Exhibit 99
Provident New York Bancorp Announces First Quarter 2011 Earnings of $0.18 per Diluted Share
MONTEBELLO, N.Y.--(BUSINESS WIRE)--January 25, 2011--Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the parent company of Provident Bank, today announced first-quarter results for the quarter ended December 31, 2010. Net income for the quarter was $6.7 million, or $0.18 per diluted share, compared to net income of $5.4 million, or $0.14 per diluted share for the linked quarter ended September 30, 2010 and net income of $6.2 million or $0.16 per diluted share for the first quarter of fiscal 2010.
President’s Comments
George Strayton, President and CEO commented, “The Company’s financial performance for the first quarter of our new fiscal year continued to be solid. I believe in this past quarter we saw the beginning of an upward movement of interest rates which in the long run should be positive for us. Our balance sheet remains asset sensitive, which has negatively impacted net interest margin and therefore core income over the past two years. However, with an asset sensitive balance sheet, net interest margin, and core earnings are positioned for improvement with an upward shift of the total yield curve. We also would expect that, as a result of an upward shift in the yield curve and the consequent improvement in net interest income, we would curtail sales of investment securities, which fortified earnings the past two years.”
“We enter this new calendar year optimistic regarding the economic outlook for the lower Hudson Valley of New York State and Provident Bank,” Mr. Strayton continued. “Our commercial mortgage loan originations continue to be strong and increasingly are based on growing business needs rather than refinancing existing obligations. The increase in the commercial loan portfolio coupled with continued increases in core deposits and a stabilizing investment portfolio yield in due course should lead to operating earnings improvement. Moreover, we are seeing the level of net charge-offs abate and a reduction in substandard loans. However, we also saw three substandard loan relationships aggregating approximately $10 million move to non-performing status this quarter. No addition to reserves was needed as the amount of substandard loans declined and the provision for loan losses was roughly equal to net charge-offs.”
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 per diluted share. This compares to $0.10 for the linked quarter and $0.12 for the first quarter of fiscal 2010. While we actively manage our securities portfolio as a component of our asset/liability management, we also present earnings excluding net securities 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 charge-offs of $1.9 million are down from the linked quarter and from the same quarter last year. Our provision for loan losses of $2.1 million is also down from the previous quarter.
- Substandard loans decreased $15.8 million over September 30, 2010 totals as $10 million in ADC loans were upgraded. Special mention increased primarily due to this upgrade, as well as new additions. These additions consisted primarily of two relationships, the majority of which is commercial mortgage related.
- Non-performing loans, a subset of substandard loans, increased to $36.2 million over the linked quarter. The increase was due primarily to one $6.5 million ADC relationship. The remainder of the increase in non-performing loans was the inclusion of two borrowing relationships that were already classified as substandard.
- The Company has restructured $89.1 million of its FHLBNY advances which had a weighted average yield of 3.69 percent and duration of 2.2 years, into new borrowings with a weighted average yield of 2.63 percent, duration of 1.1 years and an annualized interest expense savings of $945,000.
Net Interest Income and Margin
First quarter fiscal 2011 compared with first quarter fiscal 2010
Net interest income was $23.2 million for the first quarter of fiscal 2011, a slight increase from the same quarter of fiscal 2010 as funding costs declined at a greater pace than interest income. The net interest margin on a tax-equivalent basis was 3.66 percent for the first quarter of fiscal 2011, compared to 3.70 percent for the same period a year ago. The tax-equivalent yield on investments decreased 85 basis points and loan yields were down 14 basis points compared to the first quarter in 2010. As a result, the yield on interest-earning assets declined 32 basis points. For the same period, the cost of deposits decreased 25 basis points to 0.32 percent, and the cost of borrowings decreased by 38 basis points to 3.49 percent.
First quarter fiscal 2011 compared with linked quarter ended September 30, 2010
Net interest income for the quarter ended December 31, 2010 remained relatively flat compared to the linked quarter ended September 30, 2010. The tax-equivalent net interest margin decreased 9 basis points from 3.75 percent in the linked quarter. The overall yield on loans remained flat at 5.47 percent. The yield on the investment portfolio declined 34 basis points to 2.82 percent. The overall yield on earning assets declined 13 basis points. Interest bearing deposit costs declined 2 basis points reflecting the bottoming out of deposit pricing. The cost of borrowing declined four basis points over the linked quarter.
