MONTEBELLO, NY -- (Marketwire - April 22, 2013) - Provident New York Bancorp (NYSE: PBNY), the parent company of Provident Bank, today announced second quarter results for the period ended March 31, 2013. Net income for the quarter was $6.5 million, or $0.15 per diluted share, compared to net income of $5.7 million, or $0.15 per diluted share for the same quarter last year; and $7.0 million, or $0.16 per diluted share for the linked quarter ended December 31, 2012.
President's Comments
Jack Kopnisky, President and CEO, commented: "We had a solid second quarter. Earnings for the quarter were $6.5 million, a 15% increase compared to the second quarter of 2012. Earnings declined $491 thousand or $0.01 per share compared to the linked quarter, which was mainly the result of merger-related expense and an increase in foreclosed property expense as we continue to reduce non-performing assets.
We continue to focus primarily on serving small-to-middle market clients through a differentiated, team-based distribution strategy. Our pipelines of loans, deposits and fee income opportunities continue to be strong, which is allowing us to diversify our balance sheet and revenue streams and maintain strong momentum in our new and legacy markets.
Our credit quality improved again in the second quarter. Non-performing loans of $31 million at March 31, 2013 decreased $2.3 million compared to the linked quarter. Our ratio of non-performing loans to total loans declined by 147 basis points to 1.42% at March 31, 2013 as compared to the year ago period. Our allowance for loan losses to non-performing loans increased to 88% at March 31, 2013, and the positive trend in the risk ratings of our loan portfolio continued as well.
Our capital and liquidity position remain strong. Our Tier 1 leverage ratio was approximately 8.6% at Provident Bank and our consolidated tangible equity to tangible assets ratio was 9.2%.
We are looking forward to our pending merger with Sterling Bancorp (NYSE: STL), which we announced on April 4, 2013. This merger presents a tremendous opportunity to continue building a high performing institution and is a significant step in our strategy of expanding within the greater New York metropolitan area. We expect the merger will create a larger, more diversified company and will allow us to accelerate the build-out of our differentiated strategy targeting small-to-middle market commercial and consumer clients. The combined business will be a more effective competitor in the marketplace than either company on its own. Sterling Bancorp's established record of growth and profitability will be additive to Provident's growth strategy as we provide continued value for shareholders of both organizations."
Key Highlights for the Quarter
Net Interest Income and Margin
Second quarter fiscal 2013 compared with second quarter fiscal 2012
Net interest income was $27.8 million for the second quarter of fiscal 2013, up $3.9 million compared to the second quarter of fiscal 2012 due to higher average loan volumes. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 49 basis points and yield on loans declined 10 basis points compared to the second quarter of fiscal 2012. As a result, the yield on interest-earning assets declined 26 basis points to 3.96% on a tax equivalent basis for the second quarter of fiscal 2013. The cost of deposits increased one basis point to 22 basis points from the year ago quarter, while the cost of borrowings decreased three basis points to 3.49%. The resulting net interest margin on a tax-equivalent basis was 3.41% for the second quarter of fiscal 2013 compared to 3.57% for the same period a year ago.
Second quarter fiscal 2013 compared with linked quarter ended December 31, 2012
Net interest income for the quarter ended March 31, 2013 declined $104 thousand to $27.8 million, compared to $27.9 million for the linked quarter ended December 31, 2012. This was primarily due to two fewer days in the second fiscal quarter. The tax-equivalent net interest margin increased to 3.41% from 3.37% in the linked quarter, which was principally the result of a decline in our average interest bearing cash balance of $37.0 million. Yield on loans decreased 11 basis points and was 4.93%. Yield on interest earning assets declined two basis points to 3.96% from 3.98% in the linked quarter. Deposit costs decreased by six basis points, as certain deposit relationships were re-priced to current market rates and the maturity of higher cost deposits matured.
