Exhibit 99
Provident New York Bancorp Announces Second Quarter 2010 Earnings of $0.11 per Diluted Share
MONTEBELLO, N.Y.--(BUSINESS WIRE)--April 20, 2010--Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the parent company of Provident Bank, today announced second-quarter results for the fiscal year ending Sept. 30, 2010. Net income for the quarter was $4.2 million, or $0.11 per diluted share, compared to net income of $6.2 million, or $0.16 per diluted share for the linked quarter ended December 31, 2009 and net income of $5.5 million or $0.14 per diluted share for the second quarter of fiscal 2009.
President’s Comments
George Strayton, President and CEO stated, "I am pleased with our operating results. Both the linked quarter and the comparable quarter last year had higher levels of securities gains as we took action to lock-in gains embedded in our portfolio. After adjusting for gains on securities and the fair value of interest rate caps, net income substantially improved over last year primarily based upon significant reductions in loan loss provisions. I am also pleased to report that, as compared to the linked quarter, net charge-offs are down, non-performing loans at $27.7 are relatively flat and classified loans are down $4.2 million. Our asset quality ratios continue to compare favorably with our peers, with non-performing loans to total loans of 1.66%, and allowance for loan losses to non-performing loans of 110%. However, given our ADC portfolio we continue to be cautious as the economic recovery in the housing market is tepid, at best."
Strayton continued, “An encouraging sign for the Lower Hudson Valley is that our pipeline of approved commercial business loans at $105.5 million is at a level not seen since August 2008 and is double the level as of December 31, 2009. Average core deposits continue to grow with transaction accounts up $35.6 million from a year ago, further driving down our already exceptionally low cost of deposits. Our expansion efforts into targeted markets continued this past quarter with the opening of our new branch in Nyack, NY in January, as well as another loan production office in Yonkers, NY.”
Key items for the quarter
- Net charge-offs of $2.0 million are down from the quarter ending December 31, 2009. Our provision for loan losses of $2.5 million is flat compared to the linked quarter. Non-performing loans increased $1.0 million, primarily, due to one commercial relationship.
- Excluding securities gains and the fair value adjustment of interest rate caps, earnings were $0.09. This compares to $0.12 for the linked quarter and $0.05 for the second quarter of fiscal 2009. While we actively manage our portfolio as a component of our asset/liability management to control interest rate risk, we also present earnings excluding these factors so investors can better understand the results of our core banking operations and to better align with the views of the investment community, which tends to adjust for more variable components of income.
- Net interest margin on a tax equivalent basis is up 6 basis points to 3.76 percent over the linked quarter ended December 31, 2009, reflecting wider spreads on commercial loans and the further decrease of yields on interest-bearing deposits of 15 basis points over the linked quarter.
- Duration of the investment portfolio is now 2.99 years as compared to 3.12 years at March 31, 2009 and 2.94 years at December 31, 2009.
- Average transaction account balances increased to $718.3 million or 13.8 percent compared to year end September 30, 2009.
Credit Quality
Net charge-offs for the second fiscal quarter were $2.0 million compared to $2.6 million in the linked quarter and $4.3 million for the second fiscal quarter of 2009. We have seen charge-offs abate in the community business loan portfolio this current quarter. Net charge-offs were fairly equally distributed between C&I, community business and 1-4 family residential categories. We have added $2.5 million to our allowance for loan loss bringing the balance to $30.4 million, or 110 percent of non performing loans. This compares to 114 percent at September 30, 2009.
Substandard loans at March 31, 2010 were $95.9 million compared to $100.7 million at December 31, 2009, while special mention loans were $49.8 million and $48.1 million, respectively. Non-performing loans were $27.7 million compared to $26.7 million at December 31, 2009, while non performing assets went from $29.4 million to $30.6 million for the same period. We continue to work with several significant ADC relationships that are in performing status but not progressing as originally planned.
The table below outlines non-performing assets at March 31, 2010, by category with the related weighted loan to value ratios and specific reserves against such loans:
| | | | | | | | | | | | | WLTV after |
| | | Book | | | | | Specific | | Specific |
| Loans with Specific Reserves | | Value | | WLTV* | | Reserve | | Reserve |
| ADC | | $ | 2,790 | | 71 | % | | $ | | 1,166 | | 60 | % |
| Commercial mortgage | | | 5,171 | | 78 | | | | | 611 | | 62 | |
| Residential mortgage | | | 3,454 | | 77 | | | | | 760 | | 67 | |
| | | | | | | | | | | | | |
| Loans with out Specific Reserves | | | | | | | | | | | | |
| ADC | | | 7,647 | | 70 | | | | | - | | 70 | |
| Commercial mortgage | | | 1,991 | | 76 | | | | | - | | 76 | |
| Residential Mortgage | | | 4,544 | | 75 | | | | | - | | 75 | |
| Total Mortgage secured | | | 25,597 | | 74 | | | | | 2,537 | | 68 | |
| | | | | | | | | | | | | |
| Loans not Mortgage Secured | | | | | | | | | | | | |
| Loans with specific reserves | | | 1,023 | | | | | | | 638 | | | |
| Loans without specific reserves | | | 1,054 | | | | | | | | | |
| Total non-performing loans | | | 27,674 | | | | | | | 3,175 | | | |
| General reserves | | | | | | | | | | 27,269 | | | |
| Troubled Debt Restructures | | | 416 | | | | | | | | | |
| Total allowance for loan losses | | | | | | | | | $ | 30,444 | | | |
| ORE balance | | | 2,466 | | | | | | | | | |
| Total non-performing assets | | $ | 30,556 | | | | | | | | | |
*Weighted average LTV is the gross loan value plus negative escrows (before specific reserves) divided by current appraised value of the collateral securing the loan.
