deposits of $91.7 million.
- Securities at December 31, 2012 decreased $22.1 million as compared to September 30, 2012. Purchases for the first fiscal quarter of 2013 were $109.0 million, which were offset by sales of $41.3 million and $85.5 million in calls, maturities and principal pay downs.
Capital and Liquidity
Provident Bank remained well capitalized at December 31, 2012 with a Tier 1 Leverage ratio of 8.21% based on period end assets. Total capital increased $2.8 million from September 30, 2012, to $493.9 million at December 31, 2012. Tangible book value per share increased by $0.04 to $7.30 at December 31, 2012 from $7.26 at September 30, 2012, due to retained earnings. For the quarter ended December 31, 2012, the weighted average common shares outstanding increased to 43.6 million and 43.7 million, basic shares and diluted shares, respectively, compared to 41.1 million basic and diluted shares for the quarter ended September 30, 2012. This increase includes shares issued in our August 2012 $46 million capital raise.
About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.8 billion in assets, is a growing financial services firm that specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City area through teams of dedicated and experienced relationship managers. 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 December 31, 2012. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require 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)
As of
----------------------------
12/31/12 9/30/12
------------- -------------
Assets:
Cash and due from banks $ 160,241 $ 437,982
Total securities 1,131,172 1,153,248
HVIA assets held for sale - 4,550
Loans held for sale 5,423 7,505
Loans:
One- to four-family residential mortgage
loans 352,014 350,022
Commercial real estate loans 1,136,965 1,072,504
Commercial and industrial loans 376,052 343,307
Acquisition, development and construction
loans 122,518 144,061
Consumer loans 205,580 209,578
------------- -------------
Total loans, gross 2,193,129 2,119,472
Allowance for loan losses (28,114) (28,282)
------------- -------------
Total loans, net 2,165,015 2,091,190
Federal Home Loan Bank stock, at cost 19,246 19,249
Premises and equipment, net 38,086 38,483
Goodwill 163,247 163,247
Other amortizable intangibles 6,926 7,164
Bank owned life insurance 59,526 59,017
Foreclosed properties 7,053 6,403
Other assets 33,579 34,944
------------- -------------
Total assets $ 3,789,514 $ 4,022,982
============= =============
Liabilities:
Deposits
Retail $ 167,369 $ 167,050
Commercial 501,667 412,630
Municipal 15,779 367,624
Personal NOW deposits 250,345 213,755
Business NOW deposits 41,164 38,486
Municipal NOW deposits 168,771 195,882
------------- -------------
Total transaction accounts 1,145,095 1,395,427
Savings 560,039 506,538
Money market deposits 834,544 821,704
Certificates of deposit 364,706 387,482
------------- -------------
Total deposits 2,904,384 3,111,151
Borrowings 345,411 345,176
Mortgage escrow funds and other liabilities 45,836 75,533
------------- -------------
Total liabilities 3,295,631 3,531,860
Stockholders' equity 493,883 491,122
------------- -------------
Total liabilities and stockholders'
equity $ 3,789,514 $ 4,022,982
============= =============
Shares of common stock outstanding at period
end 44,348,787 44,173,470
Book value per share $ 11.14 $ 11.12
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
For the Quarters Ended
----------------------------------------
12/31/12 12/31/11 9/30/12
------------ ------------ ------------
Interest and dividend income:
Loans and loan fees $ 27,071 $ 22,149 $ 24,396
Securities taxable 4,284 3,990 3,909