Non-interest Income
Second quarter fiscal 2013 compared with second quarter fiscal 2012
Non-interest income declined $1.1 million to $6.9 million for the second quarter of fiscal 2013 compared with the second quarter of fiscal 2012. The decrease was mainly due to lower net gain on sale of securities of $670 thousand, and a decrease in title insurance fees and other management fees of $643 thousand. We sold the assets of our former subsidiaries that were active in title insurance and investment management businesses. During the second quarter of fiscal 2013 we reinvested in a new title insurance joint venture and deployed a new wealth management strategy. We expect both of these initiatives will contribute to non-interest income going forward.
Second quarter fiscal 2013 compared with linked quarter ended December 31, 2012
Non-interest income decreased $807 thousand to $6.9 million for the second fiscal quarter of 2013 compared to the linked quarter ended December 31, 2012. Title insurance fees and other management fees declined by $542 thousand, gain on sale of loans declined $239 thousand, and other non-interest income declined $798 thousand. Partially offsetting these declines was an increase in net gain on sale of securities of $813 thousand.
Non-interest Expense
Second quarter fiscal 2013 compared with second quarter fiscal 2012
Non-interest expense increased $2.0 million to $23.3 million relative to the second quarter of fiscal 2012. This is the result of an increase in personnel expense associated with the continued growth in the number of our commercial banking teams and related occupancy expense. Foreclosed property expense increased to $915 thousand from $412 thousand over the same period a year ago.
Second quarter fiscal 2013 compared with the linked quarter ended December 31, 2012
Non-interest expense increased $793 thousand compared to the linked quarter. The increase was mainly related to $542 thousand in merger-related expense associated with our pending merger with Sterling Bancorp, as well as an increase in foreclosed property expense of $630 thousand. These increases were partially offset by lower compensation and benefits expense and professional fees expense.
Income Taxes
In the second quarter of fiscal 2013, the Company recorded income tax expense at 25.2% compared to an estimated effective tax rate of 30.4% in the linked quarter and 26.3% for the same period in fiscal 2012. The decrease in the estimated effective tax rate is the result of an increase in the current and anticipated merger-related expense as well as the proportion of tax-exempt earnings as a percentage of total earnings.
Credit Quality
Non-performing loans decreased to $31.3 million at March 31, 2013 compared to $39.8 million at September 30, 2012. During the first half of the fiscal year we exited several large credit relationships, which contributed to the decline. Net charge-offs for the second quarter were $3.2 million compared to $3.1 million in the linked quarter. The allowance for loan losses at March 31, 2013 was $27.5 million, which represented 88.1% of non-performing loans and 1.25% of our total loan portfolio. This compares to the linked quarter, in which the allowance for loan losses was $28.1 million, which represented 83.8% of non-performing loans and 1.28% 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 1.36% and 1.41%, at March 31, 2013 and December 31, 2012, respectively. Please refer to the Company's reconciliation of this non-GAAP measure on page 10.
During the quarter, the balance of foreclosed properties decreased $1.6 million to $5.5 million, the result of the sale of four properties. During the second quarter we acquired four properties with a balance of $602 thousand, and we incurred $606 thousand of foreclosed property write downs.
Subsequent to March 31, 2013, we exited an additional non-performing relationship with a loan a balance of $3.1 million at our carrying value.
Key Balance Sheet Changes
Capital and Liquidity
Provident Bank remained well capitalized at March 31, 2013with a Tier 1 leverage ratio of 8.62% based on period end assets. Stockholders' equity increased $3.6 million from September 30, 2012, to $494.7 million at March 31, 2013. Tangible book value per share increased by $0.07 to $7.33 at March 31, 2013 from $7.26 at September 30, 2012, due to retained earnings. For the quarter ended March 31, 2013, the weighted average common shares outstanding increased to 43.7 million and 43.8 million, basic shares and diluted shares, respectively, compared to 41.1 million basic and diluted shares for the quarter ended September 30, 2012.
About Provident New York Bancorp
Headquartered in Montebello, N.Y. Provident New York Bancorp is the holding company for Provident Bank, a growing financial services firm with $3.7 billion in assets 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.