Noninterest Income
First quarter fiscal 2011 compared with first quarter fiscal 2010
Noninterest income totaled $9.9 million for the first quarter, an increase of $1.8 million from the first quarter of fiscal 2010. The increase was due to higher gains on sale of securities and loans, offset by lower deposit fees. The decline in fees is primarily related to changes in customer behavior regarding overdrafts.
First quarter fiscal 2011 compared with linked quarter ended September 30, 2010
Noninterest income increased on a linked-quarter basis, mainly due to higher securities gains and a fair value gain related to interest rate caps.
Noninterest Expense
First quarter fiscal 2011 compared with first quarter fiscal 2010
Noninterest expense increased 7 percent when compared to the first quarter fiscal 2010. The increase is primarily due to medical and retirement plan expense, staffing for new offices in Westchester and Nyack, professional fees and occupancy costs for new locations. Office and staff expansion accounted for approximately $528,000 of the increase in compensation and office and occupancy costs in the first quarter of 2011 as compared to 2010.
First quarter fiscal 2011 compared with the linked quarter ended September 30, 2010
On a quarter-to-quarter basis, noninterest expense declined 0.4%. Increases related to occupancy and advertising expense were offset by declines in professional fees and regulatory assessment expense.
Income Taxes
The effective tax rate for the first quarter of fiscal 2011 was 30.7 percent compared to 28.2 percent for the same period in fiscal 2010. The increase is mainly due to the elimination of the New York State Thrift bad debt deduction, but was offset in part by the set up of a captive insurance company.
Credit Quality
Net charge-offs for the first fiscal quarter were $1.9 million compared to $2.4 million in the linked quarter and $2.6 million for the first quarter of fiscal 2010. Our provision was $2.1 million, increasing our allowance for loan losses to $31.0 million, or 86% of non-performing loans at December 31, 2010. This compares to 115 percent at September 30, 2010. Substandard loans at December 31, 2010 were $114.6 million compared to $131.8 million at September 30, 2010, and $100.6 million at December 31, 2009. The decline in substandard loans was primarily due to the performance upgrade of approximately $10 million in ADC loans. Special mention loans were $63.7 million compared to $37.9 million at September 30, 2010. Non performing loans were $36.2 million at December 31, 2010 compared to $26.8 million at September 30, 2010.
Key Balance Sheet Changes
- Period-end total deposits decreased $162.6 million compared to year end September 30, 2010, due to the rolling off of municipal tax deposits. Municipal tax collection deposits (transaction accounts) were $219 million at September 30, 2010. On a year over year basis deposits are up $53.2 million excluding wholesale deposits. We continue to see an overall increase in transaction accounts, up 12 percent from the previous year. Business transaction accounts have increased 16 percent in this time frame.
- While overall loan demand continues to be sporadic, total loan originations during first quarter fiscal 2011 were $182.0 million, an increase of 59 percent over $114.3 million for the first quarter of fiscal 2010. Commercial loan balances increased by $21 million over September 30, 2010 levels, while 1-4 family residential mortgages declined by $20.4 million or 5 percent as the Bank sold $32.8 million in the secondary market.
- Securities decreased $34.4 million to $900.4 million over September 30, 2010 levels. The Company continued investing cash generated by deposit inflows into medium term securities, with durations between two and five years. These purchases were offset by declines in market values of $26.2 million from September 30, 2010 as US Treasury interest rates in the five to ten year maturity range have increased approximately 70 to 80 basis points over the period.
