Exhibit 99
Provident New York Bancorp Announces Third Quarter 2010 Earnings of $0.12 per Diluted Share
MONTEBELLO, N.Y.--(BUSINESS WIRE)--July 26, 2010--Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the parent company of Provident Bank, today announced third-quarter results for the fiscal year ending Sept. 30, 2010. Net income for the quarter was $4.8 million, or $0.12 per diluted share, compared to net income of $4.2 million, or $0.11 per diluted share for the linked quarter ended March 31, 2010 and net income of $9.0 million or $0.23 per diluted share for the third quarter of fiscal 2009. Net income year to date for fiscal 2010 was $15.1 million, or $0.39 per diluted share compared to $20.8 million or $0.54 per diluted share in fiscal 2009. Fiscal 2009 results reflected significant securities gains not experienced in fiscal 2010.
President’s Comments
George Strayton, President and CEO stated, "The third quarter of fiscal 2010 was another quarter of improved operating earnings. After adjusting for gains on securities and the fair value of interest rate caps, net operating income improved over prior quarters primarily due to improvement in our net interest margin (NIM). The growth in NIM is driven by lower deposit costs as well as increases in loan volume and loan yield. Although we had a good quarter of loan growth the demand for loans by credit worthy borrowers remains soft.
"Additionally, non-performing loans grew by 5% during the last quarter to 1.70% of total loans while loan loss reserves are 107% of non-performing loans. The level of criticized and classified loans increased as a result of one relationship, however Acquisition, Development and Construction loans continue to be stressed although a number of loans are showing improvement.”
Key items for the quarter
- Excluding the after tax effect of securities gains and the fair value adjustment of interest rate caps, earnings were $0.11. This compares to $0.09 for the linked quarter and $0.08 for the third quarter of fiscal 2009. While we actively manage our portfolio as a component of our asset/liability management, we also present earnings excluding net security gains and fair market value adjustments on interest rate caps. We believe this affords investors a better understanding of our core banking operations, and aligns more closely to 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 15 basis points to 3.91 percent over the linked quarter ended March 31, 2010, reflecting wider spreads on commercial loans and the further decrease of yields on interest-bearing deposits of 10 basis points.
- Net charge-offs of $2.2 million are up slightly from the linked quarter. Our provision for loan losses of $2.8 million is also up slightly compared to the linked quarter, reflecting the higher level of charge-offs.
- Non-performing loans increased $1.4 million, primarily due to one commercial loan.
Net Interest Income and Margin
Third quarter fiscal 2010 compared with third quarter fiscal 2009
Net interest income was $24.2 million for the third quarter of fiscal 2010, a $1.5 million increase from the same quarter of fiscal 2009 as funding costs declined at a greater pace than interest income. The net interest margin on a tax-equivalent basis was 3.91 percent for the third quarter of fiscal 2010, compared to 3.74 percent for the same period a year ago. The tax-equivalent yield on investments decreased 125 basis points and loan yields were up 4 basis points compared to the third fiscal quarter in 2009. As a result, the yield on interest-earning assets declined 27 basis points. For the same period, the cost of interest-bearing deposits decreased 57 basis points to 0.47 percent, and the cost of borrowings decreased by 33 basis points to 3.63 percent.
Third quarter fiscal 2010 compared with linked quarter ended March 31, 2010
Net interest income for the quarter ended June 30, 2010 increased $1.3 million from the linked quarter ended March 31, 2010. The tax-equivalent net interest margin increased 15 basis points from 3.76 percent from the linked quarter. The overall yield of loans increased 9 basis points due to increases in volume and rate in the commercial loan portfolio. While the yield on the investment portfolio and other earning assets was unchanged, the overall yield on earning assets improved 5 basis points. Interest bearing deposit costs declined 10 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 by $1.4 million primarily due to lower yields on investments and loans, with little change in the cost of long-term borrowings, partially offset by declines in deposit yields.
Noninterest Income
Third quarter fiscal 2010 compared with third quarter fiscal 2009
Noninterest income totaled $5.3 million for the fiscal third quarter, a decrease of $10.0 million from $15.3 million in the third quarter of fiscal 2009. The decrease was almost entirely due to a decrease in gain on sales of securities and the mark to market decline on interest rate caps. Additionally, lower deposit service charges from less overdraft fee income and reduced gains on sales of loans were partially offset by higher title insurance and investment management fees, and other noninterest income.