These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. In addition to factors previously disclosed in reports filed with the Securities and Exchange Commission, the following factors, among others, could cause actual results to differ materially from forward-looking statements: changes in market interest rates and general and regional economic conditions; changes in government regulations and regulatory oversight; changes in the value of goodwill and intangible assets; changes in the quality or composition of the loan and investment portfolios; potential breaches of information security; competition from banks and non-banking companies; ability to obtain regulatory approvals and meet other closing conditions to the merger (the "Merger") between Provident New York Bancorp ("Provident") and Sterling Bancorp ("Sterling), including approval by Provident and Sterling shareholders, on the expected terms and schedule; delay in closing the Merger; difficulties and delays in integrating the Provident and Sterling businesses or fully realizing cost savings and other benefits; business disruption following the proposed Merger; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; changes in Provident's stock price before the completion of the Merger, including as a result of the financial performance of Sterling prior to closing; the reaction to the Merger of the companies' customers, employees and counterparties; and the impact, extent and timing of technological changes, capital management activities, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements. Actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ materially from our historical performance. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
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 March 31, 2013. 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.
Additional Information for Stockholders
In connection with the proposed merger, Provident will file with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 that will include a joint proxy statement of Provident and Sterling and a prospectus of Provident, as well as other relevant documents concerning the proposed transaction. Provident and Sterling will mail the joint proxy statement/prospectus to their stockholders. STOCKHOLDERS OF PROVIDENT AND STERLING ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement/prospectus (when available) and other filings containing information about Provident and Sterling at the SEC's website at www.sec.gov. The joint proxy statement/prospectus (when available) and the other filings may also be obtained free of charge at Provident's website at www.providentbanking.com under the tab "Investor Relations," and then under the heading "SEC Filings" or at Sterling's website at www.snb.com under the tab "Investor Relations," and then under the heading "SEC Filings."
Provident, Sterling and certain of their respective directors and executive officers, under the SEC's rules, may be deemed to be participants in the solicitation of proxies of Provident's and Sterling's shareholders in connection with the proposed merger. Information about the directors and executive officers of Provident and their ownership of Provident common stock is set forth in the proxy statement for Provident's 2013 annual meeting of shareholders, as filed with the SEC on Schedule 14A on January 10, 2013. Information about the directors and executive officers of Sterling and their ownership of Sterling common stock is set forth in the proxy statement for Sterling's 2012 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on April 3, 2012. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the joint proxy statement/prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
As of
--------------------------
3/31/13 9/30/12
------------ ------------
Assets:
Cash and due from banks $ 73,396 $ 437,982
Total securities 1,129,213 1,153,248