Securities non-taxable 1,457 1,774 1,543
Other earning assets 333 255 265
------------ ------------ ------------
Total interest income 33,145 28,168 30,113
Interest expense:
Deposits 2,097 1,313 1,789
Borrowings 3,125 3,617 3,085
------------ ------------ ------------
Total interest expense 5,222 4,930 4,874
------------ ------------ ------------
Net interest income 27,923 23,238 25,239
Provision for loan losses 2,950 1,950 3,500
------------ ------------ ------------
Net interest income after
provision for loan losses 24,973 21,288 21,739
Non-interest income:
Deposit fees and service charges $ 2,778 $ 2,790 $ 3,065
Net gain on sales of securities 1,416 1,989 3,152
Other than temporary loss on
securities (25) (38) (3)
Title insurance fees 259 260 332
Bank owned life insurance 509 518 512
Gain on sale of loans 746 440 429
Gain on sale of premises and
equipment 5 - 70
Loss on sale of HVIA - - (135)
Investment management fees 705 765 776
Fair value loss on interest rate
caps (1) (3) (6)
Other 1,267 455 834
------------ ------------ ------------
Total non-interest income 7,659 7,176 9,026
Non-interest expense:
Compensation and benefits 12,299 10,549 12,873
Stock-based compensation plans 500 275 302
Merger related expenses - 247 4,928
Restructuring charge
(severance/branch relocation) - 376 -
Occupancy and office operations 3,810 3,701 3,959
Advertising and promotion 244 613 369
Professional fees 1,215 927 1,136
Data and check processing 649 672 715
Amortization of intangible
assets 261 323 334
FDIC insurance and regulatory
assessments 718 728 843
ATM/debit card expense 442 411 438
Foreclosed property expense 285 205 573
Other 2,123 1,694 2,314
------------ ------------ ------------
Total non-interest expense 22,546 20,721 28,784
------------ ------------ ------------
Income before income tax expense 10,086 7,743 1,981
Income tax expense (benefit) 3,066 2,026 (280)
------------ ------------ ------------
Net income $ 7,020 $ 5,717 $ 2,261
============ ============ ============
Basic earnings per common share $ 0.16 $ 0.15 $ 0.06
Diluted earnings per common
share 0.16 0.15 0.06
Dividends declared 0.06 0.06 0.06
Weighted average common shares:
Basic 43,637,315 37,252,464 41,054,458
Diluted 43,721,091 37,252,464 41,099,237
Selected Financial
Condition Data: As of and for the Quarter Ended
------------------------------------------------------
(in thousands except
share and per share
data) 12/31/12 9/30/12 6/30/12 3/31/12 12/31/11
---------- ---------- ---------- ---------- ----------
End of Period
Total assets $3,789,514 $4,022,982 $3,150,040 $3,210,871 $3,084,166
Loans, gross 1 2,193,129 2,119,472 1,851,027 1,799,112 1,775,893
Securities available
for sale 991,298 1,010,872 714,200 852,717 785,462
Securities held to
maturity 139,874 142,376 171,233 174,824 182,076
Bank owned life
insurance 59,526 59,017 58,506 57,987 57,485
Goodwill 163,247 163,247 160,861 160,861 160,861
Other amortizable
intangibles 6,926 7,164 3,718 4,001 4,306
Other non - earning
assets 78,718 79,830 83,106 80,020 78,710
Deposits 2,904,384 3,111,151 2,332,091 2,368,988 2,135,555
Borrowings 345,411 345,176 314,154 313,849 468,543
Equity 493,883 491,122 444,670 439,699 437,682
Other comprehensive
income related to
investment securities
reflected in
stockholders' equity 12,548 15,066 14,141 13,780 15,823
Average Balances
Total assets $3,792,201 $3,451,055 $3,133,958 $3,131,854 $3,062,520
Loans, gross:
One-to-four-family
residential
mortgage loans 344,064 352,724 360,487 374,498 385,269
Commercial real
estate loans 1,107,779 989,349 868,963 838,935 752,325
Acquisition,
development and
construction loans 138,881 156,726 165,442 163,116 172,155
Commercial and
industrial loans 354,137 263,922 205,051 197,507 203,929