Third quarter fiscal 2010 compared with linked quarter ended March 31, 2010
Noninterest income decreased on a linked-quarter basis, mainly due to lower securities gains.
Year-to-date fiscal 2010 compared to 2009
Noninterest income was $19.5 million for the nine months ended June 30, 2010 compared to $32.1 million for the nine months ended June 30, 2009, a decrease of $12.7 million. Net gains on sales of securities were down $11.2 million and the cumulative loss on the interest rate caps was $831,000. The balance of the difference reflects the factors described above.
Noninterest Expense
Third quarter fiscal 2010 compared with third quarter fiscal 2009
Noninterest expense decreased 3.6 percent when compared to the third quarter fiscal 2009. The decrease is primarily due to declines in FDIC insurance premium assessments, as fiscal 2009 contained an industry-wide special assessment of $1.4 million, stock based compensation expense as earlier grants fully vested, occupancy expense, and ATM/Debit card expense (as a result of a $300,000 credit received in third quarter). These declines were offset in part by increased medical and pension expense, staffing for new offices in Westchester and Nyack, advertising, and professional fees.
Third quarter fiscal 2010 compared with the linked quarter ended March 31, 2010
On a quarter-to-quarter basis, noninterest expense decreased 2.0 percent due to the declines in stock-based compensation expense, ATM/Debit card expense, and occupancy expense, offset in part by increases related to medical and pension expense and advertising.
Year-to-date fiscal 2010 compared to 2009
Noninterest expense increased 1.6% year over year. Declines in FDIC assessments and stock-based compensation were offset by increases in employee benefits, staffing for new offices, occupancy expense primarily associated with the new offices and equipment expenses, and professional fees.
Income Taxes
The effective tax rate for the three months ended June 30, 2010 was 20.6 percent compared to 31.0 percent for the same period in the prior year. The decline is mainly due to the high proportion of tax-free income from municipal securities, BOLI and insurance relative to the total levels of pre-tax income. Similarly, the effective tax rate for the nine month period ended June 30, 2010 was 24.4% compared to 29.8% for the same period in the prior year.
Credit Quality
Net charge-offs for the third fiscal quarter were $2.2 million compared to $2.0 million in the linked quarter and $1.9 million for the third fiscal quarter of 2009. Our provision was $2.8 million, increasing our allowance for loan losses by $600,000 to $31.0 million, or 107% of non-performing loans. This compares to 114 percent at September 30, 2009. Our year-to-date provision is $7.8 million versus $6.8 million in net charge-offs, adding $1.0 million to the allowance for loan losses. Provisions for the prior fiscal year to date were $13.1 million versus net charge-offs of $8.2 million adding $4.9 million to the allowance for loan losses.
Substandard loans at June 30, 2010 were $124.8 million compared to $95.9 million at March 31, 2010, while special mention loans were $36.9 million and $49.8 million, respectively. The increase over the linked quarter in substandard loans is primarily due to the downgrade of one performing relationship containing both secured and unsecured debt related to residential development. The loans are supported by the significant strength of the obligor/guarantor, but the project sales have slowed sufficiently to warrant adverse classification. Non performing loans were $29.1 million at June 30, 2010 compared to $27.7 million at March 31, 2010, with the increase primarily resulting from the addition of one commercial relationship.
Key Balance Sheet Changes
- Period-end total deposits decreased $45.9 million compared to the linked quarter. Decreases were seen in higher rate certificates of deposit and municipal deposits. We continue to see an overall increase in transaction accounts, up $11.5 million from the linked quarter. Total deposits decreased $121.2 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 continues to be sporadic, total loan originations during the third fiscal quarter 2010 were $151.9 million, an increase of 42 percent over the third fiscal quarter of 2009. Net loans totaled $1.67 billion, relatively unchanged from September 30, 2009 and up 2.3 percent from March 31, 2010.
- Securities increased $41.6 million to $918.8 million, as the Company continued investing cash generated by deposit inflows into medium term securities, with durations between two and five years.
- Borrowings increased over September 30, 2009 levels as the Company utilized its overnight borrowing at the FHLBNY to fund securities purchases and did not enter into any longer-term borrowings.