HVIA assets held for sale - 4,550
Loans held for sale 1,040 7,505
Loans:
Residential mortgage 365,485 350,022
Commercial real estate 1,149,463 1,072,504
Commercial and industrial 370,246 343,307
Acquisition, development and construction 118,115 144,061
Consumer 201,246 209,578
------------ ------------
Total loans, gross 2,204,555 2,119,472
Allowance for loan losses (27,544) (28,282)
------------ ------------
Total loans, net 2,177,011 2,091,190
Federal Home Loan Bank stock, at cost 20,251 19,249
Premises and equipment, net 37,617 38,483
Goodwill 163,117 163,247
Other amortizable intangibles 6,538 7,164
Bank owned life insurance 59,916 59,017
Foreclosed properties 5,486 6,403
Other assets 36,855 34,944
------------ ------------
Total assets $ 3,710,440 $ 4,022,982
============ ============
Liabilities:
Deposits $ 2,799,658 $ 3,111,151
Borrowings 367,976 345,176
Mortgage escrow funds 17,582 11,919
Other liabilities 30,513 63,614
------------ ------------
Total liabilities 3,215,729 3,531,860
Stockholders' equity 494,711 491,122
------------ ------------
Total liabilities and stockholders' equity $ 3,710,440 $ 4,022,982
============ ============
Shares of common stock outstanding at period end 44,353,276 44,173,470
Book value per share $ 11.15 $ 11.12
Tangible book value per share 7.33 7.26
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
For the Quarters Ended For the Six Months Ended
------------------------------------- ------------------------
3/31/13 12/31/12 3/31/12 3/31/13 3/31/12
----------- ----------- ----------- ----------- -----------
Interest
and
dividend
income:
Loans and
loan
fees $ 26,378 $ 27,071 $ 22,153 $ 53,449 $ 44,302
Securities
taxable 4,288 4,284 4,415 8,572 8,405
Securities
non-
taxable 1,490 1,457 1,599 2,947 3,373
Other
earning
assets 264 333 244 597 499
----------- ----------- ----------- ----------- -----------
Total
interest
income 32,420 33,145 28,411 65,565 56,579
Interest
expense:
Deposits 1,624 2,097 1,217 3,721 2,530
Borrowings 2,977 3,125 3,289 6,102 6,906
----------- ----------- ----------- ----------- -----------
Total
interest
expense 4,601 5,222 4,506 9,823 9,436
----------- ----------- ----------- ----------- -----------
Net
interest
income 27,819 27,923 23,905 55,742 47,143
Provision
for loan
losses 2,600 2,950 2,850 5,550 4,800
----------- ----------- ----------- ----------- -----------
Net
interest
income
after
provision
for loan
losses 25,219 24,973 21,055 50,192 42,343
Non-
interest
income:
Deposit
fees and
service
charges 2,736 2,778 2,706 5,514 5,496
Net gain
on sales
of
securities 2,229 1,416 2,899 3,645 4,888
Other
than
temporary
loss
on
securities (7) (25) - (32) (38)
Title
insurance
fees - 259 265 259 525
Bank
owned
life
insurance 491 509 502 1,000 1,020
Gain on
sale of
loans 507 746 450 1,253 890
Investment
managment fees 422 705 800 1,127 1,565
Fair
value
loss on
interest
rate
caps - (1) (40) (1) (43)
Other 474 1,272 389 1,746 844
----------- ----------- ----------- ----------- -----------
Total non-
interest
income 6,852 7,659 7,971 14,511 15,147
Non-
interest
expense:
Compen-
sation and
benefits 11,805 12,299 11,395 24,104 22,320
Stock-
based
compen-
sation
plans 679 500 284 1,179 559
Merger
related
expenses 542 - 299 542 546
Occupancy
and
office
operations 3,954 3,810 3,409 7,764 7,110
Advertising
and
promotion 535 244 427 779 1,040
Professional
fees 912 1,215 1,056 2,127 1,983
Data and
check
processing 823 649 710 1,472 1,382
Amortization
of
intangible
assets 388 261 305 649 628
FDIC
insurance
and
regulatory
assessments 753 718 743 1,471 1,471
ATM/debit
card
expense 415 442 425 857 836
Foreclosed
property
expense 915 285 412 1,200 617
Other 1,618 2,123 1,825 3,741 3,519
----------- ----------- ----------- ----------- -----------
Total non-
interest
expense 23,339 22,546 21,290 45,885 42,011
----------- ----------- ----------- ----------- -----------
Income
before
income tax
expense 8,732 10,086 7,736 18,818 15,479
Income tax