- Borrowings increased over September 30, 2010 levels by $80.5 million as September municipal tax collections rolled off. The Company supplemented its borrowings with $73.6 million in wholesale deposits at a weighted average rate of 0.73 percent
Capital and Liquidity
Growth in core deposits has provided ample liquidity to reduce overall borrowings and increase available for sale securities (gross of unrealized loss). Provident Bank remained well-capitalized at September 30, 2010. The Bank’s Tier 1 leverage ratio is at 8.89 percent. The Company’s tangible capital as a percent of tangible assets decreased 13 basis points to 9.20 percent as of December 31, 2010, while its tangible book value per share decreased to $6.69 from $6.96 at September 30, 2010. Total capital decreased $11.3 million from September 30, 2010, to $419.6 million at December 31, 2010, due to a net increase of $4.6 million in the Company’s retained earnings, an increase of $0.1 million due to stock based compensation items, a $15.3 million decrease in accumulated other comprehensive income and a $0.6 million increase in treasury stock. During the quarter the Company purchased 82,602 shares at a cost of $757,000.
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 the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended December 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 period, even though the new information was received by management subsequent to the date of this release.
Reconciliation of Adjusted Earnings:
| | | | | | |
| | Quarter Ended |
| | December 31, | | September 30, |
| | 2010 | | 2009 | | 2010 |
| Net Income | | | | | | |
| Net Income | | $ | 6,720 | | | $ | 6,166 | | | $ | 5,403 | |
| Securities gains1 | | | (2,496 | ) | | | (1,418 | ) | | | (1,746 | ) |
| Fair value (gain) loss on interest rate caps1 | | | (139 | ) | | | (226 | ) | | | 163 | |
| Net adjusted income | | $ | 4,085 | | | $ | 4,522 | | | $ | 3,820 | |
| | | | | | |
| Earnings per common share | | | | | | |
| Diluted Earnings per common share | | | 0.18 | | | $ | 0.16 | | | | 0.14 | |
| Securities gains1 | | | (0.07 | ) | | | (0.04 | ) | | | (0.05 | ) |
| Fair value loss on interest rate caps1 | | | - | | | | (0.01 | ) | | | - | |
| Diluted adjusted earnings per common share | | | 0.11 | | | $ | 0.12 | | * | | 0.10 | |
| | | | | | |
| Non-interest income | | | | | | |
| Total non-interest income | | $ | 9,883 | | | $ | 8,093 | | | $ | 7,714 | |
| Securities gains | | | (4,202 | ) | | | (2,388 | ) | | | (2,940 | ) |
| Fair value (gain) loss on interest rate caps | | | (234 | ) | | | (380 | ) | | | 275 | |
| Adjusted non interest-income | | $ | 5,447 | | | $ | 5,325 | | | $ | 5,049 | |
| | | | | | |
| 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) |
| | | | | | | | | | |
| | | | | | | December 31, | | September 30, |
| | | | | | | 2010 | | 2010 |
| Assets: | | | | | | | |
| Cash and due from banks | | $ | 34,844 | | $ | 90,872 |
| Total securities | | | 900,421 | | | 934,860 |
| Loans held for sale | | | 3,051 | | | 5,890 |
Loans (1): | | | | | | | | |
| One- to four-family residential mortgage loans | | | 393,799 | | | 414,213 |
| Loans guaranteed by FHLMC | | | 3,021 | | | - |