- The Company repurchased 233,000 shares of common stock during the quarter at a cost of $2.1 million. There are approximately 1.6 million shares remaining under the current repurchase authorization.
Capital and Liquidity
Provident Bank remained well-capitalized with excellent liquidity in the third fiscal quarter 2010 as unpledged securities totaled in excess of $446.8 million. The Bank’s Tier 1 leverage ratio is at 8.75 percent. The Company’s tangible capital as a percent of tangible assets increased to 9.44 percent as of June 30, 2010, while its tangible book value per share increased to $6.84. Total capital increased $1.7 million from September 30, 2009, to $429.1 million at June 30, 2010, due to a net increase of $6.2 million in the Company’s retained earnings, an increase of $1.3 million due to stock based compensation items, a $1.1 million increase in accumulated other comprehensive income, offset by a net change in treasury stock of $6.9 million.
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 June, 30, 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 | Nine Months Ended | Ended | |||||||||||||||||||||
June 30, | June 30, | March 31, | |||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | |||||||||||||||||||
Net Income | |||||||||||||||||||||||
Net Income | $ | 4,756 | $ | 8,950 | $ | 15,089 | $ | 20,785 | $ | 4,167 | |||||||||||||
Securities gains1 | (561 | ) | (5,953 | ) | (3,098 | ) | (9,768 | ) | (1,119 | ) | |||||||||||||
Fair value loss on interest rate caps1 | 353 | - | 494 | - | 366 | ||||||||||||||||||
Net adjusted income | $ | 4,548 | $ | 2,997 | $ | 12,485 | $ | 11,017 | $ | 3,414 | |||||||||||||
Earnings per common share | |||||||||||||||||||||||
Diluted Earnings per common share | 0.12 | $ | 0.23 | 0.39 | $ | 0.54 | $ | 0.11 |
| ||||||||||||||
Securities gains1 | (0.01 | )* | (0.15 | ) | (0.08 | ) | (0.25 | ) | (0.03 | ) | |||||||||||||
Fair value loss on interest rate caps1 | 0.01 | * | - | 0.01 | - | 0.01 |
| ||||||||||||||||
Diluted adjusted earnings per common share | 0.11 | * | $ | 0.08 | $ | 0.32 | $ | 0.29 | $ | 0.09 | |||||||||||||
Non-interest income | |||||||||||||||||||||||
Total non-interest income | $ | 5,281 | $ | 15,255 | $ | 19,487 | $ | 32,149 | $ | 6,113 | |||||||||||||
Security gains | (945 | ) | (10,023 | ) | (5,217 | ) | (16,447 | ) | (1,884 | ) | |||||||||||||
Fair value loss on interest rate caps | 595 | - | 831 | - | 616 | ||||||||||||||||||
Adjusted non interest-income | $ | 4,931 | $ | 5,232 | $ | 15,101 | $ | 15,702 | $ | 4,845 | |||||||||||||
1After marginal tax effect 40.61% | |||||||||||||||||||||||
* Rounding |
Provident New York Bancorp and Subsidiaries | |||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||
(unaudited, in thousands, except share and per share data) | |||||||||||||||
June 30, | September 30, | June 30, | |||||||||||||
2010 | 2009 | 2009 | |||||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $ | 42,660 | $ | 160,408 | $ | 96,836 | |||||||||
Total securities | 918,822 | 877,197 | 732,076 | ||||||||||||
Loans held for sale | 2,134 | 1,213 | 891 | ||||||||||||
Loans: | |||||||||||||||
One- to four-family residential mortgage loans | 427,411 | 460,728 | 473,838 | ||||||||||||