expense 2,203 3,066 2,035 5,269 4,061
----------- ----------- ----------- ----------- -----------
Net income $ 6,529 $ 7,020 $ 5,701 $ 13,549 $ 11,418
=========== =========== =========== =========== ===========
Basic
earnings
per
share $ 0.15 $ 0.16 $ 0.15 $ 0.31 $ 0.31
Diluted
earnings
per
share 0.15 0.16 0.15 0.31 0.31
Dividends
declared
per
share 0.06 0.06 0.06 0.12 0.12
Weighted
average
common
shares:
Basic 43,743,640 43,637,315 37,280,651 43,704,163 37,266,480
Diluted 43,848,486 43,721,091 37,316,778 43,790,915 37,275,633
Selected Financial
Condition Data: As of and for the Quarter Ended
------------------------------------------------------
(in thousands except
share and per share
data) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
---------- ---------- ---------- ---------- ----------
End of Period
Total assets $3,710,440 $3,789,514 $4,022,982 $3,150,040 $3,210,871
Securities available
for sale 945,678 991,298 1,010,872 714,200 852,717
Securities held to
maturity 183,535 139,874 142,376 171,233 174,824
Loans, gross 1 2,204,555 2,193,129 2,119,472 1,851,027 1,799,112
Goodwill 163,117 163,247 163,247 160,861 160,861
Other amortizable
intangibles 6,538 6,926 7,164 3,718 4,001
Deposits 2,799,658 2,904,384 3,111,151 2,332,091 2,368,988
Municipal deposits
(included above) 537,070 538,212 901,739 479,772 607,158
Borrowings 367,976 345,411 345,176 314,154 313,849
Equity 494,711 493,883 491,122 444,670 439,699
Tangible Equity 325,056 323,710 320,711 280,091 274,837
Average Balances
Total assets $3,804,660 $3,792,201 $3,451,055 $3,133,958 $3,131,854
Loans, gross:
Residential mortgage 360,840 344,064 352,724 360,487 374,498
Commercial real
estate 1,138,333 1,107,779 989,349 868,963 838,935
Commercial and
industrial 368,896 354,137 263,922 205,051 197,507
Acquisition,
development and
construction 122,937 138,881 156,726 165,442 163,116
Consumer 203,492 208,064 210,650 215,555 220,537
Loans total 1 2,194,498 2,152,925 1,973,371 1,815,498 1,794,593
Securities (taxable) 967,889 954,372 841,373 778,782 799,753
Securities (non-
taxable) 181,803 174,201 181,540 182,003 185,062
Total earning assets 3,403,209 3,380,875 3,070,315 2,797,093 2,792,042
Deposits:
Non-interest bearing
demand 641,194 649,077 592,962 483,589 503,539
Interest bearing NOW
accounts 508,129 469,180 398,493 412,072 389,846
Savings (including
mortgage escrow
funds) 575,380 531,107 539,904 493,234 463,971
Money market 877,101 908,262 756,655 697,342 654,013
Certificates of
deposit 355,917 380,244 303,788 265,375 284,737
Total deposits and
mortgage escrow 2,957,721 2,937,870 2,591,802 2,351,612 2,296,106
Borrowings 345,717 345,951 336,217 320,237 375,766
Equity 492,725 492,506 475,652 441,956 439,384
Tangible Equity 322,683 319,783 308,029 277,205 274,339
Selected Operating
Data:
Condensed Tax
Equivalent Income
Statement
Interest and dividend
income $ 32,420 $ 33,145 $ 30,113 $ 28,345 $ 28,411
Tax equivalent
adjustment* 802 785 830 852 861
Interest expense 4,601 5,222 4,874 4,263 4,506
---------- ---------- ---------- ---------- ----------
Net interest income
(tax equivalent) 28,621 28,708 26,069 24,934 24,766
Provision for loan
losses 2,600 2,950 3,500 2,312 2,850
---------- ---------- ---------- ---------- ----------
Net interest income
after provision for
loan
losses 26,021 25,758 22,569 22,622 21,916
Non-interest income 6,852 7,659 9,026 7,979 7,971
Non-interest expense 23,339 22,546 28,784 21,162 21,290
---------- ---------- ---------- ---------- ----------
Income before income
tax expense 9,534 10,871 2,811 9,439 8,597
Income tax expense
(tax equivalent)* 3,005 3,851 550 3,230 2,896
---------- ---------- ---------- ---------- ----------
Net income $ 6,529 $ 7,020 $ 2,261 $ 6,209 $ 5,701
========== ========== ========== ========== ==========
1 Does not reflect allowance for loan losses of $27,544, $28,114, $28,282,
$27,587, and $27,787.
* Tax exempt income assumed at a statutory 35% federal tax rate.