Consumer loans 208,064 210,650 215,555 220,537 224,422
Loans total (1) 2,152,925 1,973,371 1,815,498 1,794,593 1,738,100
Securities (taxable) 954,372 841,373 778,782 799,753 696,293
Securities (non-
taxable) 174,201 181,540 182,003 185,062 205,366
Total earning assets 3,380,875 3,070,315 2,797,093 2,792,042 2,715,027
Non earning assets 411,326 380,740 336,865 339,812 347,493
Non-interest bearing
checking 649,077 592,962 483,589 503,539 500,621
Interest bearing NOW
accounts 469,180 398,493 412,072 389,846 398,885
Total transaction
accounts 1,118,257 991,455 895,661 893,385 899,506
Savings (including
mortgage escrow
funds) 531,107 539,904 493,234 463,971 445,236
Money market deposits 908,262 756,655 697,342 654,013 577,387
Certificates of
deposit 380,244 303,788 265,375 284,737 302,713
Total deposits and
mortgage escrow 2,937,870 2,591,802 2,351,612 2,296,106 2,224,842
Total interest bearing
deposits (including
escrow) 2,288,793 1,998,840 1,868,023 1,792,567 1,724,221
Borrowings 345,951 336,217 320,237 375,766 392,785
Equity 492,506 475,652 441,956 439,384 431,129
Selected Operating
Data:
Condensed Tax
Equivalent Income
Statement
Interest and dividend
income $ 33,145 $ 30,113 $ 28,345 $ 28,411 $ 28,168
Tax equivalent
adjustment* 785 830 852 861 955
Interest expense 5,222 4,874 4,263 4,506 4,930
---------- ---------- ---------- ---------- ----------
Net interest
income (tax
equivalent) 28,708 26,069 24,934 24,766 24,193
Provision for loan
losses 2,950 3,500 2,312 2,850 1,950
---------- ---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 25,758 22,569 22,622 21,916 22,243
Non-interest income 7,659 9,026 7,979 7,971 7,176
Non-interest expense 22,546 28,784 21,162 21,290 20,721
---------- ---------- ---------- ---------- ----------
Income before income
tax expense 10,871 2,811 9,439 8,597 8,698
Income tax expense
(tax equivalent)* 3,851 550 3,230 2,896 2,981
---------- ---------- ---------- ---------- ----------
Net income $ 7,020 $ 2,261 $ 6,209 $ 5,701 $ 5,717
========== ========== ========== ========== ==========
(1) Does not reflect allowance for loan losses of $28,114, $28,282, $27,587,
$27,787, and $28,245.
* Tax exempt income assumed at a statutory 35% federal rate.
For the Quarter Ended
---------------------------------------------------------------
12/31/12 9/30/12 6/30/12 3/31/12 12/31/11
----------- ----------- ----------- ----------- -----------
Performance
Ratios
(annualized)
Return on
average
assets 0.73% 0.26% 0.80% 0.73% 0.74%
Return on
average
stockholders'
equity 5.65% 1.89% 5.65% 5.22% 5.26%
Return on
average
tangible
equity (1) 8.71% 2.92% 9.01% 8.36% 8.53%
Non-interest
income to
average
assets 0.80% 1.04% 1.02% 1.02% 0.93%
Non-interest
expense to
average
assets 2.36% 3.32% 2.72% 2.73% 2.68%
GAAP
operating
efficiency 63.4% 84.0% 66.0% 66.8% 68.1%
Core
operating
efficiency
(1) 62.9% 72.0% 65.5% 67.9% 67.8%
Analysis of
Net
Interest
Income
Yield on
loans 5.04% 4.97% 5.01% 5.03% 5.13%
Yield on
investment
securities
- tax
equivalent
(2) 2.29% 2.44% 2.79% 2.81% 2.96%
Yield on
earning
assets -
tax
equivalent
(2) 3.98% 4.01% 4.20% 4.22% 4.26%
Cost of
deposits 0.28% 0.27% 0.22% 0.21% 0.23%
Cost of
borrowings 3.58% 3.65% 3.77% 3.52% 3.65%
Cost of
interest
bearing
liabilities 0.79% 0.83% 0.78% 0.84% 0.92%
Net interest
rate spread
- tax
equivalent
basis(2) 3.19% 3.18% 3.42% 3.38% 3.34%
Net interest
margin- tax
equivalent
basis(2) 3.37% 3.38% 3.59% 3.57% 3.54%
Capital
Information
Data
Tier 1
leverage
ratio -
Bank only 8.21% 7.49% 8.67% 8.32% 8.51%
Tier 1 risk-
based
capital -
Bank only $ 297,090 (3) $ 289,441 $ 257,621 $ 252,586 $ 247,433
Total risk-
based
capital -
Bank only 325,411 (3) 317,929 283,033 277,614 273,911