Commercial real estate, commercial business | 810,692 | 789,396 | 797,306 | ||||||||||||
Acquisition, development and construction loans | 227,270 | 201,611 | 189,920 | ||||||||||||
Consumer loans | 240,364 | 251,522 | 253,365 | ||||||||||||
Total loans, gross | 1,705,737 | 1,703,257 | 1,714,429 | ||||||||||||
Allowance for loan losses | (31,021 | ) | (30,050 | ) | (28,027 | ) | |||||||||
Total loans, net | 1,674,716 | 1,673,207 | 1,686,402 | ||||||||||||
Federal Home Loan Bank stock, at cost | 24,596 | 23,177 | 23,447 | ||||||||||||
Premises and equipment, net | 42,983 | 40,692 | 40,234 | ||||||||||||
Goodwill | 160,861 | 160,861 | 160,861 | ||||||||||||
Other amortizable intangibles | 4,072 | 5,489 | 6,002 | ||||||||||||
Bank owned life insurance | 50,447 | 49,611 | 49,106 | ||||||||||||
Other assets | 42,415 | 30,038 | 28,501 | ||||||||||||
Total assets | $ | 2,963,706 | $ | 3,021,893 | $ | 2,824,356 | |||||||||
Liabilities: | |||||||||||||||
Deposits | |||||||||||||||
Retail | $ | 166,286 | $ | 169,122 | $ | 160,151 | |||||||||
Commercial | 255,777 | 236,516 | 220,260 | ||||||||||||
Municipal | 13,215 | 86,596 | 10,443 | ||||||||||||
Personal NOW deposits | 141,387 | 127,595 | 127,662 | ||||||||||||
Business NOW deposits | 33,449 | 36,972 | 31,311 | ||||||||||||
Municipal NOW deposits | 97,326 | 188,074 | 64,478 | ||||||||||||
Total transaction accounts | 707,440 | 844,875 | 614,305 | ||||||||||||
Savings | 404,810 | 357,814 | 369,424 | ||||||||||||
Money market deposits | 421,027 | 384,632 | 383,579 | ||||||||||||
Certificates of deposit | 427,728 | 494,961 | 505,675 | ||||||||||||
Total deposits | 1,961,005 | 2,082,282 | 1,872,983 | ||||||||||||
Borrowings | 475,416 | 430,628 | 436,735 | ||||||||||||
Borrowings Senior Note | 51,496 | 51,494 | 51,493 | ||||||||||||
Mortgage escrow funds and other | 46,674 | 30,033 | 42,370 | ||||||||||||
Total liabilities | 2,534,591 | 2,594,437 | 2,403,581 | ||||||||||||
Stockholders’ equity | 429,115 | 427,456 | 420,775 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 2,963,706 | $ | 3,021,893 | $ | 2,824,356 | |||||||||
Shares of common stock outstanding at period end | 38,628,477 | 39,547,207 | 39,613,454 | ||||||||||||
Book value per share | $ | 11.11 | $ | 10.81 | $ | 10.62 |
Provident New York Bancorp and Subsidiaries | ||||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | ||||||||||||||||||
(unaudited, in thousands, except share and per share data) | ||||||||||||||||||
Quarter | ||||||||||||||||||
Quarter Ended | Ended | Nine Months Ended | ||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||
2010 | 2009 | 2010 | 2010 | 2009 | ||||||||||||||
Interest and dividend income: | ||||||||||||||||||
Loans and loan fees | $ | 23,393 | $ | 23,848 | $ | 22,655 | $ | 69,448 | $ | 73,534 | ||||||||
Securities taxable | 4,716 | 5,460 | 4,724 | 14,192 | 20,886 | |||||||||||||
Securities non-taxable | 2,037 | 1,915 | 1,901 | 5,833 | 5,679 | |||||||||||||
Other earning assets | 262 | 428 | 347 | 980 | 1,009 | |||||||||||||
30,408 | 31,651 | 29,627 | 90,453 | 101,108 | ||||||||||||||
Interest expense: | ||||||||||||||||||
Deposits | 1,849 | 4,104 | 2,201 | 6,840 | 15,185 | |||||||||||||