For the Quarter Ended
-----------------------------------------------------------
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
----------- --------------------------------------------
Performance
Ratios
(annualized)
Return on
average assets 0.70% 0.73% 0.26% 0.80% 0.73%
Return on
average equity 5.37% 5.65% 1.89% 5.65% 5.22%
Return on
average
tangible equity
(1) 8.21% 8.71% 2.92% 9.01% 8.36%
Non-interest
income to
average assets 0.73% 0.80% 1.04% 1.02% 1.02%
Non-interest
expense to
average assets 2.49% 2.36% 3.32% 2.72% 2.73%
Core operating
efficiency (1) 64.6% 62.9% 72.0% 65.5% 67.9%
Analysis of Net
Interest Income
Yield on loans 4.93% 5.04% 4.97% 5.01% 5.03%
Yield on
investment
securities -
tax
equivalent(2) 2.32% 2.29% 2.44% 2.79% 2.81%
Yield on earning
assets - tax
equivalent(2) 3.96% 3.98% 4.01% 4.20% 4.22%
Cost of deposits 0.22% 0.28% 0.27% 0.22% 0.21%
Cost of
borrowings 3.49% 3.58% 3.65% 3.77% 3.52%
Cost of interest
bearing
liabilities 0.70% 0.79% 0.83% 0.78% 0.84%
Net interest
rate spread -
tax equivalent
basis(2) 3.26% 3.19% 3.18% 3.42% 3.38%
Net interest
margin - tax
equivalent
basis(2) 3.41% 3.37% 3.38% 3.59% 3.57%
Capital
Tier 1 leverage
ratio - Bank
only 8.62% 8.23% 7.49% 8.67% 8.32%
Tier 1 risk-
based capital -
Bank only $ 304,695(3) $ 297,089$ 289,441$ 257,621$ 252,586
Total risk-based
capital - Bank
only 329,239(3) 325,410 317,929 283,033 277,614
Tangible equity
- consolidated
(1) 325,056 323,710 320,711 280,091 274,837
Tangible equity
as a % of
tangible assets
- consolidated
(1) 9.18% 8.94% 8.32% 9.38% 9.02%
Shares of common
stock
outstanding 44,353,276 44,348,787 44,173,470 37,899,007 37,899,007
Shares
repurchased
during qtr
(open market) - - - - -
Basic weighted
average common
shares
outstanding 43,743,640 43,637,315 41,054,458 37,302,693 37,280,651
Diluted weighted
average common
shares
outstanding 43,848,486 43,721,091 41,099,237 37,330,467 37,316,778
Basic earnings
per share $ 0.15 $ 0.16$ 0.06$ 0.17$ 0.15
Diluted earnings
per share 0.15 0.16 0.06 0.17 0.15
Dividends
declared per
share 0.06 0.06 0.06 0.06 0.06
Book value per
share 11.15 11.14 11.12 11.73 11.60
Tangible book
value per share
(1) 7.33 7.30 7.26 7.39 7.25
Asset Quality
Non-performing
loans (NPLs):
non-accrual $ 27,019 $ 27,730$ 35,444$ 41,048$ 47,269
Non-performing
loans (NPLs):
still accruing 4,257 5,823 4,370 3,450 4,693
Other real
estate owned 5,486 7,053 6,403 7,292 5,828
Non-performing
assets (NPAs) 36,762 40,606 46,217 51,790 57,790
Net charge-offs 3,170 3,118 2,805 2,512 3,308
Net charge-offs
as % of average
loans
(annualized) 0.58% 0.58% 0.57% 0.55% 0.74%
NPLs as % of
total loans 1.42% 1.53% 1.88% 2.40% 2.89%
NPAs as % of
total assets 0.99% 1.07% 1.15% 1.64% 1.80%
Allowance for
loan losses as
% of NPLs 88.1% 83.8% 71.0% 62.0% 53.5%
Allowance for
loan losses as
% of total
loans 1.25% 1.28% 1.33% 1.49% 1.54%
Allowance for
loan losses as
% of total
loans,
excluding
Gotham loans(1) 1.36% 1.41% 1.47% 1.49% 1.54%
Special mention
loans $ 41,778 $ 29,755$ 42,422$ 37,555$ 37,379
Substandard /
doubtful loans 70,688 83,109 88,674 88,395 89,135
-------------- --------------------------------------------
(1) See reconciliation of 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 March 31, 2013.