Net Interest Income and Margin
Second quarter fiscal 2010 compared with second quarter fiscal 2009
Net interest income was $22.9 million for the second quarter of fiscal 2010, a $701,000 decrease from the same quarter of fiscal 2009. The net interest margin on a tax-equivalent basis was 3.76 percent for the second quarter of fiscal 2010, compared to 3.80 percent for same period a year ago. The tax-equivalent yield on investments decreased 172 basis points compared to the second fiscal quarter in 2009. As a result, the yield on interest-earning assets declined 51 basis points. For the same period, the cost of interest-bearing deposits decreased 73 basis points to 0.57 percent, and the cost of borrowings decreased by only 7 basis points to 3.64 percent, reflecting the carrying cost of term borrowings that matured. The Bank has $282.5 million of term borrowings from the FHLB that are callable over the next eight years and do not reflect the recent interest rate reduction in the cost of funding.
Second quarter fiscal 2010 compared with linked quarter ended December 31, 2009
Net interest income for the quarter ended March 31, 2010, increased a modest $48,000 to $22.9 million from the linked quarter ended December 31, 2009. The tax-equivalent net interest margin increased 6 basis points from 3.70 percent from the linked quarter. During the quarter the Bank sold or had called $135.6 million in securities and purchased $194.8 million. The overall yield of the investment portfolio and other earning assets declined 6 basis points during the second quarter, reflecting purchases at yields lower than the book yields of sold or called securities. Interest bearing deposit costs declined 15 basis points reflecting the continued discipline of our deposit pricing philosophy.
Year to date fiscal 2010 compared to 2009
Net interest income declined year over year primarily due to lower yields on investments and loans, with little change in long term borrowings cost, partially offset by declines in deposit yields.
Noninterest Income
Second quarter fiscal 2010 compared with second quarter fiscal 2009
Noninterest income totaled $6.1 million for the fiscal second quarter, a decrease of $5.0 million from $11.1 million in the second quarter of fiscal 2009. The decrease was due mainly to gains on sales of securities of $6.1 million in fiscal 2009 compared to $1.9 million in fiscal 2010. The Company continues to realize a portion of the recent appreciation in its securities portfolio, monetizing other comprehensive income and reducing prepayment risk. Other factors contributing to the decrease were gains on the sale of loans with gains of $117,000 and $290,000 in 2010 and 2009, respectively; a $616,000 fair market loss on interest rate caps in fiscal 2010 and declines in deposit fees and service charges of $291,000, which were partially offset by the $177,000 increase in investment management fees.
Second quarter fiscal 2010 compared with linked quarter ended December 31, 2009
Noninterest income decreased on a linked-quarter basis, due to lower levels of securities gains realized and the fair market loss on interest rate caps of $616,000 compared to a gain of $380,000 in the quarter ended December 31, 2009. The Company purchased $50 million notional value of interest rate caps to assist in offsetting a portion of interest rate exposure should short term rate increases lead to rapid increases in general levels of market interest rates on deposits within the next five years.
Year to date fiscal 2010 compared to 2009
Non interest income was $14.2 million in the six months ended March 31, 2010 compared to $16.9 million for the six months ended March 31, 2009, a decrease of $2.7 million. Net gains on sales of securities were down $2.2 million and the cumulative loss on the interest rate caps was $236,000.
Noninterest Expense
Second quarter fiscal 2010 compared with second quarter fiscal 2009
Non interest expense increased $1.1 million when compared to the second quarter fiscal 2009. The increase is due primarily to increased medical and pension expense, FDIC insurance and occupancy expense. Occupancy expense increased due primarily to maintenance expense on buildings and equipment.
Second quarter fiscal 2010 compared with linked quarter ended December 31, 2009
On a quarter-to-quarter basis, non-interest expense increased due to expenses related to occupancy (result of our harsh winter), scheduled employee salary increases as well as increased regulatory assessments.
Year to date fiscal 2010 compared to 2009
Non-interest expense increased 4.5% year over year. Employee benefits and incentive accruals, occupancy and equipment expenses and FDIC assessments were primarily responsible for the increase.