Borrowings | 4,361 | 4,821 | 4,492 | 13,595 | 14,516 | |||||||||||||
Total interest expense | 6,210 | 8,925 | 6,693 | 20,435 | 29,701 | |||||||||||||
Net interest income | 24,198 | 22,726 | 22,934 | 70,018 | 71,407 | |||||||||||||
Provision for loan losses | 2,750 | 3,500 | 2,500 | 7,750 | 13,100 | |||||||||||||
Net interest income after provision for loan losses | 21,448 | 19,226 | 20,434 | 62,268 | 58,307 | |||||||||||||
Non-interest income: | ||||||||||||||||||
Deposit fees and service charges | 2,796 | 3,083 | 2,744 | 8,533 | 9,256 | |||||||||||||
Net gain on sales of securities | 945 | 10,023 | 1,884 | 5,217 | 16,447 | |||||||||||||
Title insurance fees | 336 | 254 | 237 | 884 | 667 | |||||||||||||
Bank owned life insurance | 503 | 502 | 496 | 1,553 | 1,507 | |||||||||||||
Gain (loss) on sale of premises and equipment | - | - | (10 | ) | (54 | ) | 517 | |||||||||||
Gain on sale of loans | 45 | 450 | 117 | 445 | 746 | |||||||||||||
Investment management fees | 756 | 622 | 776 | 2,311 | 1,829 | |||||||||||||
Fair value loss interest rate caps | (595 | ) | - | (616 | ) | (831 | ) | - | ||||||||||
Other | 495 | 321 | 485 | 1,429 | 1,180 | |||||||||||||
Total non-interest income | 5,281 | 15,255 | 6,113 | 19,487 | 32,149 | |||||||||||||
Non-interest expense: | ||||||||||||||||||
Compensation and benefits | 11,061 | 10,058 | 10,824 | 32,149 | 29,626 | |||||||||||||
Stock-based compensation plans | 172 | 639 | 581 | 1,205 | 2,321 | |||||||||||||
Occupancy and office operations | 3,168 | 3,310 | 3,537 | 10,031 | 9,607 | |||||||||||||
Advertising and promotion | 1,041 | 614 | 794 | 2,577 | 2,464 | |||||||||||||
Professional fees | 1,063 | 788 | 914 | 2,811 | 2,370 | |||||||||||||
Data and check processing | 571 | 558 | 577 | 1,698 | 1,721 | |||||||||||||
Amortization of intangible assets | 452 | 531 | 472 | 1,417 | 1,672 | |||||||||||||
FDIC insurance and regulatory assessments | 927 | 2,305 | 931 | 2,642 | 3,505 | |||||||||||||
ATM/debit card expense | 164 | 564 | 536 | 1,254 | 1,552 | |||||||||||||
Other | 2,122 | 2,150 | 2,007 | 6,024 | 5,990 | |||||||||||||
Total non-interest expense | 20,741 | 21,517 | 21,173 | 61,808 | 60,828 | |||||||||||||
Income before income tax expense | 5,988 | 12,964 | 5,374 | 19,947 | 29,628 | |||||||||||||
Income tax expense | 1,232 | 4,014 | 1,207 | 4,858 | 8,843 | |||||||||||||
Net income | $ | 4,756 | $ | 8,950 | $ | 4,167 | $ | 15,089 | $ | 20,785 | ||||||||
Per common share: | ||||||||||||||||||
Basic earnings | $ | 0.12 | $ | 0.23 | $ | 0.11 | $ | 0.39 | $ | 0.54 | ||||||||
Diluted earnings | 0.12 | 0.23 | 0.11 | 0.39 | 0.54 | |||||||||||||
Dividends declared | 0.06 | 0.06 | 0.06 | 0.18 | 0.18 | |||||||||||||
Weighted average common shares: | ||||||||||||||||||
Basic | 38,086,535 | 38,536,716 | 38,188,191 | 38,284,965 | 38,582,343 | |||||||||||||
Diluted | 38,086,579 | 38,683,135 | 38,209,766 | 38,317,220 | 37,768,486 |
Selected Financial Condition Data: | Three Months Ended | ||||||||||||||
(in thousands except share and per share data) | 06/30/10 | 03/31/10 | 12/31/09 | 09/30/09 | 06/30/09 | ||||||||||
End of Period | |||||||||||||||
Total assets | $ | 2,963,706 | $ | 2,935,956 | $ | 2,917,789 | $ | 3,021,893 | $ | 2,824,356 | |||||