Tangible
capital
consolidated
(1) 323,710 320,711 280,091 274,837 272,515
Tangible
capital as
a % of
tangible
assets
consolidated
(1) 8.94% 8.32% 9.38% 9.02% 9.34%
Shares of
common
stock
outstanding 44,348,787 44,173,470 37,899,007 37,899,007 37,883,008
Shares
repurchased
during qtr
(open
market) - - - - -
Basic
weighted
average
common
shares
outstanding 43,637,315 41,054,458 37,302,693 37,280,651 37,252,464
Diluted
weighted
average
common
shares
outstanding 43,721,091 41,099,237 37,330,467 37,316,778 37,252,464
Basic
earnings
per common
share $ 0.16 $ 0.06 $ 0.17 $ 0.15 $ 0.15
Diluted
earnings
per common
share 0.16 0.06 0.17 0.15 0.15
Dividends
declared
per common
share 0.06 0.06 0.06 0.06 0.06
Book value
per share 11.14 11.12 11.73 11.60 11.55
Tangible
book value
per common
share (1) 7.30 7.26 7.39 7.25 7.19
Asset
Quality
Measurements
Non-
performing
loans
(NPLs):
non-accrual$ 27,730 $ 35,444 $ 41,048 $ 47,269 $ 40,777
Non-
performing
loans
(NPLs):
still
accruing 5,823 4,370 3,450 4,693 5,136
Other real
estate
owned 7,053 6,403 7,292 5,828 5,625
Non-
performing
assets
(NPAs) 40,606 46,217 51,790 57,790 51,538
Net charge-
offs 3,118 2,805 2,512 3,308 1,622
Net charge-
offs as %
of average
loans
(annualized) 0.58% 0.57% 0.55% 0.74% 0.37%
NPLs as % of
total loans 1.53% 1.88% 2.40% 2.89% 2.59%
NPAs as % of
total
assets 1.07% 1.15% 1.64% 1.80% 1.67%
Allowance
for loan
losses as %
of NPLs 83.8% 71.0% 62.0% 53.5% 61.5%
Allowance
for loan
losses as %
of total
loans 1.28% 1.33% 1.49% 1.54% 1.59%
Allowance
for loan
losses as %
of total,
excluding
Gotham(1) 1.41% 1.47% 1.49% 1.54% 1.59%
Special
mention
loans $ 29,755 $ 42,422 $ 37,555 $ 37,379 $ 18,424
Substandard
/ doubtful
loans 83,109 88,674 88,395 89,135 99,383
----------- --------------- ----------- ----------- -----------
(1) See reconciliation of GAAP measure to non-GAAP measure on following
page.
(2) Tax equivalent adjustment represents interest income earned on
municipal securities divided by the applicable Federal tax rate of 35% for
all periods presented.
(3) Represents preliminary results for the quarter ended December 31, 2012.
Non GAAP
Financial
Measures As of and for the Quarter Ended
-----------------------------------------------------------
(in thousands
except share
and per share
data) 12/31/12 9/30/12 6/30/12 3/31/12 12/31/11
----------- ----------- ----------- ----------- -----------
The Company provides supplemental reporting of non-GAAP measures as
management believes this information is useful to investors.
The following table shows the reconciliation of stockholders'
equity to tangible equity and the tangible equity ratio:
Total assets $ 3,789,514 $ 4,022,982 $ 3,150,040 $ 3,210,871 $ 3,084,166
Goodwill and
other
amortizable
intangibles (170,173) (170,411) (164,579) (164,862) (165,167)
----------- ----------- ----------- ----------- -----------
Tangible assets 3,619,341 3,852,571 2,985,461 3,046,009 2,918,999
----------- ----------- ----------- ----------- -----------
Stockholders'
equity 493,883 491,122 444,670 439,699 437,682
Goodwill and
other
amortizable
intangibles (170,173) (170,411) (164,579) (164,862) (165,167)
----------- ----------- ----------- ----------- -----------
Tangible
stockholders'
equity 323,710 320,711 280,091 274,837 272,515
----------- ----------- ----------- ----------- -----------
Shares of common
stock
outstanding at
period end 44,348,787 44,173,470 37,899,007 37,899,007 37,883,008
Tangible capital
as a % of
tangible assets 8.94% 8.32% 9.38% 9.02% 9.34%
Tangible book
value per share$ 7.30 $ 7.26 $ 7.39 $ 7.25 $ 7.19
The Company believes that tangible equity is useful as a tool to help
assess a company's capital position.