| Commercial real estate, commercial business | | | 846,197 | | | 819,911 |
| Acquisition, development and construction loans | | | 223,866 | | | 229,193 |
| Consumer loans | | | 232,619 | | | 238,224 |
| | | | | Total loans, gross | | | 1,699,502 | | | 1,701,541 |
| Allowance for loan losses | | | (31,036) | | | (30,843) |
| | | | | Total loans, net | | | 1,668,466 | | | 1,670,698 |
| Federal Home Loan Bank stock, at cost | | | 23,275 | | | 19,572 |
| Premises and equipment, net | | | 43,495 | | | 43,598 |
| Goodwill | | | 160,861 | | | 160,861 |
| Other amortizable intangibles | | | 3,229 | | | 3,640 |
| Bank owned life insurance | | | 51,433 | | | 50,938 |
| Other assets | | | 51,438 | | | 40,096 |
| | | | | Total assets | | $ | 2,940,513 | | $ | 3,021,025 |
| Liabilities: | | | | | | |
| Deposits | | | | | | |
| | | Retail | | $ | 170,156 | | $ | 174,731 |
| | | Commercial | | | 290,489 | | | 277,217 |
| | | Municipal | | | 10,913 | | | 77,909 |
| | | Personal NOW deposits | | | 148,359 | | | 139,517 |
| | | Business NOW deposits | | | 32,463 | | | 34,105 |
| | | Municipal NOW deposits | | | 112,184 | | | 241,995 |
| | | | | Total transaction accounts | | | 764,564 | | | 945,474 |
| | | Savings | | | 399,472 | | | 392,321 |
| | | Money market deposits | | | 408,473 | | | 427,334 |
| | | Certificates of deposit | | | 407,559 | | | 377,573 |
| | | | | Total deposits | | | 1,980,068 | | | 2,142,702 |
| Borrowings | | | 444,286 | | | 363,751 |
| Borrowings Senior Note | | | 51,497 | | | 51,496 |
| Mortgage escrow funds and other liabilities | | | 45,020 | | | 32,121 |
| | | | | Total liabilities | | | 2,520,871 | | | 2,590,070 |
| Stockholders’ equity | | | 419,642 | | | 430,955 |
| | | | | Total liabilities and stockholders’ equity | | $ | 2,940,513 | | $ | 3,021,025 |
| | | | | | | | | | | |
| Shares of common stock outstanding at period end | | | 38,198,686 | | | 38,262,288 |
| Book value per share | | $ | 10.99 | | $ | 11.26 |
| | | | | | |
(1) Certain amounts from prior periods have been reclassed to conform to current fiscal year presentation. |
| |
| Provident New York Bancorp and Subsidiaries |
| CONSOLIDATED CONDENSED STATEMENTS OF INCOME |
| (unaudited, in thousands, except share and per share data) |
| | | | | | | | |
| | | | | | | Quarter |
| | | Quarter Ended | | Ended |
| | | December 31, | | September 30, |
| | | 2010 | | 2009 | | 2010 |
| Interest and dividend income: | | | | | | |
| Loans and loan fees | | $ | 23,205 | | $ | 23,400 | | $ | 23,094 | |
| Securities taxable | | | 3,530 | | | 4,752 | | | 4,016 | |
| Securities non-taxable | | | 1,925 | | | 1,895 | | | 1,941 | |
| Other earning assets | | | 400 | | | 371 | | | 270 | |
| | | | 29,060 | | | 30,418 | | | 29,321 | |
| Interest expense: | | | | | | |
| Deposits | | | 1,642 | | | 2,790 | | | 1,677 | |
| Borrowings | | | 4,234 | | | 4,742 | | | 4,328 | |
| Total interest expense | | | 5,876 | | | 7,532 | | | 6,005 | |
| Net interest income | | | 23,184 | | | 22,886 | | | 23,316 | |
| Provision for loan losses | | | 2,100 | | | 2,500 | | | 2,250 | |
| Net interest income after provision for loan losses | | | 21,084 | | | 20,386 | | | 21,066 | |
| | | | | | | |
| Non-interest income: | | | | | | |
| Deposit fees and service charges | | $ | 2,767 | | $ | 2,993 | | | 2,695 | |