Loans, gross (1) | 1,705,737 | 1,667,428 | 1,677,032 | 1,703,257 | 1,714,429 | ||||||||||
Securities available for sale | 878,370 | 888,994 | 851,028 | 832,583 | 689,286 | ||||||||||
Securities held to maturity | 40,452 | 43,675 | 46,501 | 44,614 | 42,790 | ||||||||||
Bank owned life insurance | 50,447 | 49,945 | 49,448 | 49,611 | 49,106 | ||||||||||
Goodwill | 160,861 | 160,861 | 160,861 | 160,861 | 160,861 | ||||||||||
Other amortizable intangibles | 4,072 | 4,524 | 4,996 | 5,489 | 6,002 | ||||||||||
Other non-earning assets | 85,398 | 87,811 | 88,976 | 70,730 | 68,735 | ||||||||||
Deposits | 1,961,005 | 2,006,953 | 1,869,643 | 2,082,282 | 1,872,983 | ||||||||||
Borrowings | 526,912 | 472,801 | 584,717 | 482,122 | 488,228 | ||||||||||
Equity | 429,115 | 422,372 | 420,326 | 427,456 | 420,775 | ||||||||||
Other comprehensive income related to investment, securities reflected in stockholders' equity | 9,953 | 3,970 | 2,342 | 9,502 | 1,531 | ||||||||||
Average Balances | |||||||||||||||
Total assets | $ | 2,928,626 | $ | 2,918,953 | $ | 2,886,880 | $ | 2,837,511 | $ | 2,875,999 | |||||
Loans, gross: | |||||||||||||||
Real estate- residential mortgage | 427,801 | 436,967 | 451,894 | 465,472 | 484,276 | ||||||||||
Real estate- commercial mortgage | 552,888 | 539,679 | 538,646 | 548,195 | 547,846 | ||||||||||
Real estate- Acquisition, Development & Construction | 222,958 | 212,454 | 202,864 | 191,826 | 190,875 | ||||||||||
Commercial and industrial | 236,275 | 234,356 | 239,698 | 246,590 | 245,375 | ||||||||||
Consumer loans | 243,484 | 248,134 | 252,354 | 252,667 | 254,475 | ||||||||||
Loans total (1) | 1,683,406 | 1,671,590 | 1,685,456 | 1,704,750 | 1,722,847 | ||||||||||
Securities (taxable) | 693,554 | 694,815 | 626,734 | 576,363 | 520,948 | ||||||||||
Securities (non-taxable) | 219,121 | 203,153 | 201,706 | 192,733 | 196,385 | ||||||||||
Total earning assets | 2,594,264 | 2,581,554 | 2,563,965 | 2,511,431 | 2,549,237 | ||||||||||
Non earning assets | 334,362 | 337,399 | 322,915 | 326,080 | 326,762 | ||||||||||
Non-interest bearing checking | 430,387 | 419,389 | 418,961 | 402,643 | 373,252 | ||||||||||
Interest bearing NOW accounts | 263,709 | 298,935 | 291,844 | 228,761 | 227,039 | ||||||||||
Total transaction accounts | 694,096 | 718,324 | 710,805 | 631,404 | 600,291 | ||||||||||
Savings (including mortgage escrow funds) | 413,315 | 380,600 | 372,911 | 386,943 | 378,263 | ||||||||||
Money market deposits | 428,612 | 428,605 | 397,710 | 394,718 | 394,628 | ||||||||||
Certificates of deposit | 467,360 | 446,301 | 477,377 | 494,530 | 575,713 | ||||||||||
Total deposits and mortgage escrow | 2,003,383 | 1,973,830 | 1,958,803 | 1,907,595 | 1,948,895 | ||||||||||
Total interest bearing deposits | 1,572,996 | 1,554,441 | 1,539,842 | 1,504,952 | 1,575,643 | ||||||||||
Borrowings | 481,460 | 500,226 | 485,759 | 488,443 | 488,846 | ||||||||||
Equity | 424,221 | 422,129 | 424,338 | 423,361 | 421,529 | ||||||||||
Selected Operating Data: | |||||||||||||||
Condensed Tax Equivalent Income Statement | |||||||||||||||
Interest and dividend income | $ | 30,408 | $ | 29,627 | $ | 30,418 | $ | 30,482 | $ | 31,651 | |||||