Income Taxes
The effective tax rate for the three months ended March 31, 2010 second quarter fiscal 2010 was 22.5% compared to 26.9% for the same period in the prior year. The decline is due to tax exempt municipal securities and BOLI income being a larger portion of overall pretax income in the current period. Similarly, the effective tax rate for the six month period ended March 31, 2010 was 26.0% compared to 29.0% for the same period in the prior year.
Key Balance Sheet Changes
- Period-end total deposits increased $137.3 million as compared to the linked quarter. Total deposits decreased $75.3 million from September 30, 2009, as municipal tax deposits of $201 million as of year end were utilized by the individual municipalities.
- While overall loan demand is weak due to the economic slowdown, commercial loan originations during the second fiscal quarter 2010 were $80.5 million, an increase of 32 percent over the second fiscal quarter of 2009. We are seeing residential originations slow in our market as a result of the increase in refinance rates. Net loans totaled $1.64 billion, compared to $1.67 billion at September 30, 2009.
- Securities increased $55.5 million to $932.7 million, as the Company continued investing cash generated by deposit inflows into medium term securities.
- Borrowings decreased over September 30, 2009 levels as $17.5 million of FHLBNY advances matured.
- The Company repurchased 316,723 shares of common stock during the quarter at a cost of $2.6 million. There are 1,831,167 shares remaining under its repurchase authorization.
Capital and Liquidity
Provident Bank remained well-capitalized with excellent liquidity in the second fiscal quarter 2010 as unpledged securities totaled in excess of $375 million. The Bank’s Tier 1 leverage ratio is at 8.62 percent. The Company’s tangible capital as a percent of tangible assets increased to 9.28 percent as of March 31, 2010, while its tangible book value per share remained essentially the same at $6.61 per share. Total capital decreased $5.1 million from September 30, 2009, to $422.4 million at March 31, 2010, due to a net increase of $3.7 million in the Company’s retained earnings, an increase of $4.0 million due to stock based compensation items and offset by a $5.1 million decrease in accumulated other comprehensive income. In addition the Company repurchased 918,923 common shares, at a cost of $7.7 million during the fiscal year.
About Provident New York Bancorp
Headquartered in Montebello, New York, Provident New York Bancorp is the parent company of Provident Bank, an independent full-service community bank. Provident Bank operates 35 branches that serve the Hudson Valley region. The Bank offers a complete line of commercial, retail and investment management services. For more information, visit the Company’s 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 completion of the filing of the Company’s Quarterly Report on Form 10Q for the quarter ended March, 31, 2010 with the Securities and Exchange Commission. 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 quarter, even though the new information was received by management subsequent to the date of this release.
| |
Reconciliation of Adjusted Earnings: |
| | | | | Quarter |
| Quarter Ended | | Ended |
| March 31, | | December 31, |
| 2010 | | 2009 | | 2009 |
| Net Income | | | | | |
| Net Income | $ | 4,167 | | $ | | 5,544 | | $ | | 6,166 | |
| Securities gains1 | | (1,119 | ) | | | (3,619 | ) | | | (1,418 | ) |
Fair value loss (gain) on interest rate caps1 | | 366 | | | | - | | | | (226 | ) |
| Net adjusted income | $ | 3,414 | | | $ | 1,925 | | | $ | 4,522 | |
| | | | | |
| Earnings per common share | | | | | |
| Diluted Earnings per common share | $ | 0.11 | | | $ | 0.14 | | | $ | 0.16 | |