| Net gain on sales of securities | | | 4,202 | | | 2,388 | | | 2,940 | |
| Title insurance fees | | | 363 | | | 311 | | | 273 | |
| Bank owned life insurance | | | 494 | | | 554 | | | 491 | |
| Gain on sale of loans | | | 542 | | | 283 | | | 422 | |
| Investment management fees | | | 743 | | | 779 | | | 759 | |
| Fair value gain (loss) interest rate caps | | | 234 | | | 380 | | | (275 | ) |
| Other | | | 538 | | | 405 | | | 409 | |
| Total non-interest income | | | 9,883 | | | 8,093 | | | 7,714 | |
| | | | | | | |
| Non-interest expense: | | | | | | |
| Compensation and benefits | | | 11,228 | | | 10,264 | | | 11,440 | |
| Stock-based compensation plans | | | 279 | | | 452 | | | 338 | |
| Occupancy and office operations | | | 3,635 | | | 3,326 | | | 3,403 | |
| Advertising and promotion | | | 953 | | | 742 | | | 675 | |
| Professional fees | | | 1,062 | | | 834 | | | 1,208 | |
| Data and check processing | | | 642 | | | 550 | | | 587 | |
| Amortization of intangible assets | | | 412 | | | 493 | | | 432 | |
| FDIC insurance and regulatory assessments | | | 768 | | | 784 | | | 1,033 | |
| ATM/debit card expense | | | 393 | | | 554 | | | 347 | |
| Other | | | 1,897 | | | 1,895 | | | 1,899 | |
| Total non-interest expense | | | 21,269 | | | 19,894 | | | 21,362 | |
| | | | | | | |
| Income before income tax expense | | | 9,698 | | | 8,585 | | | 7,418 | |
| Income tax expense | | | 2,978 | | | 2,419 | | | 2,015 | |
| Net income | | $ | 6,720 | | $ | 6,166 | | $ | 5,403 | |
| | | | | | | |
| Per common share: | | | | | | |
| Basic earnings | | $ | 0.18 | | $ | 0.16 | | $ | 0.14 | |
| Diluted earnings | | | 0.18 | | | 0.16 | | | 0.14 | |
| Dividends declared | | | 0.06 | | | 0.06 | | | 0.06 | |
| Weighted average common shares: | | | | | | |
| Basic | | | 37,552,245 | | | 38,575,909 | | | 37,793,860 | |
| Diluted | | | 37,552,245 | | | 38,649,174 | | | 37,793,860 | |
| | |
| Selected Financial Condition Data: | | Three Months Ended |
| (in thousands except share and per share data) | | 12/31/10 | | 09/30/10 | | 06/30/10 | | 03/31/10 | | 12/31/09 |
End of Period | | | | | | | | | | |
| Total assets | | $ | 2,940,513 | | | $ | 3,021,025 | | $ | 2,963,706 | | $ | 2,935,956 | | $ | 2,917,789 |
| Loans, gross (1) | | | 1,699,502 | | | | 1,701,541 | | | 1,705,737 | | | 1,667,428 | | | 1,677,032 |
| Securities available for sale | | | 869,996 | | | | 901,012 | | | 878,370 | | | 888,994 | | | 851,028 |
| Securities held to maturity | | | 30,425 | | | | 33,848 | | | 40,452 | | | 43,675 | | | 46,501 |
| Bank owned life insurance | | | 51,433 | | | | 50,938 | | | 50,447 | | | 49,945 | | | 49,448 |
| Goodwill | | | 160,861 | | | | 160,861 | | | 160,861 | | | 160,861 | | | 160,861 |
| Other amortizable intangibles | | | 3,229 | | | | 3,640 | | | 4,072 | | | 4,524 | | | 4,996 |
| Other non-earning assets | | | 94,933 | | | | 83,694 | | | 85,398 | | | 87,811 | | | 88,976 |
| Deposits | | | 1,980,068 | | | | 2,142,702 | | | 1,961,005 | | | 2,006,953 | | | 1,869,643 |
| Borrowings | | | 495,783 | | | | 415,247 | | | 526,912 | | | 472,801 | | | 584,717 |
| Equity | | | | 419,642 | | | | 430,955 | | | 429,115 | | | 422,372 | | | 420,326 |