Tax equivalent adjustment* | 1,098 | 1,023 | 1,020 | 991 | 1,031 | ||||||||||
Interest expense | 6,210 | 6,693 | 7,532 | 8,019 | 8,925 | ||||||||||
Net interest income (tax equivalent) | 25,296 | 23,957 | 23,906 | 23,454 | 23,757 | ||||||||||
Provision for loan losses | 2,750 | 2,500 | 2,500 | 4,500 | 3,500 | ||||||||||
Net interest income after provision for loan losses | 22,546 | 21,457 | 21,406 | 18,954 | 20,257 | ||||||||||
Non-interest income | 5,281 | 6,113 | 8,093 | 7,804 | 15,255 | ||||||||||
Non-interest expense | 20,741 | 21,173 | 19,894 | 19,359 | 21,517 | ||||||||||
Income before income tax expense | 7,086 | 6,397 | 9,605 | 7,399 | 13,995 | ||||||||||
Income tax expense (tax equivalent)* | 2,330 | 2,230 | 3,439 | 2,323 | 5,045 | ||||||||||
Net income | $ | 4,756 | $ | 4,167 | $ | 6,166 | $ | 5,076 | $ | 8,950 | |||||
(1) Does not reflect allowance for loan losses of $31,021, $30,444, $29,967, $30,050 and $28,027 | |||||||||||||||
* Tax exempt income assumed at a 35% federal rate |
Three Months Ended | ||||||||||||||||||||
06/30/10 | 03/31/10 | 12/31/09 | 09/30/09 | 06/30/09 | ||||||||||||||||
Performance Ratios (annualized) | ||||||||||||||||||||
Return on Average Assets | 0.65 | % | 0.58 | % | 0.85 | % | 0.71 | % | 1.25 | % | ||||||||||
Return on Average Equity | 4.50 | % | 4.00 | % | 5.76 | % | 4.76 | % | 8.52 | % | ||||||||||
Non-Interest Income to Average Assets | 0.72 | % | 0.85 | % | 1.11 | % | 1.09 | % | 2.13 | % | ||||||||||
Non-Interest Expense to Average Assets | 2.84 | % | 2.94 | % | 2.73 | % | 2.71 | % | 3.00 | % | ||||||||||
Operating Efficiency Adjusted (2) | 66.91 | % | 71.73 | % | 65.40 | % | 63.59 | % | 71.7 | % | ||||||||||
Analysis of Net Interest Income | ||||||||||||||||||||
Yield on Loans | 5.68 | % | 5.59 | % | 5.61 | % | 5.59 | % | 5.64 | % | ||||||||||
Yield on Investment Securities- Tax Equivalent | 3.45 | % | 3.45 | % | 3.67 | % | 3.87 | % | 4.70 | % | ||||||||||
Yield on Earning Assets- Tax Equivalent | 4.87 | % | 4.82 | % | 4.86 | % | 4.97 | % | 5.14 | % | ||||||||||
Cost of Interest Bearing Deposits | 0.47 | % | 0.57 | % | 0.72 | % | 0.84 | % | 1.04 | % | ||||||||||
Cost of Borrowings | 3.63 | % | 3.64 | % | 3.87 | % | 3.92 | % | 3.96 | % | ||||||||||
Cost of Interest Bearing Liabilities | 1.21 | % | 1.32 | % | 1.48 | % | 1.60 | % | 1.73 | % | ||||||||||
Net Interest Rate Spread- Tax Equivalent Basis | 3.66 | % | 3.49 | % | 3.39 | % | 3.38 | % | 3.41 | % | ||||||||||
Net Interest Margin- Tax Equivalent Basis | 3.91 | % | 3.76 | % | 3.70 | % | 3.71 | % | 3.74 | % | ||||||||||
Capital Information Data | ||||||||||||||||||||
Tier 1 Leverage Ratio- Bank Only | 8.75 | % | 8.62 | % | 8.85 | % | 8.64 | % | 9.04 | % | ||||||||||
Tier 1 Risk-Based Capital- Bank Only | 244,299 | 239,050 | 243,955 | 246,339 | 240,392 | |||||||||||||||
Total Risk-Based Capital- Bank Only | 268,996 | 263,264 | 268,225 | 270,807 | 264,076 | |||||||||||||||
Tangible Capital Consolidated (3) | 264,182 | 256,987 | 254,469 | 261,106 | 253,912 | |||||||||||||||
Tangible Capital as a % of Tangible Assets Consolidated (3) | 9.44 | % | 9.28 | % | 9.25 | % | 9.14 | % | 9.55 | % | ||||||||||
Shares Outstanding | 38,628,477 | 38,861,477 | 39,061,035 | 39,547,207 | 39,613,454 | |||||||||||||||