| Securities gains1 | | (0.03 | ) | | | (0.09 | ) | | | (0.04 | ) |
Fair value loss (gain) on interest rate caps1 | | 0.01 | | | | - | | | | (0.01 | ) |
| Diluted adjusted earnings per common share | $ | 0.09 | | | $ | 0.05 | | | $ | 0.12 | |
| | | | | |
| Non-interest income | | | | | |
| Total non-interest income | $ | 6,113 | | | $ | 11,123 | | | $ | 8,093 | |
| Security gains | | (1,884 | ) | | | (6,093 | ) | | | (2,388 | ) |
Fair value loss (gain) on interest rate caps | | 616 | | | | - | | | | (380 | ) |
| Adjusted non interest-income | $ | 4,845 | | | $ | 5,030 | | | $ | 5,325 | |
| | | | | |
| 1After marginal tax effect 40.61% | | | | | |
| | | | | | |
| Provident New York Bancorp and Subsidiaries | | | | | | |
| CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | | |
| (unaudited, in thousands, except share and per share data) |
| | | | | | | | | March 31, | | September 30, | | March 31, |
| | | | | | | | 2010 | | 2009 | | 2009 |
| Assets: | | | | | | | | | | |
| Cash and due from banks | $ | 37,831 | | $ | 160,408 | | $ | 139,190 | |
| Total securities | | | 932,669 | | | 877,197 | | | 790,225 | |
| Loans held for sale | | 2,566 | | | 1,213 | | | 3,918 | |
| Loans: | | | | | | | | | | |
| One- to four-family residential mortgage loans | | 432,847 | | | 460,728 | | | 496,862 | |
| Commercial real estate, commercial business | | 777,400 | | | 789,396 | | | 795,877 | |
| Acquisition, development and construction loans | | 213,321 | | | 201,611 | | | 189,484 | |
| Consumer loans | | 243,860 | | | 251,522 | | | 253,284 | |
| Total loans, gross | | 1,667,428 | | | 1,703,257 | | | 1,735,507 | |
| Allowance for loan losses | | (30,444 | ) | | (30,050 | ) | | (26,437 | ) |
| Total loans, net | | 1,636,984 | | | 1,673,207 | | | 1,709,070 | |
| Federal Home Loan Bank stock, at cost | | 22,765 | | | 23,177 | | | 23,407 | |
| Premises and equipment, net | | 42,446 | | | 40,692 | | | 37,759 | |
| Goodwill | | | | | 160,861 | | | 160,861 | | | 160,861 | |
| Other amortizable intangibles | | 4,524 | | | 5,489 | | | 6,533 | |
| Bank owned life insurance | | 49,945 | | | 49,611 | | | 48,654 | |
| Other assets | | | | 45,365 | | | 30,038 | | | 35,084 | |
| Total assets | $ | 2,935,956 | | $ | 3,021,893 | | $ | 2,954,701 | |
| Liabilities: | | | | | | | | | |
| Deposits | | | | | | | | |
| Retail | $ | 164,515 | | $ | 169,122 | | $ | 155,958 | |
| Commercial | | 246,624 | | | 236,516 | | | 197,206 | |
| Municipal | | 15,743 | | | 86,596 | | | 12,126 | |
| Personal NOW deposits | | 133,922 | | | 127,595 | | | 118,938 | |
| Business NOW deposits | | 32,507 | | | 36,972 | | | 22,632 | |
| Municipal NOW deposits | | 102,603 | | | 188,074 | | | 91,210 | |
| Total transaction accounts | | 695,914 | | | 844,875 | | | 598,070 | |
| Savings | | | 383,941 | | | 357,814 | | | 356,585 | |
| Money market deposits | | 445,350 | | | 384,632 | | | 426,120 | |
| Certificates of deposit | | 481,748 | | | 494,961 | | | 627,991 | |
| Total deposits | | 2,006,953 | | | 2,082,282 | | | 2,008,766 | |
| Borrowings | | | 421,306 | | | 430,628 | | | 438,646 | |
| Borrowings Senior Note | | 51,495 | | | 51,494 | | | 51,493 | |
| Mortgage escrow funds and other | | 33,830 | | | 30,033 | | | 34,390 | |
| Total liabilities | | 2,513,584 | | | 2,594,437 | | | 2,533,295 | |
| Stockholders’ equity | | 422,372 | | | 427,456 | | | 421,406 | |
| Total liabilities and stockholders’ equity | $ | 2,935,956 | | $ | 3,021,893 | | $ | 2,954,701 | |
| | | | | | | | | | | | |
| Shares of common stock outstanding at period end | | 38,861,477 | | | 39,547,207 | | | 39,876,754 | |
| Book value per share | $ | 10.87 | | $ | 10.81 | | $ | 10.57 | |
| | | | | | | | |
| Provident New York Bancorp and Subsidiaries | | | | | | | | |
| CONSOLIDATED CONDENSED STATEMENTS OF INCOME | | | | | | | |