| Other comprehensive income related to investment | | | | | | | | | | |
| securities reflected in stockholders' equity | | | (2,932 | ) | | | 12,621 | | | 9,953 | | | 3,970 | | | 2,342 |
Average Balances | | | | | | | | | | |
| Total assets | | $ | 2,961,458 | | | $ | 2,919,961 | | $ | 2,928,626 | | $ | 2,918,953 | | $ | 2,886,880 |
| Loans, gross: | | | | | | | | | | |
| Real estate- residential mortgage | | | 400,229 | | | | 417,584 | | | 427,801 | | | 436,967 | | | 451,894 |
| Real estate- commercial mortgage | | | 606,701 | | | | 570,023 | | | 552,888 | | | 539,679 | | | 538,646 |
| Real estate- Acquisition, Development & Construction | | | 226,816 | | | | 227,165 | | | 222,958 | | | 212,454 | | | 202,864 |
| Commercial and industrial | | | 236,390 | | | | 243,691 | | | 236,275 | | | 234,356 | | | 239,698 |
| Consumer loans | | | 237,106 | | | | 239,908 | | | 243,484 | | | 248,134 | | | 252,354 |
| Loans total (1) | | | 1,707,242 | | | | 1,698,371 | | | 1,683,406 | | | 1,671,590 | | | 1,685,456 |
| Securities (taxable) | | | 692,346 | | | | 655,794 | | | 693,554 | | | 694,815 | | | 626,734 |
| Securities (non-taxable) | | | 221,802 | | | | 222,024 | | | 219,121 | | | 203,153 | | | 201,706 |
| Total earning assets | | | 2,628,815 | | | | 2,578,024 | | | 2,594,264 | | | 2,581,554 | | | 2,563,965 |
| Non earning assets | | | 332,643 | | | | 341,937 | | | 334,362 | | | 337,399 | | | 322,915 |
| Non-interest bearing checking | | | 470,873 | | | | 449,666 | | | 430,387 | | | 419,389 | | | 418,961 |
| Interest bearing NOW accounts | | | 317,876 | | | | 266,950 | | | 263,709 | | | 298,935 | | | 291,844 |
| Total transaction accounts | | | 788,749 | | | | 716,616 | | | 694,096 | | | 718,324 | | | 710,805 |
| Savings (including mortgage escrow funds) | | | 405,177 | | | | 424,012 | | | 413,315 | | | 380,600 | | | 372,911 |
| Money market deposits | | | 433,865 | | | | 421,989 | | | 428,612 | | | 428,605 | | | 397,710 |
| Certificates of deposit | | | 406,241 | | | | 415,059 | | | 467,360 | | | 446,301 | | | 477,377 |
| Total deposits and mortgage escrow | | | 2,034,032 | | | | 1,977,676 | | | 2,003,383 | | | 1,973,830 | | | 1,958,803 |
| Total interest bearing deposits | | | 1,563,159 | | | | 1,528,010 | | | 1,572,996 | | | 1,554,441 | | | 1,539,842 |
| Borrowings | | | 481,939 | | | | 486,060 | | | 481,460 | | | 500,226 | | | 485,759 |
| Equity | | | | 428,900 | | | | 430,862 | | | 424,221 | | | 422,129 | | | 424,338 |
| Selected Operating Data: | | | | | | | | | | |
Condensed Tax Equivalent Income Statement | | | | | | | | | | |
| Interest and dividend income | | $ | 29,060 | | | $ | 29,321 | | $ | 30,408 | | $ | 29,627 | | $ | 30,418 |
| Tax equivalent adjustment* | | | 1,036 | | | | 1,045 | | | 1,098 | | | 1,023 | | | 1,020 |
| Interest expense | | | 5,876 | | | | 6,005 | | | 6,210 | | | 6,693 | | | 7,532 |
| Net interest income (tax equivalent) | | | 24,220 | | | | 24,361 | | | 25,296 | | | 23,957 | | | 23,906 |
| Provision for loan losses | | | 2,100 | | | | 2,250 | | | 2,750 | | | 2,500 | | | 2,500 |
| Net interest income after provision for loan | | | | | | | | | | |
| losses | | | 22,120 | | | | 22,111 | | | 22,546 | | | 21,457 | | | 21,406 |
| Non-interest income | | | 9,883 | | | | 7,714 | | | 5,281 | | | 6,113 | | | 8,093 |