Shares Repurchased during qrtr(open market) | 233,000 | 316,723 | 602,200 | 86,860 | 315,650 | |||||||||||||||
Basic weighted common shares outstanding | 38,086,535 | 38,188,191 | 38,575,909 | 38,405,947 | 38,536,716 | |||||||||||||||
Diluted common shares outstanding | 38,086,579 | 38,209,766 | 38,649,174 | 38,532,411 | 38,683,135 | |||||||||||||||
Basic Earnings per common share | $ | 0.12 | 0.11 | $ | 0.16 | $ | 0.13 | $ | 0.23 | |||||||||||
Diluted Earnings per common share | 0.12 | 0.11 | 0.16 | 0.13 | 0.23 | |||||||||||||||
Dividends Paid per common share | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | |||||||||||||||
Book Value per common share | 11.11 | 10.87 | 10.76 | 10.81 | 10.62 | |||||||||||||||
Tangible Book Value per common share (3) | 6.84 | 6.61 | 6.51 | 6.60 | 6.41 | |||||||||||||||
Asset Quality Measurements | ||||||||||||||||||||
Non-performing loans (NPLs): non-accrual | $ | 21,985 | 21,210 | $ | 21,432 | $ | 21,909 | $ | 20,600 | |||||||||||
Non-performing loans (NPLs): still accruing | 7,069 | 6,464 | 5,262 | 4,560 | 3,180 | |||||||||||||||
Troubled Debt Restructures | 414 | 416 | 419 | 674 | 1,199 | |||||||||||||||
Other Real Estate Owned | 3,302 | 2,466 | 2,332 | 1,712 | 1,587 | |||||||||||||||
Non-performing assets (NPAs) | 32,770 | 30,556 | 29,445 | 28,855 | 26,566 | |||||||||||||||
Net Charge-offs | 2,173 | 2,023 | 2,583 | 2,477 | 1,910 | |||||||||||||||
Net Charge-offs as % of average loans (annualized) | 0.52 | % | 0.48 | % | 0.61 | % | 0.58 | % | 0.44 | % | ||||||||||
NPLs as % of total loans | 1.70 | % | 1.66 | % | 1.59 | % | 1.55 | % | 1.39 | % | ||||||||||
NPAs as % of total assets | 1.11 | % | 1.04 | % | 1.01 | % | 0.95 | % | 0.90 | % | ||||||||||
Allowance for loan losses as % of NPLs | 107 | % | 110 | % | 112 | % | 114 | % | 118 | % | ||||||||||
Allowance for loan losses as % of total loans | 1.82 | % | 1.83 | % | 1.79 | % | 1.76 | % | 1.63 | % | ||||||||||
(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: | ||||||||||||||||||||
06/30/10 | 03/31/10 | 12/31/09 | 09/30/09 | 06/30/09 | ||||||||||||||||
Total Assets | $ | 2,963,706 | 2,935,956 | $ | 2,917,789 | $ | 3,021,893 | $ | 2,824,356 | |||||||||||
Goodwill and other amortizable intangibles | (164,933 | ) | (165,385 | ) | (165,857 | ) | (166,350 | ) | (166,863 | ) | ||||||||||
Tangible Assets | $ | 2,798,773 | 2,770,571 | $ | 2,751,932 | $ | 2,855,543 | $ | 2,657,493 | |||||||||||
Stockholders' equity | 429,115 | 422,372 | 420,326 | 427,456 | 420,775 | |||||||||||||||
Goodwill and other amortizable intangibles | (164,933 | ) | (165,385 | ) | (165,857 | ) | (166,350 | ) | (166,863 | ) | ||||||||||
Tangible Stockholders' equity | $ | 264,182 | 256,987 | $ | 254,469 | $ | 261,106 | $ | 253,912 | |||||||||||
Outstanding Shares | 38,628,477 | 38,861,477 | 39,061,035 | 39,547,207 | 39,613,454 | |||||||||||||||
Tangible capital as a % of tangible assets (consolidated) | 9.44 | % | 9.28 | % | 9.25 | % | 9.14 | % | 9.55 | % | ||||||||||
Tangible book value per share | $ | 6.84 | 6.61 | $ | 6.51 | $ | 6.60 | $ | 6.41 |
CONTACT:
Provident Bank
Paul A. Maisch, EVP & Chief Financial Officer
Miranda Grimm, VP & Controller
845-369-8040