| (unaudited, in thousands, except share and per share data) | | | | | | | | |
| | | | | | | | | Quarter | | | | |
| | | | Quarter Ended | | Ended | | Six Months Ended |
| | | | March 31, | December 31, | | March 31, |
| | | | 2010 | | 2009 | | 2009 | | 2010 | | 2009 |
| Interest and dividend income: | | | | | | | | | | |
| Loans and loan fees | | $ | 22,655 | | | $ | 23,859 | | $ | 23,400 | | | $ | 46,055 | | | $ | 49,686 |
| Securities taxable | | | 4,724 | | | | 7,533 | | | 4,752 | | | | 9,476 | | | | 15,426 |
| Securities non-taxable | | | 1,901 | | | | 1,910 | | | 1,895 | | | | 3,796 | | | | 3,764 |
| Other earning assets | | | 347 | | | | 284 | | | 371 | | | | 718 | | | | 581 |
| | | | | 29,627 | | | | 33,586 | | | 30,418 | | | | 60,045 | | | | 69,457 |
| Interest expense: | | | | | | | | | | |
| Deposits | | | | 2,201 | | | | 5,274 | | | 2,790 | | | | 4,991 | | | | 11,081 |
| Borrowings | | | 4,492 | | | | 4,677 | | | 4,742 | | | | 9,234 | | | | 9,695 |
| Total interest expense | | | 6,693 | | | | 9,951 | | | 7,532 | | | | 14,225 | | | | 20,776 |
| Net interest income | | | 22,934 | | | | 23,635 | | | 22,886 | | | | 45,820 | | | | 48,681 |
| Provision for loan losses | | | 2,500 | | | | 7,100 | | | 2,500 | | | | 5,000 | | | | 9,600 |
| Net interest income after provision for loan losses | | 20,434 | | | | 16,535 | | | 20,386 | | | | 40,820 | | | | 39,081 |
| | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | |
| Deposit fees and service charges | | | 2,744 | | | | 3,035 | | | 2,993 | | | | 5,737 | | | | 6,173 |
| Net gain on sales of securities | | | 1,884 | | | | 6,093 | | | 2,388 | | | | 4,272 | | | | 6,424 |
| Title insurance fees | | | 237 | | | | 201 | | | 311 | | | | 548 | | | | 413 |
| Bank owned life insurance | | | 496 | | | | 492 | | | 554 | | | | 1,050 | | | | 1,005 |
| Gain (loss) on sale of premises and equipment | | (10 | ) | | | - | | | (44 | ) | | | (54 | ) | | | 517 |
| Gain on sale of loans | | | 117 | | | | 290 | | | 283 | | | | 400 | | | | 296 |
| Investment management fees | | | 776 | | | | 599 | | | 779 | | | | 1,555 | | | | 1,207 |
| Fair value (loss) gain interest rate caps | | | (616 | ) | | | - | | | 380 | | | | (236 | ) | | | - |
| Other | | | | 485 | | | | 413 | | | 449 | | | | 934 | | | | 859 |
| Total non-interest income | | | 6,113 | | | | 11,123 | | | 8,093 | | | | 14,206 | | | | 16,894 |
| | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | |
| Compensation and benefits | | | 10,824 | | | | 9,857 | | | 10,264 | | | | 21,088 | | | | 19,568 |
| Stock-based compensation plans | | | 581 | | | | 825 | | | 452 | | | | 1,033 | | | | 1,682 |
| Occupancy and office operations | | | 3,537 | | | | 3,218 | | | 3,326 | | | | 6,863 | | | | 6,297 |
| Advertising and promotion | | | 794 | | | | 1,024 | | | 742 | | | | 1,536 | | | | 1,850 |
| Professional fees | | | 914 | | | | 876 | | | 834 | | | | 1,748 | | | | 1,582 |
| Data and check processing | | | 577 | | | | 598 | | | 550 | | | | 1,127 | | | | 1,163 |
| Amortization of intangible assets | | | 472 | | | | 557 | | | 493 | | | | 965 | | | | 1,141 |
| FDIC insurance and regulatory assessments | | | 931 | | | | 769 | | | 784 | | | | 1,715 | | | | 1,200 |
| ATM/debit card expense | | | 536 | | | | 470 | | | 554 | | | | 1,090 | | | | 988 |
| Other | | | | 2,007 | | | | 1,882 | | | 1,895 | | | | 3,902 | | | | 3,840 |
| Total non-interest expense | | | 21,173 | | | | 20,076 | | | 19,894 | | | | 41,067 | | | | 39,311 |
| | | | | | | | | | | | |
| Income before income tax expense | | | 5,374 | | | | 7,582 | | | 8,585 | | | | 13,959 | | | | 16,664 |
| Income tax expense | | | 1,207 | | | | 2,038 | | | 2,419 | | | | 3,626 | | | | 4,829 |
| Net income | | | $ | 4,167 | | | $ | 5,544 | | $ | 6,166 | | | $ | 10,333 | | | $ | 11,835 |
| | | | | | | | | | | | |