| Non-interest expense | | | 21,269 | | | | 21,362 | | | 20,741 | | | 21,173 | | | 19,894 |
| Income before income tax expense | | | 10,734 | | | | 8,463 | | | 7,086 | | | 6,397 | | | 9,605 |
| Income tax expense (tax equivalent)* | | | 4,014 | | | | 3,060 | | | 2,330 | | | 2,230 | | | 3,439 |
| Net income | | $ | 6,720 | | | $ | 5,403 | | $ | 4,756 | | $ | 4,167 | | $ | 6,166 |
| (1) Does not reflect allowance for loan losses of $31,036, $30,843, $31,021, $30,444 and $29,967 |
| * Tax exempt income assumed at a 35% federal rate |
| | | |
| | | Three Months Ended |
| | | 12/31/10 | | 09/30/10 | | 06/30/10 | | 03/31/10 | | 12/31/09 |
Performance Ratios (annualized) | | | | | | | | | | | |
| Return on Average Assets | | | 0.90 | % | | 0.73 | % | | 0.65 | % | | 0.58 | % | | 0.85 | % |
| Return on Average Equity | | | 6.22 | % | | 4.98 | % | | 4.50 | % | | 4.00 | % | | 5.76 | % |
| Non-Interest Income to Average Assets | | | 1.32 | % | | 1.05 | % | | 0.72 | % | | 0.85 | % | | 1.11 | % |
| Non-Interest Expense to Average Assets | | | 2.85 | % | | 2.90 | % | | 2.84 | % | | 2.94 | % | | 2.73 | % |
| Operating Efficiency Adjusted (2) | | | 70.59 | % | | 71.09 | % | | 66.91 | % | | 71.73 | % | | 65.40 | % |
Analysis of Net Interest Income | | | | | | | | | | | |
| Yield on Loans | | | 5.47 | % | | 5.48 | % | | 5.68 | % | | 5.59 | % | | 5.61 | % |
| Yield on Investment Securities- Tax Equivalent | | | 2.82 | % | | 3.16 | % | | 3.45 | % | | 3.45 | % | | 3.67 | % |
| Yield on Earning Assets- Tax Equivalent | | | 4.54 | % | | 4.67 | % | | 4.87 | % | | 4.82 | % | | 4.86 | % |
| Cost of Interest Bearing Deposits | | | 0.42 | % | | 0.44 | % | | 0.47 | % | | 0.57 | % | | 0.72 | % |
| Cost of Borrowings | | | 3.49 | % | | 3.53 | % | | 3.63 | % | | 3.64 | % | | 3.87 | % |
| Cost of Interest Bearing Liabilities | | | 1.14 | % | | 1.18 | % | | 1.21 | % | | 1.32 | % | | 1.48 | % |
| Net Interest Rate Spread- Tax Equivalent Basis | | | 3.40 | % | | 3.49 | % | | 3.66 | % | | 3.49 | % | | 3.39 | % |
| Net Interest Margin- Tax Equivalent Basis | | | 3.66 | % | | 3.75 | % | | 3.91 | % | | 3.76 | % | | 3.70 | % |
Capital Information Data | | | | | | | | | | | |
| Tier 1 Leverage Ratio- Bank Only | | | 8.89 | % | | 8.43 | % | | 8.75 | % | | 8.62 | % | | 8.85 | % |
| Tier 1 Risk-Based Capital- Bank Only | | | 247,504 | | | 240,230 | | | 244,299 | | | 239,050 | | | 243,955 | |
| Total Risk-Based Capital- Bank Only | | | 272,072 | | | 265,148 | | | 268,996 | | | 263,264 | | | 268,225 | |
Tangible Capital Consolidated (3) | | | 255,552 | | | 266,454 | | | 264,182 | | | 256,987 | | | 254,469 | |
| Tangible Capital as a % of Tangible Assets Consolidated (3) | | | 9.20 | % | | 9.33 | % | | 9.44 | % | | 9.28 | % | | 9.25 | % |
| Shares Outstanding | | | 38,198,686 | | | 38,262,288 | | | 38,628,477 | | | 38,861,477 | | | 39,061,035 | |
Shares Repurchased during qtr(open market) | | | 82,602 | | | 364,000 | | | 233,000 | | | 316,723 | | | 602,200 | |
| Basic weighted common shares outstanding | | | 37,552,245 | | | 37,793,860 | | | 38,086,535 | | | 38,188,191 | | | 38,575,909 | |
| Diluted common shares outstanding | | | 37,552,245 | | | 37,793,860 | | | 38,086,579 | | | 38,209,766 | | | 38,649,174 | |