The following table shows the reconciliation of return on average tangible
equity:
Average
stockholders'
equity $ 492,506 $ 475,652 $ 441,956 $ 439,384 $ 431,129
Average goodwill
and other
amortizable
intangibles (172,723) (167,623) (164,751) (165,045) (165,360)
----------- ----------- ----------- ----------- -----------
Average tangible
stockholders'
equity 319,783 308,029 277,205 274,339 265,769
----------- ----------- ----------- ----------- -----------
Net income 7,020 2,261 6,209 5,701 5,717
Net income, if
annualized 27,851 8,995 24,972 22,929 22,682
Return on
average
tangible equity 8.71% 2.92% 9.01% 8.36% 8.53%
The Company believes that the return on average tangible stockholders'
equity is useful as a tool to help measure and asses a company's use of
equity.
The following table shows the reconciliation of the operating efficiency
ratio:
Net interest
income $ 27,923 $ 25,239 $ 24,082 $ 23,905 $ 23,238
Non-interest
income 7,659 9,026 7,979 7,971 7,176
----------- ----------- ----------- ----------- -----------
Total net
revenues 35,582 34,265 32,061 31,876 30,414
Tax equivalent
adjustment on
securities
interest income 785 830 852 861 955
Net gain on
sales of
securities (1,416) (3,152) (2,412) (2,899) (1,989)
Other than
temporary loss
on securities 25 3 6 - 38
Other, (other
gains and fair
value loss on
interest rate
caps) (4) (64) 14 40 3
----------- ----------- ----------- ----------- -----------
Core total
revenues 34,972 31,882 30,521 29,878 29,421
----------- ----------- ----------- ----------- -----------
Non-interest
expense 22,546 28,784 21,162 21,290 20,721
Merger related
expense - (4,928) (451) (299) (247)
Foreclosed
property
expense (285) (573) (428) (412) (205)
Amortization of
intangible
assets (261) (334) (283) (305) (323)
----------- ----------- ----------- ----------- -----------
Core non-
interest
expense 22,000 22,949 20,000 20,274 19,946
----------- ----------- ----------- ----------- -----------
Core efficiency
ratio 62.9% 72.0% 65.5% 67.9% 67.8%
The core efficiency ratio reflects total revenues inclusive of the tax
equivalent adjustment on municipal securities and excludes securities
gains, other than temporary impairments and the other adjustments shown
above. Core non-interest expense is adjusted to exclude the effect of
foreclosed property expense and amortization of intangible assets. The
Company believes this non-GAAP information provides useful information to
users to assess the Company's core operations.
The following table shows the reconciliation of the allowance for loan
losses to total loans and to total loans excluding Gotham loans:
Total loans $ 2,193,129 $ 2,119,472 $ 1,851,027 $ 1,799,112 $ 1,775,893
Gotham loans 194,518 201,794 - - -
----------- ----------- ----------- ----------- -----------
Total loans,
excluding
Gotham loans 1,998,611 1,917,678 1,851,027 1,799,112 1,775,893
Allowance for
loan losses 28,114 28,282 27,587 27,787 28,245
Allowance for
loan losses to
total loans 1.28% 1.33% 1.49% 1.54% 1.59%
Allowance for
loan losses to
total loans,
excluding
Gotham loans 1.41% 1.47% NA NA NA
As required by GAAP, the Company recorded at fair value the loans acquired
in the Gotham transaction. These loans contain no allowance for loan
losses in losses for the periods reflected above.
PROVIDENT BANK CONTACT:
Luis Massiani
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