| Per common share: | | | | | | | | | | |
| Basic earnings | | $ | 0.11 | | | $ | 0.14 | | $ | 0.16 | | | $ | 0.27 | | | $ | 0.30 |
| Diluted earnings | | | 0.11 | | | | 0.14 | | | 0.16 | | | | 0.27 | | | | 0.30 |
| Dividends declared | | | 0.06 | | | | 0.06 | | | 0.06 | | | | 0.12 | | | | 0.12 |
| Weighted average common shares: | | | | | | | | | | |
| Basic | | | | 38,188,191 | | | | 38,627,212 | | | 38,575,909 | | | | 38,384,180 | | | | 38,605,156 |
| Diluted | | | | 38,237,431 | | | | 38,811,114 | | | 38,649,174 | | | | 38,402,841 | | | | 38,813,879 |
| | |
| Selected Financial Condition Data: | | Three Months Ended |
| (in thousands except share and per share data) | | 03/31/10 | | 12/31/09 | | 09/30/09 | | 06/30/09 | | 03/31/09 |
End of Period | | | | | | | | | | |
| Total assets | | $ | 2,935,956 | | $ | 2,917,789 | | $ | 3,021,893 | | $ | 2,824,356 | | $ | 2,954,701 |
| Loans, gross (1) | | | 1,667,428 | | | 1,677,032 | | | 1,703,257 | | | 1,714,429 | | | 1,735,507 |
| Securities available for sale | | | 888,994 | | | 851,028 | | | 832,583 | | | 689,286 | | | 739,595 |
| Securities held to maturity | | | 43,675 | | | 46,501 | | | 44,614 | | | 42,790 | | | 50,630 |
| Bank owned life insurance | | | 49,945 | | | 49,448 | | | 49,611 | | | 49,106 | | | 48,654 |
| Goodwill | | | | 160,861 | | | 160,861 | | | 160,861 | | | 160,861 | | | 160,861 |
| Other amortizable intangibles | | | 4,524 | | | 4,996 | | | 5,489 | | | 6,002 | | | 6,533 |
| Other non-earning assets | | | 87,811 | | | 88,976 | | | 70,730 | | | 68,735 | | | 72,843 |
| Deposits | | | 2,006,953 | | | 1,869,643 | | | 2,082,282 | | | 1,872,983 | | | 2,008,766 |
| Borrowings | | | 472,801 | | | 584,717 | | | 482,122 | | | 488,228 | | | 490,139 |
| Equity | | | | 422,372 | | | 420,326 | | | 427,456 | | | 420,775 | | | 421,406 |
| Other comprehensive income / (loss) related to investment, | | | | | | | | |
| securities reflected in stockholders' equity | | | 3,970 | | | 2,342 | | | 9,502 | | | 1,531 | | | 6,977 |
Average Balances | | | | | | | | | | |
| Total assets | | $ | 2,918,953 | | $ | 2,886,880 | | $ | 2,837,511 | | $ | 2,875,999 | | $ | 2,961,719 |
| Loans, gross: | | | | | | | | | | |
| Real estate- residential mortgage | | | 436,967 | | | 451,894 | | | 465,472 | | | 484,276 | | | 504,406 |
| Real estate- commercial mortgage | | | 539,679 | | | 538,646 | | | 548,195 | | | 547,846 | | | 551,011 |
| Real estate- Acquisition, Development & Construction | | | 212,454 | | | 202,864 | | | 191,826 | | | 190,875 | | | 185,911 |
| Commercial and industrial | | | 234,356 | | | 239,698 | | | 246,590 | | | 245,375 | | | 248,047 |
| Consumer loans | | | 248,134 | | | 252,354 | | | 252,667 | | | 254,475 | | | 254,216 |
| Loans total (1) | | | 1,671,590 | | | 1,685,456 | | | 1,704,750 | | | 1,722,847 | | | 1,743,591 |
| Securities (taxable) | | | 694,815 | | | 626,734 | | | 576,363 | | | 520,948 | | | 623,470 |
| Securities (non-taxable) | | | 203,153 | | | 201,706 | | | 192,733 | | | 196,385 | | | 197,786 |
| Total earning assets | | | 2,581,554 | | | 2,563,965 | | | 2,511,431 | | | 2,549,237 | | | 2,632,350 |
| Non earning assets | | | 337,399 | | | 322,915 | | | 326,080 | | | 326,762 | | | 329,369 |
| Non-interest bearing checking | | | 419,389 | | | 418,961 | | | 402,643 | | | 373,252 | | | 365,971 |
| Interest bearing NOW accounts | | | 298,935 | | | 291,844 | | | 228,761 | | | 227,039 | | | 241,190 |
| Total transaction accounts | | | 718,324 | | | 710,805 | | | 631,404 | | | 600,291 | | | 607,161 |
| Savings (including mortgage escrow funds) | | | 380,600 | | | 372,911 | | | 386,943 | | | 378,263 | | | 352,199 |
| Money market deposits | | | 428,605 | | | 397,710 | | | 394,718 | | | 394,628 | | | 405,221 |
| Certificates of deposit | | | 446,301 | | | 477,377 | | | 494,530 | | | 575,713 | | | 646,527 |