| Basic Earnings per common share | | $ | 0.18 | | | 0.14 | | | 0.12 | | | 0.11 | | $ | 0.16 | |
| Diluted Earnings per common share | | | 0.18 | | | 0.14 | | | 0.12 | | | 0.11 | | | 0.16 | |
| Dividends Paid per common share | | | 0.06 | | | 0.06 | | | 0.06 | | | 0.06 | | | 0.06 | |
| Book Value per common share | | | 10.99 | | | 11.26 | | | 11.11 | | | 10.87 | | | 10.76 | |
| Tangible Book Value per common share (3) | | | 6.69 | | | 6.96 | | | 6.84 | | | 6.61 | | | 6.51 | |
Asset Quality Measurements | | | | | | | | | | | |
| Non-performing loans (NPLs): non-accrual | | $ | 30,690 | | | 21,413 | | | 21,985 | | | 21,210 | | $ | 21,432 | |
| Non-performing loans (NPLs): still accruing | | | 5,536 | | | 5,427 | | | 7,069 | | | 6,464 | | | 5,262 | |
| Other Real Estate Owned | | | 3,585 | | | 3,891 | | | 3,302 | | | 2,466 | | | 2,332 | |
| Non-performing assets (NPAs) | | | 39,811 | | | 30,731 | | | 32,356 | | | 30,140 | | | 29,026 | |
| Troubled Debt Restructures still accruing | | | 17,581 | | | 16,047 | | | 414 | | | 416 | | | 419 | |
| Net Charge-offs | | | 1,907 | | | 2,428 | | | 2,173 | | | 2,023 | | | 2,583 | |
| Net Charge-offs as % of average loans (annualized) | | | 0.45 | % | | 0.57 | % | | 0.52 | % | | 0.48 | % | | 0.61 | % |
| NPLs as % of total loans | | | 2.13 | % | | 1.58 | % | | 1.70 | % | | 1.66 | % | | 1.59 | % |
| NPAs as % of total assets | | | 1.35 | % | | 1.02 | % | | 1.09 | % | | 1.03 | % | | 0.99 | % |
| Allowance for loan losses as % of NPLs | | | 86 | % | | 115 | % | | 107 | % | | 110 | % | | 112 | % |
| Allowance for loan losses as % of total loans | | | 1.83 | % | | 1.81 | % | | 1.82 | % | | 1.83 | % | | 1.79 | % |
(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income. As in the case of net interest income, generally, net interest income as utilized in calculating the efficiency ratio is typically expressed on a tax-equivalent basis. Moreover, most institutions, in calculating the 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: |
| | | 12/31/10 | | | 09/30/10 | | | 06/30/10 | | | 03/31/10 | | | 12/31/09 | |
| Total Assets | | $ | 2,940,513 | | | 3,021,025 | | | 2,963,706 | | | 2,935,956 | | $ | 2,917,789 | |
| Goodwill and other amortizable intangibles | | | (164,090 | ) | | (164,501 | ) | | (164,933 | ) | | (165,385 | ) | | (165,857 | ) |
| Tangible Assets | | $ | 2,776,423 | | | 2,856,524 | | | 2,798,773 | | | 2,770,571 | | $ | 2,751,932 | |
| Stockholders' equity | | | 419,642 | | | 430,955 | | | 429,115 | | | 422,372 | | | 420,326 | |
| Goodwill and other amortizable intangibles | | | (164,090 | ) | | (164,501 | ) | | (164,933 | ) | | (165,385 | ) | | (165,857 | ) |
| Tangible Stockholders' equity | | $ | 255,552 | | | 266,454 | | | 264,182 | | | 256,987 | | $ | 254,469 | |
| Outstanding Shares | | | 38,198,686 | | | 38,262,288 | | | 38,628,477 | | | 38,861,477 | | | 39,061,035 | |
| Tangible capital as a % of tangible assets (consolidated) | | | 9.20 | % | | 9.33 | % | | 9.44 | % | | 9.28 | % | | 9.25 | % |
| Tangible book value per share | | $ | 6.69 | | | 6.96 | | | 6.84 | | | 6.61 | | $ | 6.51 | |
CONTACT:
Provident New York Bancorp
Paul A. Maisch, EVP & Chief Financial Officer
Miranda Grimm, VP & Controller
845-369-8040