Non GAAP
Financial
Measures As of and for the Quarter Ended
-----------------------------------------------------------
(in thousands
except share
and per share
data) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
----------- ----------- ----------- ----------- -----------
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 $ 3,710,440 $ 3,789,514 $ 4,022,982 $ 3,150,040 $ 3,210,871
Goodwill and
other
amortizable
intangibles (169,655) (170,173) (170,411) (164,579) (164,862)
----------- ----------- ----------- ----------- -----------
Tangible assets 3,540,785 3,619,341 3,852,571 2,985,461 3,046,009
----------- ----------- ----------- ----------- -----------
Stockholders'
equity 494,711 493,883 491,122 444,670 439,699
Goodwill and
other
amortizable
intangibles (169,655) (170,173) (170,411) (164,579) (164,862)
----------- ----------- ----------- ----------- -----------
Tangible
stockholders'
equity 325,056 323,710 320,711 280,091 274,837
=========== =========== =========== =========== ===========
Shares of common
stock
outstanding at
period end 44,353,276 44,348,787 44,173,470 37,899,007 37,899,007
Tangible equity
as a % of
tangible assets 9.18% 8.94% 8.32% 9.38% 9.02%
Tangible book
value per share$ 7.33 $ 7.30 $ 7.26 $ 7.39 $ 7.25
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 $ 492,725 $ 492,506 $ 475,652 $ 441,956 $ 439,384
Average goodwill
and other
amortizable
intangibles (170,042) (172,723) (167,623) (164,751) (165,045)
=========== =========== =========== =========== ===========
Average tangible
stockholders'
equity 322,683 319,783 308,029 277,205 274,339
----------- ----------- ----------- ----------- -----------
Net income 6,529 7,020 2,261 6,209 5,701
Net income, if
annualized 26,479 27,851 8,995 24,972 22,929
Return on
average
tangible equity 8.21% 8.71% 2.92% 9.01% 8.36%
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 core operating
efficiency ratio:
Net interest
income $ 27,819 $ 27,923 $ 25,239 $ 24,082 $ 23,905
Non-interest
income 6,852 7,659 9,026 7,979 7,971
----------- ----------- ----------- ----------- -----------
Total net
revenues 34,671 35,582 34,265 32,061 31,876
Tax equivalent
adjustment on
securities
interest income 802 785 830 852 861
Net gain on
sales of
securities (2,229) (1,416) (3,152) (2,412) (2,899)
Other than
temporary loss
on securities 7 25 3 6 -
Other, (other
gains and fair
value loss on
interest rate
caps) - (4) (64) 14 40
=========== =========== =========== =========== ===========
Core total
revenues 33,251 34,972 31,882 30,521 29,878
=========== =========== =========== =========== ===========
Non-interest
expense 23,339 22,546 28,784 21,162 21,290
Merger related
expense (542) - (4,928) (451) (299)
Foreclosed
property
expense (915) (285) (573) (428) (412)
Amortization of
intangible
assets (388) (261) (334) (283) (305)
=========== =========== =========== =========== ===========
Core non-
interest
expense 21,494 22,000 22,949 20,000 20,274
----------- ----------- ----------- ----------- -----------
Core efficiency
ratio 64.6% 62.9% 72.0% 65.5% 67.9%
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 $ 2,204,555 $ 2,193,129 $ 2,119,472 $ 1,851,027 $ 1,799,112
Gotham loans (176,383) (194,518) (201,794) - -
=========== =========== =========== =========== ===========
Total loans,
excluding
Gotham loans 2,380,938 2,387,647 2,321,266 1,851,027 1,799,112
Allowance for
loan losses 27,544 28,114 28,282 27,587 27,787
Allowance for
loan losses to
total loans 1.25% 1.28% 1.33% 1.49% 1.54%
Allowance for
loan losses to
total loans,
excluding
Gotham loans 1.16% 1.41% 1.47% NA NA
As required by GAAP, the Company recorded at fair value the loans acquired
in the Gotham transaction. These loans carry no allowance for loan losses
inlosses for the periods reflected above.
PROVIDENT NEW YORK BANCORP 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