| Total deposits and mortgage escrow | | | 1,973,830 | | | 1,958,803 | | | 1,907,595 | | | 1,948,895 | | | 2,011,108 |
| Total interest bearing deposits | | | 1,554,441 | | | 1,539,842 | | | 1,504,952 | | | 1,575,643 | | | 1,645,137 |
| Borrowings | | | 500,226 | | | 485,759 | | | 488,443 | | | 488,846 | | | 511,340 |
| Equity | | | | 422,129 | | | 424,338 | | | 423,361 | | | 421,529 | | | 417,652 |
| Selected Operating Data: | | | | | | | | | | |
Condensed Tax Equivalent Income Statement | | | | | | | | | | |
| Interest and dividend income | | $ | 29,627 | | $ | 30,418 | | $ | 30,482 | | $ | 31,651 | | $ | 33,586 |
| Tax equivalent adjustment* | | | 1,023 | | | 1,020 | | | 991 | | | 1,031 | | | 1,029 |
| Interest expense | | | 6,693 | | | 7,532 | | | 8,019 | | | 8,925 | | | 9,951 |
| Net interest income (tax equivalent) | | | 23,957 | | | 23,906 | | | 23,454 | | | 23,757 | | | 24,664 |
| Provision for loan losses | | | 2,500 | | | 2,500 | | | 4,500 | | | 3,500 | | | 7,100 |
| Net interest income after provision for loan | | | | | | | | | | |
| losses | | | 21,457 | | | 21,406 | | | 18,954 | | | 20,257 | | | 17,564 |
| Non-interest income | | | 6,113 | | | 8,093 | | | 7,804 | | | 15,255 | | | 11,123 |
| Non-interest expense | | | 21,173 | | | 19,894 | | | 19,359 | | | 21,517 | | | 20,076 |
| Income before income tax expense | | | 6,397 | | | 9,605 | | | 7,399 | | | 13,995 | | | 8,611 |
| Income tax expense (tax equivalent)* | | | 2,230 | | | 3,439 | | | 2,323 | | | 5,045 | | | 3,067 |
| Net income | | $ | 4,167 | | $ | 6,166 | | $ | 5,076 | | $ | 8,950 | | $ | 5,544 |
| (1) Does not reflect allowance for loan losses of $30,444, $29,967, $30,050, $28,027 and $26,437 | | | | |
| * Tax exempt income assumed at a 35% federal rate | | | | | | | | | | |
| | | | | | | | |
Provident New York Bancorp cont. | | | | | | | | |
| | | | | Three Months Ended |
| | | | | 03/31/10 | | | 12/31/09 | | | 09/30/09 | | | 06/30/09 | | | 03/31/09 | |
| Performance Ratios (annualized) | | | | | | | | | | | |
| Return on Average Assets | | | | 0.58 | % | | 0.85 | % | | 0.71 | % | | 1.25 | % | | 0.76 | % |
| Return on Average Equity | | | | 4.00 | % | | 5.76 | % | | 4.76 | % | | 8.52 | % | | 5.38 | % |
| Non-Interest Income to Average Assets | | | 0.85 | % | | 1.11 | % | | 1.09 | % | | 2.13 | % | | 1.52 | % |
| Non-Interest Expense to Average Assets | | | 2.94 | % | | 2.73 | % | | 2.71 | % | | 3.00 | % | | 2.75 | % |
| Operating Efficiency Adjusted (2) | | | 71.73 | % | | 65.40 | % | | 63.59 | % | | 71.7 | % | | 65.7 | % |
| Analysis of Net Interest Income | | | | | | | | | | | |
| Yield on Loans | | | | 5.59 | % | | 5.61 | % | | 5.59 | % | | 5.64 | % | | 5.63 | % |
| Yield on Investment Securities- Tax Equivalent | | 3.45 | % | | 3.67 | % | | 3.87 | % | | 4.70 | % | | 5.17 | % |
| Yield on Earning Assets- Tax Equivalent | | | 4.82 | % | | 4.86 | % | | 4.97 | % | | 5.14 | % | | 5.33 | % |
| Cost of Interest Bearing Deposits | | | 0.57 | % | | 0.72 | % | | 0.84 | % | | 1.04 | % | | 1.30 | % |
| Cost of Borrowings | | | | 3.64 | % | | 3.87 | % | | 3.92 | % | | 3.96 | % | | 3.71 | % |
| Cost of Interest Bearing Liabilities | | | 1.32 | % | | 1.48 | % | | 1.60 | % | | 1.73 | % | | 1.87 | % |
| Net Interest Rate Spread- Tax Equivalent Basis | | 3.49 | % | | 3.39 | % | | 3.38 | % | | 3.41 | % | | 3.46 | % |
| Net Interest Margin- Tax Equivalent Basis | | 3.76 | % | | 3.70 | % | | 3.71 | % | | 3.74 | % | | 3.80 | % |
| Capital Information Data | | | | | | | | | | | | |
| Tier 1 Leverage Ratio- Bank Only | | | 8.62 | % | | 8.85 | % | | 8.64 | % | | 9.04 | % | | 8.49 | % |
| Tier 1 Risk-Based Capital- Bank Only | | | 239,050 | | | 243,955 | | | 246,339 | | | 240,392 | | | 235,902 | |
| Total Risk-Based Capital- Bank Only | | | 263,917 | | | 268,225 | | | 270,807 | | | 264,076 | | | 259,686 | |
| Tangible Capital Consolidated (3) | | | 256,987 | | | 254,469 | | | 261,106 | | | 253,912 | | | 254,012 | |
| Tangible Capital as a % of Tangible Assets Consolidated (3) | | 9.28 | % | | 9.25 | % | | 9.14 | % | | 9.55 | % | | 9.11 | % |
| Shares Outstanding | | | | 38,861,477 | | | 39,061,035 | | | 39,547,207 | | | 39,613,454 | | | 39,876,754 | |
| Shares Repurchased during qrtr(open market) | | 316,723 | | | 602,200 | | | 86,860 | | | 315,650 | | | 0 | |
| Basic weighted common shares outstanding | | 38,188,191 | | | 38,575,909 | | | 38,405,947 | | | 38,536,716 | | | 38,627,212 | |
| Diluted common shares outstanding | | | 38,237,431 | | | 38,649,174 | | | 38,532,411 | | | 38,683,135 | | | 38,811,114 | |
| Basic Earnings per common share | | $ | 0.11 | | $ | 0.16 | | $ | 0.13 | | $ | 0.23 | | $ | 0.14 | |
| Diluted Earnings per common share | | | 0.11 | | | 0.16 | | | 0.13 | | | 0.23 | | | 0.14 | |
| Dividends Paid per common share | | | 0.06 | | | 0.06 | | | 0.06 | | | 0.06 | | | 0.06 | |
| Book Value per common share | | | 10.87 | | | 10.76 | | | 10.81 | | | 10.62 | | | 10.57 | |
| Tangible Book Value per common share (3) | | 6.61 | | | 6.51 | | | 6.60 | | | 6.41 | | | 6.37 | |
| Asset Quality Measurements | | | | | | | | | | | |
| Non-performing loans (NPLs): non-accrual | $ | 21,210 | | $ | 21,432 | | $ | 21,909 | | $ | 20,600 | | $ | 21,567 | |
| Non-performing loans (NPLs): still accruing | | 6,464 | | | 5,262 | | | 4,560 | | | 3,180 | | | 4,861 | |
| Troubled Debt Restructures | | | | 416 | | | 419 | | | 674 | | | 1,199 | | | 0 | |
| Non-performing assets (NPAs) | | | 30,556 | | | 29,445 | | | 28,855 | | | 26,566 | | | 28,202 | |
| Net Charge-offs | | | | 2,023 | | | 2,583 | | | 2,477 | | | 1,910 | | | 4,308 | |
| Net Charge-offs as % of average loans (annualized) | | 0.48 | % | | 0.61 | % | | 0.58 | % | | 0.44 | % | | 0.99 | % |
| NPLs as % of total loans | | | | 1.66 | % | | 1.59 | % | | 1.55 | % | | 1.39 | % | | 1.52 | % |
| NPAs as % of total assets | | | | 1.04 | % | | 1.01 | % | | 0.95 | % | | 0.90 | % | | 0.95 | % |
| Allowance for loan losses as % of NPLs | | | 110 | % | | 112 | % | | 114 | % | | 118 | % | | 100 | % |
| Allowance for loan losses as % of total loans | | 1.83 | % | | 1.79 | % | | 1.76 | % | | 1.63 | % | | 1.52 | % |
| | | | | | | | | | | | | |
(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 financial institutions, in calculating 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: |
| | | | | |
| | | | | 03/31/10 | | | 12/31/09 | | | 09/30/09 | | | 06/30/09 | | | 03/31/09 | |
| Total Assets | | | | $ | 2,935,956 | | $ | 2,917,789 | | $ | 3,021,893 | | $ | 2,824,356 | | $ | 2,954,701 | |
| Goodwill and other amortizable intangibles | | (165,385 | ) | | (165,857 | ) | | (166,350 | ) | | (166,863 | ) | | (167,394 | ) |
| Tangible Assets | | | $ | 2,770,571 | | $ | 2,751,932 | | $ | 2,855,543 | | $ | 2,657,493 | | $ | 2,787,307 | |
| Stockholders' equity | | | | 422,372 | | | 420,326 | | | 427,456 | | | 420,775 | | | 421,406 | |
| Goodwill and other amortizable intangibles | | (165,385 | ) | | (165,857 | ) | | (166,350 | ) | | (166,863 | ) | | (167,394 | ) |
| Tangible Stockholders' equity | | $ | 256,987 | | $ | 254,469 | | $ | 261,106 | | $ | 253,912 | | $ | 254,012 | |
| Outstanding Shares | | | | 38,861,477 | | | 39,061,035 | | | 39,547,207 | | | 39,613,454 | | | 39,876,754 | |
| Tangible capital as a % of tangible assets (consolidated) | | 9.28 | % | | 9.25 | % | | 9.14 | % | | 9.55 | % | | 9.11 | % |
| Tangible book value per share | | $ | 6.61 | | $ | 6.51 | | $ | 6.60 | | $ | 6.41 | | $ | 6.37 | |
CONTACT:
Provident New York Bancorp
Paul A. Maisch, EVP & Chief Financial Officer
Miranda Grimm, VP & Controller
845-369-8040
